Energy & Materials Sector

• The MV Junior Gold Miners index represents the performance of small-cap gold and silver mining companies listed around the world. We like it because of impact. 
• This index is reviewed semiannually in March/September. During these reviews, names can be added or deleted from the index. 
• There are several expected ADDs/DELs for the September 2025 index rebal event. There will also be flows for the other index members due to capping.

• SICC (688234 CH), a manufacturer of high-quality SiC substrates, aims to raise up to US$250m in its H-share listing.
• In terms of market share, as per Frost & Sullivan, based on 2024 sales, its market share was at 16.7%.
• In this note, we look at the PHIP updates and talk about the likely A/H premium.

• Market expected tariffs on cathode and other copper products, but final announcement only included tariffs on scrap
• Change in tariff decision led to collapse in premium of COMEX over LME
• Import influx of copper in US may now flow to LME warehouses, potentially affecting prices and supply security efforts

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• M&B Engineering, a leader in the PEB space, launched a INR 650 crore IPO with a price band of INR 366-385, opening July 30, 2025.
• The company will use the INR 275 crore fresh issue proceeds for capital expenditure to expand manufacturing facilities, upgrade technology, and repay certain borrowings.
• Growth is fueled by 60% capacity expansion by FY28 and a booming PEB market; valuation appears reasonable given its high PAT CAGR of 53%.

• Revenue increased 3.5% YoY to JPY54.5bn, with major subsidiaries in the US, China, and Malaysia contributing growth.
• Operating profit decreased 3.3% YoY to JPY7.2bn due to higher SG&A expenses, despite revenue growth and improved cost ratio.
• Flavor Division revenue rose 4.4% YoY to JPY48.7bn, while Fragrance Division revenue declined 3.3% YoY to JPY5.8bn.

• The story of the week was probably the 20% decline in COMEX copper futures during the week.
• A short recap: The gloating voices would perhaps claim that the Trump administration has realized that the high tariffs on copper would significantly harm its own country in the current situation.
• Copper prices collapsed by roughly 20% on Wednesday after President Trump announced that refined metals including copper cathodes will be exempt from the 50% tariff plans.

• Pokarna is India’s leading quartz exporter, leveraging italian Bretonstone technology to deliver industry-leading margins, growth in Natural Quartz segment.
• Company is doing major capex worth Rs. 440Crs, that will add an additional 500Cr in topline once fully operational.
• The company is facing demand challenges due to the US 25% Tariff since more than 80% revenue is coming from the US.

• Eagle Materials reported a strong start to its fiscal year 2026, achieving record first-quarter revenue of $634.7 million, up 4% from the previous year, and delivered diluted net earnings per share of $3.76.
• The company continued its operational focus despite dealing with challenging weather conditions in many of its cement, concrete, and aggregate markets.
• The result underscores Eagle Materials’ ability to maintain resilience across market cycles, emphasized through their low-cost producer status and enhanced operational metrics.

• The energy midstream sector is buzzing as MPLX LP (NYSE:MPLX) inches closer to finalizing a $2.375 billion cash deal for Northwind Midstream, a natural gas gathering, treating, and processing developer with over 200,000 dedicated acres in New Mexico’s Delaware Basin.
• Coming on the heels of MPLX’s strategic bolt-ons in the BANGL NGL pipeline, Whiptail crude gathering, and Matterhorn Express expansion, this acquisition could bolt high-quality, low-breakeven Permian volumes directly into MPLX’s burgeoning NGL, natural gas, and crude value chains.
• The Northwind system already boasts more than 200 miles of gathering lines, two acid gas injection wells at 20 MMcf/d (soon to grow to 37 MMcf/d), and 150 MMcf/d of sour-gas treat-ing capacity—set to balloon to 440 MMcf/d by H2 2026.

• Graphic Packaging Holding Company, a global leader in sustainable consumer packaging, presented its results for the second quarter of 2025, revealing a mixed financial and operational landscape.
• The company’s sales for the period were $2.2 billion, and the adjusted EBITDA was reported at $336 million, resulting in an adjusted EBITDA margin of 15.3%.
• The adjusted earnings per share came in at $0.42.

• On Friday 1 August, Nippon Steel Corporation (5401 JP) and subsidiary Krosaki Harima (5352 JP) announced the parent would buy out the sub at ¥4,200/share. 
• This seems light given the structure of the balance sheet (lots of net receivables – a bunch against the buyer) but it would be awfully tough to see this broken.
• As it is a long-dated deal, I expect it trades too tight early on, then may flatten or fade.

• I summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Mayne Pharma (MYX AU), ENN Energy (2688 HK), Krosaki Harima (5352 JP), Joy City Property (207 HK), Santos Ltd (STO AU), Smart Share Global (EM US). 
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), ZEEKR (ZK US), New World Resources (NWC AU), Ainsworth Game Technology (AGI AU), Nippon Concept (9386 JP). 

• Expand Energy recently shared its 2025 second quarter financial and operating results, highlighting some of the key aspects from their merger strategy as well as operational benchmarks.
• The company has undertaken a comprehensive approach to optimize capital efficiency while accelerating synergies and leveraging technological advances.
• From a strategic perspective, Expand Energy’s merger with Chesapeake and Southwestern aimed to establish a deep and diverse portfolio across premium markets.

• PPG Industries recently released its second quarter 2025 financial results, showcasing a blend of performance indicators that should be carefully considered by investors.
• The company reported net sales of $4.2 billion, with a 2% increase in organic sales.
• This growth was majorly driven by strong performances in the Aerospace Coatings, Protective & Marine Coatings, and Packaging Coatings segments.

• Sales increased 7.5% YoY in Q1 FY03/26, with Electronics and Medical segments reporting growth of 3.6% and 14.0% respectively.
• The Electronics segment’s profit rose 1.9% YoY, affected by yen appreciation and decreased sales of high value-added films.
• The Medical and Pharmaceuticals segment’s profit surged 138.0% YoY, driven by contract manufacturing business growth.

• Krosaki Harima (5352 JP) has recommended a preconditional tender offer from Nippon Steel Corporation (5401 JP), the parent, at JPY4,200, a 21.7% premium to the last close price of JPY3,450.
• The offer is attractive as it represents an all-time high and is above the mid-point of the special committee IFA DCF valuation range.
• The precondition relates to regulatory approvals in Japan and India. The tender offer is expected to start in early February 2026. This is a done deal.

• Revenue increased by 14.0% YoY to JPY30.6bn, with operating profit up 16.1% YoY to JPY1.1bn.
• Core product revenue grew: food product containers by 19.8% YoY, films and laminates by 11.4% YoY.
• Gross profit reached JPY6.1bn (+15.9% YoY), with SG&A expenses totaling JPY5.0bn (+15.9% YoY).

• Eni’s recent financial performance and strategic movements highlight a well-rounded approach to growth and diversification within the energy sector.
• Focusing primarily on upstream operations, the company has demonstrated tangible growth in production and resource acquisition.
• In the first half of 2025, Eni discovered approximately 600 million barrels of oil equivalent in new resources, with significant activity in Namibia, Ivory Coast, and Norway.

• Dow, a prominent player in the global chemical industry, faced a challenging second quarter amidst a prolonged market downturn intensified by trade and geopolitical uncertainties.
• The company reported a net sales decline of 7% year-over-year to $10.1 billion, with all operating segments experiencing setbacks.
• This was compounded by a 50% reduction in core earnings, marking a significant impact on profitability.

• RPM International’s fiscal fourth-quarter and full-year 2025 financial results underscore both its strategic advancements and ongoing challenges within a complex economic backdrop.
• The company’s transition to a three-segment operating structure and the execution of its MAP 2025 initiatives have drove record levels in sales, adjusted EBIT, and adjusted EPS.
• This performance is attributed to top-line growth, operational efficiencies, and volume increases in sectors like high-performance building solutions and maintenance services.

• Baker Hughes is reportedly nearing a $13.6 billion all-cash acquisition of Chart Industries, potentially derailing Chart’s previously announced all-stock merger with Flowserve.
• The proposed deal, which values Chart at $210 per share—a 22% premium to its latest closing price—marks a significant strategic pivot by Baker Hughes toward enhancing its footprint in liquefied natural gas (LNG), nuclear energy, and digital infrastructure, particularly data centers.
• By superseding the $19 billion Flowserve-Chart merger agreement from June, Baker Hughes aims to consolidate its position in high-growth, energy-adjacent sectors through vertical integration and technology enhancement.

• In Q1 FY03/26, sales increased by 12.1% YoY, driven by marine and industrial paints, despite container paint declines.
• Operating profit rose 16.5% YoY to JPY3.9bn, aided by optimized selling prices and high-value-added product sales.
• Net income fell 48.9% YoY due to absence of prior extraordinary gains, despite improved gross profit margin.

• Teck Resources Limited, a diversified mining and minerals company, reported its second quarter 2025 financial results, emphasizing its continued strategic goals of growth, operational excellence, and shareholder returns.
• The company’s performance exhibited both strengths and challenges across various segments.
• Teck’s financial results showed a moderate improvement in profitability, with adjusted EBITDA increasing by 3% year-over-year to $722 million.

• WTI crude prices are on the way to close the week higher, supported by trade optimism, better economic data from the U.S., and ongoing geopolitical tensions.  
• U.S. natural gas slips as mild weather, strong production, and unclear short-term demand weigh on prices.
• Chevron adds John Hess to its board after merger approval; Shell tops Q2 estimates; Aramco partners with Cloudera to bring AI to energy.

• What you need to know: • The metals and mining market settled in July, following a tremendous run over the last six months.
• • In July, gold was down 1%, silver was up 2%, and copper down 13%.
• The equities underperformed the commodities, with the GDX, GDXJ, SIL, and COPX down 0.8%, 5.0%, 1.5%, and 4.2%, respectively.

• Ovintiv Inc. delivered a robust performance in the second quarter of 2025, reflecting strong operational efficiency and strategic execution.
• The company notably exceeded production targets and improved capital efficiency, surpassing production, capital, and per-unit guidance estimates.
• A critical highlight was the seamless integration of newly acquired Montney assets, enhancing Ovintiv’s operational capacity and contributing to free cash flow growth.

• Back on the 27th May 2025, dual-listed MAC Copper (MAC AU/MTAL US), a NSW copper miner, entered into a Scheme Implementation Deed with Harmony Gold Mining (HAR SJ).
• Harmony offered US$12.25 for each MAC Share, a 20.7% premium to last close. The A$ consideration for MAC CDIs pivots off the USD/AUD exchange rate around the Record Date. 
• A copy of the Circular is now available, with a shareholder vote on the 29th August. Barrenjoey, the FA, says fair & reasonable. 22.54% of shares out are supportive.

• Context:Rio Tinto Ltd (RIO AU) reported 1H25 results on 30 July, cutting its interim dividend by 16%.
• Rio Tinto’s share price fell more than expected after earnings, exceeding both historical and implied moves. A surprise US copper tariff announcement further amplified the decline.
• This Insight breaks down drivers of the post-earnings move and evaluates the potential outcome of a short-vol strategy — offering a practical case study for refining similar trades.

• Occidental’s Q2 2025 revenue is expected to drop 9.1% QoQ and 9.4% YoY. Its EPS is projected to fall by 66.7% QoQ and 71.8% YoY.
• Occidental expects Q2 performance to be weighed down by lower production and weaker commodity realizations, particularly in the Gulf of Mexico.
• Options activity and analyst outlooks suggest a potential rebound if earnings meet or beat subdued expectations.

• Mast Energy Developments plc (MAST.L, ESCC Transition) is a flexible power generation plant owner, developer and operator targeting >300 MW of new, grid critical, generation for the UK flexible power market by 2030.
• Our current value range is based only on the first 150 MW.
• Since our initiation MAST recently bought exclusive rights to five sub‑5 MW flexible‑generation sites from Green Light Energy (GLE).

• The Politburo signalled only mild policy easing on July 30, disappointing investors hoping for stronger measures to address China’s property slump.
• China’s July NBS Manufacturing PMI fell, highlighting fading pre-tariff export momentum and persistently weak domestic demand conditions.
• Prices are below the 9‑day moving average, and a bearish MACD crossover suggests a potential short‑term pullback.

• Revenue increased to JPY137.1bn, a 48.6% YoY growth, driven by higher recovery volumes and improved profitability.
• Operating profit rose to JPY5.9bn, a 63.9% YoY increase, with significant gains in electronics and dental sectors.
• Precious Metals business saw substantial YoY operating profit growth, despite declines in catalyst area recovery volume and profit.

• What you need to know: • Rio2 provided an update on the construction progress at the Fenix Gold Project.
• As of the end of Q2, construction is 41% complete and remains on track and on budget for first gold in Q1/26.
• • With Q2 behind us, RIO approaches an inflection point of becoming a gold producer and taking advantage of the elevated gold price.

• TotalEnergies released its financial results for the second quarter and first half of 2025, navigating a turbulent macroeconomic and geopolitical environment.
• Challenges such as the Israel-Iran conflict and a US tariff war created market volatility, with oil prices fluctuating between $60 to $81 per barrel within the quarter.
• The limited price increases during the Iran crisis signaled adequate oil market supply, influenced by OPEC+ decisions and slowed global demand due to economic conditions.

• Valero Energy Corporation’s second quarter of 2025 financial performance indicates a blend of strong operational execution with challenges in certain segments.
• On the positive side, Valero set a record for refining throughput rate in the U.S. Gulf Coast, showcasing the efficacy of their investments in optimization projects.
• This operational efficiency was supported by robust refining margins, largely driven by strong product demand and low inventory levels globally, particularly in diesel, which saw sales volumes increase by about 10% year-over-year.

• In Q1 FY03/26, Itochu Enex reported sales revenue of JPY203.2bn (-3.7% YoY) and operating profit of JPY6.0bn (+10.2% YoY).
• The Home-Life Division’s operating profit rose 267.3% YoY to JPY404mn, driven by increased LP gas sales volume.
• For FY03/26, Itochu Enex forecasts a 2.0% YoY decline in operating profit to JPY24.5bn, maintaining a dividend of JPY62 per share.

• Facing tough fundraising, SK avoided a rights issue, opting for a complex deal to limit dilution and ease investor worries.
• It all hinges on how the market views SK On’s cleanup plus Enmove’s steady cash flow—SK Innovation looks oversold, making this a decent long setup.
• Enmove’s stable earnings boost SK On’s P&L, likely triggering a rerate for SK Innovation and setting up a classic NAV compression trade.

• PT Petrindo Jaya Kreasi Tbk (CUAN IJ) could be added to a global index in August but there are multiple risks for the stock.
• PT Petrindo Jaya Kreasi Tbk (CUAN IJ) trades at significantly higher multiples compared to its peers and the recent price spike raises the risk of addition to the UMA list.
• PT Petrindo Jaya Kreasi Tbk (CUAN IJ) has outperformed its peers and positioning is big, raising the risk of the stock moving lower over the next few weeks.

• On 30 July, SK Innovation (096770 KS) announced that it plans to merge its subsidiaries SK On and SK Enmove. The merged company will be launched on 1 November.
• SK Group has announced a massive 8 trillion won capital raise plan involving this deal including paid-in capital increase of 2 trillion won for SK Innovation and SK On each. 
• We provide three major reasons why we are negative on this merger/capital raise. 

• SK IE Technology (361610 KS) announced that it plans to raise 300 billion won through a third party paid-in capital allocation. 
• SK IE Technology plans to issue 10.5 million new shares (14.7% of outstanding shares). Expected price of capital raise is 28,600 won (2.1% lower than current price). 
• We have a Negative View of SK IE Technology as well its plans to raise capital worth 300 billion won.

• Santacruz reported its Q2/25 production results, missing our expectations due to flooding at Bolivar which has now been resolved.
• AgEq production came in at 3.5Moz compared to our estimate of 4.6Moz, representing -4% QoQ and -15% YoY.
• SCZ is up 306% since our initiation report in January, yet still remains mispriced in our view.

• Following the July production restart at Triton FPSO, ramp-up to the steady-state plateau of has been delayed into August.
• With Bittern now back online and Evelyn and Gannet expected to follow shortly, net production at Triton is set to reach 25 mboe/d in the near future.
• It is expected that the production plateau will exceed this level once the new wells are then brought onstream later in August.

• Sonoco reported strong financial results for the second quarter of 2025, achieving significant growth in net sales, adjusted EBITDA, and margins despite facing global economic challenges and market-specific disruptions.
• Net sales increased by 49% year-over-year, reaching $1.9 billion, driven by the acquisition of the European metal packaging business Eviosys, now integrated as Sonoco Metal Packaging EMEA (SMP EMEA), and strong volume growth in their U.S. metal packaging segment.
• Adjusted EBITDA rose by 25% to $328 million, with margins expanding by 100 basis points to 17.2%.

• What you need to know: • Amerigo reported strong Q2 financial results, generating revenue of $50.8M (-1% YoY) vs. our expectation of $52.6M.
• • EBITDA was $17.8M vs. $20.0M expected, while OCF was $11.9M vs. $15.5M expected.
• ARG paid off $4.0M of debt during the quarter, ending the period with net cash of $17.2M.

• The recent earnings for West Fraser Timber Co. Ltd. provides a comprehensive overview of the company’s performance for the second quarter of 2025 amidst a challenging macroeconomic environment.
• West Fraser reported an adjusted EBITDA of $84 million during the period, reflecting an approximate 6% EBITDA margin, as it continues to navigate a cyclical downturn in the industry.
• The company highlighted headwinds such as lower U.S. housing starts, impacted by elevated mortgage and interest rates, which are affecting new home construction and subsequently, demand for West Fraser’s wood products.

• • The MGH-20 well in the North Mengoepeh (MGH) field tested 2.8 mmcf/d with associated oil.
• This is a positive surprise as there are currently no estimated resources at the field that was shut in in 2014.
• • Following the extended well test at SE-MGH, Criterium plans to initiate extended testing on MGH-20 and three additional shut-in wells on the North MGH well pad.

• Context: The Ampol (ALD AU) vs. Woodside (WDS AU) price-ratio has diverged more than two standard deviations from its one-year average – a classic signal for a potential mean-reversion trade.
• Highlights: Going long Ampol (ALD AU) and short Woodside (WDS AU) targets a 7% return if the price ratio reverts to its one-standard-deviation threshold.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• BP’s Q2 2025 revenue is expected to drop 10% QoQ and 10.7% YoY. However, its EPS is projected to rise by 30.8% QoQ but fall by 32% YoY.
• Lower oil and gas realizations are expected to drag earnings by up to USD 1.1 billion, but strong refining margins and oil trading performance could offset the blow.
• Options positioning reflects mild bullish sentiment, with traders favouring calls near current levels, suggesting expectations of a modest post-earnings upside.

• This morning, EDG announced assay results for four drill holes at its Reliance Gold Project as part of its 2025 exploration campaign.
• Today’s highlight hole returned 5.63 g/t Au and 5.12% Sb over 3.3m, representing the best antimony grade over width intersection to date.
• At current antimony prices, this intercept adds about 10 g/t AuEq (gold equivalent) to the 5.63 g/t gold intercept.

• Omai reported drill results from six holes (3,760m), part of the expanded >25,000m 2025 drill program at Wenot.
• Highlights include 31.7 g/t Au over 7.5m, 2.64 g/t Au over 41.8m, and 3.49 g/t Au over 17.4m (with several other notable highlights).
• 37 holes have been completed YTD (20,500m); results from eight holes remain pending.

• For the week ending 25/Jul, Henry Hub dropped 12.8% on the back of mild weather forecasts, record output, and stagnant LNG flows.
• For the week ending 18/Jul, the EIA reported that U.S. natural gas inventories rose by 23 Bcf, lower than analyst expectations of a 28 Bcf build.
• Henry Hub OI PCR fell to 0.84 on 25/Jul compared to 18/Jul. Call OI grew by 6.5% WoW, while put OI rose by 3.2%.

• WTI crude declined 1.4% for the week ending 25/Jul, pressured by oversupply concerns and renewed U.S. tariff threats, despite midweek gains from inventory draws and trade optimism.
• The U.S. rig count fell by two to 542, marking its twelfth weekly fall in thirteen weeks. Oil rigs by seven to 415, marking its thirteenth consecutive weekly fall.
• WTI OI PCR remained at 0.96 on 25/Jul compared to 18/Jul. Call OI inched up by 3.1% WoW, while put OI rose by 3.8%.

• India’s imported Group I heavy neutrals base oils cargo price strengthens relative to FOB Asia and Europe prices in July 2025.
• India’s rising price-differential for Group I SN 500 follows drop in availability of the supplies from Iran especially in recent months.
• India’s imports of Group I heavy neutrals fall to eighteen-month low in June 2025, mostly because of drop in supplies from Middle East.

• • The GH LSC 13-13 #2 well (Lower Selma Chalk) commenced production at ~4.0 mmcf/d and averaged 3.6 mmcf/d over its IP30 period.
• Although below the initial 5.5 mmcf/d forecast, the observed decline rate is notably shallower than expected, with flow rates holding at 3.4 mmcf/d after one month (~15% decline).
• • This performance benchmarks favourably against Upper Selma Chalk (USC) wells, which typically exhibit higher IP30 rates of 5.0–6.5 mmcf/d but decline more steeply, often down to ~3.0 mmcf/d within the first month.

• A medical technology Company focused on the durable healing of wounds and the prevention of amputations announces its trading update for the six months ended 30 June 2025 as well as an update to FY 2025 guidance.
• The Company expects to report revenue for the Period of not less than $31m (H1 2024: $26.3m), representing growth of not less than 18% (H1 2024: 26.4%).
• In the first three months of the Period, the Company recorded revenue growth of approximately 26%. 

• US base oils export prices extend fall versus feedstock/competing fuel prices.
• Increasingly firm heating oil premium to crude oil compounds weakness of base oils prices.
• Diverging price trends could prompt moves to divert more feedstock supplies into diesel pool.

• Rio Tinto Ltd (RIO AU) / (RIO LN) / (RIO US) is scheduled to report its 2025 half year results on Wednesday, 30 July 2025 at 16:15 AEST.
• Actionable Option Strategy: Options imply a move noticeably larger than the historical average, opening up a potential short-term yield opportunity. Trade setup discussed in detail.
• Why Read: The Insight outlines yield-focused short-vol strategies, the expected volatility crush, and a forecast for Rio’s interim dividend based on payout policy and timing.

• The copper trade still gets lots of attention. Reason for us to dig a little deeper and evaluate emerging opportunities.

• Let’s also evaluate the “fundamental” reason market participants have why COMEX Copper is so much pricier than LME copper…

• The announcement of a 50% tariff on imported refined copper into the US has triggered a widening of the COMEX-LME-Spread from 11% to 27%.

• European markets turned negative as sentiment following the US trade tariiff deal moved to ‘not great’ from ‘better than expected’.
• The Nasdaq edged to a new high, but enthusiasm across the board was weak.
• ASX futures are suggesting a soft start as Australia and other countries remain in the US line of sight for blanket 15%-20% tariffs.

• Trump’s 50-day ultimatum to Russia expires on September 2nd, potentially leading to sanctions and increased weapons supplies to Ukraine
• EU’s new price cap on Russian crude takes effect on September 3rd, aiming to curtail Russia’s energy revenues and strengthen anti-circumvention measures
• Snapback provisions on Iran could be triggered in September, adding to global oil price volatility and uncertainty

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Institutions were net buyers of Singapore stocks with a net inflow of S$334 million from July 18 to 24.
• Four primary-listed companies conducted share buybacks totaling S$29.8 million, led by United Overseas Bank’s repurchase of 800,000 shares.
• Ginko-AGT Global Growth Fund increased its stake in ISOTeam, acquiring 5,986,600 shares at S$0.086 each.

• Shin-Etsu Chemical’s fiscal Q1/26 results were inline with expectations, with EBIT down -12.6% yoy as margins declined yoy for all of its divisions 
• However, FY26E guidance disappointed markets, with a -14.4% decline in operating income, well below consensus’ already weak 0.6% forecast, and the stock fell -9.5%
• Shin-Etsu has trades at a P/B premium to the Japan chemical sector even with a lower ROE, providing limited valuation support especially given a weak operating outlook 

• Asia’s base oils demand could get support as buyers focus on locking in supply to cover requirements during final weeks of Q3 2025.
• Dynamic would highlight disconnect between typical seasonal slowdown in lube demand in month of August and need to secure base oils supplies to meet pick-up in demand at end of third quarter.
• Expectations of sufficient supply could prompt buyers to maintain balanced inventories rather than to seek larger stocks.

• Weatherford International’s second quarter 2025 financial results reveal a company operating amidst industrywide challenges but demonstrating resilience through strategic measures.
• The company experienced various regional performances, with notable market conditions impacting outcomes, such as the reduced revenues in North America due to Canada’s seasonal spring breakup and divestitures in Argentina.
• These circumstances, alongside an unstable Mexican market that has stabilized but is expected to see a 60% decline in activity for the year, influenced overall performance.

• Matador Resources Company reported a solid financial and operational performance in the second quarter of 2025, attributing its success to significant contributions from its leadership team and strategic initiatives.
• The company emphasized its commitment to increasing both production and free cash flow in tandem, highlighting a strong financial foundation bolstered by a $1.8 billion available line of credit.
• This financial flexibility supports the company’s drilling and cash flow opportunities.

• Range Resources Corporation reported strong financial and operational performance for the second quarter of 2025, driven by consistent well performances and several efficiency gains across operations.
• The company demonstrated significant free cash flow generation, allowing for shareholder returns and bolstering its long-term growth strategy amid a rising demand environment for natural gas and natural gas liquids (NGLs).
• Key positive highlights include the execution of efficient operations, which resulted in lower-than-anticipated capital expenditures, enabling Range Resources to revise its capital guidance.

• Revenue increased by 10.7% YoY to JPY3.4bn, while operating profit decreased by 37.8% YoY to JPY93mn.
• Sales for AI servers and data centers remained strong, but consumer product demand stalled due to US-China tensions.
• Revenue from semiconductor packages grew 24.1% YoY, while automotive-related sales declined slightly due to inventory adjustments.

• This week, the CERC issued the order on market coupling for DAM across all the Indian Power Exchanges. Now, a single uniform market clearing price will be determined centrally.
• Shares of Indian Energy Exchange Ltd (IEX IN) have reacted negatively to this development. Management’s stance on market share remains positive even though there is uncertainty involved.
• Investors should also consider structural drivers like rising electricity demand, low exchange penetration, strong user loyalty, and positive performance of IGX platform while evaluating IEX’s long-term prospects.

• Baker Hughes Company demonstrated a strong performance in its second quarter of 2025, showing resilience and adaptability in a shifting macroeconomic and industry landscape.
• The company’s adjusted EBITDA rose to $1.21 billion, reflecting a 170 basis point improvement in margins compared to the previous year, driven by effective cost management and improved operational execution.
• This marks the 10th consecutive quarter of meeting or exceeding midpoint EBITDA guidance, emphasizing a consistent streak of reliable financial performance which indicates strong execution across its segments despite broader industry challenges.

• Cleveland-Cliffs recently reported its second-quarter financial results for 2025, showcasing a mixed set of outcomes that highlight both strategic progress and ongoing challenges.
• The company achieved significant operational efficiency, increasing its adjusted EBITDA by $271 million compared to the previous quarter.
• This improvement was driven by higher shipment volumes, enhanced production efficiency, and strategic cost-cutting initiatives.

• Halliburton’s second quarter of 2025 presented a mixed financial and operational performance, with notable challenges and some opportunities.
• Despite volatile commodity markets and global economic uncertainties, the company reported a 2% increase in total revenue, reaching $5.5 billion compared to the first quarter of 2025.
• Operating income totaled $727 million, yielding an operating margin of 13%.

• Sherwin-Williams Company’s second-quarter 2025 earnings report reflects a mixed financial performance amidst a challenging economic environment.
• Despite ongoing market turbulence, the company continues to pursue its long-term strategic goals with some degree of success, but also faces significant near-term challenges.
• On the positive side, Sherwin-Williams reported consolidated sales within its guided range, buoyed by growth in its Paint Stores Group, although this was partially offset by declines in its other segments.