Latest News
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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
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Kyiv is ready to sign a resource deal with the US, a government source in Ukraine says
A Ukrainian government source said that Ukraine was ready to sign an agreement with the United States on mineral resources. This could happen later today. The source stated, "I think that maybe the deal can be signed late in the evening Kyiv Time." Ukrainian officials are hoping that the signing of the agreement promoted by U.S. president Donald Trump will soften the American support for Kyiv during the war which was sparked by Russia's full scale invasion over three years ago. The Ukrainian government source confirmed that Yulia Shvyrydenko, first deputy prime minister of Ukraine, was traveling to the United States in order to sign the agreement. On April 18, the two sides signed a Memorandum as a first step to a final agreement on developing Ukraine's mineral resources. The memorandum stated that they would like to conclude the talks by April 26, and sign the agreement as soon as possible. Two days later Ukrainian Prime Minister Denys Schmyhal announced that Kyiv agreed to exclude past U.S. assistance provided to Kyiv from the calculation of the minerals deal. During a visit to the United States, Shmyhal met U.S. Treasury Sec. Scott Bessent. He reported "good progress” on the agreement. Shmyhal said that Kyiv has also clearly defined the redlines regarding the agreement's conformity with Ukraine's European commitments and Ukrainian law.
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Ghana signs agreement with nine additional gold mines to purchase 20% of their output
A government agency announced on Wednesday that Ghana had reached an agreement with nine additional mining companies for the purchase of 20% of their production. The deal is part of a larger gold purchase program to increase Ghana's gold reserves as well as stabilize its currency. In 2022, the Central Bank of Ghana signed an agreement to buy 20% of annual production from Gold Fields, Newmont, AngloGold Ashanti and Asanko Mining, members of an industry group including Gold Fields. The central bank of Ghana settles all purchases in Ghanaian cedis. Bank of Ghana gold reserves rose from 8.77 tons to 30.8 tons in February, helping it to reach $9.4 billion in gross reserves this year. According to a GoldBod statement posted on X, the new agreement covers mining companies that do not participate in the central banks' arrangement. GoldBod is a government agency set up to increase small-scale miner earnings and reduce the impact smuggling. Golden Team Mining Company Limited is one of the companies. Others include Akroma Gold Limited. Cardinal Namdini Mining Limited. Goldstone Akrokeri Limited. Earl International Group Limited. Xtra Gold Mining Limited. Prestea Sankofa Gold Limited. The price of gold has risen 29% in the past year due to tariffs imposed by President Donald Trump and geopolitical uncertainties. The GoldBod said that the mining companies agreed to deliver to them 20% of all gold they intend to export from the country in the form dore bars. This agreement is a major step towards maximising the national benefits of Ghana's gold reserves. The payment will be made in Ghanaian Cedis at a discount of one percent on the London Bullion Market Association's (LBMA) current spot price. GoldBod spokesperson said that nine gold miners produced approximately 200 kilograms per month. (Reporting and writing by Christian Akorlie, Maxwell Akalaare Adombila, Editing by Ayen Bior and Ros Russel)
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Trane Tech exceeds its quarterly expectations on the strength of demand for air conditioners
Trane Technologies reported Wednesday better-than expected first-quarter results, and reaffirmed their annual profit forecast. They benefited from the rising demand for heating, ventilation, and air conditioning (HVAC) systems. The company's shares rose by over 7% during premarket trading. As temperatures rise as a result climate change, sales of air conditioners in homes and offices have risen. The Ireland-based firm posted a 14% increase in its Americas segment. This is its largest revenue generator, and was boosted by a robust demand from commercial customers. The company, who also owns Thermo King Transport Refrigeration, has stuck to its original adjusted profit per share estimate of between $12.70 - $12.90 by 2025. Trane has, however, increased its revenue growth expectations for the year. It now expects a rise between 7.5% and 8.5% above its previous estimate of 6.5% to 7.5%. According to LSEG, the company reported net revenues of $4.69 Billion in the first quarter. This is up 11% compared to a year earlier, and beat analysts' expectations, which were about $4.46 Billion. The company reported a profit per share adjusted of $2.45, which was also higher than the analysts' expectation of $2.20. (Reporting by Utkarsh Shetti in Bengaluru; Editing by Sahal Muhammed)
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India's Adani Power Fourth Quarter Profit Falls on Lower Tariffs and Higher Costs
Adani Power, an Indian thermal power company, reported on Wednesday a 5% drop in its fourth-quarter profits. This was due to lower tariff realizations and higher operational costs. The company, which is part of billionaire Gautam Adani's Adani Group said that its consolidated profits fell to 25,99 billion rupees (307.2 million dollars) for the three-month period ended March 31, from 27,37 billion rupees the year before. The quarter saw a rise in power sales of 18.9% compared to the same period last year, but revenue only grew by a modest 6.5% due to lower merchant tariffs. The company stated that the company's supply of electricity exceeded the demand. This led to a decrease in merchant tariffs, which in turn resulted in a lower realisation during the third quarter. Merchant tariffs are the prices at which electricity is purchased on the open market. Adani Power didn't disclose how much merchant tariffs dropped during the third quarter of 2017 compared to the same period a year ago. The company said it also faced higher operating costs during the quarter because of three newly acquired factories in the September quarter of last year. Adani Power's expenses totaled $9.2 million in the fourth quarter. NTPC and JSW Energy have yet to release their quarter results. Adani Power shares fell 3% after the results. Reporting and editing by Sonia Cheema in Bengaluru. $1 = 84.6170 Indian Rupees
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Business groups and industry call for Britain and the EU's carbon markets to be linked
Over 50 business groups and companies from across Europe have called for Britain and the EU at a upcoming summit to begin talks on linking their carbon market, which will they claim help reduce costs for consumers. When leaders meet on the 19th of May, Britain will seek enhanced cooperation in security, law enforcement, and removing trade barriers between the EU. As part of a larger effort to reduce emissions and achieve climate targets, the EU and UK Emission Trading Systems charge power plants and industrial entities per ton of CO2 they emit. The letter, signed by Equinor Orsted RWE and other companies, said that the EU-UK ETS linkage will create price convergence, while avoiding distortions in competition, preventing carbon leakage, and reducing costs to both EU and UK customers. By linking the two schemes, Britain could also avoid the penalties under the European Carbon Border Adjustment Method, which will impose a fee on the importation of steel, aluminum, fertilisers and electricity to the EU from 2026. Energy groups have warned that the CBAM design could lead to an increase in the cost of exporting clean, renewable energy from Britain to Europe. This would also add to the already high EU electricity prices. The UK scheme currently trades at around 48 pounds per metric ton less than the EU where the benchmark contract is around 66 euros. Analysts say that linking the two systems will likely cause UK prices to rise in order to match those of the EU, which could increase carbon costs for UK companies on the short-term. They say that in the long term, it will be cheaper because the import levies will no longer apply. (1 pound = 0.7484 pounds; 1 euro = 0.8799 Euros) (Reporting by Susanna Twidale, Editing by Elaine Hardcastle).
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Oil price outlook dims due to tariffs and potential OPEC+ production boost
An oil price poll on Wednesday showed that OPEC+’s decision to reduce supplies and a demand outlook clouded with trade disputes between China and the U.S. will have a negative impact on prices in 2018. In April, a survey of 40 analysts and economists projected that Brent crude would average $68.98 per barrel in 2025. This is down from the estimate of $72.94 in March. U.S. crude oil is forecast to average $65.08 a barrel, down from last month's $69.16 estimate. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that crude oil would be caught in a dilemma between fears about a slowing economy and an increase in OPEC+ production, on one hand, and support due to sanctions and low prices that could hurt production growth by high-cost producers. The U.S. has announced a series of tariffs that are tit for tat. This has dampened global economic growth. Oil prices fell to their lowest level in four years earlier this month due to concerns over tariffs. The International Energy Agency (IEA) lowered its forecast for demand growth to 730,000 barrels a day this month. The Organization of the Petroleum Exporting Countries, or OPEC, also lowered its forecast growth this month. Now, they expect growth of 1.3 millions barrels a day by 2025. Analysts said that if the OPEC+ plan to increase supply is carried out as planned, it will have a negative impact on oil prices. Sources say that several members of the group will propose to the group at its meeting on May 5 that it accelerates oil production increases in June for the second consecutive month. Some analysts say that further OPEC+ increases may not occur. Florian Grunberger is a senior analyst at Kpler. He said that while the medium-sour crude oil market in general remains tight, OPEC+'s production cuts, including revised compensation plans, are unlikely to be completed as planned by 2025 due to mounting risks for demand. HSBC stated in a note dated April 15, that lower oil prices would slow the growth of supply, but with a delay. The first to respond will be U.S. shale. "With average half-cycle breaksevens at $60 per barrel, it is inevitable that oil prices will continue to rise if they remain at the current levels of $65 a barrel Brent/lower $60s a barrel WTI ..."
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Investors react positively to a wave of corporate earnings, boosting UK shares
British stocks rose Wednesday, as investors considered mixed corporate results. The main indexes are poised to end a volatile, but largely positive, month. They have almost recovered from the losses caused by U.S. Trade policies. The blue-chip FTSE 100 index was up 0.1% as of 1009 GMT and is on course for its 13th consecutive session with a positive result. The midcap index, which is primarily focused on domestic companies, advanced by 0.7% to reach its sixth consecutive session of gains. Despite recovering from the steep tariffs announced in early this month, FTSE 100 is still poised to report a monthly drop. The markets have stabilized recently on the optimism surrounding U.S. Trade Deals, especially with China. Details are still limited but U.S. commerce secretary Howard Lutnick mentioned a first foreign power deal. GSK rose 4.1% after reaffirming its outlook for the year 2025. The drugmaker said that it was "well-positioned" to minimize any impact from possible sector-specific tariffs. Genus, a company that develops animal protein genetics, jumped 28.3% to be the best performing midcap stock. The firm announced the U.S. FDA had approved the PRP (PRRS resistant pig) gene editing for use in U.S. food chains. The Healthcare Index gained 2%. FTSE 100 was dragged down by industrial metal miners. Glencore, a commodity trader and mining company, fell 6% following a 30% decline in its first-quarter production of copper. Anglo American and Antofagasta, two other miners, also dropped over 3% apiece. They were among the worst performers in the blue-chip index. Barclays booked a stronger-than-expected increase in first-quarter profit but its shares were down 1.6%, with the bank index shedding 2.8%. According to Nationwide, a mortgage lender, British house prices dropped 0.6% in April. This was their biggest monthly drop in more than 18 months. A property transaction discount had ended. Smith+Nephew, a medical products manufacturer, jumped 6.8% on the back of its forecasted sales and profit margins for the full year. (Reporting by Ragini Mathur in Bengaluru; Editing by Vijay Kishore)
Egypt includes an additional hour to rolling blackouts on Tuesday
Egypt stated it was extending its rolling power blackouts across the nation for an additional hour on Tuesday to permit preventative maintenance on its regional gas and power networks and because of increased consumption brought on by a heatwave.
Temperatures rose to nearly 40 degrees Celsius (104. Fahrenheit) in Cairo on Tuesday and were anticipated to climb up even. higher over the coming couple of days.
This requires increasing the load shedding duration for an. additional hour, today only, to maintain the operational. performance of the national electrical power transmission and gas. networks, a joint statement by the ministries of petroleum and. electrical energy stated.
Supplies of the gas that assists Egypt generate. electrical power have actually been diminishing at a time when an expanding. population has been rising electrical power demand. The. federal government has actually heavily subsidised power prices for several years.
The state-owned power sector began cutting power for an hour. a day last summer and increased this to up to two hours at this. start of this summer season.
The country has also lacked foreign currency to. facilitate gas imports over the previous 2 years.
Egypt has been attempting to decrease costs on aids considering that. signing an $8 billion financial support plan with the. International Monetary Fund in March.
The government raised costs on a wide variety of fuels in. March and quadrupled the price of subsidised bread on June 1.
(source: Reuters)