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Polish utility PGE Q1 profits jump on lower CO2 emissions costs
PGE, Poland's largest energy utility, reported on Tuesday a core profit of 4,33 billion zlotys (about $1.16 billion), up 71% from the previous year. This was primarily due lower CO2 emissions costs and regulatory revenue increases. The results are in line with preliminary estimates that were reported by the company in mid-May. Why it's important PGE, along with other Polish utilities is experiencing structural changes in the energy landscape of Poland as renewables slowly replace coal, which has long dominated. According to data from the Forum Energii think tank, coal's share of Poland's electricity generation fell to 57.1% by 2024. Renewable energy sources, however, reached a new record at 29,6%. CONTEXT The rise in the company's core profits was driven primarily by lower CO2 emissions costs and higher government-regulated payment for grid stabilization and capacity mechanisms. The result was also positively impacted by the improved results of electricity sales to customers, and increased revenue from heat sales. By the Numbers The net profit of PGE for the first three months rose by over 170%, to 2,42 billion zlotys. Sales revenue increased by around 2%, to 17.17 billion Zlotys. This compares with 16.84 billion Zlotys one year earlier. Cost of goods sold for the company was 13.34 billion Zlotys during the quarter. This is down 11% compared to 15.05 billion Zlotys at the beginning of 2024.
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Portugal wants EU to press France reluctantly on power connections
Portugal, following a major blackout on the Iberian Peninsula last month, said that the EU must enforce the common market rules in order to integrate the Iberian power grid with wider Europe. This will overcome France's unwillingness to add interconnections. Experts and officials say that the blackout in Spain, which began on April 28 and left Portugal's mainland without electricity, could have been avoided if both countries had interconnections for power supply, rather than relying solely on their own power stations. Last Wednesday, energy ministers from Spain and Portugal wrote to EU energy commissioner Dan Jorgensen to ask him to step up. The Portuguese Energy Minister Maria da Graca Carvalho said to reporters at an event near Lisbon, that France has a large amount of nuclear power and is not interested in importing renewable energy cheaper from Iberia. She added that the European Commission could "pressurize" France to conform with the rules on the EU electricity markets. "If Portugal does something that is deemed a barrier to internal market, then the Commission will not waste time sending us a notice with an alert. We expect France to be treated the same way," Carvalho stated. Iberia, with a share of only 3%, is behind the EU target that all countries should have 15% or their energy systems interconnected to broader European networks by 2030. The strengthening of an existing interconnector that connects France and Spain is expected to be finished this year. A new underwater powerline that spans the Bay of Biscay will be completed in 2028. Carvalho says that although RTE, the French grid operator, has looked into the feasibility of two more interconnections to Spain across the Pyrenees in the future, they will not be included in France's plan until 2035. This "worries her". (Reporting and editing by Gareth Jones.
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Think tank: EU sanctions have cost Kosovo 600 million euros in unpaid funds
According to a GAP Institute report, Kosovo has been denied more than 600 millions of euros in external funding for environmental protection projects and energy projects, among others, ever since the European Union implemented sanctions in 2023. Kosovo's Government disputes the amount, but a report by a local organization gives one of first independent assessments on the impact of sanctions on one of Europe’s poorest country for its role in inflaming ethnic tensions in the north of its Serb majority. The GAP Institute reported that "the measures... have had significant financial and development consequences, costing Kosovo approximately 613.4 millions euros in projects suspended or indefinitely deferred." The funds affected are related to various financial instruments which have contributed to Kosovo's growth since its independence from Serbia. According to the report, environment and energy are the most affected sectors, with more than 460 millions of euros stalled. This is a major blow to a country which desperately needs to reduce the reliance it has on coal-fired energy generation. In the first half of this year, at least 150 millions euros were identified as funds that had been stalled. The EU hasn't publicly stated how much money is being delayed. The Kosovo government disputes these figures. A spokesperson said that aside from the 7.1 million euro it claims to have lost due expiration of contracts, these funds are "neither lost nor at risk", because they will be resumed when sanctions are lifted. Kaja Kallas, the EU's chief of foreign policy, said that the bloc will begin lifting sanctions "gradually", on condition that tensions between Kosovo and the north are de-escalated. Senior diplomats told reporters that EU funded projects would receive technical assistance in the coming weeks, but there is no plan at this time to distribute funds. Some EU members do not recognise Kosovo as a country, making lifting sanctions difficult. The diplomat stated that "the gradual lifting is not very substantial" and that it was unlikely the EU could move forward in funding. Kosovo is aspiring to be a member of the EU. Albin Kurti, the Prime Minister, has played a role in stifling the process by raising tensions and closing Serb institutions in the north, as well as by banning the Serbian dinar inside its borders and by stifling trade. Reporting by Edward McAllister, Fatos Bytyci and Sophie Walker
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South African rand falls as gold prices weigh
The rand of South Africa fell against the dollar Tuesday as risk sentiment increased following Donald Trump's decision not to impose tariffs on Europe. At 1510 GMT the commodity-backed currency of the country traded at 17,8900 per dollar, down about 0.2% from its previous closing. The Top-40 index on the stock exchange was flat, with mining companies facing pressure due to the drop in gold prices of more than 1%. Gold Fields, AngloGold Ashanti, and Sibanye Stillwater are all South African mining companies that traded lower for most of the trading session on Tuesday. Shares of Harmony Gold fell even more after the company announced that it had agreed to purchase Mac Copper Ltd, an Australian miner, in a $1.03 billion deal. Investors in the United States will be focused on this week's central bank interest rate announcement. Economists surveyed by predict that the South African Reserve Bank will cut its main rate of interest by 25 basis points on Thursday, to 7.25%. Inflation in South Africa remained below the SARB target range of 3%-6% in April, while the local currency recovered from recent losses and now trades below 18 dollars per unit. Data released by the central bank earlier that day showed that South Africa's composite leading Business Cycle indicator increased 1.1% from month to month in March. The yield on South Africa's benchmark government bond for 2030 was down by 5 basis points to 8.84%. Reporting by Bhargavacharya and Sfundo parakozov, Editing by Bernadettebaum and Andrea Ricci
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US Judge extends the topping period for Citgo Parent's auction to June 2
According to a Tuesday filing, a U.S. Federal Judge has extended until at least June 2, the deadline for rival bidders to enter bids during a court-organized sale of shares of Citgo Petroleum's parent company. Citgo Petroleum is owned by Venezuela. Last month, Delaware Judge Leonard Stark accepted a $3.7billion offer from Contrarian Funds affiliate Red Tree Investments, as the opening bid for the auction of shares. The auction was intended to compensate 15 creditors who were affected by debt defaults and expropriations. Red Tree and other rival consortia were given until the 28th of May to submit their submissions Competing Last week, lawyers for Venezuela requested that parties take more time to review parallel lawsuits before other U.S. courts which could have an impact on the price or conditions of certain bids. According to a proposed new calendar by some creditors the final hearing of the auction would still take place in July, after a "special master" appointed by the court overseeing the process of sale recommends a winning bidder next month. Several Venezuelan creditors who were involved in the case of Delaware, which lasted eight years, have filed lawsuits to recover the same assets. Last week, a New York court dismissed arguments from one of the creditors groups. The Venezuelan lawyers requested the extension. They wrote: "This is an important development in the sales process." The Venezuela parties respectfully request an extension to the topping period in order to allow bidders or potential bidders to account for what the special master called a "cloud of uncertainty" that hung over bidding. In court motions, some creditors supported the extension. (Reporting and editing by Nick Zieminski, David Gregorio and Marianna Pararaga)
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Oklo, South Korea's KHNP enter into agreement to develop Aurora nuclear facility
Nuclear technology company Oklo announced on Tuesday that it had signed a Memorandum of Understanding (MOU) for the development of Oklo’s planned Aurora powerhouse with South Korea’s nuclear plant operator Korea Hydro & Nuclear Power. In morning trading, shares of Oklo rose 1.9% to $49.71. Oklo said that the MOU also outlines plans for collaboration on the development of advanced nuclear technology worldwide. The nuclear industry is in high demand because it's considered a cleaner fuel source and more reliable than solar or wind energy. The U.S. president Donald Trump signed Friday executive orders to jumpstart nuclear industry. These orders direct the independent nuclear regulatory agency of the United States to reduce regulations and expedite new licenses for power plants and reactors. Oklo announced that it will deploy its 75 Megawatt Electric (MWe), Aurora powerhouse. This is a neutron-fission reactor designed to provide clean, affordable energy for industries such as data centers. The facility is at the Idaho National Laboratory. The company expects to finish the licensing process later this year. Aurora's nuclear technology allows it to only need to be refueled every 10 years. This is in contrast to traditional reactors, where one-third is replaced every 1 to 2 year. It is also expected to cost less. According to the agreement, the Oklo, backed by Sam Altman, will work with the South Korean nuclear construction and operation company on the development and verification for the Aurora powerhouse. (Reporting and editing by Shasheesh Kuber in Bengaluru)
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Indian miner NMDC's profit quarterly falls due to lower prices
The Indian state-owned mining company NMDC reported a decline in its fourth-quarter profits on Tuesday, due to lower product prices. Iron ore mining company's quarterly profits before tax and exceptional items came to 23.51 billion rupees (275.56 millions dollars), a 3.5% drop from the previous year. The company's profit, including taxes, increased by 2% in the quarter January-March due to lower expenses for tax. NMDC's average iron ore price was 4,206 rupees. This is lower than the 4,299 rupees average a year ago, according to JM Financial Institutional Securities. According to commodities consultancy BigMint, the company announced a reduction in price back in January. JSW Steel, who primarily purchases iron ore through NMDC said earlier this month that a continued drop in iron-ore prices was expected in the first three months of the current fiscal year. NMDC’s fourth-quarter operating revenue rose 7%, to 69.53 Billion Rupees. This was mainly because of higher sales at its pellets division, which saw a near 13-fold rise in revenue. The company's iron ore revenue fell by nearly 2% in the third quarter. ($1 = 85,3180 Indian rupees). (Reporting and editing by Shreya Biwas in Bengaluru)
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The US Core Capital Goods Orders are Plummeting, a Sign of Weak Business Spending
The number of new orders for capital goods manufactured in the United States plummeted in April, amid the uncertainty surrounding the economy due to tariffs. This suggests that business spending on equipment has weakened since the beginning of the second quarter. Commerce Department's report on Tuesday showed that shipments of this product fell last month. Economists say that President Donald Trump's reversals on import duties are making it hard for businesses to plan. This is evident from the decline in business sentiment. Stephen Stanley, Santander U.S. Capital Markets' chief U.S. economics, said: "I predicted months ago that business investments would be the primary driver of a softer performance in this year as executives delay their capital projects until there is more clarity about policy." These data confirm that hypothesis for the first time. Census Bureau of the Commerce Department reported that non-defense capital goods, excluding aircraft orders, fell 1.3% in April after a 0.3% increase, which was upwardly revised, in March. The economists polled had predicted that these core capital goods orders would dip 0.1%, after an earlier reported 0.2% decline in March. Core capital goods shipments fell 0.1%, after rising 0.5% in March. Orders for nondefense capital goods fell 19.1%. These goods were shipped at a 3.5% increase after a 1.1% decline in March. The first quarter saw a surge in business equipment spending, mainly information processing equipment. This was the fastest growth in four-and-a half years. This helped limit the drag of an import flood on the gross domestic product. Trump has deferred the increase in import duties for most countries until July. This month, the White House announced an agreement with Beijing that would reduce tariffs on Chinese products to 30% for 90 days from 145%. TARIFFS WHIPLASH Trump escalated his trade war last week, proposing to impose a 50% duty on European Union products starting on June 1, and threatening Apple with a 25 percent duty on iPhones made outside of the United States. Trump backed down from his threat to the EU at the weekend, and restored a deadline of July 9. He views tariffs as an instrument to, amongst other things, revive the long-declining U.S. industry base. Economists say that this feat would be difficult. Bookings for communication equipment fell 2.6% last month while orders for computers and electronics products increased 1.0%. Orders for electrical equipment, appliances, and components fell by 0.2%. Orders for metal products and machinery rose 0.8%, while orders for machines fell 0.2%. Last month, orders for durable goods (items such as toasters and aircraft that are meant to last at least three years) dropped by 6.3% after an upwardly revised 7.6% increase in March. Prior to this, it was reported that orders for durable goods had risen 7.5% in march. Last month, they were weighed down by the decline in commercial aircraft orders as well as the diminishing boost from tariff-related forward-running. Boeing announced on its website it received eight orders for aircraft in April. This is down from 192 in the month of March. Orders for motor vehicle and parts declined 2.9%. After a surge of 23.5% in march, the total number of transportation orders fell 17.1%. Christopher Rupkey is the chief economist of FWDBONDS. He said that many of the inputs used in the manufacturing of durable goods are manufactured in other countries and will have to be imported, at what appears to be a higher price, when tariffs are taken into account. "It will be very difficult to revive American manufacturing if factories are unable to get the parts that they need at a reasonable price and in a timely fashion."
The key facilities of Iran's nuclear program
Donald Trump, the U.S. president, said that this week if Iran didn't reach a deal with America over its nuclear program "there would be bombing", adding Israel's threat to attack Iran nuclear facilities.
Here are some of Iran’s most important nuclear facilities.
Where are Iran's nuclear facilities?
The Iranian nuclear programme is spread out over many different locations. While Israel's airstrikes have been a threat for decades, some sites are underground.
IRAN HAS A NUCLEAR WAR PROGRAM?
The United States, as well as the U.N.'s nuclear watchdog, believe that Iran had a secret and coordinated nuclear weapons program which it stopped in 2003. The Islamic Republic has denied ever possessing or planning one.
Iran agreed to limit its nuclear activities as part of a 2015 agreement with world powers. In exchange, the sanctions imposed by international governments would be lifted. The pact collapsed after Donald Trump, then president of the United States, pulled out in 2018. Iran began to abandon the restrictions within the year.
IS IRAN INCREASING ITS URANIUM ENRICHMENT?
Yes. Since the deal fell apart, Iran has expanded its uranium-enrichment programme. The time it takes to reach weapons-grade uranium to build a nuclear weapon is now days or a little over a week instead of a year as was the case under the 2015 agreement.
It would take more time to make a bomb using that material. The exact time frame is unclear and subject to debate. Iran enriches uranium up to 60% fissile purity, which is close to 90% weapons-grade. It has two sites where it does this. In theory, Iran could make six bombs if it enriched the material further.
NATANZ
Complex at the centre of Iran's nuclear enrichment program, located on a plain bordering mountains south of Tehran in the Shi'ite holy city of Qom. Natanz is home to two enrichment facilities: the massive, underground Fuel Enrichment plant (FEP) as well as the above-ground Pilot Fuel Enrichment Plan (PFEP).
In 2002, an exiled Iranian group revealed that Iran was building secretly Natanz. This sparked a diplomatic standoff with the West over Iran's nuclear intentions. The standoff continues to this day.
The FEP is a facility designed for commercial enrichment, with 50,000 centrifuges. There are approximately 16,000 centrifuges installed, of which 13,000 are operational, and they refine uranium up to 5% purity.
The FEP is described by diplomats who are familiar with Natanz as being three floors underground. It has been debated for years about the damage that Israeli airstrikes can do.
Other means of damage to the centrifuges have been used at FEP, including an explosion in April 2021 and a power cut that Iran claimed was an Israeli attack.
The PFEP above ground houses only hundreds centrifuges, but Iran enriches up to 60% purity here.
FORDOW
Fordow, on the other side of Qom is a site for enrichment dug into the mountain. It's probably better protected against potential bombardment as the FEP.
Iran was not allowed to enrich at Fordow under the 2015 agreement with major powers. The centrifuges are mainly advanced IR-6 machines. Up to 350 of these can enrich up to 60%.
In 2009, the United States announced that Iran has been building Fordow secretly for years without informing the IAEA. Then, U.S. president Barack Obama stated: "The size of the facility and its configuration are inconsistent with a peace programme."
ISFAHAN
Iran's second-largest city, Isfahan has a major nuclear technology center on its outskirts.
The facility includes the Fuel Plate Fabrication Plant and the Uranium Conversion Facility (UCF), which can convert uranium to uranium hexafluoride, which is then fed into centrifuges.
Diplomats claim that Iran stores uranium enriched at Isfahan.
There is equipment at Isfahan to make uranium metal, a process that is particularly proliferation-sensitive since it can be used to devise the core of a nuclear bomb.
Isfahan will be a new location for 2022, according to the IAEA. It has machines that can make centrifuge components.
KHONDAB
Iran has a heavy-water reactor that is partially constructed. It was originally named Arak, and it's now called Khondab. Heavy-water reactors are a risk for nuclear proliferation because they produce plutonium easily, which can be used, just like enriched Uranium, to create the core of atom bombs.
The 2015 agreement saw construction halted and the core of the reactor removed, then filled with concrete, rendering it useless. The reactor would be redesigned to "minimize the production of Plutonium and not produce weapon-grade Plutonium during normal operation". Iran informed the IAEA it planned to begin operating the reactor by 2026.
TEHRAN RESERVE CENTRE
The Iranian nuclear research facilities at Tehran include a reactor for research.
BUSHEHR
The only nuclear power plant in Iran, located on the Gulf Coast, uses Russian fuel, which Russia takes back after it has been used, reducing proliferation risks.
(source: Reuters)