Core Energy Capital Protection Certificate

US rates stabilized at rather high level, giving the opportunity to consider full capital protection structured products. The following instrument has only two stocks in the basket with participation coefficient 100% and no cap on the equity price growth in 2.5 years.

Duke Energy operates in a sector with stable demand also having an exposure to the technology sector (with major clients including Microsoft, Amazon, Meta, and OpenAI), which provides an opportunity to participate in the growth of the emerging AI sector. Exxon Mobil demonstrates solid results in their recent release which also provides opportunities for further growth. Additionally, company sets a $20B share repurchase target which might provide positive impulse for share prices.

Duke Energy [Internal score 74/100] is a large, vertically integrated electric utility company in the United States. Its electric subsidiaries serve 8.7 million customers across North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, while its gas operations serve 1.6 million customers. The company has a 15.4 GW project backlog, one-third of which is already under construction.

In the 1st half of 2026, the company’s revenue grew by 6.4% year-on-year to $16.8 billion, while EBITDA rose by 7.2% year-on-year to $7.8 billion. The EBITDA margin also remained consistently high, at 46% in the first 6 months of 2026. Net profit for the half-year increased by 13% year-on-year to $2.7 billion. Unlike most electric utility companies, Duke generates a positive proxy for cash flow (EBITDA minus CapEx), which grew by 59% year-on-year during the January–June period, reaching $1.6 billion.

Exxon Mobil Corporation [Internal score 65/100] engages in the exploration and production of crude oil and natural gas in the United States and internationally. It operates through Upstream, Energy Products, Chemical Products, and Specialty Products segments. The company became the largest oil producer in the Permian basin in 2024, the biggest U.S. oilfield, after closing its acquisition of Pioneer Natural Resources in May two years ago.

According to the recent financial report for the past quarter of 2026 adj. revenue increased 33% y-o-y and amounted to $110.5B. EBITDA margin for the quarter was around 23% level. Adj. Net income exceeds $14.9B vs $7.0B for the same quarter in 2025. Company was able to generate positive FCF, which is 17% of the revenue. Current FCF level is $18.5B. It is expected that revenue for the whole year will exceed $422.5B.

The Fed’s 28 October hold leaves US yields high, making this a good time to lock in capital protection. Qatar-mediated talks could reopen the Strait of Hormuz, easing oil prices and inflation pressure, which would help rate-sensitive Duke. If the conflict continues, tight fuel supplies should keep supporting Exxon’s refining profits. The US midterms on 3 November could shift expectations for the Iran conflict, while Duke’s 5 November results will test data-centre contract growth. A North Carolina ruling on costs for large electricity users is also expected by mid-November. We think these different catalysts give the basket more than one route to a positive outcome.