S&P Global Inc.’s (SPGI - Free Report) division, S&P Global Platts recently signed a memorandum of understanding (MoU) with Saint Petersburg International Mercantile Exchange (SPIMEX) to develop new pricing mechanisms for exported Russian crude oil.
This includes the formation of independent and representative price indicators, which will be utilized to price Russian crude worldwide. The MoU was signed at the Russian Energy Week 2018 held in Moscow.
Incorporated in 2008, SPIMEX is the largest Russian commodity exchanges, with a wide variety of products traded on its Commodities and Derivatives sections.
A Win-Win Situation
Considering S&P Global Platts’ expertise in providing information and benchmark prices for the commodities and energy markets, the partnership is likely to drive its revenues.
In the last reported quarter, Platt’s revenues improved 7% year over year, courtesy of growth in the core subscription business. The segment contributed around 13% to S&P Global’s total revenues in the quarter.
So far this year, shares of S&P Global have gained 14.3%, outperforming the 13.6% rise of the industry it belongs to.
As far as SPIMEX is concerned, the collaboration should help it establish itself as an active player in the global petroleum market and strengthen its position in Russia's oil market.
Zacks Rank & Stocks to Consider
Currently, S&P Global carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the broader Business Services sector include Broadridge Financial Solutions (BR - Free Report) , Paychex (PAYX - Free Report) and Core-Mark Holding Company (CORE - Free Report) . While Broadridge sports a Zacks Rank #1, Paychex and Core-Mark carry a Zacks Rank #2 (Buy).
The long-term expected earnings per share growth rate for Broadridge Financial Solutions, Paychex and Core-Mark is 10%, 8.4% and 13%, respectively.
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