Energy

The Exchange: Making nukes greener and friendlier

29 Nov 2021

The fight to reduce CO2 emissions is forcing a rethink about the role of nuclear power, says Rafael Grossi, head of the International Atomic Energy Agency. But convincing holdouts like Greta Thunberg will take more than turning Homer Simpson into a paragon of nuclear safety.

Capital Calls: Wise, Swedish oil

30 Nov 2021

Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.

Glencore’s activist is misguided but not unhelpful

30 Nov 2021

Bluebell is pushing the $63 bln miner-trader to spin off coal. Thungela’s plans to dig up more of the mineral after its Anglo spinoff weaken the argument, and prices are at record highs. Still, if it makes Glencore quit coal quicker than its 2050 target, it’s a job well done.

Nissan’s green drive hits yellow light

30 Nov 2021

Shareholders booed the Japanese automaker’s plan to invest $18 bln in clean cars over the next five years and make half its fleet electric by 2030. The erstwhile electric-car leader wants to regain ground, but it’s a financial stretch with profit weak and the stock overvalued.

UK energy shakeout will hit price comparison sites

26 Nov 2021

Britain is pumping $2.3 bln into collapsed gas and electricity provider Bulb, the latest in a string of bankruptcies. The clear-out should mean a healthier array of UK energy suppliers. But having fewer operators will hurt the firms that make their money from customers switching.

Capital Calls: Remy Cointreau, African petrol

25 Nov 2021

Concise views on global finance: With profits soaring, the cognac maker will face mounting pressure for M&A; commodity trader Vitol buys out minority shareholders in London-listed fuel distributor Vivo.

Capital Calls: China’s data centre sale

24 Nov 2021

Concise views on global finance: Global Switch is attracting big-name private equity interest, but its quirky setup might justify suitors asking for a discount.

Capital Calls: Risky banks, UK SPAC, AO World

23 Nov 2021

Concise views on global finance: A global watchdog reckons JPMorgan is once again the world’s most systemically important lender; investment firm Hambro Perks launches a UK blank-cheque vehicle; the British online retailer issues its second profit warning in two months.

Capital Calls: Eni spinoff

22 Nov 2021

Concise views on global finance: The $50 bln Italian oil group has a new name for the renewable energy and retail arm it plans to partially list.

Reliance-Aramco no-deal is sign of the ESG times

22 Nov 2021

A Saudi plan from 2019 to invest $15 bln into the Indian company’s refining arm is being re-evaluated as Reliance’s green ambitions complicate matters for both sides. The impasse reflects the hectic pace of the energy transition, and the cheap capital available to fund it.

Chancellor: Investors unprepared for carbon crunch

18 Nov 2021

Markets aren’t effectively factoring in a potential hydrocarbons scarcity. It’s not just that the world is trying to get off fossil fuels. They’re increasingly expensive to extract as supplies reach their peak. It’s another downside risk investors need to consider.

Viewsroom: European bank M&A, De-Dutching Shell

18 Nov 2021

Big lenders in the euro zone are doing deals, but not the kind investment bankers dream about. BNP Paribas is in U.S. retreat, BBVA bulks up in Turkey and KBC goes Bulgarian. Liam Proud explains. George Hay explains why the Anglo-Dutch oil major is dropping the Dutch bit.

Thyssenkrupp finds lost hydrogen lottery ticket

17 Nov 2021

The ailing 7 bln euro German group’s shares soared amid hopes it might list its electrolysis unit. With a few tweaks, its chlorine-making kit can produce hydrogen, a big enabler of a no-carbon world. That promise means its paltry current sales could yield a 5 bln euro jackpot.

Ariston IPO is enticing play on green energy wave

17 Nov 2021

The family-owned maker of heat pumps and water heaters is going public in Milan at a valuation of up to 4 bln euros. With demand for energy-efficient heating systems set to boom, it’s in a sweet spot. A discount to rivals A.O. Smith and NIBE Industrier should help inflate demand.

Capital Calls: Stadium naming, Diageo, Evolution

17 Nov 2021

Concise views on global finance: Crypto.com is paying heavily to rename Staples Center; The drinks maker plans to grow its market share by 50% in the next decade; the $36 bln Swedish gambling firm lost $2 billion of its market capitalisation after accusations of illegal gambling.

Bitcoin miner’s green patina is fool’s gold

17 Nov 2021

In a somewhat novel twist for the power-sucking cryptocurrency business, Iris Energy relies mainly on renewables. That probably helped boost its valuation in a $1.6 bln IPO, but it feels like style over substance. And the climate hype cannot mitigate some serious risk factors.

Belarus’ gas muscle-flexing is self-sabotage

16 Nov 2021

President Lukashenko may regret his threats to disrupt flows of Russian gas to Europe. The pipeline crossing his territory is already of waning importance. By potentially hastening the opening of Russia’s Nord Stream 2 line to Germany, he’s bringing forward its retirement.

China’s central bank tries brighter shade of green

16 Nov 2021

A new lending programme could, by one estimate, lead to nearly $1 trln of investment in clean energy projects. It’s a bolder policy than from Western peers, and also a clever way to tackle the stagflation dilemma. Runaway stimulus remains a risk, as does misallocated capital.

Shell’s Dutch exit comes with legal side benefits

15 Nov 2021

Shifting its tax residency to the UK, along with its head office and CEO, simplifies the $170 bln oil major’s structure. It also makes it easier to reorganise for the energy transition. The implied snub to the Dutch court which ordered Shell to cut emissions is an added bonus.

Goldman’s cosy Japan deal is ripe for rival bid

15 Nov 2021

The Wall Street bank and refiner Eneos are forging ahead with a contested plan to take full control of $4 bln roadbuilder Nippo. Even with a richer premium, a leveraged buyout would deliver a healthy return, Breakingviews calculates. It’s a fresh test of Japan Inc’s dozy ways.