Latest news with #ESG-conscious
Yahoo
20-05-2025
- Business
- Yahoo
Wall Street Revives $2.8B Junk Bond Deal to Fuel Flutter's Gambling Empire
After weeks of staying sidelined, the bond market is rumbling back to life. Bank of America, Goldman Sachs, Barclays, and JPMorgan are dusting off a shelved 2.5 billion ($2.8 billion) high-yield bond sale to back Flutter Entertainments (NYSE:FLUT) acquisition of SnaitechPlaytechs Italian gambling business. The deal, originally set for April, was paused as markets reeled from a spike in geopolitical tension and U.S. tariff noise. Now, with lenders spotting a brief window of calm, the dual-tranche bonddenominated in euros and dollarsis likely to launch next week. Warning! GuruFocus has detected 3 Warning Sign with FLUT. Its a bold swing. Junk-debt markets had all but frozen, but a handful of oversubscribed deals in recent weeks have given underwriters just enough confidence to test the waters again. While some ESG-conscious funds may sit this one out, the scarcity of M&A-related financings could draw yield-hungry investors off the bench. If it lands well, this bond sale might signal that risk is back on the menuat least for now. For Flutter, this isnt just another headline deal. The 2.3 billion cash buyout of Snaitech, one of Italys biggest sports betting and gaming companies, extends the FanDuel owners international reach at a time when U.S. growth is still ramping. Snaitech runs everything from horse racing to slot machines and operates several racetracks across Italy. With buyout activity still dragging its feet, this could be a litmus test for whether big-ticket debt deals can stick in 2025s jittery credit climate. This article first appeared on GuruFocus.
Yahoo
16-05-2025
- Business
- Yahoo
Wall Street Revives $2.8B Junk Bond Deal to Fuel Flutter's Gambling Empire
After weeks of staying sidelined, the bond market is rumbling back to life. Bank of America, Goldman Sachs, Barclays, and JPMorgan are dusting off a shelved 2.5 billion ($2.8 billion) high-yield bond sale to back Flutter Entertainments (NYSE:FLUT) acquisition of SnaitechPlaytechs Italian gambling business. The deal, originally set for April, was paused as markets reeled from a spike in geopolitical tension and U.S. tariff noise. Now, with lenders spotting a brief window of calm, the dual-tranche bonddenominated in euros and dollarsis likely to launch next week. Warning! GuruFocus has detected 3 Warning Sign with FLUT. Its a bold swing. Junk-debt markets had all but frozen, but a handful of oversubscribed deals in recent weeks have given underwriters just enough confidence to test the waters again. While some ESG-conscious funds may sit this one out, the scarcity of M&A-related financings could draw yield-hungry investors off the bench. If it lands well, this bond sale might signal that risk is back on the menuat least for now. For Flutter, this isnt just another headline deal. The 2.3 billion cash buyout of Snaitech, one of Italys biggest sports betting and gaming companies, extends the FanDuel owners international reach at a time when U.S. growth is still ramping. Snaitech runs everything from horse racing to slot machines and operates several racetracks across Italy. With buyout activity still dragging its feet, this could be a litmus test for whether big-ticket debt deals can stick in 2025s jittery credit climate. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
15-05-2025
- Business
- Associated Press
HIVE Digital (NASDAQ: HIVE) Says Latest Milestone Puts It Among Fastest-Growing Bitcoin Miners, Expects To Be Among Largest This Year
By Meg Flippin, Benzinga DETROIT, MICHIGAN - May 15, 2025 ( NEWMEDIAWIRE ) - HIVE Digital Ltd. (NASDAQ: HIVE), the data center infrastructure company with a focus on sustainability, achieved a new milestone at its Yguazù facility in Paraguay, surpassing 7 Exahash per second or EH/s of global mining hashrate. This marks a 10% month-over-month increase of its peak hashrate and comes on the heels of the company completing the buildout of a 100 megawatt air-cooled data center at its Paraguay facility, which it acquired from Bitfarms last year. With new ASIC miners continuing to come online, the San Antonio, Texas-based bitcoin miner expects to grow by an additional 1 EH/s every two weeks. At that growth rate, HIVE says it is among the world's fastest-growing Bitcoin miners. The company's new 100 MW hydro-powered facility, coupled with the infrastructure it acquired from Bitfarms, has enabled HIVE to add about 1 EH/s of additional capacity each month and HIVE expects that to increase to 1 EH/s every two weeks as new hardware arrives. As a result, the company says it's still on track to reach its Phase 1 target of 11.5 EH/s by the end of June. Investors Take Notice Investors have taken notice of HIVE's recent growth initiatives, with the stock trending upward since late April. Notably, HIVE is pursuing expansion without relying on debt, a strategy that resonates well with many investors seeking financially disciplined companies. The industry is littered with bitcoin miners that collapsed under the weight of excessive debt when market conditions turned against them. HIVE uses proceeds from its Bitcoin mining to fund its expansion, as well as from an October 2024 Equity Distribution Agreement, which resulted in gross proceeds of $67.4 million. The company says it's fueling its entire growth with green energy, a key advantage for ESG-conscious investors, especially considering the high energy demands of Bitcoin mining. 'We're excited by the traction we're gaining after acquiring Bitfarms' assets and launching our own site in Paraguay. This expansion provides HIVE with a strategic advantage to scale production using clean hydroelectric power,' says Frank Holmes, Co-Founder and Executive Chairman of HIVE. 'With the Bitcoin price back above $100,000 as of this news release, we expect to reach six Bitcoin per day by the end of June, nearly doubling April's average daily production.' For April, HIVE reported it produced 102 Bitcoin, averaging 3.4 BTC per day or 15.8 BTC per Exahash. For the month, HIVE achieved an average hashrate of 6.5 EH/s and fleet efficiency of 20.7 joules per terahash. The miner's peak hashrate during April reached 6.6 EH/s. Bitcoin Surges Amid Hopes Of Tariff Relief Last week, Bitcoin exceeded $100,000 for the first time since the early days of February on news of the U.K. and the U.S. reaching a deal over tariffs, revitalizing hopes that the Trump Administration will ink more trade deals that will limit the impact of tariffs. Bitcoin and stocks have been under pressure ever since Trump announced sweeping tariffs in early April, as spooked investors worried about the economy re-assessed their portfolios. But with progress appearing to be underway with trade deals, Bitcoin reversed course last week and entered $100K+ territory again. Nonetheless, HIVE says it is remaining vigilant, as global supply chain challenges and trade tensions over tariffs could introduce potential disruptions. It's why the company said it's focused on streamlining operations and keeping costs at bay. 'Our disciplined capital allocation, including the redeployment of 30 MW of BUZZ Miners, has already saved us $27 million in capex, accelerating our near-term growth,' says Holmes. The initial 100 MW buildout at the Yguazú site uses a mix of proprietary BUZZ Miners and the latest Bitmain S21+ air-cooled units. By the end of May, HIVE expected the site to have over 20,000 machines mining for Bitcoin. More Expansion Underway But HIVE isn't stopping there. The company also announced the second phase of expansion – its second 100 MW facility in Paraguay – is underway. Shipments of more than 13,400 Bitmain S21+ Hydro ASIC miners and the Bitmain Hydro AntSpace containers are expected to begin arriving in early June. Those machines alone will add 4.3 EH/s to the company's global footprint. HIVE said the Phase 2 expansion will add an additional 6.5 Exahash of Bitmain S21+ Hydro ASICs, bringing its total hashrate to 18 EH/s by the end of summer. Looking ahead to the remainder of the year, HIVE's Chief Operating Officer Luke Rossy said the company is preparing its Valenzuela site for an additional 100 MW of air-cooled containers. Deployment is expected to ramp up between August and November, positioning HIVE to surpass 25 EH/Hs globally and establishing the company 'among the largest Bitcoin miners in the world.' While Bitcoin has faced a downturn in recent months, last week's price surge signals it's far from out. HIVE sees the opportunity and is doubling down, scaling its operations to mine Bitcoin at an accelerated pace. With Phase 2 of the buildout of its Yguazù facility in Paraguay underway and even more expansion coming online this summer, HIVE is making a concerted effort to scale strategically as it aims to become one of the world's largest Bitcoin miners. Featured image byDmytro DemidkoonUnsplash. This post contains sponsored content. This content is for informational purposes only and is not intended to be investing advice. This content was originallypublished on further disclosureshere. View the original release on
Mint
22-04-2025
- Business
- Mint
Adani Ports' latest deal revives old controversies—markets aren't impressed
Adani Ports and Special Economic Zone Ltd's stock has had a rocky few days. It plunged over 7% after a tariff-related scare, only to rebound just as fast once the move was paused. Now, it's taken another hit—this time over a high-stakes, related-party acquisition. On Thursday, the Gautam Adani-promoted company said it would acquire Abbot Point Port Holdings Pte Ltd, the parent of North Queensland Export Terminal (NQXT), for AUD 3.98 billion (approximately ₹ 21,783.33 crore). The seller? Carmichael Rail and Port Singapore Holdings Pte Ltd—a Singapore-based entity controlled by the Adani family. The deal will be funded by issuing 143.8 million equity shares, effectively transferring ownership of the Australian coal terminal back to Adani Ports from its promoters after more than a decade. Read this | Norway fund giant Norges cuts off Adani Ports While the acquisition promises to strengthen Adani Ports ' global footprint and push it closer to its 2030 cargo target, the transaction has raised sharp questions about governance, growth prospects, and environmental liabilities. Investors appear cautious: the stock is down 1.4% since the announcement, slipping as much as 4% intraday on Monday—the steepest two-day drop in two weeks. The deal still awaits key approvals, including from minority shareholders, the Reserve Bank of India, and Australia's Foreign Investment Review Board. But it's already under the microscope for several reasons—chief among them, the nature of the asset being acquired. NQXT is located within the Great Barrier Reef World Heritage Area and has long been a flashpoint for environmental groups and ESG-conscious investors. The terminal struggled to attract outside funding and needed the Adani family to step in and repay $500 million to bondholders in late 2022. It also lost a major access fee lawsuit in 2020, with the Queensland Supreme Court ordering over $100 million in damages to four companies, according to news reports. Moreover, the fact that this is a related-party deal raises concerns about potential over- or under-valuation and alignment with minority shareholders' interests. Read this | Mint Explainer: What are related party transactions and why do they run into controversies From a valuation perspective, the numbers are puzzling. NQXT was valued at 17x EV/Ebitda in FY13, when Adani Ports sold it to its promoter group. The FY25 estimate? Still 17x, according to the company's presentation. Read this | BlackRock buys nearly third of Adani group promoters' $1 bn private bonds In an 18 April note, Nuvama Institutional Equities, which has retained its buy rating on the Adani Ports stock, said the AUD 3.98 billion valuation (enterprise value, including AUD 819 million in net debt) is in line with that earlier deal, and comes at a discount to recent regional transactions, which have ranged at18–25x EV/Ebitda. 'So, at 17 times for an asset that's seen virtually no growth, where is the future growth supposed to come from?" asked an analyst at a brokerage, requesting anonymity. Some brokerages argue that growth will stem not from volumes but from pricing power. NQXT has 40 million tonnes of contracted volume, and revenue is expected to reach AUD 349 million with an Ebitda margin of 65% in FY25, pointed out a report by Elara Capital dated 20 April. 'In the next four years, Ebitda is targeted to double to AUD 400 million, led by a rise in contracted capacity to 50 million tonnes via customer addition, contract renewals at higher price and group synergy," said analyst Ankita Shah in the report. Owning the terminal outright improves the economics, too. According to Elara's Shah, the shift from a 10% O&M margin to a 90% operating margin could drive substantial profit gains. With no major capex expected until 2030, the deal could also boost return on capital employed—though high depreciation costs may keep net profit gains modest in the near term. Still, the funding structure remains a key question. The issuance of 143.8 million new shares implies a meaningful equity dilution. Nuvama estimates a 2% earnings per share dilution in FY26, but expects profits to recover from the second year onward as synergies kick in. Strategically, the asset is important. NQXT sits close to the Bowen and Galilee coal basins and offers Adani Ports a stronger foothold in Asia-facing trade corridors. Also read | Two port stocks stand out on the charts. Is Adani Ports one of them? Motilal Oswal Financial Services, which has a buy rating on the stock , said in an 18 April note that the deal strengthens the company's global footprint. The brokerage will update its growth forecasts once the acquisition closes. But as the market reaction shows, scale isn't everything. At a time when Adani Ports is trying to project global credibility and capital discipline, this deal revives old governance concerns—and those may take longer to shake off than a one-day bounce in the stock.
Zawya
17-02-2025
- Business
- Zawya
OpEd: Fossil fuels, ESG, and the Middle East's energy future
Deregulation and rising U.S. oil output—reaching 12.8 million barrels per day in 2025—are driving fossil fuel expansion, spurred by energy independence and high global energy prices. However, U.S. oil companies like ExxonMobil, Chevron, and ConocoPhillips face pressure to balance production with ESG concerns. Prioritising shareholder returns through dividends and stock buybacks, these companies are focusing on short-term financial performance, with capital expenditures expected to decline in 2025. Despite the shift away from high-risk oil projects, they continue to rely on debt financing and private equity to fund operations. According to a Reuters report, U.S. oil companies have faced increased difficulty attracting investment for high-risk, high-cost exploration projects due to shifting international capital toward ESG-compliant firms. Even as international investors are focusing more on clean energy, U.S. oil companies are adapting by leveraging higher cash flow from recent price hikes to continue operations and expand production. These firms are also relying on more efficient drilling technologies to mitigate some of the financial constraints imposed by ESG-conscious investors. The Gulf's Energy Transition: A Pivot Towards Clean Energy While the U.S. pushes forward with fossil fuel dominance, the Middle East—especially Saudi Arabia—is increasingly investing in renewable energy projects, such as solar power and hydrogen production. Saudi Arabia's Public Investment Fund (PIF) has committed $600 billion by 2029, with a significant portion allocated to clean energy, signaling a clear pivot towards sustainability. This transition is part of a broader strategy aimed at diversifying the country's economy and reducing its dependence on oil revenues, in light of the global shift toward cleaner energy. In contrast to the U.S.'s focus on immediate fossil fuel output, the Middle East's strategy is more balanced, seeking to secure energy security through a mix of oil, gas, and clean energy. These steps are designed to future-proof the region's energy sector while maintaining its role as a dominant player in global energy markets. Renewable Energy Penetration: U.S. vs. Saudi Arabia and UAE When comparing renewable energy penetration between the U.S., Saudi Arabia, and the UAE, significant differences emerge that highlight their contrasting energy strategies. In the U.S., renewable energy accounted for around 21 percent of total electricity generation in 2023, with solar and wind making up the majority of this share. While the U.S. is rapidly expanding its renewable energy sector, especially in states like California and Texas, fossil fuels—particularly natural gas—still dominate the energy mix, and inconsistent federal and state policies pose challenges to achieving more substantial growth. In Saudi Arabia, renewables made up less than 5 percent of total electricity generation in 2022, but the country is actively working to increase this share through Investments in solar and wind projects. The Kingdom's ambitious goals include generating 50 percent of its electricity from renewables by 2030 in parallel with investments in fossil fuels. Saudi Arabia's investments in green hydrogen production further reinforce this dual strategy. The UAE, on the other hand, has made significant progress, reaching 27.83 percent renewable energy in 2023, with a target of 32 percent by 2030. The UAE's focus on solar power, combined with diversification into nuclear and clean hydrogen, shows its commitment to sustainability, aiming for 50 percent clean energy by 2050. Like Saudi Arabia, the UAE maintains a dual focus on fossil fuel extraction, particularly natural gas, alongside its efforts to boost renewable energy production for long-term economic diversification and energy security. Geopolitical Risks and Oil Market Volatility Tensions in the Middle East, particularly disruptions in vital shipping routes like the Red Sea, continue to pose risks to global energy security. Oil-producing nations in the Gulf, including Saudi Arabia and the UAE, are increasing their focus on natural gas production to offset potential declines in oil revenues. This diversification is critical for long-term energy security and supports their economic resilience in the face of changing global demand. The geopolitical risks of energy supply chains—exacerbated by trade route disruptions and rising logistical costs—are also influencing strategies for energy production and investment in the region. As the world transitions toward cleaner energy, oil price volatility remains a concern. With prices forecasted to average $74 per barrel in 2025, a decrease from last year's $81, OPEC+ countries like Saudi Arabia continue to wield influence over global oil prices. Despite the overall push for lower-carbon technologies, the Gulf's continued control over oil production cuts and price stabilisation efforts is likely to remain an indispensable strategic advantage. Supply Chains: Rising Costs and Geopolitical Shifts Both the U.S. and the Middle East face rising material costs, logistical bottlenecks, and disruptions in trade routes—especially those in the Red Sea—which could complicate oil and gas shipments. The U.S. oil sector faces challenges in securing sufficient capital due to the global capital shift away from high-risk fossil fuel projects. However, despite these challenges, the increased cash flow from higher oil prices continues to allow U.S. oil companies to expand output. Similarly, in the Gulf, the pressure to diversify energy portfolios is growing as oil prices fluctuate, and countries like Saudi Arabia and the UAE look to maintain stability through natural gas production and green investments. ESG and Energy Transition in the Middle East The Middle East is positioning itself as a global leader in the clean energy transition, with significant investments in renewables and green technology. Saudi Arabia's Vision 2030 and the UAE's clean energy projects are central to the region's economic diversification. Unlike the U.S., the Gulf region is balancing fossil fuels and clean energy. Saudi investments in hydrogen, for example, are key to reducing reliance on oil exports while maintaining fossil fuel dominance. Meanwhile, the U.S. risks falling behind as ESG-focused capital increases. While U.S. oil companies struggle to attract investment for high-risk projects, they compensate with strong cash flows, private equity, and government support. Without stronger climate commitments, the U.S. may contribute to global temperature rise, complicating efforts to align with global sustainability goals. While U.S. oil firms are seeking to maximise shareholder returns through increased production, they face increasing difficulty in securing long-term investment for high-risk projects. In contrast, the Gulf region is securing its future by investing heavily in clean energy, natural gas, and economic diversification, positioning itself to stay competitive in the evolving global energy market. (The author is the founder of ESG Middle East Insights and an ESG advisor specialising in sustainable development goals (SDGs) and economic diversification. She holds an MBA and certification in CFA ESG Investing and is also a certified UNCTAD Youth Network coordinator. Any opinions expressed in this article are the author's own)
