Rebecca Sherlock and Jessica Johnson from the Global Listed Infrastructure team spent the last few weeks touring assets and meeting with infrastructure management teams, regulators, industry competitors, investors and brokers in the US (New York, Nebraska, Massachusetts, Florida, California, Texas), Canada (Toronto) and Dubai. Some of the key highlights from their extensive trip include:
The combination of regulated earnings and natural gas is currently very much in vogue. This is a positive for National Grid as it looks to sell a majority stake in its UK gas distribution network.
Renewable energy sources continue to find ways to improve competitiveness. This bodes well for companies such as NextEra Energy that have been at the forefront of wind and solar development.
California remains a positive regulatory jurisdiction. Both utility regulators and consumer advocacy groups recognise the need to attract investment into the state to meet ambitious renewables goals.
Railroads that can most quickly adapt their business models to reflect the changing United States (US) economy will cope best with volume reductions. Union Pacific is focused on improving productivity and pricing in order to offset the impact of soft volumes.
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