Once again the US has threatened Spanish oil company Repsol and other companies that pump oil in Venezuela and sell it on the international market with “devastating” sanctions. In addition to Repsol, the Italian company ENI and India’s Reliance are currently operating in Venezuela. As a reference, Repsol’s exposure to Venezuela is: 270 million dollars of capital employed (1%) and 50,000 barrels (7% of total production). This exposure has been lowered in recent years.
Bankinter | Sabadell and Bankia will fall by 73.7% and 57.5%, respectively, in 2020, amongst the biggest drops in the European banking sector (a decline of 46.4% for the EuroStoxx Banks). So is a merger looming between these two Spanish lenders? The market has been speculating about this possibility for some time, even as a mechanism to dilute the state’s position in Bankia (currently at 61.8%) which it holds via the FROB.
Iberdrola plans to participate in the renewable energy auction the United Kingdom is preparing for next year. The Spanish power company will submit its East Anglia offshore wind project in the upcoming auction call to try to win one of the contracts for differences (CfD). The project will require an investment of close to 7.6 billion euros.
After Moody’s downgraded ArcelorMittal’s debt rating by one notch yesterday, causing it to lose its “investment grade” status, the company has proposed a $2 billion capital increase via shares and mandatory convertible bonds. It will decide what proportion is covered by each of the two offers. Furthermore, it reserves the right, depending on demand, to increase the amount of $2 billion.
Telefónica has finally reached an agreement with Liberty Global to merge its UK businesses, O2 Holdings and Virgin Media UK respectively, and form a 50/50 joint venture. The merger would make the new group the UK market leader with a 34% market share compared to BT’s 32%. This integration is the largest transaction in Telefónica’s history. Whatsmore, it will always be remembered for having happened in the midst of the restrictions determined by the confinement in the two countries.
Repsol has found oil in two important deep-water deposits in the Gulf of Mexico, specifically in the wells known as Polok-1 and Chinwol-1. These are located in Block 29 of the Salina Basin, in the south-east area of the Gulf and off the coasts of the states of Veracruz and Tabasco. The effects of the coronavirus pandemic determined Spanish oil and gas group’s results first quarter 2020 results. It recorded an adjusted net result of 447 million euros, a 27.7% decrease from the 618 million euros a year earlier.
The company acknowledges that it is in the process of negotiating with Liberty Global for a possible integration of its assets in the UK, but there is no guarantee this will be successful or that the final terms will be met. Liberty Global offers pay television, broadband and telephony services in the UK through the Virgin Media brand. In addition, it has a mobile virtual operator or MVNO based on British Telecom’s network that expires at the end of 2021 (which would have already negotiated a switch to Vodafone).
ACS has closed the sale of 74% of its stake in a batch of six tranches of ‘shadow toll’ highways in Spain to the Hermes fund. The operation was agreed last November and will generate a capital gain of 40 million euros for the infrastructure firm. The group will keep the remaining 26% of its share in the highways, which it will also continue to manage. Their total and joint value amounts to 950 million euros.
Banco Santander reported attributable profit of €331 million in the first quarter of 2020, 82% less than a year earlier, after recording a net charge of €1.646 billion. This impact was mainly due to a provision of €1.600 billion for the expected deterioration in macroeconomic conditions resulting from the health crisis caused by the Covid-19 pandemic.
Acciona has publicly confirmed its rating from the Canadian agency DBRS. This is a rating that the Spanish firm has had since 2018 for various specific operations in different regions, mainly in North America, but which it has so far not released. Acciona does not have ratings from the main rating agencies. However the company believes that the flexibility of the sector analysis offered by DBRS allows it to more reliably reflect the joint risk of Acciona’s various businesses.