Renewable Energy

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.

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.

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.

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.

Capital Calls: HSBC, MRNA scramble, Cable project

18 Jun 2021

Concise views on global finance: The UK bank’s France sale disappoints; Danaher snaps up Moderna supplier for $9.6 bln; geopolitics sinks internet cable.

Capital Calls: JPMorgan, French SPAC, Jessica Alba

17 Jun 2021

Concise views on global finance: Jamie Dimon bulks up his nascent UK digital banking offer by buying Nutmeg; France boosts its lowly SPAC league-table position with two blank-cheque vehicles; the Hollywood star’s consumer packaged goods company Honest encounters growing pains.

Greener Acciona comes with stiff family discount

11 Jun 2021

The $9 bln Spanish group’s valuation is yet to reflect the potential uplift from spinning off its renewables unit. That may be because the clan that owns Acciona will also control the new entity. Even so, investors may warm to the fact it could be worth more than its parent.

Danish hydrogen adds hygge to market green malaise

7 Jun 2021

Green Hydrogen Systems is planning a Copenhagen float that will value the electrolyser maker at $500 mln. Of late, pulled IPOs reflect investor scepticism about so-so renewable energy listings. The green gas’s key role in cutting EU carbon emissions may make this a comfier fit.

Capital Calls: AMC craziness, Pro lacrosse

2 Jun 2021

Concise views on global finance: The movie-theater chain raised $230 million from a hedge fund, which promptly sold the shares at a profit; New England Patriots owner Robert Kraft and Alibaba's Joe Tsai are betting on the latest U.S. effort to professionalize the preppy sport.

The Exchange: Steering Europe’s green transition

1 Jun 2021

Frans Timmermans has a key leadership role in the European Union’s quest to reduce its 2030 emissions by 55% compared to 1990 levels. Ahead of a major set of green policy updates next month, he talks to George Hay about both these and November’s COP26 conference.

Pandora adds green polish to its lab-diamond bet

28 May 2021

The $13 bln Danish trinket maker is switching to all synthetic stones, a move driven more by profit than sustainability. Man-made rocks can be 90% cheaper than natural ones, putting them in Pandora’s mass-market ambit. The reduced carbon footprint adds some millennial sparkle.

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.

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.

Three Gorges renewables IPO tests policy headwinds

17 May 2021

The green-energy giant’s $3.5 bln Shanghai listing ought to benefit from President Xi Jinping's climate push. But regulators are cutting wind and solar subsidies, and late government payments are piling up. Controlling costs is key to Three Gorges keeping its premium to rivals.

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.

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.