Oil & Gas

Gazprom’s mooted Centrica bid is all hot air

3 Feb 2006

The Russian gas giant s comment that it might bid for British energy supplier Centrica has been completely misinterpreted. It is also out of character with Gazprom s other foreign deals, which involve minority stakes with local owners providing political cover.

Gas Natural’s bid looks increasingly stingy

18 Jan 2006

After Endesa s stellar results, it s getting harder for Gas Natural to argue against raising its bid. The Barcelonabased bidder should make a more generous offer.

Wilbur Ross in the black with coal IPO

11 Oct 2005

Just as he did by rolling up the bankrupt US steel industry, Ross should reap big gains from his coal IPO. But this has less to do with crafty restructuring than it does with the frothy market for coal stocks.

Endesa raises the bar for Gas Natural

3 Oct 2005

The Spanish electricity company is promising over E7bn of dividends in a bid to fight off Gas Natural s hostile bid. This is a longoverdue recognition of shareholders interests and has rightly pushed the shares further above Gas Natural s offer.

Gardner to step down at Centrica

15 Sep 2005

The only strike against the chief executive s near decade long tenure has been the UK utility s reluctance to replenish its gas fields. But he is not retiring until next summer. The UK could well have a gas glut by then. After all, Gardner has been lucky before.

Endesa bid is a win-win for Iberdrola

14 Sep 2005

Sure, the Spanish utility s move on its main competitor Endesa looks shabby. But Iberdrola is being opportunistic. It has much to gain, and relatively little to lose, from the side deal it has cut with Gas Natural.

Centrica bid talk reflects wishful thinking

12 Sep 2005

The UK power company is in a strategic bind, caught between rising fuel prices and falling gas reserves. No wonder some shareholders are pinning their hopes on a bid. But the list of potential bidders may be shorter than people think.

Energy bid battle shows Spain’s protectionist streak

9 Sep 2005

No foreign white knight will ride to embattled Endesa s rescue for the simple reason that everyone knows Madrid wouldn t allow it. This protectionism is bad for the utility s shareholders, bad for Spain s energy market, and bad for consumers too.

How should Endesa defend itself?

6 Sep 2005

The Spanish utility may be starting from a weak position. But that doesn t mean Gas Natural's hostile bid is a knockout. Far from it. There are lots of holes that Endesa could pick in the approach.

Gas Natural in hostile bid for Endesa

5 Sep 2005

Spanish utilities have been trying to merge for years, with no luck. Politics usually got in the way. Gas Natural has tried and failed deals before. Another failure would be seriously damaging for its credibility.

GDF kicks off E4bn IPO

23 Jun 2005

The float of the French gas company will be the largest worldwide in three years. The discount to the sector means things should go smoothly despite the group s massive investment plans.

Centrica needs a gas deal

11 Apr 2005

The UK energy group's gas output is falling. That gives it less ability to cushion customers from spikes in wholesale gas prices. Acquiring more production capacity, for example by merging with Norsk Hydro, would make sense. The snag is that it's a seller's market.

Centrica fighting to retain retail customers

24 Feb 2005

The UK energy group has been haemorrhaging retail customers. Now it wants to retain them. This will cost the company. It remains to be seen whether cost cuts in other parts of the business can compensate.

D&B is the new game in UK finance

4 Jul 2004

That stands for disposals and buybacks. Best practice is now to recycle all the proceeds from a disposal. Low interest rates and investor scepticism about M&A are driving the trend. Those doing it, like Centrica, are rewarded.

The UK gas firm has made out like a bandit. Its Automobile Association unit is probably only worth £1.3bn to Centrica.

1 Jul 2004

Investors should be pleased. Not only has Centrica ended a diversification strategy that hasn't worked; the result is a chunky £1.5bn payout

Centrica seeks £1.5bn for AA breakdown unit

21 Jun 2004

The utility used to believe it could sell its gas customers loosely related products and services and diversified accordingly. Now this strategy is in full retreat.

Shell inches in the right direction

17 Jun 2004

Revealing details of its corporate governance review, albeit after investor pressure, is a step forward for the oil and gas giant. But investors shouldn t get their hopes up. The chances of a muchneeded overhaul of its dual structure don t look good.

Putin, Khodorkovsky gang up to save Yukos

17 Jun 2004

Russia's president says he doesn't want the oil giant to go bust; and the oligarch agrees to underwrite some or its entire tax bill. If this is for real, it reduces the fallout from the Khodorkovsky affair. But it underlines Russia's reputation for unpredictability.

Bidding for National Grid gas networks heats up

8 Apr 2004

Three private equity groups are teaming up to offer £4bn for four networks. It is in National Grid s interest to have one buyer for the lot, but the regulator may stick a spanner in the works.

E.ON keeps on shopping

18 Aug 2003

The German utility is tearing up investment plans announced in December, and is preparing billions more in acquisitions. This looks like good news for investment bankers, but not for shareholders.