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Outokumpu Finland reports Q4 core losses in a weak stainless steel market
Outokumpu, Finland, reported on Thursday a small loss in its core business for the fourth quarter. The company had previously warned of a weak stainless-steel market and high import pressure. It also predicted that steel prices will remain low in the first quarter 2025. The adjusted loss of the stainless steel manufacturer before interest, tax, depreciation, and amortisation was $3 million in October-December, compared to a profit 72 million euros one year earlier. A consensus provided by the company showed that analysts had predicted a loss in average of 1 million Euros. Outokumpu CEO Kati Ter Horst stated in the earnings report that "the stainless steel demand in Europe is historically low." European steelmakers are struggling to make profits due to a weak demand, rising costs and cheap imports from Asian competitors. Stainless steel deliveries by the company fell 8% in the previous quarter and 6% compared to the same period a year ago. Outokumpu stated that they expect to see an increase of 10% to 20% from the third quarter to the first three months in 2024. The group proposed that a dividend be paid of 0.26 euros per share in 2024. $1 = 0.9585 euro (Reporting and editing by Milla Nissi in Gdansk)
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Adani, the Indian company, has announced its withdrawal from wind energy projects in Sri Lanka
According to a letter the company sent to a Sri Lankan agency, India's Adani Green Energy has announced that it will pull out of two proposed wind energy projects in Sri Lanka. Sri Lankan officials announced last month that they have begun talks with Adani Group in order to reduce the cost of electricity from projects costing an estimated $1 billion. The company informed the Chairman of Sri Lanka’s Board of Investment that a new Cabinet-appointed negotiations committee would be formed, as well as a Project Committee, to renegotiate a project proposal. A copy of the letter was provided to us. The letter dated February 12 stated that "this aspect was discussed at our Board and it was decided to respect the sovereignty rights of Sri Lanka as well as its choices while withdrawing from said project." Sri Lanka's Board of Investment refused to comment, while the secretary of the Ministry of Power could not be immediately reached. Adani didn't respond to a comment request immediately. Sri Lanka began reviewing the Adani Group’s local projects in December after U.S. officials accused billionaire Gautam Adani, along with other Adani Group executives, of participating in a scheme that involved paying bribes for Indian power supply contracts. Adani denies the allegations. Adani Green had agreed to build two wind-power projects in Mannar and Pooneryn villages, located in the north of Sri Lanka's island nation. Adani Group also has a $700-million terminal project in Sri Lanka's biggest port, Colombo. Sri Lanka is trying to accelerate renewable energy projects in order to offset the rising costs of imported fuel. Reporting by Uditha Jayasinghe; additional reporting in Bengaluru by Hritam Mukerjee; writing by Sudipto Ganuly; editing by YPrajesh
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Australia's 50 wealthiest now control $153 billion as Rinehart again tops the list
Forbes reported on Thursday that the combined wealth of Australia’s 50 richest individuals has increased by nearly 10%, to A$243.92 billion ($152.92 Billion), in the last 12 months. Mining magnate Gina Rinehart topped the list once again. Forbes reported that technology executives benefited from the continued growth of the sector, whereas mining fortunes have been bumpier over the past year due to rising costs and falling commodity prices. Rinehart's wealth, which is controlled by Hancock Prospecting and amounts to A$29.4 billion, fell 4% but she retained her title of the richest person in Australia. In the last year, she purchased the energy assets of Mineral Resources. The company's founder Chris Ellison was dropped from Forbes 2025 list after a decade-long scandal involving tax evasion. Rinehart is lobbying Australia’s center-left Labor Government and its conservative Coalition to adopt industrial policies and resource policies modeled after U.S. president Donald Trump, in preparation for a May national election. She was also pictured at Trump’s victory party. Harry Triguboff, a property tycoon who has risen to A$18.8billion in net worth after a 5-year absence, reclaimed second place. Forbes reported that the Meriton Group, owned by Triguboff, was able to increase its residential build-to rent portfolio in Australia with several new constructions over the last year due to a strong rental housing market. Atlassian cofounders Mike CannonBrookes (18,3 billion dollars) and Scott Farquhar (17,9 billion dollars) both saw their shares soar by over A$4 billion. Andrew Forrest was ranked fifth after Fortescue Metals Group stock fell by more than one-third, reducing his wealth from A$5.4 billion (now A$16.1billion) to A$5.4billion. (1 Australian dollar = 1.5891 dollars) (Reporting and editing by Rashmi aich; Christine Chen)
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Maguire: Recovering wind power may cool Europe's hot gas market
The wind-powered electricity produced in Europe in January 2024 was down by more than 7%, denying regional power producers a vital source of clean energy just as the demand for heating reached its peak. This wind shortage triggered an increase in Europe's natural gas-based electricity generation to its highest level in three years. It also supported a rally which has driven benchmark regional gas prices up by more than 15% this year. Models of wind forecasts now predict a recovery in regional production. This should lift overall electricity generation in Europe in the coming weeks and could set the stage for lower gas prices and usage. WINDS WEAK According to the energy think tank Ember the total wind-powered electricity produced in Europe in January was just under 67 terawatts hours (TWh). This is a drop of roughly 7% from the same period in 2024, and also the lowest January total in the last 2022. Wind farms are Europe's fifth largest source of electricity (after coal, gas, and nuclear). The drop in production compared to expectations has forced regional power companies to replace the lost supply by output from alternative sources. Gas-fired electricity production jumped nearly 6 percent in January compared to a year ago, the highest figure for a month since January 20,22, right before Russia invaded Ukraine and slowed regional gas flow. The increased gas consumption sparked a reduction in regional gas stocks, which in turn has fueled the bullish sentiment on the gas market so far this season. REBOUND The latest wind forecast models from LSEG predict an increase in wind power generation in major markets in the next few weeks. This should alleviate the tight energy supply situation in Europe. Germany, Europe's biggest wind power producer, is expected to maintain its wind production below the long term average until February 20. Then, it will rebound and be mainly above this long-term standard through the end March. The United Kingdom is Europe's largest gas-fired generator and second-largest wind power producer. If the wind power generation increases as predicted, power producers from both countries could reduce their gas-fired power production levels while maintaining power output. As local wind production increases, both countries could also reduce their power imports. This would free up energy supplies in Europe. This could lead to a drop in the regional benchmark TTF prices. These have reached their highest level since early 2023, and are causing new concerns about energy inflation in Europe. These are the opinions of a market analyst at.
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Oil drops as a potential Ukraine peace agreement may ease supply disruptions
The oil prices dropped on Thursday as a result of expectations that a possible peace agreement between Ukraine and Russia will end the sanctions that have disrupted supplies, while crude stocks in the United States grew. Brent futures fell 68 cents or 0.9% to $74.50 per barrel at 0515 GMT. U.S. West Texas Intermediate crude (WTI), however, dropped 65 cents or 0.9% to $70.72. Brent and WTI both fell by more than 2% after U.S. president Donald Trump claimed that Russian President Vladimir Putin, and Ukrainian President Volodymyr Zelenskiy had expressed a wish for peace to him in separate telephone calls. Trump also ordered top U.S. government officials to start talks about ending the conflict in Ukraine. The price of oil has risen because Russia is the third largest oil producer in the world. Sanctions imposed by the United States on Russia's crude exports following its invasion of Ukraine almost three years ago are also contributing to this. In a Thursday note, ANZ analysts stated that oil prices had eased following the news of potential peace talks due to "optimism" about the risks to crude supply easing. They pointed to the U.S. The sanctions are reducing Russia's production. They said that signs of a tightening in supply had pushed up the price of oil in recent weeks. The US sanctions against Russian oil companies, and their vessels are believed to have worsened the situation. The market was also affected by the increase in crude oil stocks in the United States. This is the largest crude oil consumer in the world. The Energy Information Administration (EIA), which released data on Wednesday, showed that U.S. crude oil stocks increased more than expected in the past week. The EIA reported that crude inventories increased by 4.1 millions barrels, to 427.9million barrels for the week ending February 7. This was higher than the analysts' expectation of a 3-million barrel increase in a survey. "This recent decline in crude oil futures is the result of a period where there were consecutive stock builds," said Darren Lim a commodities analyst at Phillip Nova. The price of crude oil could be further impacted by geopolitical developments such as the end of the conflict in Ukraine. Trump's threat to impose additional tariffs on U.S. trading partners also pushed up prices because of fears that this could reduce economic growth, and therefore oil consumption. Trump announced that he would begin imposing reciprocal tariffs on Wednesday evening against every country that levies duties on U.S. imported goods. This move has heightened fears of an expanding global trade war, and could accelerate inflation in the United States. (Reporting from Georgina McCartney, in Houston; and Emily Chow, in Singapore; editing by Christian Schmollinger & Clarence Fernandez).
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Asia replaces Russian crude oil quickly: Russell
Asia's crude markets are quickly adjusting to the new sanctions imposed against Russia, grabbing cargoes as they come and looking for alternatives to deliver in the coming months. According to LSEG Oil Research, the top oil-importing continent Asia is expected to receive approximately 3.23 million barrels of Russian crude per day in February. India and China both bought less, but this is a decrease of 7.4% compared to January's 3,49 million bpd. In Asia, there are only two major buyers of Russian crude oil by sea, namely India and China. Myanmar does also take a small amount. LSEG expects India's imports to Russian oil to reach a record high in three months, at least 1,71 million bpd. This figure may increase by the end February as more cargoes will be assessed. After Western sanctions deprived Europe of its customers, the South Asian nation has become the largest buyer of Russian crude. India was allowed to purchase Russian oil at discounted prices as the United States, and other Western countries, tried to keep Russian crude on the global market. However sanctions were imposed after the February 2022 invasion by Ukraine to cut off the revenue flowing to Moscow. Last month, former president Joe Biden imposed restrictions on Russia's shadow tanker fleet in order to prevent the vessels from delivering crude oil. The Indian refiners were scrambling to purchase as much Russian crude before the new measures took effect, resulting in an increase in arrivals in February before a possible decline in March. Chinese refiners have cut back more quickly on Russian crude. Imports of seaborne crude in February are expected to be around 500,000 barrels per day, down from an average of 1.05 million barrels per day over the previous three months. According to LSEG's estimates, China's crude imports are expected to total 10.35 million bpd for February, which is roughly the same as January's 10,10 million bpd but lower than 11.16 million bpd from February 2024. China has replaced Russian crude oil with cargoes of other suppliers. So far, it appears to have mostly turned to Angola or Brazil. Switching suppliers is a good way to save money. The imports of Angolan crude oil in Asia are expected to jump to 1.13m bpd by February, up from 670,000 bpd last month. Brazil's exports are also set to increase to 1.05m bpd. China's decision, as part of its response to the new president Donald Trump's 10% tariff on all Chinese imports, to levy 10% on crude oil imports from the United States has made the situation even more complicated. It will take several more months before the tariffs on U.S. crude oil are applied to actual imports. This is because there are many delays between when cargoes arrive and when they're delivered. Kpler, a commodity analyst firm, estimates that China's imports from the U.S. of crude oil will increase significantly in March and April. Arrivals for March are currently estimated at 339,000 barrels per day and those for April to be 461,000. These cargoes have already been placed on the water, or arranged. China's imports of crude oil from the United States are likely to fall in May, but India could pick up the slack. These are the views of the columnist, an author for.
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Vantage to Explore Drilling Opportunities with Dorado Drillship
Offshore drilling contractor Vantage Drilling has entered into a marketing agreement with Eldorado Drilling for the seventh generation ultra-deepwater drillship Dorado.Vantage Drilling will market the Dorado drillship for drilling opportunities in various locations in Africa, the Mediterranean, Asia and Australasia.The Dorado is one of the last delivered seventh generation drillships - an advanced-capability drillship designed to operate in water depths of up to 12,000 feet.“We are delighted to have entered into this agreement with Eldorado Drilling and we look forward to successfully placing the rig in operation.“This new agreement further demonstrates the rig owners’ confidence in Vantage as a most reliable and trusted partner to market and operate their assets,” said Ihab Toma, CEO of Vantage Drilling.
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Sources say that India's Tata Steel is likely to return to the bond market following a near one-year absence.
Two sources with knowledge of the matter confirmed on Thursday that India's Tata steel is set to return to the corporate bond markets after an absence of almost a year. One source said that the company was already in discussions with investors and merchant bankers. They were offering different tenors and would finalise a few of them based on the levels they receive. Tata Steel will raise approximately 30 billion rupees (about $345,6 million) from this bond issue. The issue is expected to be completed before the end this month. According to the source, the company is flexible with regard to maturity and is currently in discussions for bonds of three, five, seven or even ten years. The sources have both requested anonymity because they are not authorized to speak with media. Tata Steel didn't immediately respond to an email seeking comment. India Ratings recently upgraded the bonds issued by the steel company from AA+ to AAA, the highest rating. India Ratings stated in a February 11 note that "the ratings factor in strategic linkages between TSL, its sponsor Tata Sons Private Limited, and the strong financial flexible of Tata Sons." Ratings agency also noted that the upgrade reflects the likely reduction of losses in Tata Steel U.K.'s operations over the next 2 financial years, and the eventual profitability. The company has bonds outstanding worth more than 128,70 billion rupees. Of this, 6,70 billion rupees is due for maturity next month. Tata Steel's last bond sale was in March 2024 when it raised 27 billion rupies through bonds with a maturity of three years and a coupon rate of 7.79%.
Ford CEO meets with legislators after raising concerns over tariffs
Jim Farley, the CEO of Ford Motor Company, met with U.S. legislators on Wednesday. He had expressed concerns earlier this week that tariffs of 25% on Mexico and Canada could "blow a gap" in the U.S. automotive industry.
Farley met Senators Roger Marshall and Elissa slotkin, Deb Fisher and many House of Representatives members after warning that tariffs imposed by President Donald Trump could be devastating for rival automakers and would benefit them.
Democrats have taken Farley's remarks about tariffs to heart. Michigan Democratic Party said that Farley's comments showed "Trump's Tariffs are not a risk Michigan could afford." Senate Democratic Leader Chuck Schumer stated they proved Trump's Tariffs can lead to higher inflation.
The White House has not yet commented.
Farley stated in a press release that the automaker shares Trump’s vision of a vibrant U.S. automotive industry. The automaker looks forward to “continuing the dialog with the administration and legislators about how to best achieve this vision.” He said if Trump succeeds, it could be his greatest accomplishment.
Trump raised the tariffs on imports of steel and aluminum to 25%, "without any exceptions or exclusions", effective Monday. Trump increased tariffs by 10% on Chinese imports last week and is now preparing to announce reciprocal tariffs against all countries that impose duties on U.S. goods.
Trump had threatened to impose 25% tariffs on all imports coming from America's largest trading partners Canada and Mexico. He said they needed to do more to stop the flow of migrants and drugs across the U.S.-Mexico border. Trump suspended the tariffs on March 1 after making some concessions in border security.
Farley, speaking at the Wolfe Research Conference on Tuesday, said: "What we are seeing is a great deal of cost and chaos." "If you take a look at the tari's, be honest with yourself, over time, a 25 percent tari's not going to make a difference." The border between Mexico and Canada will cause a huge hole in our industry, one that has never been seen before.
He warned Tuesday that the revocation of incentives for electric cars by Congress could threaten jobs after Ford invested heavily in battery production, as well as assembly plants, in Ohio, Michigan and Kentucky.
On Wednesday, Republican lawmakers introduced two bills to repeal EV tax credits as well as impose a tax of $1,000 on new electric vehicles to fund road repairs. (Reporting and editing by Sandra Maler, Muralikumar Aantharaman and David Shepardson)
(source: Reuters)