The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0454 GMT - Korea Electric Power is set to post solid 3Q earnings on lower fuel costs, LS Securities analyst Sung Jong-hwa writes in a note. The South Korean state utility's operating profit could rise 41% on year to 4.782 trillion won for the July-September period, largely in line with market consensus, amid stabilizing crude and other energy prices, Sung says. He expects the company to spend 20.388 trillion won in fuel purchases this year, down 9.5% from last year. The company, still sitting on significant debt despite a 2024 turnaround after three consecutive years of losses, may be able to restore its financial soundness until 2027, he adds. (kwanwoo.jun@wsj.com)
0308 GMT - Infratil's acquisition of an additional 4.92% stake in Contact Energy for NZ$437.7 million appears to be a solid move for Forsyth Barr. Analyst Ben Crozier says it's consistent with Infratil's strategy for cash flow generators to be 30%-50% of its portfolio. "While minority stakes in listed vehicles aren't a typical long-term Infratil asset, we believe Contact ticks a lot of boxes for Infratil currently," Forsyth Barr says. Contact is a New Zealand-based company that would account for 8% of Infratil's portfolio, approaching meaningful scale. Its valuation can also increase. "We estimate the transaction will contribute positively to Infratil's parent-level free cash flow over the medium term as Contact's dividend grows," Forsyth Barr says. It retains a neutral call on Infratil, which is up 1.1% at NZ$12.50. (david.winning@wsj.com; @dwinningWSJ)
0056 GMT - Energi Mega Persada's Gebang Block gas field is likely a new gateway to growth, UOB Kay Hian analysts say in a research report. This block's first gas is targeted for 1H 2027 at 7 millions of barrels of oil equivalent per day and a planned ramp-up to 17 MMBOED by 2030, the analysts say. At 7 MMBOED, the block would account for around 15% of the upstream oil and gas company's current gas output, offering a medium-term uplift. The Indonesian company's reduction in cost of funds to 9.9% in 2024 from 15.05% in 2018 enables it to buy producing assets. The brokerage initiates coverage of the stock with a buy rating and a target price of IDR1,600.00. Shares last closed at IDR940.00. (ronnie.harui@wsj.com)
0004 GMT - Oil edges lower in the early Asian session. There are growing signs that market surplus is finally beginning to emerge, ANZ Research analysts say in a research report. They cite data from analytics firm Vortexa which show crude oil held in tankers traversing the world's oceans increased to a fresh high, hitting 1.24 million barrels in the week to Oct. 17. Front-month WTI crude oil futures are down 0.1% at $57.47/bbl; front-month Brent crude oil futures are 0.1% lower at $60.94/bbl. (ronnie.harui@wsj.com)
2240 GMT [Dow Jones]--Beach Energy's 1Q revenue beat was driven by lifting an additional LNG cargo at its Waitsia natural-gas project in Western Australia. For Macquarie, that strategy could have a long-term cost. "The continued LNG forward sales are commercially savvy but also add risk, taking earnings from the future on an already short 2P reserve life (<7 years)," Macquarie says. Its FY 2026 EPS forecast rises by 18%, partly due to this additional LNG swap cargo. Macquarie retains an underperform call on Beach with a new price target of A$0.91/share. Beach ended Monday at A$1.135. (david.winning@wsj.com)
1932 GMT - Oil futures pull back from early losses and settle modestly lower. Futures remain on the defensive with a supply surplus looming and geopolitical risk premium easing, Dennis Kissler of BOK Financial says in a note. Most traders think a U.S.-China trade deal may still be a way off, while another Trump-Putin meeting could show de-escalation of the Russia/Ukraine conflict, "which again is keeping pressure on crude prices." And with OPEC+ adding barrels and U.S. output holding, "the near-term outlook is likely lower," he adds. WTI sheds 2 cents to $57.52 a barrel after falling as far as $56.35. Brent settles down 0.5% at $61.01. (anthony.harrup@wsj.com)
1249 GMT - Crude futures continue to lose ground following three consecutive weekly declines. "Weak growth projections and the ongoing energy transition across China and the EU are dampening the broader outlook for crude, compounded by U.S.-China tariff tensions," Razan Hilal of Forex.com says in a note. "Crude oil prices are tracing another decline toward yearly lows amid oversupply, weak demand, and tariff concerns." WTI and Brent are down 0.7% at $57.16 a barrel and $60.86 a barrel, respectively. (anthony.harrup@wsj.com)
0902 GMT - Orsted's share price offers an attractive entry position, with the company now on the right track after its 60 billion Danish kroner capital raise, Kepler Cheuvreux analyst Ingo Becker writes. The capital injection secures financing for the final stage of Orsted's extensive capacity expansion until the end of 2027. After 2027, financial headroom is expected to increase significantly, as capacity moves from a period of rapid growth to a more stable level, which lowers the risk profile of the investment case, he adds. "We maintain a valuation discount of just over 10% to cover remaining risks, including those related to U.S. exposure, impairment risks and planned project sales." Kepler Cheuvreux resumes coverage of Orsted with a buy rating and 140 kroner target price on the stock. Shares rise 2.6% to 122.80 kroner. (dominic.chopping@wsj.com)
(END) Dow Jones Newswires
October 21, 2025 04:20 ET (08:20 GMT)
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