The Big Build will test the industry’s access to Wall Street.
The era of easily available, affordable energy rapidly is ending and our society is realizing that our energy infrastructure is severely inadequate to supply the energy demands of the future. The major issue facing the sector today is how to fund and deliver this new climate-friendly infrastructure, which is currently estimated will cost almost $2 trillion between now and 2030.
Lessons from the top 40 utilities.
(September 2007) A senior executive at Accenture broadens the financial metrics behind the Fortnightly 40 to expound on the high performance behind this year’s ratings—and show the way for utilities aspiring to make the list in future years.
How does the modified Dupont Model reward utilities?
(September 2007) The impact of dividend policies, capital expenditures, and publicly traded equities highlights an in-depth look at what goes into the modified Dupont Model behind the Fortnightly 40 financial rankings for utilities.
Will the turmoil on Wall Street spur a massive flight to utilities?
Richard Stavros, Executive Editor
There remains a concern that during the next economic downturn investors will pass on utilities again. The reason is that the industry’s risks are still opaque to investors.
Leadership requires alignment between performance measurement and strategic priorities.
Jim Hendrickson and Andre Begosso
A defense of the total return to shareholders (TRS). Our authors use TRS as the bottom-line performance indicator, and come up with a number of performance insights.
Superior asset management, exceptional cost discipline, and magnificent growth opportunities define the winners of our second annual financial ranking.
(September 2006) Consistent performance over time is the Holy Grail of corporate management, and a focus of many of the executives who made this year’s Fortnightly 40 ranking. Who returned to the list, and who fell off? And more important, why?
Michael R. Yogg, who manages Putnam's Global Utilities Fund, explains what investors want from the sector.
Is the love affair with utility stocks cooling? A Standard and Poor’s equity research report in late May included a negative outlook for electric utilities: “We think the sector will underperform in 2006, weakened by the rising interest-rate environment,” the report said. But not all investors agree. We talked with veteran portfolio manager Michael R. Yogg of Putnam Investments, who revealed how the modern-day investor views the utilities sector.
The old paradigm—a strong inverse correlation of high interest rates and lower utility valuations—once again takes hold.
The recent breakout of the benchmark 10-Year Treasury yield from the recent mid-4 percent yield band to approximately 5 percent (with some market expectation that it may increase further) potentially has important strategic and value implications for the power and utility industry.
Investors are making little distinction between regulated or unregulated business strategies. One banker suggests it will be difficult to stand out.
By Richard Stavros
It seems history does repeat itself all too often. In the late1990s, a common complaint by utility CEOs was that utility price-to-earnings (P/E) multiples did not take into account whether a com- pany was a pure-play regulated utility, a diversified utility with a merchant subsidiary, or something else. Many say investors at the time just didn’t understand the different business models that were emerging after electric restructuring.
Should utilities and consumers be concerned about these obscure investment groups?
By Dan Scotto
The total hedge-fund universe currently approaches $1.1 trillion, about 5 percent of which is dedicated exclusively to energy. These numbers for energy hedge funds are likely to grow at unprecedented rates. How can your company benefit?
“Mysterium tremendum et fascinans”: The Latin phrase, coined by German theologian Rudolf Otto, which characterizes humans as being overwhelmed and fascinated by experiences that are totally different from ordinary life.1