Energy & utilities roundup: Market talk

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.

0819 GMT – Iberdrola enters Finland’s power grid market with a new buyout but the deal comes with a high price tag relative to grid asset value and future profits, RBC Capital Markets analysts say. The utility company will acquire an 80% stake in Finland’s Caruna for around 2 billion euros. It expects the deal to boost its profit per share by about 1% in the first year, and help shift more of its business toward safe, government-regulated power grids, RBC says. Caruna’s network is projected to reach an asset value of roughly 3 billion euros by 2031, backed by a stable regulatory framework granting an 8% return on equity through the decade, RBC says. Shares are down 1.4% at 21.03 euros. ([email protected])

0556 GMT – Norway’s Equinor reports a solid operational quarter as it posts a small underlying beat to consensus expectations,RBC Capital Markets analyst Biraj Borkhataria writes. Most of the oil major’s divisions report underlying earnings relatively close to expectations but cash flow from operations and gearing were better than expected, he adds. The call with management later Wednesday will likely focus on outlook for the Johan Sverdrup and Johan Castberg fields, he adds. Shares closed Tuesday at 364.40 kroner.([email protected])

1601 GMT – Now that Tidewater Midstream and Infrastructure’s restructuring has taken hold, National Bank of Canada analyst Patrick Kenny thinks the company is poised to move into a growing phase. “Management’s attention is shifting towards offence,” Kenny says, pointing to the sanctioning of its $1.2 billion Sustainable Aviation Fuel project, growing field gas throughput at Brazeau River Complex, and restarting Ram River in 2H. He figures that these together represent about C$30 a share of “unrisked valuation upside,” which would more than double current valuations. National Bank upgrades the stock to outperform from sector perform with a C$25 price target, up from C$17 previously. Shares are up 6.7% to C$20.82, and are up nearly fourfold this year. ([email protected])