Glencore’s Hong Kong exit sends message to Aramco 31 Oct 2017 The secondary listing touted as a gateway to Chinese investors during the miner's 2011 IPO never lived up to the hype. The same goes for Coach and others, who could be forgiven for following Glencore out. It's also a good sign the Saudi oil titan can cross Hong Kong off its list.
Big Oil’s well-plugged holes do their job, for now 27 Oct 2017 Exxon, Chevron and Conoco all posted decent earnings for the third quarter. And they’re ramping up production - even Conoco, despite cutting capex. That’s proof their endeavors to adapt to $50-a-barrel oil are paying off. Improving from here, though, could prove tricky.
Saudi utopia plan is so bonkers it just might work 26 Oct 2017 The nation’s crown prince plans to build NEOM, a shining $500 bln city on the Red Sea where entrepreneurs draft the rules and robots outnumber people – and which one day will be a publicly listed company. Dreamers are welcome, but he'll need capable doers above all else.
Chinese oil major CNOOC tests limits of self-help 25 Oct 2017 Results show the Chinese state-owned oil giant has clambered out of a hole. An ill-timed 2013 acquisition of Canada's Nexen forced relentless cost-cutting which is now paying off. Stubbornly weak crude prices, and China's electric vehicle push, could cap investors' appreciation.
Cox: Aramco clouds Saudi’s coming-out party 24 Oct 2017 The kingdom’s crown prince is hosting a mini-Davos this week to showcase Riyadh's charms as a financial center. From Masayoshi Son to Steve Mnuchin, participants may mostly avoid questions about one of his key goals: the touted but uncertain market debut of oil giant Aramco.
Noble’s bid for survival takes humbling turn 23 Oct 2017 The stricken commodities trader is offloading oil-liquids, one of the better bits of its shrinking business. A long list of terms, however, suggests buyer Vitol capitalized on the distress. Efforts to raise $1 bln more to pay off debt amid a big loss could face similar hurdles.
Mistimed writedowns lesser of mining M&A evils 18 Oct 2017 Rio Tinto has been accused by the SEC of hiding the plunging value of a coal mine it bought in 2011. The charges are serious, but at least accounting procedures are fairly clear. If only there were rules that could prevent mining bosses getting carried away during M&A upswings.
China is third-best option for Saudi Aramco 16 Oct 2017 With its $2 trln public offering in the balance, the Saudi oil giant may bring in a Chinese investor. That would provide cash the state doesn’t urgently need. The other perks of an international IPO, like regional influence and financial discipline, aren’t to be found in Beijing.
U.S. oil production squabble misses price point 12 Oct 2017 Tycoon Harold Hamm says aggressive government forecasts skew where Texas crude trades. Inventories are falling, but it's a weak trend. Shale momentum will be hard to stop and Shell's electric-car bet sends a fresh signal on future demand. Expect about $50 a barrel to be the norm.
More for China than London in Russian hydro IPO 5 Oct 2017 Oleg Deripaska’s En+, which controls aluminium outfit Rusal, aims to raise $1.5 bln in an LSE and Moscow listing. It touts a green model, but public investors will have little say. The cornerstone backer, a partner of the PRC group that just bought into Rosneft, may do better.
Agarwal’s Anglo wager is risky way to plot breakup 21 Sep 2017 The Indian billionaire is doubling down. Paying as much as 1.5 billion pounds to raise his stake in the UK-listed miner to 20 pct may be a way of trying to force a breakup. But unpredictable commodities prices and South Africa’s volatile politics could scupper any such plans.
Tata Steel JV pays ThyssenKrupp four dividends 20 Sep 2017 A historic joint venture with India's Tata will unshackle the German group from the fickle, capital-intensive steel industry. Lower pension liabilities, a share of synergies worth 3 bln euros and a more robust balance sheet are further benefits. Workers will fare better too.
Harvey exposes flaws in U.S. energy-dominance plan 28 Aug 2017 Trump aims to boost American fuel exports by fostering coal and oil drilling. But the deluge in Texas has disrupted 16 percent of the nation’s refining capacity. Tackling climate change and hardening energy infrastructure should take priority over the president’s pet projects.
BHP uses commodity rally to fortify position 22 Aug 2017 The Anglo-Australian miner swung to an annual net profit of $5.9 bln. Plans to exit a troubled shale business and hold off on investing in potash chime with demands from Elliott, an activist hedge fund. The compromise, plus more focus on financial strength, looks sensible.
Calpine $5.6 bln buyout puts chips on gas hegemony 18 Aug 2017 A consortium is taking the heavily indebted electricity company private at a 51 pct premium. It’s a bet natural gas will dominate the nation’s power grid. Problems with other sources justify that for now. Longer term, stagnant electricity prices and usage makes it a big risk.
Glencore’s debt purge creates enviable problems 10 Aug 2017 Surging commodity prices are helping Chief Executive Ivan Glasenberg to slash debt faster than planned and restore profitability. That gives the mining giant scope to hand more money back to investors or make bigger bets on growing demand for resource-hungry electric vehicles.
Wall Street’s resolve overcomes even Pyongyang 9 Aug 2017 U.S. investors shrugged off possible Armageddon just as easily as protectionism and D.C. dysfunction. President Trump’s blunt nuclear warning might have been a fresh reason to rush into gold or gunsmiths. Mr. Market, however, rarely foretells geopolitical or economic threats.
Sydney meets Shandong in $2.5 bln share sale 4 Aug 2017 Yancoal is raising more than 10 times its own market cap to buy Rio Tinto’s coal unit. To get this done, the indebted small-cap had to bring in some unusual underwriters. The result is a novel blend of Australian public-company process and Chinese state capitalism.
Rio Tinto’s new problem: What to do with its cash 2 Aug 2017 The miner more than doubled earnings in the first half and promised to return $3 bln to shareholders in buybacks and dividends. Higher prices and asset sales helped reduce debt to its lowest level since 2010. After years of deleveraging, spare cash is an unusual dilemma for Rio.
Noble turns to radical medicine 26 Jul 2017 Banks gave the stricken commodity trader a few months’ reprieve. Now its new boss is selling key energy units, writing down controversial assets and planning $1 bln more in asset sales. There is a long way to go but at least he is tackling Noble’s pressing liquidity problem.