Latest News
-
India's BHEL reports wider quarterly loss due to weaker power demand and higher expenses
Bharat Heavy Electricals Ltd. (BHEL), a state-owned company in India, reported a larger first-quarter loss Wednesday. The decline was attributed to a lower demand for the products it produces. The net loss of the manufacturer more than doubled from 2.13 billion to 4.55 billion (52 million dollars) for the quarter ending June 30. India's electricity demand dropped 1.8% on an annual basis to 481 billion units between April and June as the early monsoons hindered construction activities and reduced air-conditioning requirements. This led to a decrease in the number of project orders for electrical equipment. BHEL's revenues from this segment, which is its largest, dropped 5.6% to 38.99 Billion Rupees. The company's revenue from operations, which represents 55% of India’s total installed capacity for power generation, was almost flat at 54.87 trillion rupees during the third quarter. BHEL expenses rose by nearly 7%, to 62.80 trillion rupees. This was mainly due to a 10.8% increase in the price of raw materials and service. Tata Power, BHEL's competitor, missed its quarterly profit forecasts due to weak electricity demand. The shares of the company closed down 3.4%, ahead of results. ($1 = 87.6400 Indian rupees) (Reporting by Anuran Sadhu in Bengaluru; Editing by Savio D'Souza)
-
What alternatives could India consider to Russian oil?
India, which imports more than one-third of its oil from Russia, will likely turn to other suppliers in the Middle East, Africa, and elsewhere if forced to reduce Russian imports by possible U.S. sanctions. Why is India importing Russian oil? India began buying Russian oil at a discounted price after the West imposed sanctions against Moscow for its invasion of Ukraine 2022. Russia is now India's top supplier, with 35% of India’s total supplies. This is up from a little over 2% just before the Ukraine war. The global crude price surged to $137 a barrel in response to fears of a shortage following the Western-led sanctions, before stabilizing. Discounted Russian crude has lowered the costs of Indian refiners. India imports over 85% of the oil it needs. How much Russian oil does India buy? Trade data revealed that the world's third largest oil importer and user received approximately 1.75 million barrels of Russian oil per day in the first six months of this year. This is up 1% compared to a year earlier. Private refiners Nayara Energy, Reliance Industries Ltd, and Reliance Industries Ltd, operators of the largest refinery complex in the world, have long-term contracts with Rosneft. Why does Trump want India to cut russian oil imports? Donald Trump, the U.S. president, has announced that he will raise the tariffs on goods imported to India from 25% to a substantial amount in light of New Delhi's continuing purchases of Russian crude oil. He warned that countries buying Russian exports may face sanctions if Russia does not reach a deal with Ukraine. New Delhi has refused to bow down, citing its close economic ties with Russia as well as its long-standing relations. The country's refiners, however, have stopped buying Russian oil. What are India's options if it can't buy Russian oil? India also buys oil in the United Arab Emirates and Iraq, besides Russia. Indian refiners buy most of their oil from Middle Eastern producers through annual agreements that allow them to request additional supplies every month. Since Trump's warning about sanctions, refiners bought crude oil from the United States as well as the Middle East, West Africa and Azerbaijan. Hardeep Singh Puri, the oil minister, says that India's supply sources have been diversified to around 40 countries. He also adds that Guyana, Brazil, and Canada are supplying more products on the market.
-
NRG Energy exceeds its quarterly profit expectations, signs a 295 MW power deal for data centers
NRG Energy's second-quarter profits surpassed Wall Street expectations on Wednesday. The utility benefited from a surge in power demand, and increased retail margins at its Texas unit. The company has also signed a long-term contract to supply electricity to two data centers built on NRG's Texas sites. This deal could be expanded to approximately 1 gigawatt if additional sites are added. NRG will benefit from the surge in electricity demand in Texas. This is due in part to the boom of data centers that require large, reliable power supplies in order to support cloud computing and artificial intelligence. In April, the U.S. Energy Information Administration said that it expected power consumption to hit record levels in 2025 and 26. NRG announced that as part of the previously announced capital allocation plan for 2025, it will return approximately $345 million to common stock holders and $1.3 billion in dividends to shareholders. The Texas unit of the company posted a core adjusted profit of $512 millions, up from last year's $452million. NRG's operating costs increased to $6.74 Billion in the quarter ending June 30 from $5.25 Billion a year earlier. According to data compiled and analyzed by LSEG, on an adjusted basis the company reported a profit per share of $1.73, exceeding the average analyst forecast of $1.56. NRG has reaffirmed that its adjusted profit forecast for the current year is between $6.75 and $7.75 per share. (Reporting and editing by Maju Samuel in Bengaluru, Pranav Mathur from Bengaluru)
-
Jindal Stainless announces that the government's antidumping investigation has been delayed due to uncertainty over US tariffs
India's Jindal Steel said that the launch by the government of an antidumping investigation into cheap stainless imports was delayed because of trade uncertainty resulting from new U.S. duties on Indian goods. Abhyuday Jindal, Managing Director of the company, said that the Indian Stainless Steel Development Association – a domestic trade organization of which it is a part – filed a complaint with the Federal Trade Ministry's Directorate General of Trade Remedies in late July. India will be subject to a 25% duty on all shipments it makes to the U.S. starting Friday. President Donald Trump warned that additional charges "very substantial" would be imposed because New Delhi imports Russian oil. Jindal stated that the DGTR would likely need two to three months more to begin the investigation. Indian mills are struggling with the increased imports of stainless steel cheaper from countries such as China and Vietnam. The demand for finished products - used by the automotive industry, home appliance manufacturers, and industrial sectors - was strong during the quarter of April-June, thanks to strong manufacturing and government spending. Jindal Stainless announced an 11% increase in its first-quarter profits to 7,15 billion rupees ($82 million) earlier that day. The country's total revenue increased 8.2%, to 102.07 trillion rupees.
-
Landslides, blocked roads hamper Indian flood rescue effort
Rescuers fought heavy rains and blocked roads on Wednesday in India's Himalayan State of Uttarakhand, after four people died in sudden flooding and land slides the day before. Dozens were left missing and a village was submerged in sludge. Media and authorities reported that teams of army and disaster forces used heavy machinery in their struggle to reach Dharali village, where homes, roads and mud were submerged under a flood. The Indian Army reported that 70 people were rescued on Wednesday. State Chief Minister Pushkar Dhami, however, told news agency ANI that 130 people had been rescued in the previous evening. Television images showed that rescuers crossed a violently gushing stream using a zipline, while others shifted rocks and mud by hand to search for people buried beneath the sludge. The number of missing people is unknown. "The relief efforts continued throughout the night," said Colonel Harshavardhan, the rescue leader. We are trying to save people and get them to safety. Dharali is a small hamlet in Uttarkashi district, with a population of 200, located more than 1,150 meters (3,775 feet) above sea-level. It's a popular tourist destination and a pit stop for Hindu pilgrims en route to Gangotri. WALL OF WATER Media reported that residents of nearby villages heard an audible rumble Tuesday afternoon, before a wall crashing of water smashed into Dharali. Sunita Dev, a resident of Mukha village, told Hindustan Times that she heard a piercing noise like boulders grinding. "And then, we saw the Kheerganga river transform into a monstrous monster." District administrator Prashant Anrya said that the roads to the area were blocked or crumbled, making it difficult to bring rescue teams in from other parts of the state. Satellite phones were used by rescue workers after the floods to communicate with each other because they had been unable to connect to mobile towers and electricity. NDTV reported that 11 personnel are missing from a camp of the army in Harsil. It is located 4 km (2 miles) away from Dharali and was also affected by flash flooding. The central command of the army announced on X that more troops are being mobilised, along with tracker dogs and drones. They will also be using earthmoving equipment. Uttarakhand has a high risk of flooding and landslides. Some experts attribute this to climate change. The absence of heavy rainfall in the area Tuesday prompted weather experts and geologists to tell the media that the cause needed to be investigated. They also suspected it could be an outburst glacial lake flood. (Written by Shilpa jamkhandikar, edited by YPrajesh and Clarence Fernandez).
-
Glencore's long-term strategy could include selling Bunge stake
Glencore, a miner and trader, said that as part of its long-term plan it could sell its 16.4% stake at some point in the future in Bunge Global. Glencore acquired the 16.4% after Bunge completed a long-delayed merger with Glencore-backed grain-handler Viterra in July. This was two years after the announcement of the $34 billion mega deal. Gary Nagle, Glencore's CEO, told the media on Wednesday that "the agriculture business does not necessarily fit with our business model." This was after Glencore released its financial results for the first half. Glencore probably wouldn't want to hold a 16.4% stake in Bunge in the long run. He said that Glencore was not in a hurry to sell its stake and that if they ever did, "we would do so in complete collaboration and in conjunction with Bunge's board and management". Analysts say that the merger with Viterra has enhanced Bunge’s grain processing and export businesses in the United States, and it has expanded Bunge’s physical grain storage and grain handling footprints in Canada and Australia – two major wheat suppliers. Glencore's goal is to maximize the value of the investment. "We would exit that at a future date very carefully and smartly to preserve that value," said the CEO. Glencore stated on July 2, that the 16.4% of Bunge that it owned had a value of $2.6billion at the time the deal was closed. The miner viewed these shares as surplus capital. Reporting by Polina Devitt. Mark Potter edited the article.
-
Sources say that Russia's Lukoil has set up a new oil-trading arm in Dubai.
Four sources familiar with this matter have confirmed that Litasco Middle East DMCC (LME), a trading division of Russia's Lukoil is moving its business to a newly created entity based in Dubai, as Western powers tighten their sanctions on Russian energy exports. Last month, Britain included LME on its list of sanctions against Russia. The European Union did not sanction LME but listed Litasco’s Dubai-based shipping company, Eiger Shipping DMCC in its 18th package of sanctions against Russia. Alghaf Marine DMCC was the first entity to be registered in Dubai for shipping. It was incorporated on December 31st, 2024. According to a senior source familiar with the transition, the entire trading business will be transferred soon to the new company. Alghaf was already active in recent shipments including fuel loaded into Russia, according to a shipping source. Lukoil refused to comment. Litasco Middle East DMCC declined to comment. According to the Dubai DMCC Company Register, Alghaf Marine DMCC was granted its oil trading license on 15 May. The license allows trading of refined oil products, lubricants, greases, crude oil, oilfield and gas equipment, and spare parts. Reporting by Julia Payne, Brussels; and Aizhu Chan, Singapore. Mark Potter edited the article.
-
Copper prices lifted by hopes of rate cuts and Chilean supply concerns
The copper price edged up on Wednesday due to the expectation of rate cuts in the United States and ongoing supply concerns after a mine was suspended in Chile, a top copper producer. The price of three-month copper at the London Metal Exchange rose 0.4% to $9,677 a metric tonne by 0930 GMT. It had fallen 0.6% the previous session. Metals are gaining this morning as the dollar weakens and Fed rate cut bets increase, according to EwaManthey, commodities analyst at ING. After the weak U.S. employment data released on Friday, traders have priced in an 86.5% probability of a Fed rate reduction in September. By year's end, traders expect a 56 basis point easing. Investors also keep an eye on developments in Chile, which is the largest copper producer in the world, following the collapse of its El Teniente mine, where six people were killed due to a recent tremor. Codelco, a miner that produced 356,000 tonnes of copper in the past year, must submit four reports to restart underground operations. "It's been a mixed bag." The copper price has held up well this week. The Codelco story was a micro-story that supported the prices," said Yuting Du, research analyst at Marex. Du said that some investors also bet on lower prices by using puts in the options market. The Shanghai Futures Exchange's most traded copper contract fell 0.3%, to 78.280 yuan (10,889.01 dollars) per ton. The market also benefited from the hope that the U.S. and China trade war would ease after President Donald Trump announced they were close to reaching a deal with China, which is the world's largest metals consumer. Other metals include LME aluminium, which rose by 0.6%, to $2.577 per ton. Zinc also rose, up 0.5%, to $2.773, while nickel grew 0.6%, to $15.120. Lead gained 1%, to $1.993.50, and tin increased 0.7%, to $33,485. Click or to see the top news stories about metals, and other topics. ($1 = 7.1889 Chinese Yuan) (Reporting is by Eric Onstad. Editing by Ronojoy Mazumdar).
Colombian deforestation increases by 43%, fueled by land grabs and fires
According to the data released by the Colombian Environment Ministry on Thursday, deforestation increased in Colombia last year. The destruction of 113,608 ha (1,136 sq km) was mainly in the Amazon region. This is a 43% increase over the previous year.
This is a dramatic reversal from 2023, when the forest area destroyed fell by 36% compared to the previous year. It now stands at 79.256 hectares (793 sq km), its lowest level for 23 years.
Lena Estrada, Environment Minister in Bogota, said that "deforestation continues." "The Amazon is the most affected area, which is a fragile region."
Estrada stated that the increase in 2024 is partly due to forest fires sparked by a drought fueled by climate changes.
She said that the main drivers were land grabs for pastures, expansion of livestock farming and illegal road construction. Growing illicit crops like coca leaves was also a major factor.
More than 65%, or 75,000 hectares, of the total losses were in the Amazon region.
Colombia has the highest biodiversity in the entire world. It is home to thousands plant and animal species. However, it is losing large areas of forest every year due to deforestation.
More than half of the South American nation is covered by forest. Reporting by Nelson Bocanegra, Luis Jaime Acosta and Natalia Siniawski. Editing by Brendan O'Boyle, Sarah Morland and Brendan O'Boyle.
(source: Reuters)