Utilities

Utilities equity research

Explore the most viewed and latest equity research and media content for companies within the Utilities sector. Companies within this sector provide services including electricity generation, water, gas and multiservice utilities.

Utilities equity research

09 Mar 17

Suez on the move

Suez acquires GE Water for US$3.2bn. Suez has joined forces with Caisse de Dépôt et de Placement du Québec (CDPQ) which will provide €0.7bn in equity for a 30% stake in the combined GE Water/Suez Industrial Solutions.

Companies: Suez

17 May 17

Details of the capital increase

The c. €750m capital increase (to finance part of the GE Water acquisition, see our Latest dated 9 March) will lead to the issuance of 47,468,354 new shares representing 8.4% of the company’s share capital, with a subscription price of €15.80. The offering is conducted without shareholders’ preferential subscription rights and with a priority subscription period on an irreducible basis granted to existing shareholders: - the company’s existing shareholders (as of 16 May 2017) will be granted a three consecutive trading days priority subscription period, which will run from 17 May 2017 to 19 May 2017 (inclusive); - the public offering in France begins today and will close on 19 May 2017; - the private placement launched on 16 May 2017 at around 17:45 (Paris time) was priced in the evening of the same day. Orders placed in the public offering and private placement will be subject to reduction depending on the results of the priority subscriptions on an irreducible basis in the context of the priority subscription period and final allocations will be communicated once the results are available.

Companies: Suez

14 Jan 19

Opportunity knocks

We are introducing our Best Ideas for 2019 and also review the performance of last year’s picks. We suggest ten solidly financed stocks with good business dynamics that ought to be considered for core portfolio holdings and six UK domestically focused stocks that our analysts believe should perform strongly in the event that uncertainties unwind. We also introduce a new style of research from N+1 Singer which presents a Company’s dynamics and metrics in a clear and concise manner and concentrates on the pivotal issues affecting that Company and an investment decision.

Companies: BCA CLIN CLG CBP DNLM EAH FDL FCRM FUTR GTLY INS GLE NICL SDL SPR TRI

27 Feb 19

FY18: back on track as expected

Suez released FY18 results. Sales reached €17,331m (+9.8% and +3.6% organic), EBITDA €2,768m (+7.4%, +3.4% organic), EBIT €1,335m (+10.2%, +7.5% organic), net income €335m (+13.4%). Free cash flow reached €1,023m and net debt at year-end was €8,954m (vs. €8,470m a year ago). The dividend proposed is €0.65 (unchanged). In terms of outlook, the group expects organic growth of +2-3% topline for FY19 and +4-5% at EBIT level, +7-8% for FCF and a net debt/EBITDA ratio of c.3x (3.2x currently), with the ambition to lower it until FY20. Also, the soon-to-leave CEO, Mr. Chaussade, will be appointed as Chairman, as expected, when Mr. Camus replaces him in May (see our comment dated 21 December 2018).

Companies: Suez

12 Sep 17

Tailings

We take another look at lithium, where there is a growing realisation that the forecast massive increase in demand is already upon us. This realisation has been matched by an awareness that there is no shortage of lithium in geological terms. However, there is still a considerable degree of ignorance about which types of lithium mineralisation are commercially valuable using current processes and technologies; this will require the development and proving of new processes. In this note, we look at what attributes are required for a lithium-bearing deposit to be attractive for development into a successful mine in the present technical and economic environment.

Companies: APF ACP ATYM BKY CAML FDI GEMD HZM PAF PDL SAV SHG WTI WLFE ASO

26 Apr 19

A positive Q1 19 and Argentine past woes resolved

Suez reported solid Q1 19 revenues of €4,210m (+3.7% organic growth vs +1.7% in Q1 18), mainly driven by WTS (+8.5%) and R&R Europe (+4.7%). EBIT saw a +3.3% increase, reaching €293m thanks to strong activity in the International division, particularly in China and Australia. Net debt remained relatively stable (lfl) at €9,031m (3.26x EBITDA) versus €8,954m in 2018. A resolution was finally reached on the Buenos Aires concession dispute, resulting in the collection of a €220m settlement from the Argentine government.

Companies: Suez

10 Oct 16

Armadale Capital - Project Update

12 Jul 16

finnCap - Initiation of coverage, Fulcrum

Premium

10 Sep 15

Armadale Capital - Interim Results

24 Sep 15

Armadale Capital - Remains on track for commercial production in H1 2016

21 Feb 19

OPG Power Ventures Investors Overview

09 Nov 18

Executive interview - ERM Power

15 Feb 16

Armadale Capital - Update at 121 Mining Investment

12 Jan 17

Capital Network's Stacey: 2017 is the year Mytrah Energy will unlock value

27 May 15

Executive Interview - KTG Energie (German version)

10 Dec 18

Executive interview – 2G Energy

07 Jul 15

Armadale Capital - Andrew Tunks: Key to a successful gold operation

08 Jun 15

Armadale Capital - Agreement to fund and develop the Mpokoto Gold Project

23 Nov 16

Armadale Capital - Full assay results confirm exceptional high-grade graphite deposit

26 Oct 16

Armadale Capital - 85% strike rate from drilling Tanzania

25 Nov 15

Armadale Capital - Update on the development and expansion of the Mpokoto Gold Project

Latest Content

FORTUM OYJ

Encouraging Q2 figures

After weak Q1 figures, Fortum released a solid set of results for Q2, beating our estimates and the market’s expectations. Results increased in all divisions and higher achieved prices and good hydro and nuclear volumes were the two major growth contributors. Thanks to strong cash flow generation, the group was able to reduce its debt ratio and to reiterate its ambitions to strengthen its balance sheet.

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19 Jul 19
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ACP FEN LID SCE PPC GTLY

Morning Note – 16 July 2019

Armadale Capital (ACP): Corp Mahenge Liandu project update | Frenkel Topping (FEN): Corp Improved rate degrades present value, but insignificant | Gateley (GLTY): Corp Strong momentum and investment for growth | LiDCO (LID): Corp China approval | President Energy (PPC): Corp Frac on | Surface Transforms (SCE): Corp SCE lands breakthrough contract with OEM 5

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16 Jul 19
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TRAK CAPX CAPX SEE TCM TRCS QTX

Baidu announces driving platform, Amazon’s Deliveroo bid on hold, Walmart’s $1bn eCommerce loss

China's top search engine operator Baidu has joined hands with Zhejiang Geely Holding Group and Japan's Toyota Motor Corp to cooperate on areas related to artificial intelligence amid a push for self-driving cars. Under their partnership, Geely and Toyota have joined Apollo, an autonomous driving platform by Baidu. Britain's competition regulator has stepped in to pause Amazon's deal with online food delivery group Deliveroo while it considers launching a full investigation. Amazon led a $575 million fundraising in Deliveroo in May, making what the two parties called "a minority investment" and going up against Uber Eats in the global race to dominate the market for takeaway meal deliveries. Walmart's eCommerce division is projecting losses of $1 billion in its bid to catch up with Amazon, which is causing tensions between the leader of the division and Walmart US CEO Greg Foran, according to reports. The division, which is led by Marc Lore, has sales of around $21 billion and as the eCommerce division loses money, Lore is being pressured to sell off some of the company's online properties, like Bonobos and Modcloth, which Walmart will probably sell this year at a loss.

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08 Jul 19
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CHINA WATER AFFAIRS GROUP

China Water Affairs Group - Extending the earnings growth record

Although FY19 revenue was below expectations, it was offset by higher than expected margins in the water supply business and a lower tax charge, allowing EPS to beat our forecast. China Water Affairs Group’s (CWA’s) 2013–19 compound annual growth rate (CAGR) in EPS now stands at over 27% and the group remains positive about its prospects. The current rating is undemanding for a company with CWA’s growth prospects.

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02 Jul 19
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ACP D4T4 RCN MCL PTRO TSTR KWG

Morning Note – 25 June 2019

Armadale Capital (ACP): Corp Mahenge Liandu project update | D4T4 Solutions (D4T4): Corp FY 2019 beats forecast as earnings quality grows | Kingswood Holdings (KWG): Corp Lining up opportunities, getting ready to execute | Morses Club (MCL): Corp AGM statement | Pelatro (PTRO): Corp AGM statement confirms 2019 is on track | Redcentric (RCN): Corp Prelims – cash is king | Tri-Star Resources (TSTR): Corp Annual results 2018

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25 Jun 19
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CER PRES THR TEK KWG BBB RCN IRR ACP IBPO

Small Cap Feast

IMC Exploration Group (NEX: IMCP), focused on acquiring and exploring prospecting licence areas w hich have high potential for natural resource, is looking to admit its shares to the standard list and will withdraw for the NEX Exchange. TBC

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25 Jun 19
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Centrica

Is Centrica a value trap?

In our last model update we affirmed that, in the long run, a recovery was still possible, but that we preferred to remain cautious for the time being and wait for some news flow positive enough to cause an inflection point. Unfortunately, in the absence of a positive element, we have now decided to review our approaches and adopt a more conservative view.

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20 Jun 19
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SRB AVCT FCRM ADAM KAPE INSE SHG CTH LWRF LPA

Small Cap Feast

Alumasc Group plc, the prem ium building products, system s and solutions group, has announced its intention to m ove from the Premium Segment of the main market to AIM. Expected market cap of £33.4m. Expected 25 June 2019 Argentex a UK-based forex service provider founded in 2011 by its current management team which operates as a Riskless Principal for nonspeculative and forward foreign exchange as structured financial derivatives is looking to join AIM. Offer TBC, expected 25 June

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20 Jun 19
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Armadale Capital

2018 Annual Results

Armadale Capital has released results for the year ending December 2018. The main activity during the year was the continuing evaluation of the Mahenge graphite project in southern Tanzania. A Scoping Study was completed during the year, based on a 400,000 tonnes per year open pit mining operation, producing 49,000 tonnes per year of high quality graphite. The study delivered a robust economic return including an unrisked post-tax IRR of 89% and an unrisked post-tax NPV of US$239m. This is an excellent result, reflecting the high grade nature of the orebody. We do not at this point in time have a target price for Armadale.

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28 May 19
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SSE

Weak FY18/19 results

SSE released a weak set of FY results, lower than our estimates. Network segment was the only one to grow, but not enough to compensate for the decrease in Wholesale and Retail. The group reiterated its five-year dividend plan.

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