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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."
Document shows that India has advanced hydro-projects in Kashmir after terminating the pact with Pakistan
According to a government and industry source, India has accelerated the start of four hydropower projects under construction in the Kashmir area by several months. This is after it suspended a water-sharing agreement with Pakistan which had slowed down progress.
The Indian government is using the unilateral suspension of Indus Waters treaty 1960, which it unilaterally imposed following the deadly attack on Kashmir last month, to try and take advantage of this.
India said that two of the "terrorists", who killed 26 men in a popular tourist spot in Kashmir on the 22nd of April, were from Pakistan. It has also taken a number of diplomatic and financial steps against Islamabad at a time when relations between the nuclear-armed neighbors are deteriorating.
Islamabad denied involvement in the attack and threatened legal action for the suspension. It also said that any attempt to divert or stop the flow of water to Pakistan would be viewed as an act war. Pakistan relies on the Indus System for 80% its farms and for most of its output in hydroelectricity.
Since nearly two weeks, the armies have been exchanging small arms fire along the border. Pakistan claims that India is about to launch a military attack.
New Delhi, despite Pakistan's threats, has taken steps to reduce water supplies to Pakistan.
The document was an undated list compiled by the Power Ministry and reviewed by the Prime Minister Narendra Modi’s government.
Pakal Dul (1 000 MW), Kiru (620 MW), Kwar (560 MW) et Ratle (850MW) are the four projects. The four projects are located on the Chenab River. Although its waters are intended for Pakistan, India has been allowed to build hydroelectric projects that use run-of water without significant storage.
All the projects are being built by NHPC (India's largest hydropower company), a state-owned corporation. The document states that they are scheduled to begin between June 2026 - August 2028.
The document states that various agencies, such as those focusing on law enforcement and labor supply, were asked to speed up work.
NHPC, the Indian Ministries of Power, Water Resources and Foreign Affairs did not respond immediately to requests for comments.
Indus River Authority officials in Pakistan held a Monday meeting and "noted unanimously with concern that a sudden reduction in River Chenab flows at Marala, (the headworks which regulates flow), due to a short supply from India, would result in further shortages" of summer crops.
The authority announced in a late-Monday statement that it would use downstream reservoirs "in light of the crisis created by Indian shortages in the Chenab River".
"PLANS FOR MORE"
Last month, India's Water Minister vowed to "ensure that no drop of water from the Indus River reaches Pakistan".
According to a source in the Indian industry, there have been several meetings between officials of various government and private agencies and the power ministry over the last week regarding projects in Jammu & Kashmir.
The source declined to identify herself because the matter was sensitive. "In general, government orders to speed up existing projects such as this means that it wants to plan new ones," she said.
India is requesting that seven projects, with a combined power of 7 gigawatts and a cost of 400 billion rupees ($4.73 billion), be expedited. Could not identify all of the projects.
The Permanent Court of Arbitration at the Hague has already heard a dispute between Pakistan and India over Ratle. The dispute concerns the small pondage or water storage area as well as the turbine design.
New Delhi was required by the water treaty to provide Islamabad with extensive details about projects on three Indus Rivers that were meant for Pakistan, the Indus, the Chenab, and the Jhelum. Modi's Government has sought a modification to the water treaty, citing India's growing population and the need for cleaner forms of power like hydropower.
Officials and experts from both countries had stated that India could not stop the flow of water immediately because the treaty only allowed them to build plants without the need for large storage dams. However, a Pakistani official claimed the Chenab River had already seen a drastic drop in flows.
Muhammad Khalid Idrees Rana told Bloomberg News that the flow of water has dropped by 90% since Sunday.
Sources at Pakistan's Indus Authority said that the Chenab flow has been wildly fluctuating since Sunday. On Sunday, water was flowing at Marala Headworks at 31,000 cusecs. It then dropped to 3,100 on Monday and is now up to 25,000.
Source: "The changes in water supply are due to India's (some hydro) projects," said the source. They can stop the water, then dump it. These variations are not large enough to cause significant damage, but they have an impact on the canals.
(source: Reuters)