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.
0810 GMT - National Grid's net debt comes in higher than consensus expectations but overall its results are in line, RBC Capital Markets analyst Alexander Wheeler writes. Net debt of 44.2 billion pounds compares with consensus views at 43.3 billion pounds due to the dollar strengthening at the end of the year and timing effects from commodity costs in the U.S., he says. Shares rise 1.65% to 12.97 pounds. (adam.whittaker@wsj.com)
0738 GMT - National Grid is relatively immune to knock-on effects stemming from the conflict in the Middle East, Hargreaves Lansdown's Aarin Chiekrie writes. He cites its limited exposure to wholesale energy prices and the fact that its revenues are positively linked to inflation. This provides a natural hedge to otherwise challenging dynamics, Chiekrie says. Even higher interest rates shouldn't pose too much of a worry, he adds. Roughly 80% of the U.K. utility company's debt is locked in at fixed rates, he explains. The scale of its investment plan poses some risks but so far it has made good progress, he says. Shares rise 1.2% to 1,291.50 pence.(adam.whittaker@wsj.com)
0644 GMT - Korea Electric Power is likely to see the full impact of the Middle East conflict from 2Q, LS Securities' Sung Jong-hwa says. The war that began in late February is lasting longer than expected, while the impact of fluctuating energy prices on earnings is typically reflected after a lag of four to five months, the analyst writes in a note. Higher prices for raw materials such as oil, coal and liquefied natural gas are expected to raise the state utility's fuel purchase costs and reduce its operating profit, he adds. LS lowers its forecast for company's 2026 operating profit by 30%. (kwanwoo.jun@wsj.com)
0349 GMT - Dialog Group's earnings should be supported by stable defensive recurring income, driven by steady midstream operations and high tank utilization above 90%, supported by its take-or-pay contracts, RHB IB analyst Lee Yun Leon says in a note. Dialog provides technical services to the energy sector and Pengerang Deepwater Terminals expansion and firmer oil prices could provide further earnings gains, with every $10/bbl increase adding about 5%-6% to Dialog's earnings, he says. Lee raises Dialog's FY 2026-FY 2028 earnings estimates by 2%-4%. RHB raises Dialog's target price to 2.44 ringgit from 2.02 ringgit, while maintaining a buy rating on the stock. Shares are 0.9% lower at 2.12 ringgit. (yingxian.wong@wsj.com)
0131 GMT - Worley's FY 2030 earnings-growth target is ambitious versus consensus, Jefferies says. Worley CEO Chris Ashton says the company is aiming for double-digit underlying Ebita growth over the medium term to FY 2030. That is well above Jefferies' forecast of roughly 1% per annum and consensus of around 4%, the bank says. The growth outlook is underpinned by several things, including expansion in new markets and customers responding to Middle East disruptions. "Detail around near/medium-term drivers will be important for market to gain confidence in growth ambitions," Jefferies says. The bank has a hold rating and 11.48 Australian dollars a share target price on the stock. Shares are 1.8% higher at A$12.19. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
2047 GMT - Fixed-income traders are misguided in pricing in two quarter-point rate increases from the Bank of Canada, says Michael Davenport of Oxford Economics. Davenport says the BOC might start raising rates in early 2027, once there is more clarity on the U.S.-Canada trade front and on commodity prices. Rate-hike expectations reflect worries about inflation, due to the Mideast conflict that has lifted energy prices. "The BOC knows it can't solve a global energy crisis with higher interest rates," Davenport says. The economist adds Canada faces underlying economic weakness from elevated household debt, weak business investment and lackluster productivity. Labor-market weakness signals excess economic slack, that will keep the BOC on hold through 2026, Davenport says. (paul.vieira@wsj.com; @paulvieira)
1903 GMT - Oil futures settle lower in a choppy session with no change seen in the situation around the Strait of Hormuz. The continued closure is pushing the market toward a tipping point, Hamad Hussain of Capital Economics says in a note. "The fact that oil inventories are still being drawn down shows that demand for oil is still outstripping supply," he says. If flows through the strait resume this month it could limit withdrawals and lead prices to fall back by year-end, but if the strait remains closed and stocks decline at the pace seen in April, oil stocks could reach critically low levels by the end of June. "That would be consistent with Brent crude prices reaching an all-time nominal peak, and could require more disorderly and economically damaging cuts to oil demand," Hussain adds. WTI settles down 1.1% at $101.02 a barrel and Brent falls 2% to $105.63. (anthony.harrup@wsj.com)
1727 GMT - Recent data show the U.S. economy gaining strength despite oil around $100 a barrel and gasoline averaging near $4.50 a gallon, Arlan Suderman of StoneX says in a note. Gasoline prices are in the middle of the historical range when adjusted for inflation reflecting today's buying power, he says. "The two things that consumers notice and complain about first and foremost are rises in food and fuel prices. Yet, in this case, they continue to spend because they have the money to do so." The U.S. consumer still has buying power, and "the economy continues for now to show impressive strength amid the stresses of the Iran war," Suderman says. (anthony.harrup@wsj.com)
1723 GMT - Valvoline's stock lost recent gains following a strong F2Q performance, Mizuho says, pointing to reported shortages across the motor oil and lubricant industry. The analysts say multiple social media posts from operators and experts highlight disruptions across the motor oil supply chain due to the Iran war. The analysts expect private operators to increase prices, as Valvoline has already done so. Valvoline holds adequate supply for now and the lower end of its outlook accounts for possible supply shortages, the analysts say. Valvoline is down 2.2%.(katherine.hamilton@wsj.com)
1334 GMT - The summit between President Trump and Chinese president Xi is not expected to create any sort of breakthrough in the U.S.-Iran stalemate, says Citi Research in a note. It expects "intermittent disruptions" to continue for shipping on the Strait of Hormuz for the next 4-8 weeks. "There is the potential for Iran to prolong disruption for revenue and leverage, and we do not anticipate the Trump-Xi summit to alter this trajectory," says the firm. Citi is keeping its outlook for oil prices elevated, with physical supply struggles expected to be a factor in negotiations. (kirk.maltais@wsj.com)
1320 GMT - Oil futures are little changed in early U.S. trading as President Trump arrives in China for a summit with leader Xi Jinping. On the oil front, the IEA says it expects global oil demand to fall by 420,000 barrels a day this year, including a 2.45 million b/d drop in 2Q. OPEC cut its 2026 demand growth estimate to 1.17 million b/d from 1.38 million b/d, while the U.S. EIA sees demand growth of 200,000 b/d. The IEA's expected demand contraction "offsets only about half of the anticipated loss of supply in suggesting a massive drain on global oil inventories," Ritterbusch & Associates says in a note. WTI is off 0.1% at $102.05 a barrel and Brent is down 0.3% at $107.47. (anthony.harrup@wsj.com)
0909 GMT - RWE's first-quarter results are in line with expectations, Citi's Piotr Dzieciolowski writes. That said, the three-month period was somewhat volatile, the analyst says. The German energy company's offshore segment saw a large recovery driven by wind speed normalization. Meanwhile, there was a small miss in its onshore and solar unit, while its flexible generation result includes around 300 million euros in one-off compensation for a Dutch coal plant closure, he said. Finally, there was a small loss in its trading division due to Iran-war-induced market volatility, he says. Shares fall 0.4% to 57.96 euros. (adam.whittaker@wsj.com)
(END) Dow Jones Newswires
May 14, 2026 04:20 ET (08:20 GMT)
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