National Grid sells gas networks for £5.9bn 31 Aug 2004 The power transmission firm will return £2bn to investors via a special dividend as well increasing its ordinary dividend. Not only has the Grid got a good price in the disposal; with such a large return of capital, reinvestment risk is fading.
Grid auction had interesting twist 31 Aug 2004 By keeping bidders guessing over the number of regional gas companies it was selling, the UK group maintained competitive tension. The result was an unexpectedly high £5.9bn haul.
Opec prefers to take the money and run 30 Aug 2004 But the Opec s stance has its logic. Expect prices to stay north of $30 in the medium term. The oil cartel s refusal to pump more oil into the market may seem irrational, considering predictions of soaring demand.
Foolish speculation driving oil prices 24 Aug 2004 Sure, 2004 demand has been slightly higher than expected and supply a little lower. But not enough to justify a 45% price rise. Speculators don t have to worry too much about reality. But the price is high enough for them to be getting nervous.
Yukos hangover won’t be short-lived 24 Aug 2004 Russia has many plus points. But if Yukos is anything to go by, crisis management and an efficient legal system aren t among them. Even if the oil giant's difficulties are resolved soon, there is still likely to be lasting damage to investor confidence.
Gazprom threat does Russia no favours 19 Aug 2004 PostYukos, the government needs a PR coup. And what better than lifting restrictions on foreign ownership of Gazprom stock? Instead, an MP's demand to investigate schemes that allow foreigners to own stock indirectly has spooked investors.
E.on a better bet than RWE 12 Aug 2004 Both German utilities have spent the past year cleaning up after misguided acquisition sprees. Shares have rocketed. But RWE is already laying out acquisition plans, while E.on faces a selfimposed moratorium until 2006. Bet on E.on until then.
British Energy shareholders threaten rescue 4 Aug 2004 But they are unlikely to succeed. Bondholders are running the show at the UK generator. They want to recut the rescue package because the company is doing better. But they're unlikely to succeed. Bondholders are running the show at the UK generator. Denying reality will only make shareholder s situation worse.
US security fears push oil in wrong direction 2 Aug 2004 It seems every day the oil price hits a new record. But the latest spike doesn't make sense. An AlQaeda style attack would lead to lower, not higher prices.
International Power in $5.5bn deal 30 Jul 2004 The UKbased powergenerator s jv with Mitsui is buying plants on four continents from troubled Edison International. But international power generation remains an unproven strategy. Just look at IP's problems in the US.
Shell settles probes into oil reserves 29 Jul 2004 Ramping up exploration efforts may help. But Shell will probably have to look at acquisitions too. That gets rid of one problem for the oil giant. But it doesn't solve the underlying problem of falling production.
Oil supermajors lose ground to smaller rivals 23 Jul 2004 ConocoPhilips may become the latest middling oil company to do a big deal in Russia, while the likes of ExxonMobil are left out in the cold. That s partly because smaller players are becoming more aggressive. The advantages of scale are becoming less clear cut.
Yukos saga takes a nasty turn 21 Jul 2004 By putting the Russian oil company s main operating asset on the block, Moscow is digging itself deeper into a hole. The Kremlin might still minimise the damage if it goes for fair value. Otherwise, Russia will be hardpressed to attract investment.
Edison minorities should watch out 20 Jul 2004 The chances of investors in the Italian power group being taken out at a juicy premium look slim. EdF wants to delay the put options that might trigger a mandatory offer. But even if the puts were exercised, it could fight a full buyout.
Shell ought to think radical 14 Jul 2004 The oil and gas giant has now hired two investment banks to beef up its corporate governance review. It is a sign that Shell might actually consider overhauling its cumbersome doubleheaded structure. That would be the cleanest solution.
Oil majors heading for record Q2. 8 Jul 2004 It doesn t get much better than the second quarter for the oil industry: soaring oil and gas prices and stellar refining margins. Investors have been bidding up shares, but momentum may stall. The chance to ride the rally indiscriminately has probably passed.
Putin should come clean on Yukos 6 Jul 2004 The Russian government keeps sending conflicting signals about what it plans to do with the country s largest oil company. That may suit the Kremlin s purposes to some extent, but it is wreaking havoc on the Russian market.
Shell gets a wake-up call from investors 28 Jun 2004 The oil giant managed to pull through all its resolutions at the AGM, but not without embarrassing protest votes. Even so, Shell can t ignore calls for change for much longer.
National Grid looking at £1bn broadcast tower buy 25 Jun 2004 The UK electric network wants to add 3,500 mobile phone and TV masts to its existing stable. The price may appear a bit punchy. But given some reasonable synergies and the company s track record, it would be a good buy.
British Energy turns on low power recovery 17 Jun 2004 The nuclear generation group is near the end of its restructuring and no longer teetering on the edge of bankruptcy. But investors are ignoring reality the company won t generate much cash for a long, long time.