Oil & Gas

Capital Calls: Syngenta IPO delay

28 Mar 2023

Concise views on global finance: The Shanghai Stock Exchange has canceled a hearing to review the agrichemicals group's listing plans, leaving investors fearing the worst in China.

Insurers put a higher premium on energy transition

22 Mar 2023

Chubb is heaping extra pressure on fossil fuel producers by adding methane-emissions reduction to its underwriting criteria. It’s a cost-effective area to target. Rising public pressure and natural disaster losses also will keep making coverage pricier and harder to secure.

Economic asphyxiation puts Russia in China’s orbit

20 Mar 2023

Moscow needs up to $90 bln to fund its budget deficit this year. As sanctions keep biting, financing the shortfall will slowly add to the economy’s woes. Russia’s need to use the yuan for trade and payments will also increase Vladimir Putin’s dependence on Beijing.

Big Oil’s old profligacy lives on Down Under

15 Mar 2023

Chevron, Shell and others are ploughing some Ukraine-related windfall earnings into new projects, but sharing the lucre with shareholders too. Australia’s Santos is being stingier, with governance and climate concerns to boot. Its lagging stock is dry powder for activists.

Capital Calls: Ritchie Bros founder regret

13 Mar 2023

Concise views on global finance: The industrial equipment auction company’s $7 bln deal for scrap-yard operator IAA has drawn one last opponent: the company’s own co-founder.

Capital Calls: Adobe’s lose-lose Figma bind

24 Feb 2023

Concise views on global finance: Shareholders in the $160 bln design technology firm seem to have decided that the only thing worse than doing its blockbuster deal for rival Figma is losing it.

Ukraine’s long shadow on business and geopolitics

23 Feb 2023

It’s been 12 months since Russian President Vladimir Putin’s bloody invasion. In this Viewsroom podcast, Breakingviews columnists discuss how energy markets have changed for good, how defence companies are benefiting, and another potential conflict troubling CEOs and investors.

Capital Calls: World Bank, Bumble, Wood Group

23 Feb 2023

Concise views on global finance: The U.S. picks ex-Mastercard boss Ajay Banga to run the multilateral development bank; while the dating app’s shares are down, private equity owner Blackstone is still in the money; the UK oil services group has turned down three bids from Apollo.

UAE gas IPO’s $50 bln valuation looks like a floor

22 Feb 2023

The Emirates’ energy giant ADNOC is selling at least 4% of its gas processing arm via an Abu Dhabi listing. As with Saudi Aramco, buyers will have to put up with minimal say on strategy. Unlike Aramco’s IPO, the mooted $50 bln valuation may be an underestimate.

Chevron’s CEO short-termism has benefits

13 Feb 2023

The $330 billion oil giant may extend head Mike Wirth’s contract beyond guardrails. He’s focused on fossil fuels, suggesting Chevron doesn’t plan to pivot. But deals are on the horizon, including maybe with a European firm. His discipline could make him the last one standing.

UK bailout has energy bosses walking on eggshells

13 Feb 2023

Power suppliers like Centrica took billions of pounds of government cash to help customers pay high bills. That leaves them open to charges they pocketed gains and handed losses to taxpayers. For an industry intertwined with the state, pay restraint is vital to self-preservation.

IMF’s outlook on Russia is too rosy to be true

10 Feb 2023

The International Monetary Fund expects the Russian economy to avoid a recession this year after contracting by 2.2% in 2022. That is much more optimistic than Moscow’s own forecasts. Unless oil prices stage an improbable rally, investors should trust the locals’ gloomier view.

TotalEnergies’ India squall hits at a tricky time

8 Feb 2023

France’s $154 bln group has put a hydrogen project with Gautam Adani on hold as he battles short-seller allegations. Total’s Indian exposure is bearable. But it highlights green execution risk just as investors question companies trying to combine renewables and fossil fuels.

Capital Calls: SoftBank, BP

7 Feb 2023

Concise views on global finance: Masayoshi Son’s $69 bln technology investor is out of ammunition when it needs it most; the $108 bln British oil group’s pledge to pump more of the fossil fuel may not boost its lowly valuation.

Big Oil mega-deals would put investors on the spot

2 Feb 2023

Shell and BP are printing money but have rock-bottom valuations. Punts by U.S. giants Exxon Mobil or Chevron are financially viable, if politically tricky. European shareholders may face a tough choice: sell out to a less green rival, or hope that risky renewable bets pay off.

Big oil can be lean and not mean

31 Jan 2023

Net debt at Exxon and Chevron declined nearly $50 bln last year, and both are on path to having no debt at all. Neither seem inclined to lever up given oil’s murky and volatile future. But excess cash must go somewhere. Shareholders are in line for big payouts.

Trying to bankrupt Russia could backfire

30 Jan 2023

Now that Western allies are supplying tanks to Ukraine, why not also ramp up sanctions on Russian oil and gas? Because doing so would carry big economic risks – and that could undermine Western willingness to continue its vital military support for Kyiv, says Hugo Dixon.

European gas savings success hides darker reality

27 Jan 2023

Spurred by soaring prices, the continent used 12% less of the fossil fuel in 2022. Despite a push to conserve energy, much of the drop was due to companies switching to other pollutants or shutting plants. Gas-hungry sectors like chemicals and steel face a protracted struggle.

Snam rethink reflects Europe’s new energy reality

19 Jan 2023

The $18 bln network operator is hiking spending to boost gas flows into Italy and the EU. Stable revenues from such investments can help new CEO Stefano Venier lift EBITDA. But a lighter push into hydrogen and green projects suggests a slower European shift from fossil fuels.

Global energy prices face a turbulent 2023

12 Jan 2023

The cost of natural gas has halved from a peak last year thanks to warmer weather and bulky European stores. In this Viewsroom podcast, Breakingviews columnists discuss why it’s too early for companies and households to rule out further supply shocks and price volatility.