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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
ENERGY SECTOR
Repsol: Baa1/BBB+/BBB+ Shell:Aa2/A+/AA-
- Repsol’s long-end is at all time tights against Shell’s and looks set to trade through despite the several notches lower rating. This makes for close to 20bp of outperformance YTD, roughly 10bp since end-June and over 5bp since end-July. The long ends of both now sit broadly in line with the BBB+ energy and corporate curves.
- Repsol outperformed energy peers through both the recent French political vol and the more recent US data-led vol, including against higher-rated and larger peers. Spreads did underperform in the wake of the Q2 trading statement in early July which we had flagged as credit negative on well-below-consensus refining margins. Actual Q2 op results were more positive with operational beats albeit with lower CF and higher gearing in line with the new buyback policy.
- Shell, on the other hand, has underperformed this month despite Q2 results that we viewed as credit positive with beats across production, EBITDA, cash flow and gearing while payouts were maintained as expected.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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