Latest News
-
Spain's grid denies that solar is to blame as a blackout blame game explodes
Spain's grid operator denied Wednesday that solar power was responsible for the country's biggest blackout. Prime Minister Pedro Sanchez, however, came under increasing pressure from his critics to explain what went awry. After a power failure that caused trains to stop, airports to close, and people trapped in lifts, Sanchez’s opponents blamed low investments in a system which increasingly relies upon intermittent solar and wind energy. Sanchez announced an investigation by the government and stated that he wanted answers from private companies who feed electricity into the grid. He said that he had not ruled out the possibility of a cyber-attack, although REE, a grid operator owned in part by the state has dismissed this. The political fallout of deadly floods that struck the East and South of Spain, killing more than 220 people, is still a problem for Spain's authorities. REE (headed by former Socialist Minister Beatriz Corredor) has pinpointed the cause of the outage as two separate incidents in substations located in southwest Spain. However, it says that the exact location of these incidents is still unknown and it is still too early to determine what caused them. Corredor, in an interview with Cadena SER radio on Wednesday, said that it was incorrect to blame the outage of Spain's high renewable energy share. She said that "these technologies are already stable, and they have systems which allow them to function as a conventional generator system without any safety concerns," adding that she did not consider resigning. According to REE data, just before the system collapsed, solar energy was responsible for 53%, wind power for 11%, and nuclear and natural gas for 15%. Energy Minister Sara Aagesen stated that the government gave power companies until late Wednesday to submit data on "every millisecond of those five seconds", when on Monday the system lost 15GW, which is equivalent to 60% demand. This led to a disconnect from the rest Europe. MALFUNCTIONING REE Political opponents claimed that Sanchez took too long to explain the power blackout and that he was trying to cover up REE's failures. In an interview with RTVE, Miguel Tellado said that since REE had ruled out a cyber-attack, the only thing we could point to is the dysfunction of REE. The company has state funding and its leaders are therefore appointed by the government. Sanchez's announcement of a government investigation was rejected by Sanchez, who called for an independent investigation conducted by the Spanish parliament. The Spanish government has said that it asked for the "maximum transparency and collaboration" from private energy companies to identify the cause of this outage. Ignacio Sanchez Galan said that REE should explain the cause of the blackout. The company's operations are not to blame, he added. Antonio Turiel, a Spanish National Research Council energy expert, told Onda Vasca, a radio station owned by the Spanish government, on Tuesday, that the fundamental issue was grid instability. He said that "a lot of renewable energy was integrated without the responsive stabilisation system that should have existed", adding that vulnerabilities were caused by "the unplanned, haphazard integration" of a variety of renewable systems. The government is expecting private and public investments of 52 billion euro through 2030 for upgrading the power grid to handle the surge in demand due to data centres and electric cars. Aelec, a utility lobby, said this was not enough. Jordi Sévilla, chair of REE until 2020, wrote an opinion piece for Cinco Dias that the government is moving too quickly to decommission the nuclear power plants, which can provide stable production to offset the peaks in intermittent renewable energy. He said that the government's plan to invest in the grid was "planned from a desk, with too many renewable messianisms and a deaf eye towards the technical issues associated with such a significant change in Spain's mix of energy." Reporting by David Latona in Madrid, Pietro Lombardi in Barcelona and Aislinn Laing; Writing by Charlie Devereux and Editing by Peter Graff & Barbara lewis
-
Public Service Enterprises report higher profits on colder weather
Public Service Enterprise Group, an electric and gas utility, reported a higher profit in the first quarter on Wednesday. The colder weather during winter boosted demand for heating. Ralph LaRossa, the CEO of the New Jersey-based company, said that cold spells caused the winter peak demand to be the highest in six years. PSE&G's electricity distribution and natural gas segment of Public Service Enterprise posted an operating revenue increase of 14.2% during the first three months, partly due to new transmission rates. PSE&G has experienced a quarterly increase in the number of large load requests for new service connections. As of March 31st, this pipeline had a total capacity of over 6,400 MW. The company's operating revenue increased to $3.2 billion for the three-month period ended March 31, up from $2.8 billion one year earlier. In February, the U.S. Energy Information Administration predicted that power demand would reach record levels in 2025 and in 2026 as a result of a surge in energy usage in AI data centres and increased domestic production. Utility's net income for the first quarter rose from $532 to $589, or $1.18 a share. Interest expenses rose by 17.6%, to $241 millions, during the third quarter. Total operating expenses increased by nearly 17%, to $2.43 Billion. Public Service Enterprise offers electric and gas service to approximately 4.3 million New Jersey customers. PSEG Power, a division of Public Service Enterprise Group, also operates nuclear power plants. According to LSEG, the company reported a quarterly profit of adjusted $1.43 per common share. This was below analysts' expectations of $1.44, which were based on average estimates. (Reporting and editing by Shreya Biwas in Bengaluru, Katha Kalia in Bengaluru)
-
Martin Marietta reports higher profits on demand for building materials
Martin Marietta posted a higher profit per unit on Wednesday, due to steady infrastructure spending as well as investments in data centers projects driving demand for its building materials. The company said it does not "assume any material tariff-related negative or positive impacts." Ward Nye, CEO of Xerox Corporation said that "Infrastructure Demand remains a bright spot in an uncertain macroeconomic background". Nye said that construction activity will increase in 2025, as the work progresses on projects like roads, bridges, and ports, which are supported by both federal and state governments. The company that makes concrete and asphalt expects to benefit from the Infrastructure Investment and Jobs Act of former U.S. president Joe Biden, which included $1 trillion worth of investments. It is expected to reach its peak in 2026. The company's non-residential construction division has also been boosted by the growing demand for data centres that are used to power artificial intelligence. The quarter saw a shipment of 39 million tons, an increase of 7% over the same period last year. Meanwhile, the average price per ton increased by 7%, from $22.26. The Raleigh, North Carolina based company reported a 8% increase in quarterly revenues to $1.35 Billion, but it was in line with analyst's estimates. Profit per ton also increased by 16%, to $7.60.
-
US private sector delegation to Greenland
A U.S. delegation led by an ex-official of the Trump administration is scheduled to visit Greenland next week to explore potential investment opportunities within the vast natural resources on this Arctic island. Since Donald Trump's inauguration in January, the U.S. has become more interested in Greenland. This self-governing territory is a Danish territory. The increased interest has caused tensions between Washington and Copenhagen. Trump has refused to exclude the possibility of taking Greenland militarily if Denmark refuses to sell it. This is the first visit by a delegation from the private sector to the Arctic Island since Jens-Frederik Nielsen, the leader of the probusiness Demokratiit Party was elected as premier. Representatives from the mining companies Critical Metals Corp., Cogency Power. American Renewable Metals and Refacture are part of the delegation. Drew Horn, the CEO of GreenMet, and former Chief of Staff for the Office of International Affairs in the Department of Energy under the first Trump administration will lead the group. Horn said: "I am not trying to orchestrate anything crazy, like a purchase of Greenland or an acquisition by the United States." He said that the consortium he represents includes institutional investors such as Cantor Fitzgerald and Cerberus Capital. The trip comes just days after Denmark's King Frederik visited Greenland, in a gesture of unity between Greenland with its former colonial leader. Premier Nielsen, who visited Copenhagen last week, affirmed the ties between Denmark and the United States, while calling for more respect. Greenland has substantial mineral deposits that could be worth trillions of dollar. The mining industry is dominated by Australians, Canadians, and British companies, with little U.S. involvement. Horn believes that capitalization, growth in the private sector and collaboration will lead to greater collaboration for an independent Greenland supported by U.S. private investment. The Tanbreez mine is one of the largest rare earth deposits in the world. Horn believes Greenland’s openness to investment from the private sector will strengthen its independence and provide a viable business plan. Copenhagen will be visited by the delegation at both the start and the end of their Greenland tour.
-
PPL Corp's quarterly profit beats estimate on rising data center power demand
PPL Corp, an electric and gas utility company, beat Wall Street's first-quarter estimate on Wednesday thanks to favorable weather conditions in Pennsylvania and Kentucky and higher transmission rates. Both states saw an increase in electricity sales of 6.6% during the third quarter. This helped offset higher costs, and increased operating revenue by 8.7%. The U.S. is expected to hit record-high power consumption in 2025 and '26. This will be due to the rapid expansion of data centres and increased use of electricity by homes and businesses for heating and transportation. According to the company, active data center demands from 2026-2034 in Pennsylvania increased from 48 GW to 50 GW and in Kentucky doubled from 6 GW to 12 GW. "We are off to a great start in 2025...The continued interest of data center developers from Pennsylvania and Kentucky highlights the crucial role that we continue to play to power progress and innovation," said CEO Vincent Sorgi in a press release. The company, which operates in Kentucky, Pennsylvania, and Rhode Island, anticipates minimal impact of tariffs on its earnings, but is concerned about potential effects on capital investments. The company stated that "labor represents the majority of capital costs and O&M expenses, and the majority of materials are domestically sourced." PPL's operating costs rose from $1.76 to $1.83 billion in the past year. The company that provides electricity and natural gases to over 3.6 million customers has reaffirmed their full-year adjusted profit prediction of $1.75 - $1.87 per share. According to data compiled and analyzed by LSEG, the Allentown, Pennsylvania based company reported an adjusted profit per share of 60 cents in the third quarter. This was compared to the estimated 54 cents. (Reporting from Katha Kalia, Bengaluru. Editing by Vijay Kishore.
-
Lobby group: West Africa's upheaval calls for joint mining ventures and local listings
To navigate the increasingly complex West African landscape, international mining companies should look at joint ventures with partners local and dual listing on regional stock exchanges. In West Africa, military-led governments have shattered the mining industry by rewriting contracts and detaining executives. They also suspended operations in order to gain greater control of natural resources. The threat of jihadist attacks on mining companies has also increased, and some exploration activities have been suspended. Adama Soro is the president of West African Federation of Chambers of Mines. He said that big miners need to adapt and meet governments' increasing demands for localisation. He said that dual listings on regional exchanges, and joint ventures between local partners would go a long ways to strengthening the positions of these companies. Soro stated that "we're pushing for dual listing at the regional level so that local investors can also benefit." "The big corporations are open. They know that this is the reality. (And) you can't fight the wind." West Africa's mineral riches continue to draw global attention despite regulatory changes that affect major players like Barrick, Endeavour Resolute Mining and Fortuna, in Mali and Burkina Faso. The region has a wealth of reserves. Ghana, Mali, and Burkina Faso will collectively account for more than 10% of global gold production by 2024. Guinea is the world's largest exporter of bauxite. "Operating mines in Africa is more lucrative." Soro stated that other regions are stable but less profitable. Soro stated that the record gold prices in this year have escalated tensions between stakeholders due to U.S. president Donald Trump's policies on trade and geopolitical uncertainties. "When the gold price rises, you can see that all parties are trying to get everything on their side," said he. "The best way to proceed is by having open discussions." Soro stated that national governments and mining companies from around the world seem to support his group's call for greater localisation. However, the regional stock exchanges' capacity remains a problem. He did not provide any details, but predicted that some local listings would be coming soon. (Reporting by Maxwell Akalaare Adombila Editing by Robbie Corey-Boulet, Kirsten Donovan)
-
Indian Oil's profit for the fourth quarter jumps due to inventory gains
Indian Oil Corp., the top refiner in the country, announced a 50% increase in its fourth-quarter profits on Wednesday. The company attributed the jump to inventory increases, and is looking to purchase more crude oil from the spot market. Standalone net profits soared to 72.65 billion Indian Rupees ($858.57 millions), up from 48.38 billion rupees the year before. Anuj Jain, Director of Finance, said in a press release that the company had a gain in inventory in the fourth quarter, which helped to increase profits, as opposed to a loss in inventory a year ago. When oil prices increase, and the company is refining or shipping petroleum products, an inventory gain will be booked. Brent crude prices rose by about 17% during the quarter January-March from a multiyear low reached in September. IOC's average gross refinement margin, or the profit made from a barrel of crude oil to make refined products, was $7.85 compared to $8.39 a year ago. Jain stated that the company wants to increase its crude oil sales on spot markets. The ratio between term and spot is expected to be 55:45, compared to 60:40 in last year. We are interested in buying more oil on the spot market as there is an abundance of supply. More spot volume will allow me to test out new grades. A. S. Sahney, chairman of IOC, said that the company is planning to invest up 1 trillion rupees in expanding its petrochemical capabilities. Indian Oil and its subsidiary Chennai Petroleum control about a third (33%) of India's refinery capacity. Sethuraman N.R. in Bengaluru, and Nidhi V.R. in New Delhi. Editing by Shounak D. Dasgupta.
-
Hess beats first-quarter profit estimate despite weak oil prices
Hess announced a decline in its first-quarter profits on Wednesday. The lower oil price was to blame, but the shale producers still managed beat Wall Street's expectations. Benchmark Brent crude averaged $75.16 a baril during the quarter of January-March, an 8.2% drop from a year ago, due to weak global demand, and increased oil supplies by OPEC+. The average realized crude oil price of the company fell from $80.06 per barrel to $71.22 a barrel in the first three months, down from $80.06 barrels a year earlier. Hess will be acquired by Chevron, the industry leader and bigger rival in a $53billion deal once it overcomes its final roadblock - an arbitration challenge brought by Exxon Mobil over its prized Guyana asset. The company's total production remained unchanged at 476,000 barrels equivalent per day, while the Guyana output dropped 3.7%. Hess announced on Wednesday that its fourth floating oil producing facility in Guyana will start in the third quarter 2025. The company anticipates that the second quarter's net production will be between 480,000 and 490,000 boepd. LSEG data shows that analysts had estimated an average of 489.550 boepd. Hess, based in New York, saw its adjusted profit fall nearly 43% during the three-month period ended March 31. However it was still well above the estimated $1.61 per shares. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shilpa Majumdar
Stocks strong on financial optimism, metals shine
Gold and copper started the week at record highs, with world stocks not far off, buoyed by financier optimism over slower inflation, financial growth and China's efforts to resolve its home crisis.
Gold climbed more than 1% to a record $2,449.89 an ounce, while three-month copper on the London Metal Exchange rose as much as 4.1% to a historic high of $11,104.50,. after climbing 28% so far this year.
That the 2 metals were rallying together was noteworthy, said. experts at Rabobank, as the 2 tend to supply various. signals, with copper being reflective of the financial outlook -. owing to its importance as an industrial input - and gold being. an indication of wider sentiment.
They suggested a shift by central banks into bullion was one. aspect behind the relocations, and also potentially a shift of home. cost savings from stocks into products.
Hints of a safe house quote for gold, after a helicopter crash. killed Iran's president, might likewise be in the mix, though it. failed to show up in other property classes. For copper, traders. pointed to speculation and short covering along with an expected. pick-up in demand for products from China after it announced. historical actions on Friday to stabilise its home sector.
Beijing on Monday left benchmark rates on hold, as anticipated.
BRILLIANT SPOTS
MSCI's broadest index of Asia Pacific shares outside Japan. increased to its greatest in two years on Monday while. the benchmark provider's world share index was. up a whisker, simply shy of Thursday's all-time peak.
Blue chip indexes in France, Britain and. Germany, which likewise struck records last week, were all up. 0.2-0.5%, S&P 500 futures were up a touch too.
Global financial bright spots continue to prevail, stated. Vincent Chaigneau, head of research study at Generali Investments,. indicating easing inflation and increasing salaries supporting real. disposable income and bolstering domestic demand.
U.S. inflation slowed a touch in April, information revealed last. week, triggering markets to position carefully for a September. rate cut by the Federal Reserve and driving a cross-asset rally.
British inflation data is due Wednesday and will be a. essential factor in assessing if the Bank of England will cut. rates in June - when the European Reserve bank is also set to. ease policy - or holds off till August.
Likewise due this week are results from chip darling Nvidia,. international company activity data, a New Zealand rate choice, and. remarks from U.S. policymakers and the minutes of their latest. conference.
Two-year U.S. Treasury yields ended recently. four basis points (bps) lower at 4.825% and were consistent on. Monday. Ten-year U.S. yields were down 8.4 bps last. week and last at 4.418%.
BIG IN JAPAN
Speculation has actually grown that Japanese rates will rise above. no, driving government bond yields to their greatest in more. than a decade.
Ten-year yields went up 2.5 bps to 0.975%,. the greatest because 2013, though the wide gap to U.S. yields left. the yen little bit changed at 155.67 per dollar.
The dollar logged its largest weekly drop on the euro in. two-and-a-half months recently, however was steady on Monday at. $ 1.08735.
Brent unrefined futures increased to a one-week high of. $ 84.25 a barrel however were last down 0.2% after a helicopter crash. eliminated Iran's president and Saudi Arabian state news flagged a. health concern for the king, threatening fresh instability in the. Middle East.
If Middle East conflict picks up, we might see inflationary. pressures due to a potential rise in oil prices, said Tareck. Horchani, head of dealing, prime brokerage at Maybank Securities. in Singapore.
Unrest in French territory New Caledonia increased costs for. its major export, nickel, and silver, which was going after. gold greater, broke above $30.
(source: Reuters)