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.

0335 GMT - Bumi Armada's balance sheet will likely remain supported by strong operating cash flows and ongoing deleveraging, which has reduced net debt for 20 consecutive quarters, Maybank IB analyst Jeremie Yap says in a note. A new lease-and-operate floating production, storage and offloading contract would be a key re-rating catalyst to replenish its orderbook and improve earnings visibility, he adds. Yap cuts Bumi Armada's 2025-2027 net profit estimates by 12%, 12%, and 13%, respectively, to factor in lower FPSO Kraken profit margins. The asset's day charter rate will be reduced by 70% from 2Q, as it enters its optional extension period. Maybank cuts Bumi Armada's target price to MYR0.73 from MYR0.78, while maintaining a buy rating on the stock. Shares are 1.0% higher at MYR0.51. (yingxian.wong@wsj.com)

2323 GMT - The delay in ramping up Fortescue's Iron Bridge project to nameplate capacity disappoints Macquarie analysts, who expect little cost relief from the miner pushing out its production target. "FMG carries a large fixed-cost base at Iron Bridge," the analysts say in a note. "Therefore, we assume the volume cuts flow directly to the bottom line." However, they take a positive view on executive changes, which appear to indicate a refreshed focus on the metals business, they say. "One of our criticisms on FMG's 'FFI' strategy has been it's non-adjacency and limited grounds for genuine competitive advantage," say the analysts. "This move further aligns decarbonization and mining, potentially driving efficiency in operational decarbonization and green steel efforts." Macquarie has a "neutral" rating and A$15.00 target on Fortescue, which ended Thursday at A$15.89. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1915 GMT - Oil futures grind lower with geopolitical news taking a back seat and the possibility of another large output increase by OPEC+ for July raising supply concerns. Citi analysts see "highly binary geopolitical risks" around U.S. negotiations on Iran's nuclear program and the Russia-Ukraine war. "Geopolitics remain pivotal for the next move in oil up to $70 Brent, or down to the $50s," they say. Citi expects OPEC+ to hold output at June levels through 2H25, "but another three-month slug could put pressure back on the market." Meanwhile, the bank keeps its 0-3 month Brent view at $60. WTI settles down 0.6% at $61.20 a barrel, and Brent falls 0.7% to $64.44. (anthony.harrup@wsj.com)

1321 GMT - Oil futures are lower for a third straight session as the recent geopolitical boost recedes and focus is back on supply and demand. Ritterbusch sees "nothing significantly bearish" about yesterday's EIA report of U.S. crude and product inventory builds, "especially when the non-representative West Coast region was excluded." What is bearish for oil is the monthly production increase of more than 400,000 barrels a day from OPEC+, which "will become even more negative once the boost in OPEC supply becomes more transparent," the firm adds. WTI and Brent are both down 1.3% at $60.75 and $64.05 a barrel, respectively. (anthony.harrup@wsj.com)

(END) Dow Jones Newswires

May 23, 2025 04:20 ET (08:20 GMT)

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