Exxon and gas markets tell different stories 26 Apr 2024 CEO Darren Woods denies fossil fuels are in decline, thanks to growing populations and rising petrochemicals demand. Yet a glut of natural gas – which reined in quarterly profit at Exxon and rival Chevron – is a real problem, and one that could weigh on prices for a long time.
Anglo American has grounds to play hard to get 25 Apr 2024 The London-listed miner has received an all-share $39 bln bid from BHP. Anglo’s recent woes explain why, but its jumble of assets could be worth more. If boss Duncan Wanblad can show as much by outlining a plan B, he may yet see its $149 bln rival off – or extract a higher offer.
Shell’s value gap is more strategy than geography 19 Apr 2024 CEO Wael Sawan may shift the $230 bln UK oil giant’s listing to New York if a discount to rivals like Exxon Mobil persists beyond 2025. But Shell’s shifting priorities, slower growth, and unreliable dividends weigh on its valuation. Those factors defy a superficial fix.
Spain’s utility saga calls for tough balancing act 18 Apr 2024 The UAE wants to buy 40% of 22 bln euro Naturgy from its private equity owners. That would usually require a full takeover, but Madrid has form on protecting key infrastructure. Spain will have to balance its desire to retain control with the need not to scare its bidder away.
Prysmian finds sparky US fix for dim cable outlook 15 Apr 2024 The world’s biggest maker of telco and power lines is buying a cash-rich US rival. At $4 bln, the deal is not cheap, and heavy investment in grids has slowed. Still, adding heft to the more attractive North America market should improve the $15 bln Italian company’s prospects.
Next Chinese trade war could benefit the planet 8 Apr 2024 As Beijing floods the world with cheap green goods, the West will put up trade barriers. That will delay the energy transition in the United States and EU. But the glut of EVs, solar panels and the like will speed it up in China and much of the Global South.
AI’s power surge short-circuits longer-term plans 1 Apr 2024 Data centers account for 2.5% of the US grid, and machine learning is supercharging growth. Where and how to build megaplexes consuming as much electricity as a small nuclear plant are the immediate problems, but they’re solvable. Calculating future demand is the real conundrum.
Eni’s green shoots are taking time to blossom 28 Mar 2024 Italy’s $53 bln energy major trades at a discount to rivals. An overhang from Rome’s potential stake sale and falling gas prices are drags. But CEO Claudio Descalzi’s plan to raise cash by spinning off energy transition-focused business units is also yet to fully shape up.
Europe’s green giant is focusing on safer bets 21 Mar 2024 Iberdrola is upping investment on ageing power grids. The $79 bln Spanish utility is also buying out US unit Avangrid and allocating its biggest chunk of capex to the States. Both bets look likelier to pay off than renewable power and geographies with less generous subsidies.
Like Rome, oil demand won’t be destroyed in a day 18 Mar 2024 Oil producers attending the big industry confab in Houston this week recognize they are under pressure. US firms are merging; Saudi is reinventing itself. Like in any dwindling empire, many leaders will want to take over rivals. Rewarding investors with cash is a better strategy.
RWE has a way out of its valuation hole 14 Mar 2024 The $26 bln German power utility has lost 22% of its market value this year. Low gas prices, higher rates and a lingering presence in polluting lignite are reasons why. The first two ought not to persist as headaches, and the last is something RWE could do more about.
EIB backing would add spark to EU mini-nuclear bid 1 Mar 2024 Europe’s bid to develop smaller, cheaper nuclear reactors as part of its plan to cut carbon emissions needs cash and political support. European Investment Bank financing for next-generation projects would make a difference. Even so, green benefits may take years to materialise.
The green agenda’s best shot at a revival 13 Feb 2024 Economic distress prompted by globalisation undermines support for the energy transition, climate change economist Valentina Bosetti tells The Exchange podcast. That matters as key US and EU elections approach. Using proceeds from carbon taxes to address inequality is paramount.
BHP and Rio take competition out of going green 9 Feb 2024 The giant miners are teaming up to try and decarbonise steel production. Cutting the 8% of global emissions the current process belches out is key to saving the planet. The collaboration can help Australia keep up too. It makes this unusual setting aside of rivalry doubly smart.
Orsted revival requires more than belt-tightening 7 Feb 2024 The $23 bln Danish group cut its 2030 power capacity target and cancelled dividends after facing $4 bln of US impairments. For investors, it’s better than an equity raise. But an Orsted share-price recovery hinges on regaining their trust – and expected rate cuts materialising.
Financial fallout is hardwired into new nuclear 26 Jan 2024 France’s EDF wants help with the costs of its Hinkley Point C plant, which now exceed 30 bln pounds. Britain can say no, but needs the power. Globally nuclear capacity is supposed to treble by 2050, but future investor, state and customer spats on overruns look inevitable.
Time for EU to assist its solar panel industry 17 Jan 2024 Meyer Burger’s stock tanked 35% after it threatened to shut Europe’s biggest photovoltaic plant unless it gets German incentives. Stuck between US subsidies and cheap Chinese products, continental players are weak. Turning support for fossil fuels into green aid would help.
Green backlash will spread to European Parliament 3 Jan 2024 Pro-environment parties risk losing clout in June’s pan-EU vote. That will reinforce a strengthening bond between conservatives and far-right forces wary of the industrial and social cost of the clean transition. The EU’s ambitious Green Deal will get a paler hue.
Capital Calls: Eni’s green sale 22 Dec 2023 Concise views on global finance: The Italian energy major’s 10 bln euro valuation for its retail-and-renewables arm Plenitude is more likely to be recreated or exceeded if it avoids a rushed listing.
Green investors will learn the art of stockpicking 21 Dec 2023 Wind and solar stocks had a torrid 2023, as stars like Orsted crashed. But renewables investment is strong, input cost inflation is abating and rates may have peaked. Investors able to pick developers in the right sector, or suppliers in the right regions, may find bargains.