The latest Market Talks covering Energy and Utilities. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0753 GMT - Orsted's stabilizing execution and project delivery is a first step toward a return to growth, Citi analyst Jenny Ping writes. The competitive landscape now seems more rational and government support is improving, which should deliver better project return rates, the bank says. With around 20-25 gigawatts of viable tenders over the next 18 months, most with improving auction frameworks that better align with industry cost structures, the Danish renewable-energy company has substantial scope to deliver profitable growth, it says. "In our view, shares currently reflect little value for the unsecured pipeline, investors are effectively receiving a free growth option." Citi upgrades Orsted stock to buy from neutral and lifts its target price to 165 Danish kroner from 142 kroner. Shares rise 1.6% to 141.58 kroner. (dominic.chopping@wsj.com)

0724 GMT - European oil stocks open lower Wednesday as oil prices fall on diplomatic talks to reopen the Strait of Hormuz. Talks between Pakistan and Iran are reducing the risk of an escalation in the Middle East conflict, ANZ analysts write. The analysts note that local media reports said the discussions yielded valuable results. This pulls Brent crude futures down 1.9% to $85.66 a barrel and WTI is 1.5% lower to $77.96 a barrel. Norway's Equinor leads the fallers, trading down 2.5%. In London, BP declines 2.2% while Shell is down 1.4%. Italy's Eni is down 1.6%, France's TotalEnergies slips 1.3% and Spain's Repsol moves 1% lower.(adam.whittaker@wsj.com)

0703 GMT - Manila Electric faces an earnings hit from the likely removal of system-loss charges from consumers' electricity bills, Maybank Securities' Germaine Guinto says in a research report. Philippines President Ferdinand Marcos Jr. called for removal of system-loss charges, which account for around 5% of a typical consumer electricity bill, at his State of the Nation address, the analyst notes. System loss is the power lost between generation sources and final customer billing. Under its base case, the brokerage assumes electricity distribution utility Manila Electric absorbs nontechnical system losses that would lead to an estimated annual earnings hit of 3 billion pesos-4 billion pesos from 2027. The brokerage cuts the stock's target price to 467.00 pesos from 605.00 pesos with an unchanged hold rating. Shares are 0.4% higher at 481.00 pesos. (ronnie.harui@wsj.com)

0627 GMT - Taiwan's power demand outlook is likely to be revised higher as the government reviews electricity needs amid growing AI-related consumption, according to Taiwan Premier Cho Jung-tai. Speaking at an energy forum on Wednesday, Cho says the Ministry of Economic Affairs and state utility Taipower are reassessing electricity demand through 2035 and are seeking to raise the current forecast of 2.5% average annual growth as AI adoption drives power consumption higher. He adds the government will strengthen grid resilience by building regional microgrids in phases and expanding energy storage capacity, creating a more decentralized and flexible power system. (jie.yang@wsj.com)

0512 GMT - A recent fall in E.ON's share price opens up an attractive opportunity, Berenberg says, lifting its rating on the stock to buy from hold. Shares in the utility fell this month after investors reacted negatively to a draft return-on-equity plan published by the German energy regulator for gas distributors. "The fall in E.ON's shares creates an opening to invest in an attractive regulated utility that has the opportunity and financial firepower to sustain scaled-up growth and value-accretive investment in its German power networks," Berenberg says, lifting its target on the Frankfurt-listed stock to 21 euros. Shares closed at 17.63 euros Tuesday. (joshua.kirby@wsj.com; @joshualeokirby)

0406 GMT - With AI and advanced-chip demand driving global expansion, TSMC is accelerating its renewable-energy transition, according to its latest sustainability report. The chip maker's electricity consumption reached 28.77 billion kilowatt-hours in 2025, up 12.6% from a year earlier, equivalent to roughly one-tenth of Taiwan's annual power consumption. TSMC aims for renewable energy to account for 60% of electricity use across its global operations by 2030, compared with 20.1% in 2025. The company has also set a goal of using 100% renewable energy by 2040 and achieving net-zero emissions by 2050. (jie.yang@wsj.com)

0332 GMT - Petronas Dagangan could see weaker 2H earnings as narrower crude oil and refined fuel price movements reduce inventory-related gains, CGS International analyst Dharmini Thuraisingam says in a note. Retail fuel demand is expected to remain resilient, while commercial volumes should recover as airlines gradually restore flight capacity, she says. The analyst raises Petronas Dagangan's 2026-2028 EPS estimates by 4%-10% due to stronger sales volume estimates. CGS downgrades Petronas Dagangan's rating to hold from add after its recent share-price rally, but raises its target price to 19.90 ringgit from 19.09 ringgit. Shares are 2.0% higher at 20.40 ringgit.(yingxian.wong@wsj.com)

0215 GMT - Worley's FY26 earnings are broadly in line with consensus, but its FY27 guide falls short of expectations, says Barrenjoey. "The focus of the result will be on FY27 Ebita guidance for mid-to-high single-digit growth[consensus +11%], which is also expected to have a higher 2H skew than normal," the bank says. Barrenjoey also highlights a decline in Worley's backlog to A$13.8 billion at June 30 from A$16.9 billion in March. It has a neutral rating and A$12.70 per share target on Worley. The stock is down 10% at A$9.97/share. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0202 GMT - Petronas Dagangan's commercial segment margins could normalize in 2H following a strong 2Q, as gains from lower fuel-product prices might recur if prices rise, TA Securities analyst Luqman Anwar says in a note. However, Petronas Dagangan's integrated supply chain with its parent, Petronas, and diversified earnings base should provide resilience, he reckons. Domestic fuel demand is expected to remain resilient, supported by affordable RON95 fuel prices, steady GDP growth and improving tourism, he says. The analyst raises Petronas Dagangan's 2026-2028 earnings estimates by 1.4%-3.7%, to factor in higher sales volume estimates. TA Securities downgrades Petronas Dagangan's rating to hold from buy, but raises its target price to 20.80 ringgit from 20.30 ringgit. Shares are 2.8% higher at 20.56 ringgit. (yingxian.wong@wsj.com)

1914 GMT - Oil futures post back-to-back losses as the U.S. tightens the economic squeeze on Iran, raising expectations the measures could bring Iran to the negotiating table. Iran held more talks with Oman about establishing a safe shipping route through the Strait of Hormuz, with the Omani foreign ministry saying a temporary corridor could be announced soon. "Future management of the strait and a permanent solution will follow in due course, as per article 5 of the Islamabad Memorandum," the ministry said. The U.S. rejects Iranian intentions of controlling or charging tolls to cross the strait, and maintains its blockade of Iranian ports. WTI settles down 3.1% at $82.36 a barrel, and Brent falls 3.9% to $88.58.(anthony.harrup@wsj.com)

1304 GMT - Treasury yields fall alongside oil prices as the U.S. increases sanctions on Iran. Crude futures fall 3% and Brent trades below $90. The WSJ Dollar Index gives away overnight gains and is flat, while Bitcoin briefly jumps above $80,000, amid growing concerns that Washington will tolerate high inflation and expanding fiscal deficits. Consumer confidence data is on tap later this morning. The Treasury auctions $69 billion in two-year notes at 1 p.m. ET. The 30-year yield falls to 5.198% from an overnight high of 5.246%, the 10-year slips to 4.668% from 4.710% and the two-year drops to 4.240% from 4.255%. (paulo.trevisani@wsj.com; @ptrevisani)

1253 GMT - Oil futures lose more ground with the market seeing stepped-up U.S. economic pressure on Iran more likely to lead to negotiations than military escalation. "Some signs of diplomacy out here in what is a long market and likely making it worse as Pakistan is delivering a peace offer to Iran and the U.S. is returning staff to their posts in the Middle East," Scott Shelton of TP ICAP says in a note. "The near term looks like the U.S. Treasury has bought some time for the oil market in terms of generating enough fear to end the buying for now from speculators." The New York Times reported that the U.S. is preparing to return diplomats to their posts in the Middle East. WTI is off 3.1% at $82.42 a barrel, and Brent is down 3% at $89.40 a barrel.