Energy

Adani flies in Masayoshi’s place close to the sun

19 May 2021

Gautam Adani’s green energy firm is buying SoftBank’s Indian renewables ventures for a fair $3.5 bln. It’s part of aggressive plans to create the world’s largest clean power group. At least the new owner has a track record in scaling industrial businesses on the sub-continent.

Oil majors get unsettling glimpse of Kodak moment

18 May 2021

The photo group hit the skids after failing to embrace change. In sketching a future with way less oil, a landmark report by the International Energy Agency points to a similar outcome for polluters like Royal Dutch Shell. Investors now have a stronger hand to push for change.

Capital Calls: Disney misses the mark

13 May 2021

Concise views on global finance: Walt Disney reported nearly 104 million subscribers for its streaming flagship service.

Australia’s non-takeover takeover is a bit creepy

11 May 2021

Billionaire Kerry Stokes’ Seven Group lobbed in a nil-premium $6.2 bln bid for building materials maker Boral. It really just wants to up its 23% stake and perhaps claim another board seat. Such tactics may be sly investing, but they also play loose with the spirit of M&A rules.

Breakdown: Net zero goals demand zero tolerance

10 May 2021

Only a fifth of the world’s top public companies have promised to eliminate greenhouse gas emissions by 2050. Among those that have, promises are tricky to compare and rely on ambitious offset schemes. Breakingviews helps investors find the substance behind the hot air.

Green shoots’ salad days have come and gone

6 May 2021

Toppy valuations for wind and solar sparked Italy’s Eni, Spain’s Acciona and others to hire investment bankers for spinoffs and IPOs of renewables assets. Rising oil prices and fears of a green bubble mean firms now need size and a track record to play. That’s a good thing.

Total is least-bad pick for confused oil investors

29 Apr 2021

First-quarter results show the French group and rivals BP and Royal Dutch Shell rebounding from last year’s woes. Yet BP’s turn to wind and solar may be too sharp and Shell’s too relaxed. For now, Total’s balanced green ambition and fat dividend look more appealing.

Aramco’s mystery sale saga follows familiar plot

28 Apr 2021

The Saudi oil giant is in talks to sell a 1% stake to a “leading global energy company”, Crown Prince Mohammed bin Salman says. As with previous puzzles over international IPO venues, there are plenty of potential candidates. And as with those, it’s possible nothing happens.

Capital Calls: Betway, U.S. banks, Vaccine feud

26 Apr 2021

Concise views on global finance: Another online betting group goes public by merging with a special-purpose acquisition company; some financial firms are racing to capture nearly-free funding from American depositors; Europe faces a long and costly fight for AstraZeneca vaccines.

Capital Calls: Chubb and Hartford, Swimming pools

22 Apr 2021

Concise views on global finance: The company led by Evan Greenberg twice raised its bid for its Connecticut rival, but so far to no avail; a blowout quarter for private-pool maker Pool Corp points to buoyant wealth and spending trends, but only for some.

Negative UK power prices bolster hydrogen hype

22 Apr 2021

British electricity prices are falling into the red more often due to wind farms cranking up output on blustery days. As with crude oil’s shock slump last year, it’s a sign of power markets working, not breaking. It also helps justify lofty valuations for hydrogen-related firms.

Capital Calls: SXSW

19 Apr 2021

Concise views on global finance: Rolling Stone publisher Penske Media is taking a 50% stake in hipster arts festival South By Southwest.

Anglo American tests shareholders’ ESG bona fides

8 Apr 2021

The miner is giving investors one share in its spun-off thermal coal unit for every 10 already held. The commodity’s kryptonite status means many European institutions will want to get rid of them for the same reason as Anglo. But rising coal prices may turn some heads.

Capital Calls: Trucking IPO

7 Apr 2021

Concise views on global finance in the Covid-19 era: Startup TuSimple will be listing shares via a traditional initial public offering.

Mozambique’s gas loss could be green energy’s gain

6 Apr 2021

Islamic State attacks near future LNG sites have shattered the African state’s dreams of gas production. Plants planned by Total and Exxon Mobil constitute 8% of current world demand. If they are never built, a mid-decade price spike may hasten a global pivot to renewable power.

Capital Calls: Elon Musk, LeBron James

1 Apr 2021

Concise views on global finance in the Covid-19 era: Endeavor, Ari Emanuel’s entertainment group, is hoping the Tesla boss’s stardust will help a second attempt at an IPO; the basketball star’s stake in the Red Sox is a foil to Steve Cohen’s Mets deal.

U.S. offshore wind set to hit gale force growth

31 Mar 2021

The first big project, worth $2.8 bln, is on track for a final green light. Europe already has 30 times as much capacity. Slow approvals have left U.S. wind power in the doldrums but with costs now lower than some fossil fuels and falling fast, opposition will be blown away.

Aussie power giant spins into climate quandary

30 Mar 2021

AGL Energy hopes running its generation and retail units as separate businesses will lift its slumping stock. But CEO Brett Redman’s pitch is short on financial detail, envisions himself as boss of both parts, and leaves the $5 bln company heavily reliant on fossil fuels.

Capital Calls: BlackRock’s Archegos angle, SPACs

30 Mar 2021

Concise views on global finance in the Covid-19 era: The fallout from the collapse of Bill Hwang’s family office gives regulators reasons to focus on funds, not fund managers; and bosses of blank-check companies don’t take investor questions.

Aramco’s next share offer is just as hard a sell

22 Mar 2021

The $1.9 trln Saudi oil giant’s annual results showed Covid-19 scars. If Riyadh sells more shares, Aramco’s low costs and spare capacity may be appealing to non-Saudi investors that largely sat out its 2019 IPO. But many environmental, social and governance red flags remain.