Energy & Utilities Roundup: Market Talk

Dow Jones
Oct 03

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.

0636 GMT - Clariant's stock faces headwinds as it receives lawsuits number 7 and 8, which allege its purchases of ethylene broke European Union competition law, Vontobel analyst Sibylle Bischofberger writes. Friday's announcement that BP is alleging damages totaling 1.1 billion euros and ExxonMobil is alleging 860 million euros in damages is unexpected because the deadline for filing claims was thought to be in May, Bischofberger says. The additional cases mean the Swiss chemical company faces claims totaling 8.4 billion euros and this will weigh on sentiment, Bischofberger says. Shares closed at 7.41 Swiss francs Thursday. (adam.whittaker@wsj.com)

0133 GMT - Tenaga Nasional is positioning itself as a key candidate to serve as developer-owner-operator for Malaysia's nuclear energy projects, TA Securities analyst Hafriz Hezry says in a note. The utility giant sees nuclear as an inevitable part of the energy mix, with the first plant targeted by 2031 and over 3 GW in capacity by 2034, he notes. Nuclear offers a viable replacement for coal, supports energy security and complements renewables in meeting rising demand from transport electrification, industry and data centers, he says. He sees the development of nuclear energy as a potential medium- to long-term growth driver for Tenaga, alongside efforts to decarbonize its generation portfolio. TA Securities maintains a buy rating on Tenaga and keeps its target price at MYR15.80. Shares are 0.1% lower at MYR13.44. (yingxian.wong@wsj.com)

1614 GMT - The timing of Occidental Petroleum's deal to sell its petrochemical business to Berkshire Hathaway doesn't appear ideal, TD Cowen analysts say in a research note earlier this week, following reports that the companies were holding discussions. While the transaction will help the oil-and-gas company pay down debt, it comes as capital expenditures tied to the petrochemical unit's multiyear growth initiatives are peaking. This means the free cash flow inflection expected in coming years will be lost, the analysts say. Investors will also likely question the timing given the OxyChem's recent earnings weakness, they add. Occidental shares fall 6.5% following confirmation of the sale Thursday. (connor.hart@wsj.com)

1400 GMT - Oil prices keep falling as a government shutdown clouds the U.S. economic outlook while politicians show no signs of moving toward a deal. High U.S. crude inventories, coupled with expectations of increased production by OPEC+, fuel concerns of excessive supply. "The near-term fear of OPEC+ increasing production further is keeping a 'sell the rallies' mentality for most traders," BOK Financial's Dennis Kissler writes. The WTI November contract falls 0.5% to $61.50 a barrel. (paulo.trevisani@wsj.com; @ptrevisani)

1327 GMT - Occidental Petroleum is selling its petrochemical business to Berkshire Hathaway for $9.7 billion, a move CEO Vicki Hollub says will resolve an outstanding issue weighing on the company's market value. "Our shareholders are very happy with our portfolio, and happy with our performance," she says in an interview on CNBC. "The problem has been getting our debt down faster." Occidental's acquisitions of Anadarko Petroleum and CrownRock in 2019 and 2024, respectively, saddled the company with debt. Occidental plans to use $6.5 billion in proceeds from the Berkshire deal to pay down debt, achieving its target level of principal debt below $15 billion. This move will "unlock our stock, and allow shareholders to feel more comfortable--hopefully--to add to their positions and others to come in," Hollub says. Occidental rises 1% premarket. (connor.hart@wsj.com)

(END) Dow Jones Newswires

October 03, 2025 04:20 ET (08:20 GMT)

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