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Iraq Business
7 days ago
- Business
- Iraq Business
Chevron, SLB Deals Signal US Return to Iraqi Oilfields
By Simon Watkins for Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Chevron, SLB Deals Signal US Return to Iraqi Oilfields There are two distinct superpower strategies at play to capture the very heartland of the Middle East - Iraq. On the one hand, China and Russia want to end the semi-independent status of Kurdistan in the north, have it rolled into the rest of Iraq as a regular province, and then expel all Western firms from the then-unified country. On the other hand, the US and its allies want to bolster the independence of the Kurdistan region to act as leverage to extend their influence in the rest of Iraq to the south. Click here to read the full report.
Yahoo
27-05-2025
- Business
- Yahoo
Do National Grid shares look like they're worth me buying at just under £11 after 2024/25 results?
National Grid (LSE: NG) shares are close to their 23 April post-rights issue high of £11.03. This involved the right to buy seven shares for every 24 held and ended on 10 June last year. By then, the multinational electricity and gas utility giant had secured £7bn in new funding. The current high share price may indicate that little value remains in the stock. But it may result from the business being worth more now than it was before. To find out which is true, I took a deep dive into business and ran the key numbers. The firm's full 2024/25 fiscal year results saw operating profit jump 10% to £4.934bn. Profit before tax leapt 20% to £3.65bn. And earnings per share (EPS) increased 8% to 60p. On the expenses side, capital investment geared to government-regulated infrastructure expansion rose 20% to £9.847bn. This is part of National Grid's plans to complete around £60bn of such investment in the next five years. Looking ahead, it forecasts an EPS compound annual growth rate of 6%-8% to fiscal year 2028/29. It is earnings that drive a firm's share price and dividend higher over time. National Grid currently trades at a price-to-earnings ratio of 18.9 compared to its competitors' average of 13.5. These consist of at 8.9, Engie at 11.3, Enel at 12, and Iberdrola at 21.7. So the UK power firm is significantly overvalued on this measure. The same is true of its 2.9 price-to-sales ratio against its peers' average of 1.1. However, on the price-to-book ratio it is undervalued at 1.4 compared to its competitors' average of 2. I ran a discounted cash flow analysis to get to the bottom of the valuation. This shows National Grid shares are 23% undervalued at their present £10.89 price. Therefore, their fair value is £14.14, although various market forces could move them lower or higher. One of the previous advantages for owners of National Grid shares was its good yield. In 2023 and 2024 this averaged around 5.5%. However, in the latest results the full-year dividend was just 42.72p compared to 2024's 58.52p. This gives a yield on he current share price of just 4.3%. Moreover, analysts forecast this will remain about the same in the next three years. Reducing dividends is a red flag for me in my experience as a former senior investment bank trader and longtime private investor. Government-mandated spending on infrastructure is nothing new for big national power firms. But £60bn over five years looks a lot to me, given National Grid's already sizeable debt. Specifically, it has a net debt-to-equity ratio of 5.9 compared to the 3 or less considered healthy. Given this debt risk, I do not think the 23% undervaluation on the share price makes National Grid shares worth buying for me. The post Do National Grid shares look like they're worth me buying at just under £11 after 2024/25 results? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Simon Watkins has no position in any of the shares mentioned. The Motley Fool UK has recommended National Grid Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Gulf Insider
23-05-2025
- Business
- Gulf Insider
Iraq Seals Major Oil Deal With Chinese Company
Iraq's government has signed a deal with Chinese Geo-Jade Petroleum to expand production at the Tuba oil field, build a refinery and two power plants. Per an AFP report, the deal will also involve the construction of a petrochemicals facility and a fertilizer plant. The refinery that Geo-Jade Petroleum will build will have a capacity of 200,000 barrels daily. One of the power plants will have a capacity of 650 MW and the other, a solar power facility, will have a capacity of 400 MW. 'These projects with Geo-Jade represent a big leap in the development of Iraq's oil wealth and supporting of the national economy,' Iraq's oil minister, Hayan Abdel Ghani, said, adding that the deal would create thousands of jobs. Geo-Jade Petroleum already operates in Iraq – it is in charge of the Khana field, which is slated to begin expanded production in 2026. Chinese companies as a whole have built a solid presence in OPC's number-two, driven by Beijing's strategy to expand supply availability through both domestic and international investments. To date, more than a third of Iraq's proven oil and gas reserves and as much as 66% of production are under the management of Chinese firms, Simon Watkins reported earlier this year. The Iraqi government's ambition to boost production significantly, to as much as 7 million bpd, Chinese companies are among the best placed to take advantage of the opportunity. Currently, Iraq produces around 4 million barrels daily—above its OPEC+ production quota, which has created tensions with OPEC's number-one, Saudi Arabia. Chinese companies' entry into Iraq's oil and gas sector is a result of an agreement inked back in 2019 and dubbed 'Oil for Reconstruction and Investment', under which Chinese companies are granted entry into Iraq's energy infrastructure sector as investors in return for oil supplies.
Iraq Business
15-04-2025
- Business
- Iraq Business
Chinese Firms respond to Iraq's 7m bpd Oil Goal
By Simon Watkins for the Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Iraq's 7 Million bpd Oil Production Goal Draws Swift Response from Chinese Firms The recent reiteration by Iraq Oil Ministry of a 7 million barrels per day (bpd) oil production target within the next five years has spurred activity among Chinese firms that continue to dominate the country's oil and gas sector. Click here to read the full report. Tags: Basra Gas Company, Belt and Road Initiative (BRI), BGC, China, China HuanQiu Contracting & Engineering Corporation (HQC), China National Petroleum Corporation (CNPC), China Petroleum Engineering Construction Company, Common Seawater Supply Project (CSSP), CPECC, Donald Trump, ExxonMobil, featured, France, Hilong, Iraq Oil Production News, Iraqi Drilling Company (IDC), Kirkuk Oilfields, Majnoon, PetroChina, Rumaila, TotalEnergies, United States, West Qurna Oilfield News, Zubair
Iraq Business
06-04-2025
- Business
- Iraq Business
Can Iraq's Gas Projects Survive Trump's Iran Crackdown?
By Simon Watkins for the Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News. Can Iraq's Gas Projects Survive Trump's Iran Crackdown? With US waivers on Iranian energy imports revoked, Iraq is under pressure to rapidly develop its own non-associated gas fields.. Click here to read the full report. Tags: Electricity In Iraq, gas production, Iran, sanctions
