Daily BriefsEnergy & Materials Sector

Daily Brief Energy/Materials: Reliance Industries, Newmarket Corp, Crude Oil, Valvoline , Sonoco Products Co and more

In today’s briefing:

  • Steep Discount on Land Acquisition by Reliance Sparks Corporate Governance Debate
  • NewMarket Corporation’s Unstoppable Petroleum Additives Profit Surge Exposes Shocking Cost-Cutting Secrets! – Major Drivers
  • [ETP 2025/01] WTI Rises on Improved Chinese Outlook, Henry Hub Reverses Uptrend
  • Valvoline Inc.: Expansion of Market Share & Franchise Growth As A Key Growth Catalyst! – Major Drivers
  • Sonoco Products: The Strategic Acquisition of Eviosys & Other Major Drivers


Steep Discount on Land Acquisition by Reliance Sparks Corporate Governance Debate

By Nimish Maheshwari

  • Reliance bought 5,286 acres of prime industrial land in Navi Mumbai, which was sold for a surprisingly low INR 2,200 cr whose economic value is around INR 1 Lakh cr.
  • This complex transaction done at a steep discount raises corporate governance issues for other shareholders like Jai Corp owing to valuations, disclosure lapses and minority shareholder rights.
  • We delve into details of the deal structure and what it means for respective companies’s shareholders.

NewMarket Corporation’s Unstoppable Petroleum Additives Profit Surge Exposes Shocking Cost-Cutting Secrets! – Major Drivers

By Baptista Research

  • NewMarket Corporation reported its financial results for the third quarter of 2024, presenting a mixed performance with noteworthy insights into its operations and strategic initiatives.
  • In terms of financial performance, the company achieved a net income of $132 million, translating to $13.79 per share, compared to $111 million or $11.60 per share in the same period last year.
  • This indicates an improvement in profitability on a year-over-year basis.

[ETP 2025/01] WTI Rises on Improved Chinese Outlook, Henry Hub Reverses Uptrend

By Suhas Reddy

  • For the week ending 27/Dec, U.S. crude inventories fell by 1.2m barrels, missing expectations of a 2.4m barrel decrease. Gasoline and distillate stockpiles rose more than expected.
  • U.S. natural gas inventories fell by 116 Bcf for the week ending 27/Dec, missing analyst expectations of a 127 Bcf drawdown. Inventories are 4.7% above the 5-year seasonal average.
  • JP Morgan lowered its 12-month PT for Halliburton and Schlumberger but maintained its “Overweight” ratings. Saudi Aramco revised fuel and natural gas prices for cement production starting from 01/Jan.

Valvoline Inc.: Expansion of Market Share & Franchise Growth As A Key Growth Catalyst! – Major Drivers

By Baptista Research

  • Valvoline Inc. announced its fourth-quarter and full fiscal year 2024 earnings, underlining its solid market position in the retail services sector, yet facing specific growth challenges.
  • For fiscal 2024, Valvoline reported a significant 12% increase in system-wide store sales reaching $3.1 billion, along with adjusted EBITDA growth of 17% to $443 million.
  • However, there were concerns as net revenue and same-store sales growth landed just below expectations.

Sonoco Products: The Strategic Acquisition of Eviosys & Other Major Drivers

By Baptista Research

  • Sonoco Products reported a solid financial performance for the third quarter of 2024, showcasing a resilient operational model amidst challenging external conditions, such as the disruptions caused by Hurricanes Helene and Milton.
  • The company achieved adjusted EBITDA of $281 million, representing a 16.8% margin, and adjusted earnings per share (EPS) of $1.49.
  • Operating cash flow reached $162 million during this period.

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