Energy

Big Oil’s generosity has limited shelf life

29 July 2021

Royal Dutch Shell and Total will return billions of dollars to investors. High crude prices mean they can cut debt, invest in green energy and crank up payouts. Such largesse may get harder given growing pressure to cut emissions. Prudent payouts will limit future disappointment.

BHP’s oil exit would be better sooner than later

21 July 2021

The mega-miner is reported to be mulling a $15 bln sale of its petroleum arm. The subsidiary’s status as a profit engine amid rising energy prices makes it a tough decision. But even if done at a knock-down rate, CEO Mike Henry can burnish BHP’s allure with oil-hating investors.

Capital Calls: Chinese hacking, Tencent

19 July 2021

Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.

Capital Calls: Intel, SPAC lobby

16 July 2021

Concise views on global finance: Buying GlobalFoundries would boost Intel’s ambitions to make chips for other firms, but spinning it off afterward might please investors more; a new D.C. group sets up shop to defend the blank-check craze.

Tony Hayward’s SPAC suits green fans and amnesiacs

15 July 2021

Ten years after floating his last shell company, the ex-BP boss has launched a new $175 mln vehicle. A solid plan to invest in the energy transition is promising. Investors who lost 90% of their capital after Hayward bought Genel Energy will hope he has learned from his mistakes.

Capital Calls: Online fashion retail

15 July 2021

Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.

Car-battery SPAC deal is joyride at electric price

13 July 2021

U.S. auto charge maker SES Holdings is going public via a merger with Robert Friedland’s blank-cheque vehicle at a $3.3 bln valuation. That’s chunky given a controlling founder and zero near-term sales. Investors must hope big backers like General Motors help swerve potholes.

EU carbon border levy limbers up for a soft launch

13 July 2021

The European Commission will this week set out plans for making companies that export goods to the bloc incorporate the rising cost of carbon. It’s likely to pull its punches. That’s not ideal, but even a watered-down levy would still set an important precedent.

Cairn and India have a third option in tax fight

8 July 2021

Freezing of the country’s Paris properties underscores frustration at New Delhi’s refusal to pay a $1.7 bln arbitration award. India can avoid further embarrassment and escape paying in full by letting Cairn invest in new projects. But that’s only possible if it concedes defeat.

Mukesh Ambani the chameleon will easily go green

24 June 2021

After building the world’s second biggest mobile-data carrier and India’s top retailer, Asia’s richest man is ready to turn his $200 bln Reliance into a renewable energy major. A track record of impressive pivots gives it a decent chance of success, and merits a higher valuation.

UAE takes relaxed view of Deripaska sanctions risk

24 June 2021

Mubadala has bought 2.6% of En+ from the Russian oligarch’s ex-wife. The $243 bln Abu Dhabi fund is banking on the green strategy of the aluminium and energy group, which has taken steps to curb Oleg Deripaska’s influence. Still, the UAE is taking a punt that these controls work.

Capital Calls: HSBC, MRNA scramble, Cable project

18 June 2021

Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.

Green megalomania renews $80 bln Congo hydro dream

18 June 2021

Aussie mining magnate Andrew Forrest is behind a fresh push to turn the African river’s vast power into energy. Dam-building is a fool’s errand, though, and his Fortescue’s plan to produce hydrogen for export may not stack up financially. Less bombastic alternatives are better.

Capital Calls: Corporate America blowback

15 June 2021

Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.

Capital Calls: U.S. malls are a tale of two REITs

14 June 2021

Concise views on global finance: Shopping center operator Washington Prime filed for bankruptcy protection, but the outlook is a bit rosier for premium mall owners.

Shell’s U.S. rethink betrays lack of wiggle room

14 June 2021

The Anglo-Dutch driller may sell assets worth $10 bln in Texas. Not so long ago the U.S. Permian Basin was a key oil major growth area, but now Shell is under pressure to cut emissions. Restricting carbon while earning a financial return is increasingly determining strategy.

Greener Acciona comes with stiff family discount

11 June 2021

The $9 bln Spanish group’s valuation is yet to reflect the potential uplift from spinning off its renewables unit. That may be because the clan that owns Acciona will also control the new entity. Even so, investors may warm to the fact it could be worth more than its parent.

Capital Calls: Biden’s Big Corn battle

11 June 2021

Concise views on global finance: The U.S. president is caught between oil refiners and farmers in biofuel mandate.

Big Smoke offers Big Oil tips to avoid dodo status

9 June 2021

Fat dividends supported tobacco shares even as regulators focused on health risks. The outperformance of Philip Morris suggests investors like speedy pivots. Better still, hydrocarbon producers’ switch to green energy looks an easier ESG sell than tobacco substitutes.

Danish hydrogen adds hygge to market green malaise

7 June 2021

Green Hydrogen Systems is planning a Copenhagen float that will value the electrolyser maker at $500 mln. Of late, pulled IPOs reflect investor scepticism about so-so renewable energy listings. The green gas’s key role in cutting EU carbon emissions may make this a comfier fit.