The German government has provided more details on the timing and level of compensation for the accelerated lignite phase-out: the RWE installed capacity of lignite is expected to decrease from 8,720MW at the end of 2019, to 5,900MW in 2022, 3,800MW in 2029 and 0MW in 2038. The compensation over 15 years will be €2.6bn, while the group estimates the overall financial impact to be around €3.5bn.

RWE

• 17 Jan 20
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The German government has provided more details on the timing and level of compensation for the accelerated lignite phase-out: the RWE installed capacity of lignite is expected to decrease from 8,720MW at the end of 2019, to 5,900MW in 2022, 3,800MW in 2029 and 0MW in 2038. The compensation over 15 years will be €2.6bn, while the group estimates the overall financial impact to be around €3.5bn.

RWE

• 17 Jan 20
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The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February

HMLH EBQ MPAC STX SXX GOOD ADT RDT AFX

• 08 Jan 20
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The Global Sustainable Farmland Income Trust will invest in a diversified portfolio of operational farmland assets located in major agricultural markets including the United States, Europe, New Zealand, Australia and certain countries within Latin and South America. Raising up to $300m. Due 28 February

HMLH EBQ MPAC STX SXX GOOD ADT RDT AFX

• 08 Jan 20
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Fulcrum has entered into a conditional sale and purchase agreement to sell its domestic customer gas connection assets, including the order book and associated meters, to ESP (backed by 3i Infrastructure). The net consideration is £33m in cash, representing more than half of the market cap. £17m will be paid as an initial consideration, with the remainder paid in tranches as assets are built out and exchanged over the next four years. This is a strategically important deal for the Group, realising significant value in the utility asset portfolio (average premium to book value of c.25%-30%) and significantly strengthening the balance sheet. Fulcrum will also partner with ESP as an asset adopter in certain future tenders under similar terms to the sale (improving as certain milestones relating to the number of connections are met). The proceeds of the sale will be used to reduce debt and to undertake a share buyback programme to return up to £4m to shareholders (this is expected to track sales proceeds). The FY20 interim dividend will be deferred until completion (expected Q1 cal. ‘20). Separately, Fulcrum has announced its interim results which highlight a difficult H1 trading period. H1 was impacted by economic and political uncertainty as well as the Capacity market suspension (now lifted) and a lower level of smart meter installation activity. This is in line with commentary from other listed peers exposed to construction activity. Adj. EBITDA was £1.4m and adj. PBT was £0.3m in H1. Whilst this is disappointing, the second half of the year has started well, with average monthly sales order intake in H2 to date up around 40% vs. H1. We will update our forecasts and valuation in due course, but expect to decrease our current year EBITDA forecast to c.£5.0m (-26%) and PBT to c.£2.5m. The utility asset sale will generate significant cash for the Group, which should allay any concerns about the balance sheet and allow investors to focus on earnings recovery potential. We believe a strong recovery in FY21 and beyond is achievable.

Fulcrum Utility Services

• 23 Dec 19
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Fulcrum has entered into a conditional sale and purchase agreement to sell its domestic customer gas connection assets, including the order book and associated meters, to ESP (backed by 3i Infrastructure). The net consideration is £33m in cash, representing more than half of the market cap. £17m will be paid as an initial consideration, with the remainder paid in tranches as assets are built out and exchanged over the next four years. This is a strategically important deal for the Group, realising significant value in the utility asset portfolio (average premium to book value of c.25%-30%) and significantly strengthening the balance sheet. Fulcrum will also partner with ESP as an asset adopter in certain future tenders under similar terms to the sale (improving as certain milestones relating to the number of connections are met). The proceeds of the sale will be used to reduce debt and to undertake a share buyback programme to return up to £4m to shareholders (this is expected to track sales proceeds). The FY20 interim dividend will be deferred until completion (expected Q1 cal. ‘20). Separately, Fulcrum has announced its interim results which highlight a difficult H1 trading period. H1 was impacted by economic and political uncertainty as well as the Capacity market suspension (now lifted) and a lower level of smart meter installation activity. This is in line with commentary from other listed peers exposed to construction activity. Adj. EBITDA was £1.4m and adj. PBT was £0.3m in H1. Whilst this is disappointing, the second half of the year has started well, with average monthly sales order intake in H2 to date up around 40% vs. H1. We will update our forecasts and valuation in due course, but expect to decrease our current year EBITDA forecast to c.£5.0m (-26%) and PBT to c.£2.5m. The utility asset sale will generate significant cash for the Group, which should allay any concerns about the balance sheet and allow investors to focus on earnings recovery potential. We believe a strong recovery in FY21 and beyond is achievable.

Fulcrum Utility Services

• 23 Dec 19
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Fulcrum has today announced the sale of all its domestic (residential) asset portfolio to E.S. Pipelines Ltd for a net consideration of £33m. The transaction will see Fulcrum revert to a less cash consumptive, more connections-focused offering, while the net proceeds will be used to fully pay down debt and provide capital for growth investments. The company has also released weak H1/20E results, leading to a reduction in our FY20E forecasts, but has witnessed a pick-up in trading to date over H2/20E.

Fulcrum Utility Services

• 23 Dec 19
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Fulcrum has today announced the sale of all its domestic (residential) asset portfolio to E.S. Pipelines Ltd for a net consideration of £33m. The transaction will see Fulcrum revert to a less cash consumptive, more connections-focused offering, while the net proceeds will be used to fully pay down debt and provide capital for growth investments. The company has also released weak H1/20E results, leading to a reduction in our FY20E forecasts, but has witnessed a pick-up in trading to date over H2/20E.

Fulcrum Utility Services

• 23 Dec 19
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The consortium of Engie (40%), Crédit Agricole Assurance (35%) and Mirova-Natixis (25%) has just bought six dams with a cumulative capacity of 1.7GW from EDP for an EV of €2.2bn. This operation allows Engie to accelerate in its race to catch up on renewables and allows EDP to reduce its leverage. The transaction is expected to be closed in the second half of 2020, depending on the usual regulatory approvals.

Engie

• 20 Dec 19
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The consortium of Engie (40%), Crédit Agricole Assurance (35%) and Mirova-Natixis (25%) has just bought six dams with a cumulative capacity of 1.7GW from EDP for an EV of €2.2bn. This operation allows Engie to accelerate in its race to catch up on renewables and allows EDP to reduce its leverage. The transaction is expected to be closed in the second half of 2020, depending on the usual regulatory approvals.

Engie

• 20 Dec 19
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Pembina Pipeline (PPL-TSX); BUY, C$59.00

Pembina Pipeline

• 17 Dec 19
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Pembina Pipeline (PPL-TSX); BUY, C$59.00

Pembina Pipeline

• 17 Dec 19
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FY18/19 results are broadly in line with estimates. Sales were pushed by the growth in renewable generation and higher demand for heat, which offset the lower revenues in the Networks segment and the gradual reduction in thermal electricity production. But, because of higher operating expenses, EBIT grew at a slower pace. Net debt was broadly flat compared to Q3. The guidance of the bottom line is satisfactory.

EVN

• 13 Dec 19
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FY18/19 results are broadly in line with estimates. Sales were pushed by the growth in renewable generation and higher demand for heat, which offset the lower revenues in the Networks segment and the gradual reduction in thermal electricity production. But, because of higher operating expenses, EBIT grew at a slower pace. Net debt was broadly flat compared to Q3. The guidance of the bottom line is satisfactory.

EVN

• 13 Dec 19
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China Water Affairs (CWA) continues to offer the prospect of attractive growth in EPS despite the fall in environmental protection construction revenue. The requirement for expenditure on the water sector in China remains intact and the current rating of the shares appears undemanding.

CHINA WATER AFFAIRS GROUP

• 03 Dec 19
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China Water Affairs (CWA) continues to offer the prospect of attractive growth in EPS despite the fall in environmental protection construction revenue. The requirement for expenditure on the water sector in China remains intact and the current rating of the shares appears undemanding.

CHINA WATER AFFAIRS GROUP

• 03 Dec 19
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After a down (but in line) in H1, the group showed a recovery in Q3. E.On’s adjusted EBIT was up 20% to €491m. Thanks to this and a more optimistic view of the conditions for Innogy’s integration, E.On slightly increased its EBIT annual guidance. The mid-point is up by 6%, to €3.1-3.3bn. The dividend remains unchanged, but the stock is already trading at an attractive yield of ~5%. Positive view confirmed.

E.ON

• 29 Nov 19
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After a down (but in line) in H1, the group showed a recovery in Q3. E.On’s adjusted EBIT was up 20% to €491m. Thanks to this and a more optimistic view of the conditions for Innogy’s integration, E.On slightly increased its EBIT annual guidance. The mid-point is up by 6%, to €3.1-3.3bn. The dividend remains unchanged, but the stock is already trading at an attractive yield of ~5%. Positive view confirmed.

E.ON

• 29 Nov 19
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