Energy & Materials Sector

• Rio Tinto sold 30% of its Winu project to Sumitomo for $400 million, surprising many with the valuation
• Expecting a PFS in 2025 for a 10 million tonne per annum scenario for the Winu project
• The partnership with Sumitomo signifies the rise of Japan and South Korea in the mining industry and may benefit Rio Tinto in terms of capital allocation and project development.

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• Korea Zinc’s free float is dropping from 52% to 31%, a 21%p cut.
• Despite rising volume, retail still dominates. With this trend continuing, the 80,000-share sell volume is unlikely to get buried without triggering noticeable price moves.
• Ahead of big one-day flow events, shorts are loaded, causing a dip. On rebalance day, traders buy back, triggering a bounce. This event is likely to follow the same pattern.

• In this edition: • Shell | gas joint venture with Equinor in the UK • InPost | Yodel hit by festive capacity crisis • BAM Group | awarded contracts for HS2 in the UK • Black Friday update | Cyber Monday was the busiest day for the parcel logistics providers

• FAQ and guidance documents bring clarity
• Synthetic rubber out of the purview of EUDR
• Allows for rubber suppliers in countries like Vietnam and Indonesia to catch up

• OPEC+ extends crude oil supply cuts to the end of 2026, a year longer than planned. It also pushed its planned output hikes by three months to April 2025.
• OPEC+ revised its output hike plan, reducing monthly increases to 138k bpd over 18 months, down from 180k bpd over 12 months.
• OPEC+ approved a 300k bpd output increase for the UAE, starting in April 2025 through September 2026, delayed from the original January 2025 start.

• • Three intervals in the Reifling formation (1324 m – 1340 m, 1346 m – 1351 m and 1358 m -1382 m MD) were perforated but only limited inflow was determined.
• No fluid could reach the surface after the well was shut in.
• • Sampling of the well indicated only completion brine (not reservoir fluid) and fine solid particles of unknown origin.

• In today’s Morning Views publication we comment on developments of the following high yield issuers: Delta Dunia Makmur, Gajah Tunggal
• In the US, the trade deficit narrowed to USD 73.8 bn in October (USD 75.0 bn e / USD 83.8 bn revised). Imports fell 4% to USD 339.6 bn, while exports declined 1.6% to USD 265.7 bn.
• Separately, initial jobless claims for the week ended November 30th rose to 224 k (215 k e / 215 k revised p). The focus today is on the November nonfarm payrolls report.

• Management estimates that HighPeak’s D,C,E,&F costs are ~$2 million lower for a well that recovers a similar volume of oil than the average central Midland Basin well.
• The combination highlights the return proposition for HighPeak’s acreage, as recovering similar oil volumes for less than 75% of the D,C,E,&F cost equates to a capital-efficient asset base.
• New wells drilled during 2024 in the northern and northeastern extension areas have expanded Flat Top’s development core, adding new inventory.

• In Greatview Aseptic Packaging (468 HK) (GAPack)’s monthly update, there is no update.
• No further progress on the management Offer. Four months and counting. In the meantime, Shandong Xinjufeng Technology (301296 CH) (XJF) secured SAMR approval; and the appointment of two friendly directors.
• IF (and when) XJF’s Offer becomes open to acceptance and the IFA is supportive, management should back the Offer if their own Offer is unlikely to materialise. 

• European bodies agree to dump ‘no risk’ category of countries
• Dec 30 is deadline for endorsing delay by publishing in official journal 
• ETRMA, GPSNR ask European Parliament to solve remaining issues

• OPEC+ will meet today (05/Dec), following a postponement from 01/Dec, to decide whether to delay planned output increases further.
• The postponement caused market jitters, with WTI and Brent futures falling 1.1% and 0.6%, respectively, on 29/Nov. The uncertainty eased as the delay was attributed to scheduling conflicts.
• For the week starting 02/Dec, WTI and Brent crude oil futures rebounded, rising 0.9% and 0.8%, respectively, driven by expectations of OPEC+ delaying planned output hikes due to price declines.

• For the week ending 29/Nov, US crude inventories fell by 5.1m barrels, beating expectations of a 1.6m barrel decrease. However, gasoline and distillate stocks rose more than expected.
• US natural gas inventories fell by 30 Bcf for the week ending 29/Nov. Inventories are 7.8% above the 5-year seasonal average.
• UBS raised its 12-month price target on Chevron. Shell and Equinor plan to merge their UK offshore oil and gas assets to create a new company.

• Pactiv Evergreen, a leading manufacturer of packaging solutions, reported its third-quarter 2024 financial results, highlighting both challenges and strategic advancements.
• The company generated revenues of $1.3 billion and an adjusted EBITDA of $214 million, representing a 16% margin.
• Adjusted earnings per share stood at $0.36, and free cash flow was strong at $190 million.

• Production from January to the end of November 2024 was 5,760 boe/d. This is line with our expectations. 
• FY24 production is expected to be around the same level. This is in line with our forecasts and within the FY24 production guidance range of 5.2-6.5 mboe/d. 
• The new wells at TGT are also performing in line with expectations and production in Vietnam from January to the end of November was 4,324 boe/d. This is in line with our forecasts.

• De Grey acquiring Northern Star for $5 billion
• Northern Star issuing new shares to De Grey shareholders
• Transformational deal with potential for future spin-offs and M&A opportunities

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• Deliveroo (ROO LN) and Oxford Nanopore Technologies (ONT LN) are newly eligible securities forecasted to be added to F250 due to the recent change of the FCA listing category framework.
• Ferrexpo Plc (FXPO LN) is the new forecasted addition-migration to F250 following its ~25% price jump over the last two days which made it surpass the entry threshold.
• Applied Nutrition Plc (APN LN) is a newly eligible, forecasted to be added to small-cap following its IPO listing on 24 October 2024.

• Rain Industries (RINDL IN) is the largest player of CTP and 2nd largest player of CPC in the world delivering loss due to downcycle in industry.
• CAQM enabled the import of GPC and CPC improved the pricing and demand further and also has created an opportunity for Rain Industries to ramp up its SEZ plant.
• Rain Industries is pivoting to future-ready sectors like EVs and batteries while addressing cyclical challenges. Focused debt reduction and strategic investments enhance its long-term growth potential despite near-term pressures.

• We are initiating coverage on YPF with an Outperform recommendation.
• Improving macroeconomic conditions in Argentina and YPF’s strategic focus on expanding unconventional production and investing in infrastructure, particularly export capacity, are expected to enhance its credit profile.
• We favor the YPFDAR (Caa3/CCC/CCC) 8.500% 2029 unsecured bonds, YPFDAR 9.000% 2029 unsecured bonds, and YPFDAR 9.500% 2031 secured bonds.

• ECVT has gone through several business divestments and acquisitions over its history and the latest news suggests management is not content. 
• The timing is a surprise given the segment is to serve ECVT’s growth trajectory. The segment houses new technologies that should begin to contribute to sales in coming quarters.   
• Advanced materials and catalysts is also the segment that owns the 50% stake in JV Zeolyst, which has been core of issues this year related to ECVT’s adjusted EBITDA performance.   

• What you need to know: • Omai announced another batch of assay results, reporting three holes with two hitting very wide intercepts with high-grade.
• • The two holes reported highlight intercepts of 3.16 g/t Au over 68.7m and 4.57 g/t Au over 45.5m.
• • Assays from seven holes remain pending and the three drills are expected to continue drilling well into the new year.

• • 3Q24 production was 1,047 boe/d.
• Zephyr has re-iterated its FY production guidance of 1,100-1,300 boe/d.
• We are cautiously assuming 1,100 boe/d.

• RaaS has published an update report on NT-focused gas explorer/producer Empire Energy Group (ASX:EEG) following the recent announcement that it had executed binding commitment letters for a $65m finance package, in three separate facilities.
• This is the critical piece of the capital funding requirement to support the Carpentaria Pilot Project to first gas as we see it.
• Importantly we suggest the securing of the package can be interpreted as a third-party vote of confidence in the commercial potential of the Beetaloo gas play.

KEFI has announced that it is raising c £10.6m by issuing c 1.9bn shares at a price of 0.55p. The full raise is in five parts: a firm placing, a retail offer, a conditional placing, a conditional subscription and a conditional issue. The first two have now been completed, raising £5.4m (gross) via the issue of 988.5m shares. The remaining three require shareholder approval from a general meeting on 2 January. Assuming this to be the case, they will raise a combined £5.1m (gross) via the issue of a further 933.2m shares.

• What you need to know: • Nicola announced an operational and exploration update on its 2024 drill program.
• • NIM made a deposit for a Notice of Work and Reclamation Program at the Dominion Creek Project, which is an important milestone in obtaining the final permit for a bulk sample in 2025.
• • NIM completed a flow-through private placement of 1.6M shares at $0.335/share.

• Back on the 15th August, lithium play Latin Resources (LRS AU) entered into a Scheme with Pilbara Minerals (PLS AU). PLS offered 0.07 new PLS shares for every LRS share.
• The Scheme Booklet was slightly delayed to reflect Pilbara’s recently adjusted FY25 guidance – nothing deal/project related.
• The Scheme Booklet is now out, with a Scheme Meeting to be held on the 16th Jan. Expected implementation on the 4th Feb. The IE (BDO) says fair & reasonable.

• Newjf’s Yuan Xunjun and Guo Xiaohong are both lawyers. They should be more familiar with the Pre-Condition requirements. Newjf has obtained SAMR clearance and we think Newjf will fulfill Pre-Conditions.
• Bi Hua and Hong Gang’s “new initiative” based on Nov.28 announcement may not necessarily succeed, since Newjf has a lot of room for rebuttal here and its Offer is attractive.
• Greatview’s chairman and Cloudview are in discussions with financial advisers to make a counterbid.Considering that this may be a “noise”,we recommend prioritizing Newjf’s Offer before any higher Offer from Greatview.

• On 29 November, the Latin Resources (LRS AU) IE considered Pilbara Minerals (PLS AU)’s all-scrip offer fair and reasonable. The offer is 0.07 PLS share per LRS share. 
• The key conditions are LRS shareholder and Brazilian regulatory approvals. No disinterested shareholder holds the 25% blocking stake, and low retail ownership lowers the headcount test risk.
• An attractive offer and the lack of a competing bidder suggest a done deal. At the last close, for the 4 February payment, the gross/annualised spread was 2.9%/18.8%.

• WTI futures dropped 4.6% for the week ending 29/Nov, driven by easing Middle East tensions and higher US gasoline and distillate inventories.
• WTI options Put/Call volume ratio fell to 0.82 from 0.87 (22/Nov) last week, as call volume fell by 17.9% WoW and put volume dropped by 22.4%.  
• WTI OI PCR inched up to 0.88 from 0.86 compared to last week. Call OI rose by 1.3% WoW, while put OI increased by 4.5%.

• SGX IO Futures closed USD 4.17/ton higher for the week ending on 29/Nov. It traded in a range of USD 5.05/ton, which was smaller than the prior week.
• Chinese portside inventories fell 1.5% to 148.5M tons for the week ending 29/Nov. China’s manufacturing PMI for November came in at 50.3, beating analyst expectations of 50.2.
• Seasonally strong demand ahead of the Lunar New Year, improving steelmaker conditions, stimulus hopes, and robust PMI signal continued iron ore price gains.

• US natural gas prices rose 7.5% for the week ending 29/Nov, driven by forecasts of colder weather, rising US LNG exports, and higher heating demand.
• Henry Hub Put/Call volume ratio rose to 1.47 from 1.14 (22/Nov) the previous week as put volumes fell by 56.1% WoW, while call volumes decreased by 66%. 
• Henry Hub OI PCR fell to 0.83 from 0.84 compared to last week. Call OI fell by 14.4% WoW, while put OI decreased by 15.8%.

• Occidental’s Q3 revenue edged up by 0.2% YoY and beat estimates by 0.7%. Net profit fell by 16.6% YoY, but EPS beat estimates by 34.8%.
• Total production increased 15.7% YoY, driven by strong growth in the Permian and Rockies, while US production surged 19% YoY, achieving its highest-ever quarterly output.
• Long-Term debt reduced to USD 25.46 billion, down USD 4 billion, reaching nearly 90% of the company’s near-term debt reduction target of USD 4.5 billion.

• LVG announced a term sheet including a forward purchase agreement of 7,000oz of gold plus an offtake agreement.
• With permits secured last month, today’s announcement derisks the project development from a financing perspective.
• The second tranche of the financing involving Taifa Group is expected to close within the next few weeks and will provide additional funding (~$3.8M) to LVG, further derisking it from a capital standpoint.

• The Tariki-5A well has encountered a gas column of at least 8 metres out of a gross Tariki sand of ~60 m.
• An additional column of a further 8 to 12 m may be confirmed upon completion of log analyses.
• This is above company expectations.

• TM received a term sheet for the purchase of its ownership of the Kombat Mine for a consideration in the range of US$30-50M.
• The all-cash transaction is at the asset level, therefore removing a significant portion of TM’s debt, allowing them to realize the entire consideration.
• Trigon also announced its Q2/25 operating and financial results, reporting weaker than expected financials compared to Q1, returning to a negative EBITDA position.

• De Grey Mining (DEG AU) entered a binding scheme with Northern Star Resources (NST AU) at 0.119 NST shares per DEG share, implying A$2.08, a 37.1% premium to the undisturbed price. 
• The scheme is conditional on DEG shareholder approval. Gold Road Resources (GOR AU), the largest shareholder, potentially holds a blocking stake and has not provided an irrevocable. 
• The offer is susceptible to a competing offer as it is all-scrip and unremarkable vs peer multiples. Barrick Gold (GOLD US) and Agnico Eagle Mines (AEM US) are potential suitors.

• The EGM for Korea Zinc (010130 KS) is expected to be held on 23 January 2025. Accordingly, the shareholder registry is expected to be closed around 19 – 23 December. 
• By better analyzing the timeline of the M&A of SM Entertainment, we may be able to get better clues to Korea Zinc’s price movement in the next several weeks. 
• Notice the double top share price formation of SM Entertainment in 2023 versus the potential double top formation of Korea Zinc in 2024. These trading formations look eerily similar.

• In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in June 2025.
• These seven potential inclusion candidates are up on average 8.9% from end of Sept 2024 to 2 December 2024 versus KOSPI which is down 5.4% in the same period. 
• The potential additions include IPOs in 2024 such as HD Hyundai Marine Solution (443060 KS), Shift Up (462870 KS), and Sanil Electric (062040 KS). 

• The US oil and gas rig count fell by 1 to 582 for the week ending on 27/Nov, reporting a third consecutive weekly fall.
• For the week ending 22/Nov, US oil production rose to 13.49m bpd from 13.2m bpd the week prior. US output inched close to its all-time high of 13.5m bpd.
• The number of active US oil rigs fell by two to 477, the lowest since July. Conversely, the US gas rig count rose by one to 100.

• Hello, Welcome to the third edition of the Mikro Kap Wathclist, a series in which I go deeper into unique opportunities from my watchlist that, IMO, are worth monitoring closely.
• This way, you can act decisively when the moment comes, rather than spending weeks on initial research.
• These kinds of stocks would probably be a part of my portfolio if I were older, more diversified, or both.

• ADNOC International (XRG) secured a controlling 69.94% stake in Covestro after the initial acceptance period, surpassing the 50% plus one share threshold.
• Regulatory Approvals Pending: The transaction awaits merger control, foreign investment, and EU Foreign Subsidies Regulation clearances, with finalization expected in H2 2025 (usual timeline for deal in the chemical industry).
• Remaining shareholders can tender their shares during the additional acceptance period; squeeze-out is likely. Recommendation is tender.

• OCI N.V.’s expected mid-cycle EBITDA for the European Nitrogen business is clarified at $150m, affecting valuation calculations.
• Currency Exchange International announced a new 5% share buyback authorization, with previous buyback pace remaining slow.
• Grifols’ potential reverse arbitrage trade involves long Class A shares, short Class B shares, amid merger considerations.

• Goldman Thinks Commodities Will Outperform in 2025 Gold will rally to a record next year on central-bank buying and US interest rate cuts, according to Goldman Sachs – putting out a price target of $3.000 USD till end of 2025.
• The bank sees a sideways market in crude as its base case.
• The bank sees a sideways market in crude as its base case. “In our baseline forecast, we continue to see oil prices as range-bound, with Brent likely to stay in a $70-$85/bbl range. I

• Following the election of Donald Trump, gold and precious metals fell sharply alongside the mining equities.
• Despite the shock drop, the metals began a reassuring rebound in the back half of the month.
• Mining equities performed negatively with the GDX down 6.7%, GDXJ down 7.4%, SIL down 6.0%, and COPX down 2.4%.

• Vaalco’s asset portfolio combines a mix of long- and short- cycle growth opportunities in every country in which it operates.
• Management sequences the capital investment cycles to ensure the company commits capital to projects that have been sufficiently derisked to avoid overcommitting and with an eye to shortening the time from investment to production.
• Its budgeting process is anchored by the goal of supporting a sustainable dividend

• De Grey Mining (DEG AU), which boasts one of Australia’s largest undeveloped gold projects, has announced a merger, by way of  Scheme, with Northern Star Resources (NST AU).
• Northern Star is offering 0.119 new shares for every De Grey share, and will hold ~80.1% of the combined entity, with De Grey shareholders the remaining ~19.9%. 
• Terms back out an implied price of A$2.08/share, or a ~37% premium to last close. This Offer  has the unanimous backing of both boards. 

• Northern Star Resources (NST AU) has agreed to acquire De Grey Mining (DEG AU) by way of a Scheme of Arrangement in an all-stock deal.
• De Grey Mining (DEG AU) shareholders will receive 0.119 Northern Star Resources (NST AU) shares for each De Grey share held. That implies a 37.1% premium to the last close.
• There will be passive buying in Northern Star Resources (NST AU) at the time of merger completion, though there could be selling from some existing De Grey Mining (DEG) shareholders.

• Q2 FY 2025 sees NR prices hitting all-time high of INR 247/kg
• Revenue of MRF, Apollo and CEAT goes up YoY; of JK Tyre dips
• Tire prices hiked to mitigate impact of NR price rises

• The Mosaic Company’s recent earnings for the third quarter of 2024 shed light on a period marked by both operational challenges and strategic transitions.
• The company, a key player in the fertilizer industry, faced disruptions due to hurricanes in the U.S., electrical issues at potash mines in Esterhazy and Colonsay, and was also affected by a broad Canadian rail strike.
• Despite these obstacles, The Mosaic Company managed to report revenues of $2.8 billion, with a net income of $122 million and adjusted EBITDA of $448 million.

• As part of our series of initiations on copper stocks, Lundin Mining (LUN CN) is another play with a cheaper multiple than Southern Copper (SCCO US) but an inferior ROCE.
• With its most recent acquisition of the Jose Maria copper project in a 50:50 JV with BHP, the mid-size copper-producing company is on its way to growth after 2027.
• Trading at 17x FY25e and 5.0x EV-EBITDA, this is another company in our stable worth exploring. 

• WA government announces $150 million package for lithium miners, including waiving government fees for two years
• Package also includes a $50 million loan facility for interest-free loans to sustain operations
• While the news did not significantly impact stock prices, it provides some relief and support for struggling lithium companies

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Saatvik Energy Green Ltd (1637892D IN)  is planning to raise about US$136m through its upcoming IPO in India. The lead bookrunners for the deal are Dam Capital, Ambit, Motilal Oswal.
• Saatvik Green Energy Ltd (SEG) specializes in the manufacturing of solar photovoltaic (PV) modules and provides comprehensive engineering, procurement, and construction (EPC) services.
• As per Crisil report, since its inception, the company has supplied over 1.5 GW of high-efficiency solar PV modules to both domestic and international markets.

• Aramco’s Q3 operating revenue fell 1.8% YoY and missed estimates by 0.5%. Similarly, its net profit fell by 15.4% YoY and its EPS missed expectations by 1%.
• Aramco’s total hydrocarbon production fell 0.8% YoY but rose 3.3% QoQ in Q3. Its average crude oil price realisation dropped 11.2% YoY and 7.5% QoQ.
• Despite a decline in net profit, Aramco maintained its dividend, which led to a shift from net cash to a net debt position as dividend payouts exceeded free cash flow.

• 3Q24 production of 2,336 boe/d was in line with our expectations.
• Southern has monetized excess inventory for US$2 mm during 3Q24, resulting in net debt being reduced by US$1.4 mm.
• Southern estimates that further excess inventory could be sold for US$1-1.5 mm.

• Positive trajectory – Q2FY3/25 results continued to show signs of recovery in margins (2.4% Q2 FY3/24, 3.7% Q2 FY3/25), reflecting price hikes, volume expansion, and cost reduction.
• By segment, Films was the largest contributor to OP growth (+686.5% YoY), followed by Environmental and Functional Materials (+102.1%).
• Strong OP growth attributed to moderating cost pressures, and improving demand, which has led to unit price hikes without sacrificing volume. 

• Inventory lowest in 13th months
• Arbitrage widens for African and Indonesian rubber
• Frontloading resulted in spike in exports

• New Fortress Energy, a company involved in the development and operationalization of liquefied natural gas (LNG) projects, reported its third-quarter 2024 earnings.
• Overall, New Fortress Energy achieved an adjusted EBITDA of $176 million, aligning with prior forecasts.
• Operational highlights include the progress of the Fast LNG (FLNG) unit, which met and exceeded nameplate capacity in trials.

• 3Q24 production of 879 bbl/d was in line with expectations.
• The company’s cash position of C$6.1 mm at the end of September is high but reflects greater current payables.
• We note a further opex reduction from C$3.4 mm in 2Q24 to C$2.6 mm with flat production.

• There is likely to be a proxy fight for the control of Korea Zinc (010130 KS) between MBK/Young Poong alliance and Chairman Choi/Bain Capital alliance in January 2025.
• Young Poong Precision announced that it will acquire 39,254 shares of Korea Zinc. Post this purchase, Young Poong Precision will own a 2.11% stake in Korea Zinc (up from 1.92%).
• FSS Governor Lee Bok-Hyun mentioned that the FSS is seriously reviewing a potential accounting issue related to environmental pollution at Young Poong.

• Lee Bok-hyun, head of the Financial Supervisory Service, unexpectedly voiced concerns about MBK winning Korea Zinc’s management battle, catching everyone off guard.
• The key question is how Michael ByungJu Kim will handle government pressure, with MBK possibly aligning with the opposition if the Democratic Party pushes for commercial law reform.
• Korea Zinc now becomes a proxy war over governance reform. Watch MBK’s political stance, as it could drive the stock higher, especially if Michael teams up with the opposition.

• The SET50 index tracks the performance of the top 50 largest and most liquid names listed on the Stock Exchange of Thailand (SET).
• In this insight, we take a look at our final expected ADDs/DELs for SET 50 during the index rebal event in December 2024.
• We see four ADDs/DELs in December 2024. While the expected DELs list remains unchanged since last month, there is a change in our expected ADDs list.

• Phillips Carbon Black (PHCB IN) PCBL is the largest producer of Carbon Black in the country and seventh largest player in the world. 
• Transitioning to specialty carbon black, acquiring companies non-carbon linked companies and entering into JV for sunrise sectors EV battery chemical companies. 
• Guiding for 2400Cr Capex for 1Mn capacity of Carbon black capacity, 600Cr capex for Aquafarm chemicals and 500Cr for battery chemicals in the upcoming years for growth. 

• William Companies $WMB believes more Republican control can resolve permitting issues, which would benefit the power industry and the energy infrastructure business.

• A favorable tax outcome will also be “a very huge positive to [its] guidance in the immediate term”. 

• Energy Transfer $ET said the Trump administration will bring “a breath of fresh air.” Nov 06: Q3’24

• Halliburton’s Q3 revenue fell by 1.8% YoY and missed estimates by 2.2% dragged down by an 8.5% YoY fall in revenue from North America.
• The Completion and Production division’s revenue dropped 5.4% YoY and 3% QoQ, while the Drilling and Evaluation division posted a 3.5% YoY increase but declined 1.4% QoQ.
• Operating cash flow declined 23.5% QoQ, while free cash flow dropped 31.5%. Earnings were impacted by lost revenue from the cybersecurity incident and Gulf storms.

• Packaging Corporation of America reported robust third-quarter 2024 results, showcasing notable growth in both revenue and profitability driven by increased volume and effective cost management.
• The company achieved a net income of $238 million, translating to $2.64 per share, and excluding special items, net income stood slightly higher at $239 million or $2.65 per share.
• This performance marked a significant improvement compared to the third quarter of 2023, where net income was $185 million or $2.05 per share.

• For the week ending 22/Nov, US crude inventories fell by 1.8m barrels, beating expectations of a 1.3m barrel decrease. However, gasoline and distillate stocks rose more than expected.
• US natural gas inventories fell by 2 Bcf for the week ending 22/Nov, missing analyst expectations of a 4 Bcf decline. Inventories are 7.2% above the 5-year seasonal average.
• Analysts raised their 12-month price targets on Chevron while trimming their targets for Exxon and Occidental. Both JP Morgan and Morgan Stanley reiterated their Overweight ratings on Reliance Industries.

• PPG, a global leader in the coatings industry, presented its third-quarter 2024 financial results, reflecting both achievements and challenges faced by the company.
• The earnings disclosed sales of $4.6 billion and highlighted a year-over-year segment margin improvement for the eighth consecutive quarter.
• Notably, adjusted earnings per diluted share reached a record high for a third quarter at $2.13, up 3%, despite complications such as an unfavorable tax rate.

• During the third quarter earnings of Schlumberger Limited (SLB), the Chief Executive Officer, Olivier Le Peuch, discussed a performance marked by strong margin expansion and robust free cash flow generation.
• While the company reported flat sequential revenue growth, it achieved a significant increase in adjusted EBITDA margin, demonstrating improved operational efficiency.
• Particularly noteworthy was the free cash flow figure, which stood at $1.81 billion for the quarter, highlighting the company’s strong cash-generating capability.

• Asian Paints (APNT IN) reported a 42.4% drop in Q2FY25 net profit and a 5.3% revenue decline.
• Intense competition, extended monsoons, weak urban demand, and margin pressures are impacting performance.
• Asian Paints’ resilience hinges on premiumization, sustainability, and industrial coatings to offset short-term challenges.

• The FSS’s correction deadline still starts from October 17, giving Kum Yang until January 16 next year to get everything in order.
• We should still be all over this, as the major shareholder likely won’t participate, flooding the market with stock rights and unsubscribed shares, creating a prime 25% discount opportunity.
• Kum Yang needs even this 200-300 billion KRW, so cancellation seems unlikely. With the FSS deadline on January 16, they’ll likely submit the revised report mid to late next month.

• INROAD project prompts Tripura to extend CM’s Rubber Mission
• Nagaland aims to cover 30,000 hectares with rubber by 2030
• Northeast starts getting saplings from its own nurseries

• SOC remains in limbo with the latest letter from “CalFire” creating further uncertainty as to when, if ever, SOC would be able to restart production at the Santa Ynez Unit.
• SOC was previously served with a cease and desist order from the California Coastal Commission that barred the Company from any permit work until February 2025. 
• The latest media report suggests CalFire sent a letter to the California Legislature about the agency not having authority to allow SOC to restart production.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Buenaventura’s ESG as “Adequate”, in line with its Social and Governance scores, while the Environmental pillar is “Weak”. Controversies are “Immaterial” and Disclosure is “Adequate”.

• Two intervals in the Steinalm formation (1452.5 m-1463.5 m and 1474.5 m-1480 m MD) were tested at a stable rate (natural flow) of 240-290 bbl/d of drilling mud, likely contaminated formation water and some oil traces.
• Gas was initially observed at surface.
• While the achieved flow rate highlights the high permeability of the natural fractures, the absence of hydrocarbons is disappointing and surprising given the results of the logs, the inflow of gas while drilling, the analysis of the retrieved cores (with indication of hydrocarbons) and the fact that down hole oil samples were recovered from this interval.

• • Production at Jasmine has increased to 9,8mbbl/d over the last seven days following the drilling of five new infill wells.
• This is higher than we expected and represents an increase of >2 mbbl/d.
• • Corporate production in September and October was already at ~26.4 mbbl/d.