Solar generated quarter of EU electricity in June, Ember says
CGS International upgraded Thai Oil to add from hold in a research report, raising its target price to 59.50 baht from 51.00 baht. Analyst Amornrat Cheevavichawalkul said the Thai refiner’s gross refining margin is likely supported by diesel supply tightness in Asia, as Ukrainian drone strikes on Russian refineries have led to unplanned outages. The analyst said Thai Oil’s second-quarter crude cost will probably be manageable, underpinned by low-cost inventory carried over from earlier purchases. CGS International lifted its 2026-2028 earnings-per-share estimates for Thai Oil by 3.9% to 15.2% to reflect higher market assumptions for gross refining margin. Shares in Thai Oil rose 6.3% in trading.
BNP Paribas and Santander issued positive assessments of BP following a second-quarter update. BNP Paribas analysts said BP delivered a solid quarterly performance that reflects how it can capture gains in prices through its operating businesses and in volatility through its trading arm. The U.K. energy major had another exceptional quarter in oil trading, and expects an uplift of about $2.5 billion from prices, according to BNP Paribas. The analysts said BP is reducing its net debt to between $22 billion and $23 billion, pointing to a reduction of between $6 billion and $7 billion in financial liabilities. Santander analysts said the better-than-expected performance and the large decline in net debt bode well for BP’s shares ahead of the company’s next strategic developments. Continued volatility in energy prices could remain a source of trading opportunities, they added. Santander said the Middle East situation and any guidance from new CEO Meg O’Neill will be at the top of investors’ minds when BP reports full earnings on Aug. 4. BP shares rose 2.3%.
J.P. Morgan said Iberdrola is on track to deliver on expectations and could raise guidance again when it reports first-half results on July 22. The Spanish utility should report a sharp slowdown in adjusted net-income growth due to positive one-offs in the second quarter of last year, but that should not mask strong underlying performance, J.P. Morgan said. The bank said Iberdrola is well on track to deliver on analysts’ estimate of full-year adjusted net income of 6.8 billion euros. Shares in Iberdrola traded 0.5% higher.
In Australia, Amplitude Energy’s share price rose 2.6% after the company reported new production records at its Orbost gas-processing plant. Amplitude said the plant set a new seven-day production record of 73.8 terajoules per day this month. Ord Minnett analyst Tim Elder said this is a positive indicator for fiscal-year 2027 guidance. Amplitude’s net debt of A$37 million at the end of June was lower than Ord Minnett expected, which Elder said suggests either better cost controls or potentially positive working capital movements. Further detail is expected at Amplitude’s annual result next month. Ord Minnett had a A$2.60 per share price target on Amplitude.
In Malaysia, Kenanga IB analyst Lim Sin Kiat said the country’s energy sector will likely remain supported by stable oil prices and a stronger focus on energy security. Brent crude is forecast to average $80 a barrel in 2026 and $74 a barrel in 2027, as easing Middle East tensions are expected to keep supply disruptions contained, he wrote. Lim expects higher investment in upstream oil and gas projects from next year thanks to the energy-security theme. Near-term earnings could remain under pressure, as spending typically lags behind oil-price movements. Kenanga maintains an overweight rating on Malaysia’s oil and gas sector and named Petronas Dagangan as its top pick.
TA Securities analyst Hafriz Hezry said Malaysia’s utilities sector is expected to get more support in the second half from investment in new power plants, electricity grid upgrades, and gas infrastructure. Rising electricity demand, the energy transition, and efforts to diversify fuel sources following the Iran conflict are expected to drive spending across the sector, Hezry said. Data-center expansion, including potential investment redirected from the Middle East, could provide an additional boost to power demand. TA Securities maintains an overweight rating on the Malaysian utilities sector, naming Tenaga Nasional, Samaiden, and Malakoff as top picks.
Think-tank Ember said solar power generated a record quarter of the European Union’s electricity in June, making it the largest single source of power for the month, ahead of nuclear and gas. Solar accounted for 25% of the bloc’s generation, up from 10% in the same month five years ago, as EU members stepped up the pace of solar-panel installation. In Spain, a European leader in solar and other renewables, sun-power produced more than a third of electricity last month, Ember said. “In just a few years solar has gone from a small player to an essential part of Europe’s power system, as governments and citizens look for low-cost, quick-to-install domestic power sources,” Ember analyst Chris Rosslowe said.