But although government involvement often weakens an oil company's business model, it can also reduce its borrowing costs and ease its market access, even when its credit metrics deteriorate. "All of the companies we studied except Petrobras have strong pre-tax profitability metrics, while their margins vary partly because of different geological conditions and the proportions of oil and gas they produce," says Associate Analyst Kijana Mack, co-author of the report.
Mexico, July 29, 2014 -- Latin America's national oil companies all face deteriorating credit metrics until about
Global Credit Research - 29 Jul 2014
2016, when oil and gas production will grow enough to improve their cash flow and financials, Moody's Investors Service says in a new report, "Latin American Oil and Gas Companies Face Risk from Push for Debt-Financed Growth." Companies are using debt to finance intensive capital spending programs.
The new report discusses Ecopetrol, based in Colombia; PDVSA, Venezuela; PEMEX, Mexico; Petrobras, Brazil; and YPF, Argentina. These companies are all the largest in their home countries and are essential sources of revenue for their governments.
"Latin American state-owned oil companies invest aggressively to satisfy energy needs at home," says Vice President -- Senior Credit Officer, Nymia Almeida. "Over the next several years they will spend more than $100 billion annually to finance offshore plays, with the debt they take on to do so posing additional risk for bondholders." All the companies Moody's reviewed enjoy high levels of government support, Almeida says, but some face substantial operational and political risks. Colombia's war with the FARC insurgency movement leads to frequent attacks on the country's energy infrastructure, which could limit Ecopetrol's production growth, and in Mexico PEMEX is depending on the proper execution of the new energy law to meet its production targets. Of the group, Petrobras has the most operational risk and is hampered by Brazil's pricing policies for gasoline and diesel, while Argentina and Venezuela present difficult conditions for YPF and PDVSA, respectively, and indeed for business in general.
At the bottom of the sea with this report
It seems that people remember when is convenient.
It may be old, but the reality is the reality, dilution in every way. The worst?
The diluted EPS.
Sounds funny? I think not. There are none so blind that the will not see.
Trina Solar Limited ,a worldwide leader in photovoltaic modules, solutions and services, reported that it priced the offering of 8,800,000 American Depositary Shares , each representing 50 ordinary shares of the Company, par value of US$0.00001 per share (the “ADS Offering”), at US$11.00 per ADS.
Why not reviewer ? It is easy to qualify, but your opinion is better.
July 28, 2014
In a research note, Goldman Sachs analyst Brian Lee commented on news Friday that the US Dept. of Commerce announced its preliminary determination on its anti-dumping investigation into imports of certain Chinese and Taiwanese solar products. Lee noted duties were higher than expected, but incremental impact will likely be limited. SolarCity (Nasdaq: SCTY) is the most at risk, while SunPower Corporation (NASDAQ: SPWR) and First Solar (NASDAQ: FSLR) may see a modest benefit.
"The DoC set preliminary AD duties on solar imports from China, ranging from 26.33% on Trina Solar (NYSE: TSL) up to a China-wide rate for unspecified manufacturers of 165.04%. On Taiwanese solar imports, the US DoC established rates between 27.59% and 44.18%. In our view, these rates are broadly higher than expectations of both industry players and investors. We note these are preliminary AD rates, with the final determination expected to be decided in mid-October," said Lee.
The Armenian is a tough nut to eat. Owner's grant of all airports in the country. Indeed he is a billionaire.
Today, PBR in the chart was in a very bad position. Friday looked to be a push, but today changed everything to low. PBR can have a strong fall. It is the only way to find the balance for that PBR rise time
It is very difficult to know the reality of Chinese companies.
They are state manipulations, across the world.
Now with the tariff imposed by USA, stays out of the market. This benefits SPWR and FSLR. They are in a very good buy point
At any time S & P lowers its recommendation and target.
Today is a contadicción its recommendation, with today's report.
Therefore, S & P has to change its rating of TSL.
It has all the shares in the market, these amazing Chinese.
2:41p ET July 28, 2014 (Dow Jones)
The U.S. decision is part of a continuing battle between large producers of solar panels in North America and Europe and producers in Asia, which the U.S. blames for violating trade rules to support domestic producers. Panels from China have been far cheaper than those produced in other countries, driving down overall U.S. prices by about two-thirds since 2010.
China-based Trina Solar Ltd. last week was assigned a preliminary antidumping tariff of 26.33%, and Yingli Green and Wuxi Suntech Power Co. will have to pay a 42.33% duty on U.S. shipments if the dumping is confirmed.
The Commerce Department in June announced preliminary duties because of Chinese subsidies, and last week's decision on dumping brings the U.S. closer to putting up barriers to Asian solar products that weren't included in the earlier case.
Both sets of tariffs won't become permanent until they receive final approval from the Commerce Department, which is expected to rule by December, and the U.S. International Trade Commission, which is expected to rule by January.
China's commerce ministry said it hoped the U.S. would halt its trade investigation as soon as possible. The agency added that the measures would hurt "the upstream and downstream photovoltaic industries" in both countries, which run the gamut from firms that make the raw materials for solar components to solar-panel installers.
"Trade friction is unavoidable, but governments have the responsibility to control and avert their impact on the normal development of China-U.S. economic and trade relations," the ministry said.
The tariffs were prompted by a petition filed by Solarworld Industries America Inc., the U.S. subsidiary of SolarWorld AG, Germany's biggest solar-panel maker. SolarWorld says it is a victim of both dumping and unfair subsidies from China, hurting its ability to compete for major buyers of solar products.
It has a buy rating, today(S&P). But after his report, we will see a downgrade.
Be carefull, with the short sellers.
11:11a ET July 28, 2014 (MarketWatch)
Yingli off 3% on antidumping duties aftermath
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) -- U.S.-listed shares of Yingli Green Energy Holding Co Ltd. fell more than
3% on Monday as the company said it was "committed" to the U.S. market even after the U.S. government imposed hefty antidumping tariffs on the company and others.
The Commerce Department on Friday said Yingli (YGE) and other companies shipped solar products to the U.S. at below cost and slapped on duties ranging from 10.74% to 55.49%. Those tariffs are on top on last month's anti-subsidies tariffs.
On Monday, the Chinese government spoke out against the decisions, saying they risk damaging the solar industry in the U.S. and in China.
GTM Research said last month the price of Chinese-made solar panels will likely increase 14% on average, just taking into consideration the June anti-subsidies tariffs. Some Chinese companies may decide to bypass the U.S. market, it added.
Cheap and plentiful solar products from China have fueled the boom in rooftop solar-power systems.
Yingli, a top maker of solar panels, said the duties will "increase the price of solar energy in America," jeopardizing the industry's growth.
Yingli's U.S.-listed shares declined 3.4%. U.S.-listed shares of JA Solar Holdings Co. (JASO) were off 1%, while U.S.-listed shares of Trina Solar Ltd. (TSL) advanced 1.7%.
U.S.-based panel makers also gained, with First Solar Inc. (FSLR) up 2.9%. Solar installer SolarCity Corp. (SCTY), which recently bought solar panel maker Silevo, declined 2.7%.
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(S&P Capital IQ)7/27/204
The U.S. issues preliminary anti-dumping tariffs of 26%-165% on China/Taiwan-made solar goods, with TSL facing the least stringent penalty. We note subsidy duties announced in June. This result differs from the '12 version in that Taiwan makers are now included. We view this as a negative for China/Taiwan makers, as the tariffs would hurt costs/margins. While we think they are largely discounted, they could act as a headwind to upcoming earnings results. We see First Solar (FSLR 66****) and SunPower (SPWR 38****) as beneficiaries and the U.S. consumer as a loser (higher prices).
2:43p ET July 25, 2014 (Benzinga
Petroleo Brasileiro Petrobras SA - upgraded from Equal Weight to Overweight; price target raised from $22 to $23.
ExxonMobil - downgraded from Equal-Weight to Underweight; price target raised from $100 to $105.
Cenovus - downgraded from Overweight to Equal-Weight; price target decreased from $39 to $38.
The Barclays note released an estimate on major oil refineries to have a discount to its net asset value of 17 percent or a discount excluding Petrobras of 11 percent, based on its forecast of long-term Brent prices (assuming $100 per barrel). Barclays forecasts oil prices near $90 to $95 per barrel.
Barclays ranked Suncor and ConocoPhillips as displaying the most value for the next 12 months, while ExxonMobil and Chevron ranked at the bottom. The note suggested preference in Suncor and ConocoPhillips against Exxon and Chevron for a year to date range, measured on a risk-adjusted
Look and understand. Everything depends on the oil. PBR, is back in overbought. It´s not good. You now have a white candle indicates rise. But it is not eternal