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.

0744 GMT - RWE's earnings guidance and dividend for the current year came in ahead of expectations, analysts at Bernstein say in a research note. The German energy company's adjusted net income outlook of EUR2.1 billion-EUR2.7 billion is around 6% above consensus of EUR2.3 billion, according to the firm. Adjusted Ebitda, seen at between EUR5.8 billion and EUR6.4 billion, is 3% ahead of consensus of EUR5.9 billion, while adjusted EBIT of EUR3.6 billion-EUR4.2 billion is 4% ahead, the analysts say. RWE guides for an increased dividend of EUR1 a share for 2023, 11% above expectations. (giulia.petroni@wsj.com)

0552 GMT - PTT Global Chemical's 2023 earnings growth could remain muted in 2023, due to the economic slowdown and inflation concerns in Europe, say Nomura analysts Ahmad Maghfur Usman and Bineet Banka in a note. They reckon that the Thai petrochemical company's strong ethane intake could cushion the impact of a weaker performance chemicals segment. On the bright side, PTT Global's new projects appear to be on track, they add. Nomura lowers the stock's target price to THB55.00 from THB63.00 and maintains a buy rating. Shares are unchanged at THB44.00. (yiwei.wong@wsj.com)

0340 GMT - Oil prices are lower in late Asian morning trade, giving up earlier gains, amid cautious sentiment. "With the recent unfortunate collapse of SVB and Credit Suisse, market uncertainty has been extremely prevalent - coupled alongside rising interest rates, inflation hovering at multi-decade highs, and geopolitical tensions," says Ruth Tan, account manager at W Communications, in a note. The near-term focus will likely be on the FOMC meeting later this week, which will offer clues on the trajectory of interest rates against the backdrop of recent banking tumult. Front-month WTI futures are 1.2% lower at $66.83/bbl; front-month Brent falls 1.1% to $73.01/bbl. (justina.lee@wsj.com)

0323 GMT - Aboitiz Power's earnings outlook for 2023-2024 is likely upbeat, says Maybank Securities analyst Fiorenzo de Jesus in a research report as the brokerage raises the stock's rating to buy from hold with an unchanged target price of PHP40.00. Its new Cayanga Solar plant should contribute PHP95 million to earnings in 2023, while its new Laoag Solar plant should add roughly PHP323 million in 2024, the analyst says. The Philippine power generation and distribution company's new Calatrava Solar plant, which is under construction, should operate commercially by October 2024 and contribute PHP75 million in 2024, the analyst adds. Shares are 0.4% higher at PHP36.75. (ronnie.harui@wsj.com)

0107 GMT - SK Innovation's capital expenditure, focusing on its currently loss-making battery business, could undermine its credit rating, S&P Global says in a note. The South Korean energy company needs external funding to finance its investments, estimated at KRW10 trillion in 2023 and up to KRW7 trillion in 2024, that cannot be fully covered by its own operating cash flow, it says. It expects the company's adjusted debt to increase to as much as KRW23 trillion in 2023-2024 from KRW20 trillion in 2022 and KRW13 trillion in 2021. S&P says it is watching the company's "BBB-" long-term issuer credit rating and "BB+" issue rating with negative implications. (kwanwoo.jun@wsj.com)

1625 GMT - Ballard Power's 4Q came in a little soft, even for a company that's evolving into a newer sales model, BMO's Ameet Thakkar says in a report. He says 4Q revenue and gross-margin percentage was disappointing, implying a lower exit rate than anticipated, though the company's backlog growth was a silver lining. "Ballard's ongoing evolution towards higher-volume product sales away from demonstration/consulting projects will take time," Thakkar says, but the 4Q miss leads BMO to lower the stock's target by $1 to $4.50. Shares rise 1.4% to $5.04. (adriano.marchese@wsj.com)

1448 GMT - With sour investor sentiment over NRG Energy's Vivint Smart Home deal weighing on its share price, Bank of America upgrades the stock to buy from hold, saying it believes investors are overlooking the earnings power of its nuclear and legacy Texas-centric retail business. In a research note, BofA also says that while it doesn't view the Vivint acquisition as the optimal use of capital, it sees opportunities for NRG to create incremental value through stronger cost control and cross-selling to NRG retail brands. BofA says a moderating power-price environment reduces risks for NRG's retail businesses and is supportive of higher margins and lower customer acquisition costs, and its price target on NRG goes to $39 from $35. NRG up 6.3% to $33.47. (colin.kellaher@wsj.com)

1230 GMT - Oil futures are lower to start the week, with the US benchmark WTI falling 1.1% to $66.04 a barrel and the global benchmark Brent declining 1% to $72.24 as focus remains squarely on the health of the US and global banking sectors. Spartan Capital's Peter Cardillo says in a note that oil traders "remain hesitant over future demand ... the takeover of Credit Suisse works in reverse psychology, adding to investors' wariness." With the macro financial sector pushing oil prices even lower after last week's 13% decline, investors are keeping watch on OPEC and other major oil producers to see if they begin to cut production or make other announcements. (dan.molinski@wsj.com)

1123 GMT - Algonquin Power should see some improved growth later in the year as more projects come online, National Bank of Canada's Rupert Merer says in a report. This year, Algonquin has just under 600MW of wind and solar power in construction, of which 450MW should be commissioned this year. Merer says AQN could bring an average of 450MW of renewables online per year, "though timing could be lumpy." Shares are up 24% in 2023 at C$10.92, but down 43% in the past 12 months. (adriano.marchese@wsj.com)

0940 GMT - The FTSE 100 Index drops 0.7%, or 49 points to 7286 as banks and financial stocks fall following news that Swiss bank UBS is set to take over troubled rival Credit Suisse. Barclays, Prudential, Standard Chartered, NatWest and HSBC are the sector's biggest fallers, while other banks, insurers and fund managers also lose ground. Meanwhile, BP, Shell and Harbour Energy retreat as the price of Brent crude backtracks 2% to $71.55 a barrel. "Banks were significantly weaker across the board, suggesting the scale of investor concerns within the global banking environment has yet to find a bottom," Interactive Investor's head of markets, Richard Hunter, writes. (philip.waller@wsj.com)

0937 GMT - U.K. regulator Ofwat's new powers will enable it to stop water companies paying dividends if it means risking the company's financial resilience and take enforcement action against those that don't link dividend payments to performance, RBC Capital Market says. Ofwat continues to push for stronger management of U.K. water companies, with the criticism primarily aimed at those non-listed companies in the space where leverage and dividends have been a key point of issue, RBC analysts say in a research note. "We do not expect these changes to have a material impact on the listed names," the Canadian bank says. Shares in United Utilities, Severn Trent and Pennon Group are up 2.6%, 2.3% and 1.8%, respectively. (joseph.hoppe@wsj.com)

(END) Dow Jones Newswires

March 21, 2023 04:20 ET (08:20 GMT)

2023 Dow Jones & Company, Inc.