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.
0743 GMT - Eni could announce a 1 billion euro special dividend at its third-quarter results, RBC Capital Markets analyst Biraj Borkhataria writes. The Italian energy major's financial framework allows for a special dividend given oil prices have been above $90 a barrel and the extra cash could push its share buyback higher, he adds. The company has already increased its buyback for the year to 3.4 billion euros from 1.5 billion euros previously. Shares trade 0.3% higher at 26.23 euros.(adam.whittaker@wsj.com)
0719 GMT - Electricity Generating's earnings stand to benefit from its larger stake in the 980 megawatt Linden Cogen plant in the U.S., CGS International's Rasmiman Sermprasert says in a research report. The Thai independent power producer signed a purchase agreement this month to acquire an additional 12% stake that boosts its ownership to 50%, the analyst notes. This should be earnings accretive for Electricity Generating from 2027 as relevant U.S. regulatory approvals are expected to be obtained by early January 2027. The brokerage lifts its 2027 and 2028 EPS forecasts for Electricity Generating by 3% and 2%, respectively. It raises the stock's target price to 158.50 baht from 158.00 baht with an unchanged add rating. Shares are unchanged at 125.50 baht. (ronnie.harui@wsj.com)
0048 GMT - Oil prices edge lower in early Asian trade. "The Trump administration continues to talk up its efforts to support oil flows, with Energy Secretary Chris Wright saying they had recovered to about 80% of their pre-conflict levels," ANZ Research analysts say in a report. However, "efforts to support the fuel market are likely to fall short," the analysts say, pointing to "rising supply risks in the Middle East." Iran has been providing Yemen's Houthi militia with intelligence and targeting assistance for attacks on Saudi Arabia, the WSJ reported. Front-month WTI crude oil futures are 0.3% lower at $103.32 a barrel, while front-month Brent crude oil futures are down 0.2% at $109.36 a barrel. (ronnie.harui@wsj.com)
2237 GMT - Ampol's 3Q update surprised Jefferies for two opposing reasons. Ampol's Convenience Retail business continues to deliver despite weak consumer sentiment, high fuel prices and a tougher fuel margin backdrop. However, Jefferies's says the performance of Ampol's refining arm was weaker than expected. Ampol captured less of the upside from strong regional cracks, largely due to extended planned maintenance, Jefferies says. It retains a "hold" call and trims its price target by 3.3%, to A$44.00/share. "Convenience execution is creditable, Refining margin should be a tailwind for some time and FSSP 2 likely positive, but upside is largely priced in," analyst Michael Simotas says. FSSP 2 refers to the expected outcome of a review into the government's Fuel Security Services Payment, which supports refiners during times of low refining profitability. Ampol ended Monday at A$41.93. (david.winning@wsj.com; @dwinningWSJ)
2234 GMT - Macquarie reckons New Zealand-based renewable power generator Mercury NZ is closing in on the threshold where it would consider upgrading its annual earnings guidance. It posits that view after Mercury NZ disclosed its 1Q performance, which implied quarterly Ebitdaf of NZ$357 million, up 17% on year. Mercury NZ currently expects annual Ebitdaf of NZ$1.075 billion because of new power generation, tight cost control and 4.1 terawatt hours of hydro output. Macquarie says its forecasts point to a 3% beat. "We see overall upside to FY27 Ebitdaf guidance mainly in mass market and telco contributions," Macquarie says. It has a "neutral" call on Mercury NZ and raises its price target by 2%, to NZ$7.12/share. Mercury NZ is down 0.8%, to NZ$6.65 today. (david.winning@wsj.com; @dwinningWSJ)
1938 GMT - Crude futures settle lower after President Trump waived some new sanctions against Russia, with downside limited by continuing conflict in the Middle East keeping supply risks high. Much of the selling looked technical as Friday's late-session advance "looked mismatched against fresh headlines," Ritterbusch & Associates says in a note. December Brent settles down 0.3% at $109.55 a barrel, and December WTI falls 0.5% to $98.54. WTI for November rose 2.2% to $103.66 a barrel ahead of Tuesday's contract expiry. (anthony.harrup@wsj.com)
1628 GMT - The pullback in oil futures lacks conviction amid doubts that President Trump's waiving of some new Russia sanctions will do much to increase energy supply. "The big question is: will it work?" Peter Cardillo of Spartan Capital says in a note. The waiver could provide temporary relief, "but with the war in Iran and renewed Ukrainian attacks on Russian oil refineries, oil prices are unlikely to decline significantly." They could even surpass last week's highs, he adds. The most active WTI contract is off 0.3% at $98.70 a barrel and Brent is down 0.4% at $109.47. (anthony.harrup@wsj.com)
1353 GMT - Oil futures are lower after President Trump waived new sanctions against Russia in a bid to improve energy supply. Conflict in the Middle East will likely contain the decline, Exness senior market strategist Christopher Tahir says in a note. "Tensions between Saudi Arabia and the Houthis remain elevated, while traffic through the Strait of Hormuz continues to face restrictions amid security incidents," he says. "Further disruption to Russian export infrastructure or an escalation in the Middle East could offset the expected policy relief and restore upward pressure." Brent is down 2% at $107.69 a barrel and most-active WTI is down 1.8% at $97.25 a barrel. (anthony.harrup@wsj.com)
1214 GMT - Investors are rewarding BP's deleveraging strategy after windfall earnings helped cut net debt, Jefferies analyst Mark Wilson writes. The British energy major's planned strategy and outlook update will help shift the narrative away from asset disposals toward growth and shareholder returns, he says. Shares trade 0.15% higher at 614.90 pence.
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