In a recent International Financing Review article, Tom Jamieson and Jo En Low discuss the growing interest of oil and gas majors in purchasing renewable energy assets, despite their narrow short-term margins.
“Oil and gas majors have the financial clout to buy into renewable plays and are trying to turn that into a level of return that investors are comfortable with. That is a dilemma and may be tricky,” said Jamieson.
“Executives are looking for assets to deploy capital and banks are looking to finance this. It is changing the behavior of assets managers. This is a real market change for businesses involved in less green areas such as coal, oil and gas,” adds Low.
“These companies are transitioning off the back of healthy balance sheets and have sizable financial resources to compete very thoroughly with those only operating in the traditional renewables space,” she concludes.
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