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.
Sarkozy plays smart politics with EDF 16 Jun 2004 France s finance minister is being populist by postponing EDF s privatisation, just as he was when he delayed Alstom's day of reckoning. But there s a difference: in EDF's case, Sarkozy's populism will probably lead to a better outcome for the market.
Kremlin turns the screw on Yukos 15 Jun 2004 That s possible but doesn't seem rational. More likely, Moscow is just trying to squeeze all it can from Yukos. Moscow appears to be ruling out any compromise in their tax dispute, making some think it wants to drive the oil company into bankruptcy.
Khodorkovsky, not Yukos, faces show trial 8 Jun 2004 The distinction is important: some investors fear the oil company will receive the same summary treatment as its majority owner. That s unlikely. President Putin s dispute with the oligarch was always political.
Khobar could bring oil prices down 1 Jun 2004 The Saudi government has serious problems, but these should not have any effect on oil production. Indeed, the oil supplydemand imbalance is easing. As grim reality catches up with panic psychology, oil prices could start to fall.
Saudi attacks highlight security failings 31 May 2004 This weekend s terrorist atrocity raises fresh questions over Saudi Arabia s ability to protect expat workers. With four major attacks in a little more than a year, the possibility of an exodus is growing.
Yukos looks cheap 28 May 2004 The Russian oil company has been asked to pay a $3.4bn tax bill. And fears of bankruptcy have driven its shares down. Yukos' fate ultimately does depend on the Kremlin s will. But it's not likely to go over the edge.
National Grid should return more cash 20 May 2004 The power distribution company increased its dividend by 15% and promises to increase payout by 7% until 2008. But it could easily do more especially if it sells its gas distribution networks. It should pay at least part of proceeds to investors.
Opec’s quota rise won’t cool the oil price much 19 May 2004 With the oil prices hovering around $40, the oil cartel has little choice but to spring into action. The snag is that actual supply of oil can t go much above current levels.
EDF over a barrel in Italy – again 19 May 2004 The French electricity giant wants to delay its commitment to buy Fiat and friends out of Edison at inflated prices. If it wants to get the Italians on side, it is likely going to have to pay over the odds.
Repsol looks cheap 12 May 2004 Concerns about Argentina and uncertainty about the future of Gas Natural have weighed on the Spanish oil and gas company. But Repsol has come a long way since it blazed a trail in Argentina with YPF. Exploration and production look promising too.
Oil companies look undervalued 10 May 2004 Crude prices might be at 13year highs, but shares in oil companies are discounting a longterm price of just $21 per barrel. But that looks too low. The likes of Exxon Mobil and Repsol look cheap.
Oil prices might be headed for a mini-correction 5 May 2004 Financial investors have been piling into oil attracted by fundamentals and lack of attractive returns elsewhere. A rise in interest rates might cool them off. Even so, Opec will probably ensure it is a shallow correction.
Shell in $2bn buyback 29 Apr 2004 The buyback and the aboveexpectations first quarter results are the first pieces of good news from the troubled oil giant this year. But shareholders need to keep up the pressure. The AngloDutch group still doesn't appreciate how much it needs to change.
BP plans $5bn chemicals IPO 27 Apr 2004 The move makes sense the basic chemicals unit has been dogged by poor returns. But that also means floating it might be hard. Italy's Eni has struggled to find any buyers for its chemicals arm.
Total eyes Sibneft stake – report 26 Apr 2004 The French oil company doesn t necessarily need a deal it has better growth prospects than its rivals. But Total is right to strike opportunistically, while Shell is in the dumps, and the Washington/Moscow conflict keeps the US majors offside. But Total is right to strike opportunistically, while Shell is down and the US majors are out of favour due to political tensions over Iraq.
Is Yukos about to go bust? 21 Apr 2004 S&P thinks the risk is significant after a court froze its assets. But there are reasons to believe it is not in imminent danger. For the brave investor, shares in the Russian oil company look cheap.
Shell stops short of its much-needed revolution 19 Apr 2004 The oil giant has ousted the CFO and plans to speed up its corporate governance review. That's good news. But Shell really needs a more thoroughgoing reform of its dualheaded introverted culture if it is to close the valuation gap with BP.
CGE to raise £2bn to buy power stations – report 7 Apr 2004 The group has changed tack. It will now offer cash in addition to bonds for distressed UK power stations. This will increase its bids attractiveness, but success for CGE is still a long shot due to rising electricity prices.