Energy

Capital Calls: U.S. jobs, $7 bln tax settlement

3 Sep 2021

Concise views on global finance: Slow U.S. job growth signals caution for the Fed; meanwhile, a giant deal between hedge fund executives and the IRS gives legs to President Biden's tax plans.

BHP brawl tips why nickel will cost pretty penny

1 Sep 2021

The miner’s agreed deal for Noront must contend with billionaire Andrew Forrest. His Wyloo Metals’ new offer tops BHP’s by 27% and would keep the Canadian company listed. A hot market for electric-car batteries makes buying even rocky projects like ones in the Ring of Fire tough.

Capital Calls: Pfizer M&A, Uber driver status

23 Aug 2021

The drugmaker has agreed to acquire Trillium Therapeutics for $2.3 billion, looking to its broader post-coronavirus strategy; a California judge has struck down a law exempting tech companies from treating drivers as full employees, complicating their push to keep costs down.

Aussie coal bailout begins with fair share of pain

13 Aug 2021

Power producer AGL’s CEO says everyone should pitch in to wean the country off the black stuff. Fair, but it also sounds like a pitch for taxpayer aid from a company that dug itself into a hole. A credible plan would ensure shareholders and executives bear the brunt.

Viewsroom: Battling the climate emergency

12 Aug 2021

A new U.N. report on global warming gives financiers fresh reasons to take bigger steps to help avert or mitigate the consequences, Breakingviews editors argue. A plan by the UK’s Prudential and the Asian Development Bank to close coal-fired power stations offers a model.

Aramco’s tricky balancing act gets easier

9 Aug 2021

The Saudi oil giant’s ultimate boss, Crown Prince Mohammed bin Salman, wants it to help fund the kingdom’s pivot away from crude. A strong first half makes it easier to do that and pay dividends. Unlike last year, Aramco can also meet its various demands without debt spiking.

Coal bad bank fund dangles complex climate kudos

5 Aug 2021

The ADB and the UK’s Prudential could buy Asian power plants fuelled by the pollutant, close them early and foster green energy. Bragging rights from cutting carbon should bag the needed cash. But investors will have to accept the risks and the iffy optics of profiting from coal.

Cox: Saudi may have a super-green future after all

5 Aug 2021

At a recent G20 summit, the kingdom didn’t just align with U.S. and European climate crusaders. Its delegates even tried to break an impasse with India on coal. It’s a sign of how confident Saudi has become in its ability to manage, and profit from, the energy transition.

BP’s oil price boon is a mixed blessing

3 Aug 2021

Rising crude values allowed the $84 bln UK group to raise its payout and give CEO Bernard Looney more funds to pivot away from fossil fuels. But the bonanza could focus investor minds on less speedy rivals with scope to pay higher dividends, like Shell. That may hurt BP’s appeal.

Big Oil’s generosity has limited shelf life

29 Jul 2021

Royal Dutch Shell and Total will return billions of dollars to investors. High crude prices mean they can cut debt, invest in green energy and crank up payouts. Such largesse may get harder given growing pressure to cut emissions. Prudent payouts will limit future disappointment.

BHP’s oil exit would be better sooner than later

21 Jul 2021

The mega-miner is reported to be mulling a $15 bln sale of its petroleum arm. The subsidiary’s status as a profit engine amid rising energy prices makes it a tough decision. But even if done at a knock-down rate, CEO Mike Henry can burnish BHP’s allure with oil-hating investors.

Capital Calls: Chinese hacking, Tencent

19 Jul 2021

Concise views on global finance: When the only response to China hacks is harsh words, companies will pay the price; the $680 billion technology giant places a heavyweight bet on UK gaming group Sumo.

Capital Calls: Intel, SPAC lobby

16 Jul 2021

Concise views on global finance: Buying GlobalFoundries would boost Intel’s ambitions to make chips for other firms, but spinning it off afterward might please investors more; a new D.C. group sets up shop to defend the blank-check craze.

Tony Hayward’s SPAC suits green fans and amnesiacs

15 Jul 2021

Ten years after floating his last shell company, the ex-BP boss has launched a new $175 mln vehicle. A solid plan to invest in the energy transition is promising. Investors who lost 90% of their capital after Hayward bought Genel Energy will hope he has learned from his mistakes.

Capital Calls: Online fashion retail

15 Jul 2021

Concise views on global finance: The return of old customer habits and muted demand as the pandemic lingers could reverse the recent stellar run of the likes of ASOS.

Car-battery SPAC deal is joyride at electric price

13 Jul 2021

U.S. auto charge maker SES Holdings is going public via a merger with Robert Friedland’s blank-cheque vehicle at a $3.3 bln valuation. That’s chunky given a controlling founder and zero near-term sales. Investors must hope big backers like General Motors help swerve potholes.

EU carbon border levy limbers up for a soft launch

13 Jul 2021

The European Commission will this week set out plans for making companies that export goods to the bloc incorporate the rising cost of carbon. It’s likely to pull its punches. That’s not ideal, but even a watered-down levy would still set an important precedent.

Cairn and India have a third option in tax fight

8 Jul 2021

Freezing of the country’s Paris properties underscores frustration at New Delhi’s refusal to pay a $1.7 bln arbitration award. India can avoid further embarrassment and escape paying in full by letting Cairn invest in new projects. But that’s only possible if it concedes defeat.

Mukesh Ambani the chameleon will easily go green

24 Jun 2021

After building the world’s second biggest mobile-data carrier and India’s top retailer, Asia’s richest man is ready to turn his $200 bln Reliance into a renewable energy major. A track record of impressive pivots gives it a decent chance of success, and merits a higher valuation.

UAE takes relaxed view of Deripaska sanctions risk

24 Jun 2021

Mubadala has bought 2.6% of En+ from the Russian oligarch’s ex-wife. The $243 bln Abu Dhabi fund is banking on the green strategy of the aluminium and energy group, which has taken steps to curb Oleg Deripaska’s influence. Still, the UAE is taking a punt that these controls work.