Daily Brief Energy/Materials: Asian Paints, Kum Yang , SGX Rubber Future TSR20, Sable Offshore, Cia de Minas Buenaventura SAA, ADX Energy Ltd, Valeura Energy Inc and more

• 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.