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Adani Power, an Indian company, is hopeful that Bangladesh will settle all past dues
Bangladesh's chief financial officer revealed that the country has reduced the amount of money it owes Adani Power in India for a power supply deal. The company is confident about recovering the remaining $900 million. The Bangladeshi government has been struggling to meet its obligations under the 2017 agreement, as imports have become more expensive since the Russia-Ukraine war in 2022. This is in addition to the political turmoil in the country that resulted in the removal of the prime minister in August last year. Adani's supply was halved last year as a result. However, CFO Dilip Jha stated that the company resumed its full supply after the monthly payments of the country began to cover some of the outstanding dues. Jha told analysts in a call after earnings on Thursday that "we are supplying all the power to Bangladesh...the payment we receive now is more than our monthly billing." We are hoping that we will continue to receive payments equal to the current billing month, and that old outstanding dues also be liquidated. The company stated that Bangladesh had paid almost $1.2 billion out of the total $2 billion billed. Sethuraman N.R. in Bengaluru, and Savio D.Souza edited the report.
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Colder temperatures and lower solar output are expected to increase demand.
German and French spot rates were not traded on Friday morning, but a lower solar output will be expected in the entire region by Monday due to a higher demand because of colder temperatures. LSEG data shows that the German and French baseload power prices for Monday were not traded by 0745 GMT. Ricardo Parviero, LSEG analyst, says that residual load will increase in the region Monday as the lower solar supply limits the gains from the higher wind supply. LSEG data revealed that the German solar energy supply is projected to drop sharply from 10.7 GW to 5.8 GW. LSEG data indicated that the German wind power production was expected to increase by 2.5 GW Monday to 12.5 GW while French supply is projected to jump 6.2 GW up to 9.3 GW. The French nuclear capacity increased by one percentage point, to 61%. LSEG data shows that power consumption in Germany will rise by 2.3 GW on Monday, with temperatures 3.1C lower. In France, demand is expected to increase by 3.7 GW with temperatures 1.1C cooler. The German power contract for the year ahead rose by 3.3%, to 83.35 Euros per Megawatt Hour (MWh), while the French baseload contract for 2025 had not yet begun trading following its closing price of 61.40 Euros/MWh. The benchmark contract on the European carbon CFI2Zc1 market gained 2.0% to 68.34 euro per metric ton. (Reporting and editing by Janane Vekatraman; Alban Kacher)
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Indian regulator accuses Adani's nephew in an insider trading case. He seeks to settle
India's market regulator alleges that Pranav Adani, the director of several Adani Group companies and the grandson of the billionaire founder of the group, has shared sensitive price information and violated regulations designed to prevent insider trading. Adani, nephew of Gautam Adani was sent a warning by the Securities and Exchange Board of India last year. The notice alleged that he had shared information with his brother-in law about the 2021 acquisition of SoftBank's SB Energy Holdings by Adani Green before the deal announcement, according to the document and a source. This matter was not previously reported. In an email sent to Pranav Adani, he said that he wanted to settle the charges to "put an end to it, without admitting or denying the allegations", and that "he had not violated any securities laws". Sources with direct knowledge said that settlement terms were being discussed. They declined to name the source as it is a confidential matter. Adani's group is facing a new challenge. Last year, U.S. authorities indicted Gautam Adani along with two Adani executives on charges of paying bribes for Indian power supply contracts as well as misleading U.S. Investors. The group denies the allegations and calls them "baseless". The SEBI document stated that Pranav Adani had "communicated UPSI" (unpublished, price-sensitive information) to his brother in law Kunal Shah in relation to the SB energy acquisition in 2021 and violated rules relating to insider trading in the same year. It also showed that call records and trading pattern were examined in the investigation. The document said that Kunal Shah's brother Nrupal Shah traded shares in Adani Green, resulting in "ill-gotten" gains of 108,000 rupees (9 million rupees). In a letter sent by their firm, the Shah brothers stated that they did not execute the trades with "knowledge or any price sensitive information unpublished nor with any malicious intent." The statement stated that "the information in question is already available to the public". SEBI has not responded to any requests for comment. Adani Green will acquire SB Energy on May 17, 2020 for $3.5 billion. This is the biggest acquisition in India's renewable energy sector to date. SEBI stated that Pranav Adani was aware of the impending deal two to three days before the finalisation date, May 16, 2021. Source: SEBI proposed to settle with Kunal and Nrupal, but they chose not to do so, as the terms were too burdensome. After SEBI has completed its ongoing review of the settlement process, Pranav Adani will be able to file a settlement claim. (Reporting and editing by Aditya K. Kalra, Raju Gopalakrishnan, and Jayshree Upadhyay)
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Dealers say that India's palm oil imports in April fell by 24% and are still below normal levels.
Five dealers report that India's imports of palm oil in April were down by almost a quarter compared to the previous month. This is the fifth month consecutively below normal levels. The premium paid for the tropical oil over its rival soyoil prompted a higher purchase of soyoil. India's lower-than-normal imports of palm oil, the world’s largest buyer of vegetable oil, could put pressure on Malaysian palm oil and support U.S. soybean oil futures. According to dealers' estimates, palm oil imports fell by 24% in April compared to the previous month to 322,000 tons. Solvent Extractors' Association of India has reported that India imported more than 750,000 tonnes of palm oil per month on average during the marketing period ending in October 2024. Sandeep Bajoria is the CEO of Sunvin Group. A vegetable oil brokerage. He said that palm oil prices were high due to a shortage, which encouraged buyers who are price sensitive to purchase more soyoil. Dealers said that traders have been choosing lower-priced soybean oil for several months. Imports in April increased by 2% on a month-to-month basis to 363,000 tonnes. Imports of sunflower oil, on the other hand, dropped by nearly 6%, to 180,000 tons. This is the lowest level in seven months. Dealers estimate that India's total imports of edible oils in April fell by 11% from the previous month due to lower imports of sunflower and palm oil. Rajesh Patel of GGN Research, a trader in edible oils, explained that palm oil has started to trade at a lower price than soyoil. This is encouraging Indian buyers, who are interested in increasing their palm oil purchases, to do so for shipments starting from May. India imports mainly palm oil from Indonesia and Malaysia. It also imports sunflower oil and soyoil from Argentina, Brazil and Ukraine. GGN Research estimates that Nepal's edible oils imports fell to 85,000 tonnes in April from 135,000 tons a month earlier. Patel stated that more than half of Nepalese imports end up being reexported to India as refined products, since the South Asian Free Trade Agreement allows goods from Himalayan countries to be tax-free. (Reporting by Rajendra Jadhav; Editing by Joe Bavier)
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India's BPCL expects to gain $20-30/ton by swapping Middle East LPG for cheaper US supplies
Bharat Petrol Corp. Ltd., an Indian fuel retailer, expects to make a net profit of $20 to $30 per metric ton when it delivers U.S. LPG through a swap agreement with Middle Eastern suppliers. Its head of finance stated this on Friday. Analysts were told by Vetsa Ramakrishna that BPCL, India’s second largest state refiner, was in discussions with suppliers about swapping Middle Eastern cargo for U.S. supplies. The U.S.-China trade war has increased the gap in price between Middle Eastern LPG and U.S. LPG, and disrupted trade routes. China imposed tariffs on U.S. goods in response to the U.S. tariffs on imports from China. "We are contacting suppliers." We do not see much opportunity with U.S. LPG. Gupta stated that he expects a net gain of $20 to $300 per ton. Abu Dhabi National Oil Co will also replace some of the LPG that it supplies India in June with cheaper U.S.-made cargo. The cheaper U.S. LPG helps BPCL to offset the revenue loss of 6.5 to 7 billion rupees (77 to 83 million dollars) it experiences on a monthly basis due to the sale of cooking fuel locally at prices below the market. Gupta hopes that the federal government will implement a quarterly compensation scheme for refiners who suffer a loss of revenue on LPG sales. India purchases more than 80% its LPG annually from the Middle East. This includes Saudi Arabia, Qatar, Kuwait, United Arab Emirates and Saudi Arabia. Gupta said BPCL also expects that the percentage of Russian crude oil used in its three refineries will rise to around 30% to 32%, up from 24% during January-March when U.S. Sanctions disrupted supply. He said BPCL was buying Russian crude for a $3 discount per barrel compared to Dubai benchmark. BPCL plans to build a refinery in southern Andhra Pradesh that can produce either 180,000 barrels of oil per day (bpd) or 240,000 bpd within four years after a final investment is made, which Gupta expects will be by the end 2025. $1 = 83.9850 Indian Rupees (Reporting and editing by Nidhi verma)
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CNBC-TV18 reports that the top Indian court has rejected JSW Steel's bid for Bhushan Power.
CNBC-TV18, a local television station, reported that India's top court rejected JSW Steel’s resolution plan to purchase Bhushan Power and Steel, four years after its takeover. The court also ordered the liquidation of the debt ridden steelmaker. CNBC-TV18 reported that the Supreme Court said JSW Steel's acquisition of Bhushan Power is "illegal"; and, it should not have accepted this plan by Bhushan Power's creditors committee. After the news, shares of JSW Steel fell 5%. JSW Steel and Bhushan Power have not responded to the email asking for comment. JSW Steel won the bid with a bid of 197 billion rupees ($2.35 billion). The acquisition was completed by 2021. Bhushan Power had a debt of over 470 billion Rupees when the Reserve Bank of India shortlisted it to be admitted to the country's bankruptcy and insolvency code in 2017. Punjab National Bank initiated criminal proceedings against former directors of Bhushan Power in 2019. The lender had discovered fraud of 38 billion rupees on the company's accounts. Punjab National Bank and State Bank of India, who led the committee of creditor, did not reply to emails either. State Bank of India saw its gains ebb on Friday while Punjab National Bank fell 0.7%. $1 = 83.8440 Indian Rupees (Reporting and editing by Siddhi Nyak)
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Copper heads for a weekly gain in hopes of US-China Trade Talks
Copper prices increased on Friday, and are expected to make modest gains for the week as U.S. trade talks with China's top consumer eased concerns about trade. As of 0704 GMT, the London Metal Exchange reported that three-month copper was up 1.9% at $9,378 a metric ton. This week, it has gained a total of 0.1%. ANZ reported that "copper edged up amid signs of progress in trade deals between the U.S. China's Commerce Ministry announced on Friday that Beijing was "evaluating" Washington's offer to hold discussions over President Donald Trump's crippling trade tariffs. This could signal a possible de-escalation of the global market-roiling trade war. Trump said that he thought there was a very good chance his administration would be able to reach a deal with China on Wednesday. Data on Thursday showed that the U.S. manufacturing sector contracted in April, despite tariffs on imported goods putting pressure on supply chains. The U.S. economy shrank for the first three years during the first quarter of this year, as imports flooded in, as businesses rushed to avoid tariff-related costs. ANZ said that while Chinese policymakers could accelerate the roll-out of stimuli to help offset the weakening of export demand, it may not do much to protect copper from the broader impacts of a slower global economic growth. Other London metals saw aluminium rise 0.8% to $2.436 per ton, while zinc increased 1.7% to 2.621, lead rose 0.6% to 1.963.5, and tin climbed 1.5% to $30.225. Nickel also increased 0.3% to $15.350 a metric ton. China's financial market will be closed for public holidays from May 1 to 5. Trading will resume Tuesday, May 6
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After 5 months, the price of Asia Gold-India has increased due to festive demand and a price decrease
This week, gold prices in India rose for the first week in five months. The demand in India's second largest bullion market was boosted by a major festival. Prices also fell sharply after last week's record-high. Indian dealers began the week with a discount They were charging up to $24 per ounce more than the official domestic price, including 6% import duty and 3% sales tax. But by the end the week they had dropped the premium to $3. Last week they offered a discount up to $80. The Akshaya Tiritiya festival boosted the retail demand, which was further boosted by lower prices. A Mumbai-based dealer from a bullion import bank said: On Wednesday, Akshaya Tirtiya was celebrated, which is the second biggest gold buying festival in India, after Dhanteras. The domestic gold price was trading at around 92800 rupees ($1,106.22), per 10 grams, on the day, after reaching a record of 99,358 last week. Many potential retail buyers waited for a correction in prices due to the price volatility. "They would be likely to make purchases in the next few weeks if prices stay stable," said a bullion dealer based in Chennai. As of 0539 GMT, spot gold was trading at around $3,256.44 after reaching a record-high of $3,500.05 in April. Dealers in China, the top consumer, charged premiums between $34 and $48 per ounce above the global benchmark spot prices during the first half week. This compares to premiums between $44 and $50 last week. The Chinese market is closed from May 1 to 5 for Labour Day. In Hong Kong, gold Dealers in Singapore sold it at a premium of $2. Premiums are charged in the $2.50-$2.50 range. Gold demand has increased with the price decline, particularly as Akshaya Tithi prompted Indians to purchase, said Brian Lan of GoldSilver Central in Singapore. In Japan, bullion Was sold at a discounted price of $0.25 up to a premium of $0.50.
Consolidated Edison to invest $72 billion over the next decade
Consolidated Edison, a utility firm, announced on Thursday that it will invest roughly $72 billion in capital over the next ten years to increase its capacity, improve grid safety, and maintain reliability.
U.S. Electric utilities are investing more in infrastructure as a result of extreme weather and a growing demand. This is to meet the increased demand, but also to improve resilience.
Utility companies have been facing lawsuits for billions of dollars in damages over the last few years because of their role in wildfires.
Consolidated Edison announced that $66 billion would go to core services, which support safety and reliability. The rest of the money will be spent on clean energy, climate resilience, and customer engagement.
Separately the New York utility beat its first-quarter profit expectations, thanks to regulatory rate relief.
U.S. utilities are seeking to increase customer bills in order to fund infrastructure improvements. This is because the electrical grids of the United States face extreme weather conditions and a growing demand as a result of industry electrification, data center expansions and increased industrial electrification.
U.S. utilities have become more popular as a defensive strategy, providing investors with a safe, low-risk investment.
Utility companies are a safe haven in turbulent markets because of their regulated revenue models, which shield them from volatility in demand and other risks. Falling interest rates also help to boost their appeal.
According to LSEG, the company reported an adjusted profit per share of $2.26 for the quarter ending March 31. This compares to analysts' estimates of $2.20. Reporting by Tanay Kumar and Arunima in Bengaluru, Editing by Shailesh Kuber
(source: Reuters)