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.

0808 GMT - The possible termination of a US$475 million contract has likely been priced into Seatrium's shares, says Macquarie Capital Securities' Zhiwei Foo in a note. The terminated was probably linked to challenges in the U.S. offshore wind sector, including the Trump administration's crackdown on such projects, he says. Shares had fallen about 6% at the time of Foo's analysis, suggesting the market has already priced in a full write-off of the contract. While "the negatives appear priced in, we think the market is starting to question if there are any other negative surprises in the [order book]," he says. Nonetheless, Macquarie Capital maintains its outperform rating and S$2.80 target, citing Seatrium's S$18.6 billion order book. Shares are 7.4% lower at S$2.26.(megan.cheah@wsj.com)

0721 GMT - An unexpected win in arbitration proceedings against U.S. LNG-supplier Venture Global adds another positive element to BP's turnaround efforts, Citi analysts write. BP--and others--have accused Venture Global of withholding contracted cargoes of LNG after the Russia-Ukraine war, and instead selling them on the spot market. Disclosures suggest BP will seek more than $1 billion in damages, the analysts write. It is surprising that BP appears to have won given Venture Global recently scored a win in a similar case against Shell, they add. While $1 billion isn't a game-changing sum for BP, it sits well with the company's restructuring narrative, deleveraging and exploration success, they add. Shares trade down 0.6% at 2,760 pence. (adam.whittaker@wsj.com)

0303 GMT - Sembcorp Industries' planned purchase of a 300 megawatt solar-power asset in India will likely keep the company on track for its 2028 goal of 25 gigawatt gross renewable-energy installed capacity, says Citi analyst Luis Hilado in a note. The Singapore engineering-services company aims to fully acquire the asset for around S$246 million, with the deal likely to contribute a 10% return on equity for the renewables segment in the long term, the analyst says. The facility could add around 2% to Sembcorp's existing 19.3GW gross capacity, he writes. Hilado projects 23% of Sembcorp's 2028 profit after tax and minority interests will come from the renewables segment, up from the 17% contribution in 2024. Citi maintains its buy rating and S$7.84 target on Sembcorp, which is down 0.15% at S$6.46. (megan.cheah@wsj.com)

0026 GMT - Oil edges higher in the early Asian session amid potential supply disruption risks. The U.S. has unveiled more sanctions on Iran, ANZ Research analysts say in a research report. "The Treasury Department sanctioned more than 50 individuals, entities and vessels that facilitate Iranian oil and liquified petroleum gas sales and shipments from the country," the analysts say. Front-month WTI crude oil futures are up 0.1% at $61.58/bbl; front-month Brent crude oil futures are 0.1% higher at $65.26/bbl.(ronnie.harui@wsj.com)

2215 GMT - Much is riding on Strike Energy's ability to rejuvenate its Walyering natural-gas field in Western Australia, suggests RBC Capital Markets. Strike in August cut its reserves assessment at Walyering, triggering an impairment charge. The company has shut in the Walyering-7 well as part of an upgrade aimed at mitigating output decline and extending the life of the gas field. RBC expects production rates will be constrained at 20 TJ/day. "Strike is planning a Walyering West appraisal well for drilling in 2026, and if this well is unsuccessful we estimate Walyering could run out of gas by mid-FY 2028," analyst Gordon Ramsay says. RBC highlights that Walyering is Strike's only cash generative asset until the South Erregulla Power Project starts up. (david.winning@wsj.com; @dwinningWSJ)

1924 GMT - Oil futures lose ground as a U.S.-mediated deal seeking to end the Israel-Hamas war in Gaza takes some geopolitical premium out of the market. "The immediate effect of the agreement was a reduction in fears of a regional escalation that could disrupt energy supply routes," Antonio di Giacomo of XS.com says in a note. "Some analysts believe this first step could pave the way for more ambitious negotiations with Iran, adding another factor of relief to crude oil prices." Further downside risks for crude include record U.S. production, OPEC+ output increases and continuing trade tensions that could affect demand, he adds. WTI settles down 1.7% at $61.51 a barrel, and Brent falls 1.6% to $65.2. (anthony.harrup@wsj.com)

1824 GMT - So-called mitigation credits that businesses can buy to offset the environmental impact of their activities are an effective way to balance the need to speed up infrastructure development while also complying with environmental laws, says Nick Dilks, managing partner at private-equity firm Ecosystem Investment Partners. "People still want clean water. They want clean air. They want a healthy environment," Dilks says. "But they also want efficiency and certainty in permitting and the ability to build infrastructure." Baltimore-based EIP recently wrapped up its latest, roughly $400 million fund to invest in restoration and conservation of wetlands, streams and natural habitats across the U.S. Those projects generate mitigation credits that the firm then sells to project developers in sectors such as oil-and-gas infrastructure, real estate, mining, renewable energy and data centers. (luis.garcia@wsj.com; @lhvgarcia)

1332 GMT - Crude futures move higher after slipping in earlier trade on a deal aimed at ending the Israel-Hamas war and hostage crisis. Oil futures are "in a corrective phase as the Israel/Hamas conflict looks to be ending," Dennis Kissler of BOK Financial says in a note. The large U.S. crude oil stock build reported yesterday was offset by draws in diesel and gasoline inventories, pointing to buoyant fuel demand, he says. "With rising crude inventories, along with stronger fuel demand, crude looks to be locked in a $60-$65/bbl range in the near term." WTI is up 0.3% at $62.74 a barrel, and Brent is 0.2% higher at $66.38.(anthony.harrup@wsj.com)

1317 GMT - Canadian oil and gas industry spending is set to slow sharply. Sector capital expenditure was just $21.3 billion during the 2020 pandemic period, a two decade low in nominal-dollar terms, but is projected to grow 14% a year compounded to reach $41.5 billion this year, notes Morningstar DBRS. Industry data points to a 7% rise on-year in oil and gas capex spending in 2026 before it slows substantially. Morningstar notes capex is expected to average 3% growth a year in 2025-2030. The reason, Morningstar says is a strategic shift from growing production to funding capex through internal cash flow generation plus increased caution and a tough regulatory environment. (robb.stewart@wsj.com)

1227 GMT - EDP Renovaveis is the best-positioned among EU-listed utilities to benefit from the surge in U.S. electricity demand driven by AI and data centers, Jefferies analysts say. The U.S. power-demand boom is a key driver of growth for the Portuguese company, which is now moving from years of earnings downgrades to a phase of consistent growth, Jefferies says in a note. The company derives around 50 to 60% of its earnings from the U.S., where it has an attractive asset mix and supply chain setup, Jefferies says. Furthermore, improved policy clarity from the "One Big Beautiful Bill Act" and treasury guidance are easing earlier worries around growth in the country, Jefferies adds. The bank upgrades the stock to buy from hold. Shares are up 3.1%. (maitane.sardon@wsj.com)

1008 GMT - OMV's third-quarter trading update points to EBIT and net income coming in line or marginally above expectations, Jefferies analysts Mark Wilson and Kai Ye Loh write. The Austrian oil-and-gas company's $11.54 a barrel refining margin in its fuels and feedstock unit was particularly strong and beat expectations, they write. It is the division's highest margin since the third quarter of 2023, and the first double-digit margin since the first quarter of 2024. Shares trade up 0.5% at 45.02 euros. (adam.whittaker@wsj.com)

(END) Dow Jones Newswires

October 10, 2025 04:20 ET (08:20 GMT)

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