Energy

Capital Calls: Adobe’s lose-lose Figma bind

24 Feb 2023

Concise views on global finance: Shareholders in the $160 bln design technology firm seem to have decided that the only thing worse than doing its blockbuster deal for rival Figma is losing it.

Ukraine’s long shadow on business and geopolitics

23 Feb 2023

It’s been 12 months since Russian President Vladimir Putin’s bloody invasion. In this Viewsroom podcast, Breakingviews columnists discuss how energy markets have changed for good, how defence companies are benefiting, and another potential conflict troubling CEOs and investors.

Capital Calls: World Bank, Bumble, Wood Group

23 Feb 2023

Concise views on global finance: The U.S. picks ex-Mastercard boss Ajay Banga to run the multilateral development bank; while the dating app’s shares are down, private equity owner Blackstone is still in the money; the UK oil services group has turned down three bids from Apollo.

UAE gas IPO’s $50 bln valuation looks like a floor

22 Feb 2023

The Emirates’ energy giant ADNOC is selling at least 4% of its gas processing arm via an Abu Dhabi listing. As with Saudi Aramco, buyers will have to put up with minimal say on strategy. Unlike Aramco’s IPO, the mooted $50 bln valuation may be an underestimate.

Energy transition’s $12 bln deal becomes forex bet

22 Feb 2023

Brookfield and MidOcean have reduced their offer for Australia’s coal and gas-heavy Origin Energy, but only by 1%. Large investors also will be paid partly in U.S. dollars. If exchange rates move only slightly, it would more than compensate them for the price cut.

Chevron’s CEO short-termism has benefits

13 Feb 2023

The $330 billion oil giant may extend head Mike Wirth’s contract beyond guardrails. He’s focused on fossil fuels, suggesting Chevron doesn’t plan to pivot. But deals are on the horizon, including maybe with a European firm. His discipline could make him the last one standing.

UK bailout has energy bosses walking on eggshells

13 Feb 2023

Power suppliers like Centrica took billions of pounds of government cash to help customers pay high bills. That leaves them open to charges they pocketed gains and handed losses to taxpayers. For an industry intertwined with the state, pay restraint is vital to self-preservation.

Hydrogen is elemental to U.S.-EU green compromise

10 Feb 2023

Joe Biden’s Inflation Reduction Act has raised fears of a transatlantic subsidy spat. The sustainably produced version of hydrogen may be a way to de-escalate tensions. Because it’s a potential jobs engine rather than a current one, both sides have scope for a face-saving deal.

IMF’s outlook on Russia is too rosy to be true

10 Feb 2023

The International Monetary Fund expects the Russian economy to avoid a recession this year after contracting by 2.2% in 2022. That is much more optimistic than Moscow’s own forecasts. Unless oil prices stage an improbable rally, investors should trust the locals’ gloomier view.

TotalEnergies’ India squall hits at a tricky time

8 Feb 2023

France’s $154 bln group has put a hydrogen project with Gautam Adani on hold as he battles short-seller allegations. Total’s Indian exposure is bearable. But it highlights green execution risk just as investors question companies trying to combine renewables and fossil fuels.

Brookfield’s $13 bln climate power play may trip

8 Feb 2023

The asset manager and partner MidOcean want to cut their offer price for Origin Energy, AFR reports. Gas rules are in flux and shares 20% off the bid, supporting a reset, but the target is boosting its earnings outlook. Too much resistance risks short-circuiting a good thing.

Capital Calls: SoftBank, BP

7 Feb 2023

Concise views on global finance: Masayoshi Son’s $69 bln technology investor is out of ammunition when it needs it most; the $108 bln British oil group’s pledge to pump more of the fossil fuel may not boost its lowly valuation.

China energy rethink can keep Europe warm

7 Feb 2023

A post-Covid economic rebound will increase Beijing’s appetite for liquefied gas. Yet a government push to use more coal and higher imports of pipeline gas from countries like Russia should keep demand 14% below a 2021 peak. That could ease the energy pain for gas-hungry Europe.

Green subsidy race may be what the world needs

6 Feb 2023

High carbon taxes would be the best way to combat climate change. In their absence, subsidies are a good second best. As the global elephants – the U.S., EU and China – roll out financial aid, the key will be to ensure some fair play so others don’t get trampled, says Hugo Dixon.

China ban would slow, not halt, Western solar push

3 Feb 2023

Reacting to the chip war, Beijing may ban the export of technology for making solar panels, a $235 bln sector it currently dominates. Yet the West already has green energy know-how. Creating a rival industry without Chinese expertise may be slower and costlier but not impossible.

Big Oil mega-deals would put investors on the spot

2 Feb 2023

Shell and BP are printing money but have rock-bottom valuations. Punts by U.S. giants Exxon Mobil or Chevron are financially viable, if politically tricky. European shareholders may face a tough choice: sell out to a less green rival, or hope that risky renewable bets pay off.

Gautam Adani’s crisis will hit India hard

2 Feb 2023

The Indian magnate’s sprawling empire has lost over $100 bln of market value after a short-seller made accusations of fraud. In this Viewsroom podcast, Breakingviews columnists explain why the situation will narrow Adani’s financing options, limiting his infrastructure ambitions.

Italy may hold key to unlock EU green subsidies

1 Feb 2023

Europe’s response to the U.S. green-subsidy surge now hinges on tapping existing budgets, rather than new money. Ursula von der Leyen wants to channel unspent pandemic billions into tax credits and tweak state aid. Italy’s Giorgia Meloni may be the one to broker a deal.

Trying to bankrupt Russia could backfire

30 Jan 2023

Now that Western allies are supplying tanks to Ukraine, why not also ramp up sanctions on Russian oil and gas? Because doing so would carry big economic risks – and that could undermine Western willingness to continue its vital military support for Kyiv, says Hugo Dixon.

European gas savings success hides darker reality

27 Jan 2023

Spurred by soaring prices, the continent used 12% less of the fossil fuel in 2022. Despite a push to conserve energy, much of the drop was due to companies switching to other pollutants or shutting plants. Gas-hungry sectors like chemicals and steel face a protracted struggle.