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.

1013 ET - The European Commission welcomes news from partially state-owned Red Electrica that a widespread power outage was not likely the result of a cyberattack, a spokesperson says at a Tuesday press conference. "As to the full causes of the incident, we are still awaiting the full assessment by Spain, but this is indeed good news," they say. Another spokesperson says that once power has been fully restored, the next stage involves policymakers figuring out what measures to take to prevent a similar blackout in the future. "It's necessary to learn the right lessons," they say. (edith.hancock@wsj.com)

0928 ET - Oil futures are lower two days before OPEC+ is due to increase output by more than 400,000 barrels a day, with the possibility of the group deciding on another large increase for June. Recent strength in Chinese imports is seen by several analysts likely as stockpiling in the face of a trade war with the U.S. rather than a sign of firming demand. "This stockpiling overseas was a significant contributor to a major strengthening in the WTI and Brent spread curves until a week ago, but these crude structures have subsequently weakened considerably amid ample supplies and in anticipation of OPEC+ production increases," Ritterbusch says in a note. WTI is off 1.8% at $60.93 and most active Brent is down 1.7% at $63.66 a barrel. (anthony.harrup@wsj.com)

0853 ET - Portuguese utility EDP says electricity supply is fully restored in the country's distribution networks after an outage that hit Spain and Portugal on Monday, CEO Miguel Stilwell d'Andrade says in emailed comments. The outage in the Iberian energy system was unprecedented, he says. "EDP's power plants effectively responded to the requests from REN and REE, operators of the two countries' electrical systems, promptly entering into operation to support the network balance. Simultaneously, the company ensured the full availability of its infrastructure, contributing the necessary flexibility to stabilize the system," Stilwell d'Andrade says. EDP shares rise 3.2%. (adria.calatayud@wsj.com)

0524 ET - BP's free cash flow should rise in the coming months if it can sell $5 billion of assets, research director at XTB Kathleen Brooks writes. The oil giant's free cash flow dropped in the first quarter, partly because BP removed assets 'held for sale' from its free cash flow statement and because of annual bonus payments, Brooks writes. However, as the world tilts back to hydrocarbons it is not clear if the low-carbon assets will be sellable, she writes. Meanwhile, the company is selling its assets to boost its cash position--including undertaking a strategic review of its Castrol business--while paying bonuses despite trailing its peers, she adds. Shares trade down 4.1% at 347.25 pence. (adam.whittaker@wsj.com)

0405 ET - BP delivered a mixed set of results but rising net debt will cast doubts on its ability to continue buybacks amid a weakening macroeconomic environment, Jefferies analysts Giacomo Romeo and Kai Ye Loh write. Results in its customer and products division show good signs of improvement while earnings in its oil production and operations segment are slightly better than expected, they write. However, earnings from its gas and low carbon division are underwhelming compared with already lowered expectations. Shares trade down 3.9% at 348 pence. (adam.whittaker@wsj.com)

0335 ET - BP is making strong progress in its oil and gas division but it will take time for new production to boost earnings, Derren Nathan, head of equity research at Hargreaves Lansdown, writes. BP has three new start-ups and six discoveries in the pipeline but upstream production is still set to fall this year, he adds. Its downstream division is performing better but weaker oil prices means management will be under even more pressure to meet expectations, he adds. Overall, BP is making the best it can of a sticky situation, he adds. Shares trade down 3.7% at 348.7 pence.(adam.whittaker@wsj.com)

0330 ET - BP's rise in net debt could prompt calls from investors like Elliott Investment Management to speed up cost cuts and offload non-core parts of the business, Hargreaves Lansdown's Derren Nathan writes. The London-based oil-and-gas giant has increased its disposals target to between $3 billion to $4 billion from around $3 billion, but this is not really going to move the dial when it comes to its $27 billion net debt, he adds. The company is making impressive progress, but it's a slow process and the difficult macroeconomic backdrop makes it challenging, he adds. Shares trade down 3.87% at 348.1 pence. (adam.whittaker@wsj.com)

0306 ET - BP reported weaker-than-expected numbers as its net income missed expectations by 10%, RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani write. Lower corporate costs and improved performance in its customer segments were the key highlights, they add. Earnings in its gas and low carbon segment were surprisingly weak, they write. The cut to its share buyback was expected amid the weaker macroeconomic environment but is at the lower end of its guided range, they write. Shares trade down 3.2% at 350.20 pence. (adam.whittaker@wsj.com)

2032 ET - Strike Energy's low equity valuation baffles Euroz Hartleys, which sees a "compelling value opportunity" for investors. Strike Energy is down 3% today at A$0.16, trading near multi-year lows and at a deep discount to Euroz Hartleys's A$0.36/share price target. "Upcoming catalysts, including the appointment of a new CEO and the outcomes of the strategic review, are expected to provide much-needed clarity and could drive a near-term re-rating," says analyst Declan Bonnick. Strike aims to complete the strategic review in 2Q and appoint a new CEO in mid-May. (david.winning@wsj.com; @dwinningWSJ)

2026 ET - Woodside Energy's share of construction costs of its newly approved Louisiana LNG project in the U.S. is some $2 billion higher than Citi expected. Announcing a final investment decision on Louisiana LNG, Woodside said its share of the $17.5 billion project costs is some $11.8 billion. Analyst Paul McTaggart says the higher cost can partly be explained by capex coming in at $960/ton of LNG. That is at the top end of Woodside's previously stated $900-$960/ton range. McTaggart also points to higher contingency costs and a management reserve component that contains allowances for tariffs and business unit costs. Still, Woodside is pursuing deals to reduce its equity in the project, which would reduce the burden on its balance sheet and cut risks. (david.winning@wsj.com; @dwinningWSJ)

2006 ET - Oil declines amid concerns over the U.S.-China trade conflict. Treasury Secretary Bessent said in an interview with CNBC that it's "up to China" to de-escalate trade tensions with the U.S. "Recent developments in U.S. trade policy as well as the escalating tit-for-tat between U.S.-China on the trade front do not bode well for global growth," three members of OCBC's Global Markets Research say in a research report. When economic growth in the U.S. and China slows, areas including industrial activity will be impacted, putting downward pressure on oil demand, they add. Front-month WTI crude oil futures are down 0.3% at $61.86/bbl; front-month Brent crude oil futures are 0.4% lower at $65.61/bbl. (ronnie.harui@wsj.com)

1516 ET - Oil futures settle lower after gaining the previous two sessions, kept back by concerns about imminent output increases by OPEC+ and lack of visibility on trade relations between the U.S. and China. OPEC+ may unwind supply cuts even at the expense of short-term price stability while positioning for longer-term gains once trade deals materialize, Razan Hilal of Forex.com says in a note. But "a sustainable upturn likely still hinges on progress in trade talks and supportive economic data." WTI falls 1.5% to $62.05 a barrel, and Brent settles down 1.5% at $65.86 a barrel. (anthony.harrup@wsj.com)

(END) Dow Jones Newswires

April 29, 2025 12:20 ET (16:20 GMT)

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