Energy

Capital Calls: Dubai listings, Epic Games

12 Apr 2022

Concise views on global finance: State-owned utility DEWA defies the global IPO gloom as its shares jump 20% on their debut; Sony is pumping another $1 bln into privately held metaverse evangelist Epic Games at an epic $32 bln valuation.

Tiny Lithuania gives Germany a big gas lesson

11 Apr 2022

The Baltic state stopped buying Russian gas on April 1. The shutdown caps a decade of planning to break Moscow’s grip via liquefied shipments. Its greater needs and lack of import terminals worsen Germany’s pickle. But Vilnius’ roadmap can drastically reduce its travel time.

Putin’s finances can survive a European energy ban

8 Apr 2022

The Russian president may cut off gas to Europe, or even face a hydrocarbon export freeze himself. That could mean up to $50 bln less annual revenue, yet Moscow’s reserves and high oil prices will cushion the blow. An embargo would hurt Russia, but not bring Putin to his knees.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

Gazprom sale fumble triggers canny German pounce

5 Apr 2022

Berlin took control of the Russian group’s key European unit after it tried to engineer a quick sale. The move stabilises critical assets like gas storage facilities and energy suppliers. It avoids the upfront cost of a nationalisation, and buys time for a longer-term fix.

Time for Europe to break energy sanctions taboo

4 Apr 2022

Alleged Russian atrocities against Ukrainian civilians are set to trigger a harsher EU response. Dependency on Russian oil and gas makes Germany and others reluctant to back a full energy embargo. Taxing hydrocarbon imports is a halfway-house option that still hurts Moscow.

Christine Lagarde’s inflation excuses wear thin

1 Apr 2022

Euro zone prices rose at a record annual rate of 7.5% in March, almost as much as in the United States where the Fed has started hiking rates. There’s more going on than just surging energy costs. It’s getting harder for the European Central Bank boss not to follow Jerome Powell.

Hydrogen’s civil war reveals its winner

31 Mar 2022

The element has a big role in beating climate change. But fans of natural gas-based “blue” hydrogen and its zero-carbon “green” cousin are constantly vying for supremacy. Soaring fossil-fuel prices and energy supply fears after Russia’s Ukraine invasion are handing green victory.

China jitters, energy decoupling and Russian gold

31 Mar 2022

The war in Ukraine is spurring investors and governments to act fast. In this Viewsroom podcast, Breakingviews columnists discuss foreign cash fleeing Beijing, the West’s rapid plan to de-Russify its energy mix and Vladimir Putin’s options for his $140 billion gold chest.

Germany’s oil embargo block is short-sighted

29 Mar 2022

Berlin is opposing a European ban on Russian energy. A gas embargo would take months to manage. But stopping oil imports now would be doable, while depriving Moscow of resources to fund the war. And Germany could afford the economic price.

National Grid gas sale has green edge on Macquarie

28 Mar 2022

The $54 bln UK company is selling 60% of its gas pipelines arm to a group led by the Australian finance house. The $13 bln deal has financial benefits for both. But National Grid’s switch to electricity is more immediate than the buyers’ plan to pump hydrogen through the pipes.

Russian gas gets harder to buy, but easier to snub

25 Mar 2022

Vladimir Putin’s call for Moscow’s hydrocarbon customers to pay in roubles puts Europe in a quandary. Still, Washington and Brussels are fleshing out a valid Plan B to Kremlin gas. That implies the Russian leader’s power to make market prices go haywire may start to wane.

Dubai’s $34 bln utility float tees up IPO drive

25 Mar 2022

State-owned DEWA will be the emirate’s largest listing since 2007. Its pricing muscle and generous dividend are drawcards, as is the cheap valuation. That reflects the political desire for the debut to set the stage for follow-up IPOs, and puts rival regional bourses on notice.

Total becomes unlikely Russia sanctions poster boy

23 Mar 2022

The French group has belatedly started to pull out of its Russian business. Although it’s not selling local assets or exiting gas, it will stop buying oil. That strengthens the private-sector boycott of Moscow’s crude and puts pressure on governments to take tougher measures.

Ukraine truce or not, pre-war order is gone

22 Mar 2022

Investors are cheering any progress in talks between the country and invading Russia. But even if the fighting stops, the West won’t lift sanctions right away. Relations with Russia will take years to mend. And Europe will still crank up investment in energy security and defence.

Energy market bailout is cheaper of two evils

18 Mar 2022

Europe’s gas producers and utilities want state support to offset the wild swings in commodity prices since Russia invaded Ukraine. Given this could aid big oil companies like Shell, that sounds wrong. But a market breakdown would be worse, and states can levy windfall taxes.

Nickel gets nixed, French firms linger in Russia

17 Mar 2022

The war in Ukraine is affecting far corners of global finance. In the Viewsroom podcast, Breakingviews columnists explain how the conflict helped bring nickel trading to a halt in London. And why oil giant Total and carmaker Renault are resisting the exodus by Western companies.

EU energy crisis is a 130 bln euro joint problem

17 Mar 2022

That's how much it could cost to wean the bloc off Russian gas, at a time when energy bills are already soaring. States could tax energy companies or draw unused pandemic loans to offer subsidies. Common grants look like a better option.

Russia punches economic hole above its weight

16 Mar 2022

The country that was a trade minnow during the Cold War became a big commodities exporter. That’s why the isolation of an economy smaller than Texas is pushing up global prices of energy, wheat and other goods. Though some countries can help fill the gap, consumers will suffer.

The climate revolution is underhyped

15 Mar 2022

Kleiner Perkins Chair John Doerr outlines in his new book a plan to reach net-zero emissions by 2050. As an early backer of Amazon and Alphabet, he also explains how saving the planet is a business opportunity akin to the internet in this episode of The Exchange podcast.