Daily Brief Energy/Materials: Seadrill , PT Pertamina (Persero), Albemarle Corp, Copper, Fmc Corp and more

• SDRL reporting second quarter results provided greater insight on the contribution of Aquadrill to SDRL’s financials and sets the course for how the business could benefit from current day rates
• SDRL has two drill ships set for contract expiration at year end and another two more vessels expected off contract by end of 2024, not including those with contract options
• Our new price target of $62 from $50 values SDRL in line with its peers even though SDRL is not levered

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• PT Pertamina (Persero)
• Softbank Group

• Albemarle Corporation delivered a positive result and managed an all-around beat in the last quarter, with net sales and EBITDA up compared to last year.
• Based on the costs on the market at the time, their team has raised their energy storage projection for 2023.
• We give Albemarle Corporation a ‘Buy’ rating with a revised target price.

• Orange juice futures hit an all-time high last week as citrus crops all across the US have been hammered by a series of hurricanes and the spread of citrus greening, an incurable disease spread by insects.
• The vast majority of oranges produced in the US come from Florida, which has been hobbled by hurricanes and a cold snap, massively hampering supply.
• Such headwinds are responsible for the supply shortage in oranges, which has driven up prices that will eventually filter through to consumers.

• FMC Corporation delivered a disappointing set of results as the company could not meet the revenue and earnings expectations of Wall Street.
• The company presented several challenges, including FX headwinds, lower EBITDA margin, higher interest expenses, and a decline in free cash flow due to the impact of a channel inventory reset.
• In this report, we have carried out a fundamental analysis of the historical financial statements of the company.