Category

Utilities Sector

Jun 16
0

Daily Brief Utilities: Nextera Energy, Atmos Energy, Vistra and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • NextEra Energy Inc.: Initiation of Coverage – A Blend of Stability and Growth in Renewable Energy! – Major Drivers
  • Atmos Energy Corporation: Initiation of Coverage – Sustained Growth Through Strategic Investments and Regulatory Support! – Major Drivers
  • Vistra Corp.: Initiation of Coverage – How They Are Navigating Market Volatility and Competitive Pressures? – Major Drivers

NextEra Energy Inc.: Initiation of Coverage – A Blend of Stability and Growth in Renewable Energy! – Major Drivers

By Baptista Research

  • A combination of strong demand growth, portfolio diversification, and strategic expansion has helped NextEra Energy post solid financial results for the first quarter of 2024.
  • The company reported an 8.3% year-over-year increase in adjusted earnings per share, driven largely by the performance of its Florida Power & Light Company (FPL) and Energy Resources segments.
  • FPL’s earnings per share increased $0.04 year-over-year, the primary driver being a growth of approximately 11.5% in the company’s regulatory capital year-over-year.

Atmos Energy Corporation: Initiation of Coverage – Sustained Growth Through Strategic Investments and Regulatory Support! – Major Drivers

By Baptista Research

  • Atmos Energy Corporation has provided an update on their fiscal 2024 second quarter results in their latest earnings call.
  • The company reported a year-to-date net income of $743 million and has revised their fiscal 2024 earnings per share guidance to a range of $6.70 to $6.80, indicating a sound financial performance.
  • The company attributes their performance to the commitment and hard work of its employees in modernizing their natural gas distribution, transmission and storage systems, and providing reliable service to their 3.4 million customers.

Vistra Corp.: Initiation of Coverage – How They Are Navigating Market Volatility and Competitive Pressures? – Major Drivers

By Baptista Research

  • Vistra Energy’s first quarter 2024 earnings revealed a company with a positive outlook for long-term growth, yet with some challenges ahead.
  • Positive remarks were made on improved market dynamics in the power sector and a significant increase in long-term outlook for the company.
  • A substantial execution plan was also presented, primarily focused on delivering reliable, affordable, and sustainable power amidst increasing power demands.

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Jun 14
0

Daily Brief Utilities: Aegis Logistics, Renewable Japan and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • The Beat Ideas: Aegis Logistics: Fueling India’s LPG Market
  • Renewable Japan (9522 JP): Q1 FY12/24 flash update
  • Renewable Japan (9522 JP): Q1 FY12/24 flash update
  • Renewable Japan (9522 JP): Q1 FY12/24 flash update
  • Renewable Japan (9522 JP): Q1 FY12/24 flash update
  • Renewable Japan (9522 JP): Q1 FY12/24 flash update
  • Renewable Japan (9522 JP): Q1 FY12/24 flash update
  • Renewable Japan (9522 JP): Q1 FY12/24 flash update

The Beat Ideas: Aegis Logistics: Fueling India’s LPG Market

By Sudarshan Bhandari

  • Aegis Logistics (AGIS IN) is significantly expanding its LPG and liquid logistics infrastructure across India with rising demand.
  • Currently, Aegis has a 15.5% market share in LPG imports in India which they plan to take to 25% in the next few years.
  • Surpassed INR 1,000 crores in normalized EBITDA for FY ’24, planned capex of 4500 Crores by FY27.

Renewable Japan (9522 JP): Q1 FY12/24 flash update

By Shared Research

  • FY12/23 revenue was JPY33.6bn (+89.6% YoY), gross profit JPY8.0bn (+37.1% YoY), operating profit JPY3.6bn (+178.5% YoY), recurring profit JPY2.0bn (JPY1.4bn loss in FY12/22), and net income attributable to owners of the parent of JPY1.1bn (JPY1.5bn net loss).
  • The company posted revenue growth and profits as electricity sale income rose due to higher installed capacity (generating recurring revenue), orders expanded in the O&M business, and one-time revenue businesses grew in Japan and overseas.
  • For FY12/24, the company forecasts revenue of JPY20.5bn (-38.9% YoY), operating profit of JPY5.1bn (+42.0% YoY), recurring profit of JPY2.5bn (+24.3% YoY), and net income attributable to owners of the parent of JPY1.5bn (+37.9% YoY).

Renewable Japan (9522 JP): Q1 FY12/24 flash update

By Shared Research

  • Q1 FY12/24 revenue: JPY3.9bn (-17.3% YoY); gross profit: JPY1.4bn (-26.6% YoY); operating profit: JPY355mn (-59.0% YoY).
  • Q1 FY12/24 net loss: JPY178mn; driven by higher-than-expected profits in Spot business (overseas) and Power Production (Japan).
  • Recurring business revenue: JPY3.2bn (-1.9% YoY); gross profit: JPY740mn (+21.3% YoY); Spot business revenue: JPY680mn (-52.8% YoY).

Renewable Japan (9522 JP): Q1 FY12/24 flash update

By Shared Research

  • Q1 FY12/24 revenue: JPY3.9bn (-17.3% YoY); gross profit: JPY1.4bn (-26.6% YoY); operating profit: JPY355mn (-59.0% YoY).
  • Recurring loss: JPY174mn (JPY628mn profit in Q1 FY12/23); net loss attributable to owners: JPY178mn (JPY452mn net income).
  • Power Production business (Japan) gross profit exceeded forecast by JPY410mn; Spot business (overseas) gross profit exceeded forecast by JPY670mn.

Renewable Japan (9522 JP): Q1 FY12/24 flash update

By Shared Research

  • Q1 FY12/24 revenue: JPY3.9bn (-17.3% YoY), gross profit: JPY1.4bn (-26.6% YoY), operating profit: JPY355mn (-59.0% YoY).
  • Recurring loss: JPY174mn, net loss: JPY178mn, attributed to higher-than-expected profits in Spot business and Power Production.
  • Revenue breakdown: Power Production Japan: JPY2.5bn, Power Production overseas: JPY90mn, O&M: JPY710mn; total installed capacity under O&M: 2,218.0MW.

Renewable Japan (9522 JP): Q1 FY12/24 flash update

By Shared Research

  • Q1 FY12/24 revenue: JPY3.9bn (-17.3% YoY), gross profit: JPY1.4bn (-26.6% YoY), operating profit: JPY355mn (-59.0% YoY).
  • Recurring loss: JPY174mn, net loss attributable to owners: JPY178mn, higher-than-expected profits in Spot (overseas) and Power Production (Japan).
  • Revenue in Recurring business: JPY3.2bn (-1.9% YoY), gross profit: JPY740mn (+21.3% YoY), GPM rose 4.5pp to 23.3%.

Renewable Japan (9522 JP): Q1 FY12/24 flash update

By Shared Research

  • In Q1 FY12/24, revenue was JPY3.9bn (-17.3% YoY), gross profit was JPY1.4bn (-26.6% YoY), and operating profit was JPY355mn (-59.0% YoY).
  • RJ posted a net loss attributable to owners of JPY178mn, versus a forecast of JPY880mn loss, due to higher-than-expected profits in the Spot and Power Production businesses.
  • Installed capacity of power plants under O&M contracts increased to 2,218.0MW at end-Q1 FY12/24, targeting 2,300.0MW by end-FY12/24.

Renewable Japan (9522 JP): Q1 FY12/24 flash update

By Shared Research

  • Q1 FY12/24 revenue: JPY3.9bn (-17.3% YoY), gross profit: JPY1.4bn (-26.6% YoY), operating profit: JPY355mn (-59.0% YoY).
  • Recurring loss: JPY174mn, net loss: JPY178mn, attributed to higher-than-expected profits in Spot and Power Production businesses.
  • Installed capacity under O&M contracts: 2,218.0MW, company-owned solar power plants in Japan (non-FIT/FIP): 22.0MW, overseas: 52.8MW.

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Jun 13
0

Daily Brief Utilities: Tata Power and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Quiddity Leaderboard NIFTY Sep 24: Multiple Changes Possible for NIFTY 50; Some New Trade Ideas

Quiddity Leaderboard NIFTY Sep 24: Multiple Changes Possible for NIFTY 50; Some New Trade Ideas

By Janaghan Jeyakumar, CFA

  • NIFTY 50 represents the 50 largest stocks listed in the National Stock Exchange (NSE) of India and the NIFTY Next 50 index tracks the next 50 largest names.
  • In this insight, we take a look at the names leading the race to become ADDs/DELs during the September 2024 index rebal event.
  • Since my last insight, we have observed a couple of important changes to candidate rankings and that has resulted in some changes to our index change expectations.

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Jun 12
0

Daily Brief Utilities: Naturgy Energy Group SA and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • It’s a No Deal, But…

It’s a No Deal, But…

By Jesus Rodriguez Aguilar

  • Abu Dhabi National Energy (TAQA UH) has unexpectedly withdrawn from negotiations to launch a takeover bid for Naturgy Energy Group SA (NTGY SM) with CriteriaCaixa.
  • Criteria may continue to explore other options. CriteriaCaixa and IFM may reconcile. IFM could offer a solution for the exit of CVC and GIP, could potentially increase its stake.
  • A joint offer from CriteriaCaixa and IFM could well happen. At the current price, I would be long Naturgy, plus one gets paid to wait. Dividend yield is 6.6%.

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Jun 10
0

Daily Brief Utilities: Genex Power Ltd and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Genex Power (GNX AU): Scheme Vote on 16 July as Skip Remains Silent

Genex Power (GNX AU): Scheme Vote on 16 July as Skip Remains Silent

By Arun George

  • The Genex Power Ltd (GNX AU) IE considers Electric Power Development C (9513 JP)’s scheme (A$0.275) and off-market takeover offer (A$0.270) fair and reasonable. 
  • The offer is conditional on FIRB and shareholder approval. Skip Capital, which can block the scheme, has not declared its intention regarding J-Power’s offer or launched a competing offer.
  • Skip’s silence suggests a greater probability of accepting the scheme offer. If the scheme fails, the takeover offer, due to its structure and price, caps the downside.

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Jun 04
0

Daily Brief Utilities: Korea Gas and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Korea Gas Corp: Drill Baby Drill

Korea Gas Corp: Drill Baby Drill

By Douglas Kim

  • On 3 June, the shares of Korea Gas jumped limit up 30% to 38,700 won on huge volume (13.4 million), which was 37x higher than the previous day volume traded. 
  • This was driven by the announcement of the South Korean President Yoon giving the approval to conduct exploratory drilling for potentially vast oil and gas prospects near Pohang. 
  • The Korean government announced that there is a “very high” possibility the area contains as much as 14 billion barrels of oil and gas.

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Jun 02
0

Daily Brief Utilities: China Yangtze Power Co, Ltd. and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Mainland Connect NORTHBOUND Flows (To 31 May 2024): Net Sell Flows on Weak Gross Volumes

Mainland Connect NORTHBOUND Flows (To 31 May 2024): Net Sell Flows on Weak Gross Volumes

By Travis Lundy

  • The Quiddity Mainland Connect NORTHBOUND Monitor. Like the A/H Premium Monitor and HK Connect SOUTHBOUND Monitor. Lots of Flows/Position Tables and Charts with which to play.
  • Last week saw NORTHBOUND net SELL RMB 5.7bn of A-shares on lower gross volumes. NORTHBOUND bought Zijin, Yangtze Power, and renewables and sold SOEs.
  • Ongoing questions as to whether the NORTHBOUND volumes to the buy side are all foreigners. Some suspect there is national team buying mixed in, as was expected from earlier announcements.

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May 31
0

Daily Brief Utilities: Engie SA, Neoen, Talen Energy and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Quiddity Leaderboard ES50 Sep 24: US$1.1bn Index Inflow for Engie if Nokia’s Rank Falls by ONE
  • Brookfield to Launch Mandatory Offer for Neoen
  • TLNE: Electrifying Tender, PT to $145

Quiddity Leaderboard ES50 Sep 24: US$1.1bn Index Inflow for Engie if Nokia’s Rank Falls by ONE

By Janaghan Jeyakumar, CFA

  • The ES50 Index is one of the most highly-tracked and followed indices in Europe and the annual index review takes place in September every year.
  • This annual index rebal event usually results in some of the most significant index flow events in Europe every year, typically amounting to billions of dollars of flows.
  • In this insight, we take a look the names leading the race to become ADDs/DELs for the upcoming index review in September 2024.

Brookfield to Launch Mandatory Offer for Neoen

By Jesus Rodriguez Aguilar

  • Brookfield (BN CN) has entered exclusive negotiations with the top shareholders of Neoen (NEOEN FP) to acquire a 53.32% stake at €39.85/share, 26.9% premium, which will trigger a mandatory offer.
  • The offer represents 15.1x EV/NTM Fwd EBITDA vs. the median of peers at 9.3x. My fair-value estimate (DCF-based) is €33.76/share, therefore the offer is generous, in my view.
  • Expect the shares to close the spread tomorrow and trade around 3% gross spread and the convertibles to price higher (2% 06/25 at around €51.85, 2.875% 09/27 around 111.72%).

TLNE: Electrifying Tender, PT to $145

By Hamed Khorsand

  • TLNE is putting its growing cash balance to use by announcing a Dutch tender buyback of up to $600 million of its stock.
  • The Dutch tender establishes our price target of $120 is too low as we look ahead to 2025.
  • Our price target of $120 was based on TLNE generating approximately $700 million of adjusted EBITDA in 2024. We are now using our 2025 estimate for our price target

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May 25
0

Daily Brief Utilities: Avangrid and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • Iberdrola/Avangrid: Spread

Iberdrola/Avangrid: Spread

By Jesus Rodriguez Aguilar

  • Post-March announcement, investors bought shares of Avangrid (AGR US)  in the hope of an offer sweetening, which was flagged here, as Iberdrola got $6 billion from its Mexico exit.
  • The improved $35.75/shareoffer was made in response to potential resistance from prospective minority shareholders, as the deal needs the approval of a majority of these non-Iberdrola stakeholders.
  • Spread is 3.2%/5.55% (gross/annualised) assuming $1.4667 in dividend payments (three dividends of $0.44 and a prorated dividend of $0.1467) and settlement on 30 December. Long.

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May 23
0

Daily Brief Utilities: Naturgy Energy Group SA and more

By | Daily Briefs, Utilities Sector

In today’s briefing:

  • TAQA & Criteria/Naturgy: Imminent Offer

TAQA & Criteria/Naturgy: Imminent Offer

By Jesus Rodriguez Aguilar

  • Press reports that CriteriaCaixa and TAQA will launch their takeover bid for Naturgy at €27/share imminently, with conversations between CriteriaCaixa and TAQA on the distribution of control practically finished. 
  • The offer will target approximately 54% of the share capital of Naturgy. TAQA must go through an exhaustive permit request process due to the highly regulated businesses of Naturgy.
  • The shares look fairly priced vs. comparables. At the closing share price of 22 May of €24.92/share, I would be long Naturgy (gross spread to hypothetical offer is 7.7%).

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