Fossil Fuels

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.

OPEC spats are less important than its sweet spot

6 Jul 2021

The UAE stymied a deal to unwind oil output cuts. That will further strain relations with Saudi Arabia, but Riyadh will probably find a compromise. Meanwhile, the cartel and its allies have unusual scope to keep crude prices high without losing market share to U.S. producers.

Capital Calls: Genetic gold rush

28 Jun 2021

Concise views on global finance: A company has shown biotechnology called CRISPR can precisely edit defective genes in humans, fueling investment and squabbles.

Viewsroom: Wall Street is open again and booming

24 Jun 2021

From Morgan Stanley to BlackRock, the world’s top investment banks and money managers are back in their offices and super busy with mergers, IPOs, LBOs and other activities thumping. Plus, Soho House and Wise go public and green hydrogen megalomania on the Congo river.

Shell’s U.S. rethink betrays lack of wiggle room

14 Jun 2021

The Anglo-Dutch driller may sell assets worth $10 bln in Texas. Not so long ago the U.S. Permian Basin was a key oil major growth area, but now Shell is under pressure to cut emissions. Restricting carbon while earning a financial return is increasingly determining strategy.

Anglo spinoff points to darker future for coal

7 Jun 2021

The mining giant’s thermal coal unit, Thungela, was valued at just $250 mln on its market debut. That’s a third of the EBITDA its South African mines may earn this year. It’s a stark reminder of the black stuff’s rapidly declining worth, and of public investors’ aversion to it.

Jay Powell’s oil price bet counts on green inertia

3 Jun 2021

The Fed boss and his peers expect rebounding energy costs will only temporarily lift inflation. But if Western oil majors cut capex to please investors, crude could grow more expensive in coming years. Rate-setters are implicitly banking on a more gradual eco-friendly shift.

BlackRock’s green activism fires on some cylinders

2 Jun 2021

The $9 trln asset manager voted with a hedge fund against Exxon Mobil and for tougher emissions targets at Chevron. That’s progress. Still, its voting record with other oil majors like Royal Dutch Shell suggests it sometimes gives polluters a pat rather than the required shove.

Oil giants’ setbacks turn BP from tortoise to hare

27 May 2021

Investors were initially sceptical about the UK major cutting fossil fuels, preferring the fuzzier plans of its U.S. and European rivals. Shell’s legal defeat and an investor revolt at Exxon Mobil change the game. Clarity on cutting emissions will increasingly support valuations.

Dutch court hands Shell chairman shakeup stick

26 May 2021

A Hague judge has told the oil giant to toughen up its targets for cutting carbon emissions. Besides appealing, Shell could try to dodge the ruling by moving its headquarters. Alternatively, new chair Andrew Mackenzie could shunt the group in the direction of rivals BP and Total.

North Sea oil IPOs had best take the plunge soon

24 May 2021

Ex-Centrica boss Sam Laidlaw is mulling a float that may see his Neptune Energy group valued at $10 bln. Equity markets are skittish and rival driller Wintershall Dea also wants to list. But question marks over gas demand make it riskier for owners CVC, Carlyle and CIC to wait.

Capital Calls: “Friends” reunion, SPACs in D.C.

24 May 2021

Concise views on global finance: AT&T's HBO Max is streaming a delayed 25-year reunion of the popular sitcom cast just as the company ditches its media assets; busybody U.S. Congress is taking a hands-off approach to blank-check firms.

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.

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.

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.

South Africa enters greener bond-market crosshairs

11 Mar 2021

With 90% of its power coming from coal, the Rainbow Nation is one of the worst CO2 emitters. Mining’s political heft also means foot-dragging on climate policy. With big external funding needs, the kick from bond investors when they flick the green switch will hurt hardest.

Oil price supercycle could be super short

8 Mar 2021

Crude spiked above $70 a barrel, regaining pre-virus levels. It could climb even higher given OPEC is holding back supply and global policymakers are stimulating economies. But if lofty prices encourage production by those outside the cartel, they may not last that long.

Market jitters make energy IPOs suddenly look good

4 Mar 2021

Wintershall Dea is preparing to list. Fears over higher borrowing costs make cash-generative oil and gas companies look relatively attractive compared to the high growth stocks investors have been dumping this year. Stabilising crude prices could make for an even sweeter spot.