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The core profit of Vallourec drops due to lower tube prices in North America
France's Vallourec announced a 24% decline in its core profit for the fourth quarter on Thursday. It cited lower average selling prices for its steel tubes, its primary market, in North America. Vallourec makes tubings for oil and gas markets, low-carbon energies and industrial markets. Its operating earnings before interest taxes, depreciation, and amortization (EBITDA), fell to 214 millions euros ($224) in the fourth quarter of 2024. This was due to a 27% decline in North American tubes. In the fourth quarter, around 92% (globally) of Vallourec’s total revenues came from the tubes business. In a conference call with journalists, CEO Philippe Guillemot stated that prices had fallen throughout the year. However, they started from a high base. The group's operating EBITDA is expected to be between 180 and 215 millions euros in the first quarter 2025. It said that based on bookings in recent months, international steel tubes shipments are expected to increase in the second six-month period compared to first six, leading to an improved EBITDA per tonne. After completing its financial restructuring and paying off the remaining debt, Vallourec confirmed that it would also pay its first dividend for 10 years at 1.50 euros a share. $1 = 0.9555 Euros (Reporting and editing by Milla Nissi in Gdansk, Mathias de Rozario in Gdansk)
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Gold falls on the dollar's strength and rising Treasury yields. US PCE data is in focus
Gold prices fell on Thursday as a result of a stronger dollar and higher Treasury yields. Investors were also awaiting a crucial inflation report in order to determine the Federal Reserve’s policy direction. Spot gold dropped 0.6% to $2.897.91 per ounce at 0645 GMT. U.S. Gold Futures also fell 0.7%, to $2.909.30. The dollar index increased by 0.2%, moving further away from recent 11-week lows. This was after vague promises from U.S. president Donald Trump that he would impose tariffs against Europe and further delay levies for Canada and Mexico. The yields on the benchmark 10-year U.S. Treasury note have rebounded. This has reduced the appeal of gold, which does not offer any returns. Ilya Spirak, global macro head at Tastylive said that a slight increase in the dollar, and the yields on U.S. Treasury bonds, are seen as having a little impact on gold in this session. The overall trend for gold remains largely intact. Later in the day, several Fed officials will speak to provide more insight into the central banks policy of easing. The Fed's preferred measure of inflation, the Personal Consumption Expenditures Index (PCE), is due Friday. According to a poll, the consensus forecast for December 2024 was a PCE index of 0.3%. "The markets are sensitive to growth concerns at the moment after dismal U.S. PMI data last week, and any stronger-than-expected PCE outcomes that point away from Fed rate cuts in the near term might hurt gold," Spivak added. Bullion is a safe haven against inflation and political risks, but rising interest rates reduce its appeal. In the meantime, Russian and U.S. diplomatic representatives will meet in Istanbul to discuss the restoration of their respective missions. This is seen as an important step toward restoring relations between both countries. Ending the War In Ukraine. Spot silver fell by 0.2%, to $31.77 per ounce. Platinum dropped 0.1%, to $964.70. Palladium remained unchanged at $926.47.
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Engie's Net Operating Profit for 2024 is down 6.2%
The French utility Engie reported a 6.2% drop in its operating profit for 2024, excluding nuclear, on Thursday. This was due to the decline in gas prices in France, an impact of a new energy tax and a reduction in the use of gas-fired electricity plants in Europe. The company that sells and trades gas and electricity reported earnings before interest and taxes (EBIT) excluding nuclear at 8.9 billion euro ($9.32 billion), which is down from 9.5 million euros by the end of 2023. The European gas price fell throughout the year due to mild temperatures and a strong renewable production. Engie now expects that its EBIT, excluding nuclear, in 2025 will be 8-9 billion Euros. This is up from the 7.9 to 8,9 billion euro they expected in early 2024. Engie, Europe's biggest gas network operator, has a growing US business that is focused on the development of infrastructure such as wind and solar farms. Engie reported that hydro, wind, and solar contributed to the positive growth of its renewables business. This led to a profit for this part of the company of 2.2 billion euro, an increase of 9.6% on a year-on-year basis. The group reported a record-breaking level of renewable installed capacity in 2024. 4.2 gigawatts were added to four operating regions, bringing the total installed capacity up to 46 GW. The company's net recurring profit was 5.5 billion Euros, which is in line with the guidance of 5.0-5.6billion euros it provided in November. The company has also increased its expectation for net recurring revenue in 2025 from between 3.6 and 4.5 billion euro to between 4.4- 5 billion euros. This is an increase over the previous guidance of between 3.6 and 4.5 billion euro.
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AstraZeneca opens a biomethane facility in the UK to reduce emissions
AstraZeneca opened an organic waste biogas plant that will power all its drug production and research in Britain by the end this year. The plant will be operated under a 15-year contract between AstraZeneca, a UK biomethane producer, and Future Biogas. It will provide 100 gigawatt-hours (GW) per year of renewable energy for AstraZeneca’s three R&D sites and manufacturing facilities in the country. This is equivalent to 20% its global gas consumption. Why it's important Cost-cutting is a priority for many big companies, and the return of U.S. president Donald Trump to the White House has changed the focus on fossil fuels. The government of Keir starmer, the British Prime Minister, is pushing for the decarbonisation of the nation's electricity network through private investment. The UK government has not provided any subsidy to AstraZeneca for its new plant in Lincolnshire (east England). The company's switch to renewables in the UK is part a larger commitment to use 100 percent renewable energy globally by the year end. The commitment of the company to achieve net zero emissions in 2045 by 2020, which was set in 2010, also depends on suppliers who use green power. CONTEXT AstraZeneca signed a long-term agreement with Vanguard Renewables in 2023, which enabled the company to switch from natural gas to biogas and reduce its emissions at its U.S. manufacturing and research sites. The company wants to reduce its greenhouse gas emissions by 98% from 2015, compared with a baseline of 2015. Although Danish drugmaker Novo Nordisk set similar targets for reducing its carbon footprint, the company said earlier this year that its emissions will continue to rise through the decade due to the increased production of Wegovy, its blockbuster weight loss drug. (Reporting and editing by Barbara Lewis; Maggie Fick)
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India's UltraTech Cement drops as concerns about capital allocation arise from a wire business foray
UltraTech Cement shares, India's largest cement producer by capacity, dropped about 6% on Thursday, hitting an eight-month low as concerns over debt reduction and capital allocation arose from its plan to enter the cable and wires industry. Cement maker Aditya Birla Group was the biggest percentage loser in India's benchmark Nifty 50 Index, which was barely changed. The shares of the cement maker were down last by 6.16% to 10,288.30 rupees. The company announced Tuesday that it would invest 18 billion rupees (206 million dollars) in order to launch the wires-and-cables business. The competition in India's Cement Industry is increasing. Leaders UltraTech and Adani Group have struck a number of deals with smaller companies to expand their market shares. Analysts at J.P.Morgan stated that the key question was around diversification. Was this expenditure justified when its core business is facing a bigger, more aggressive competitor? The conglomerate of billionaire Gautam Adani entered the cement business in 2022, and has acquired several competitors. According to data compiled and analyzed by LSEG, analysts have rated UltraTech's stock as a "buy", just like Ambuja Cements of the Adani Group, or ACC. Analysts at Motilal Oswal said that they are concerned about the UltraTech stock in the near term, as traders see the company as an 'all-in-one cement firm'. They also believe its capital allocation could be questioned. Macquarie estimates that the costs associated with branding and setting up a distribution channel for wires would increase spending. Macquarie estimated the cost at 95 billion rupees in the fiscal year ending March. UltraTech's net debt as a standalone increased to 152.83 trillion rupees by December 2024, up from 5.71 trillion rupees at the end of March 2024. The foray may cause some disruption to the wires sector, where shares in Polycab, Havells, and KEI Industries, all dominant players, fell by 15%, 5%, and 7% respectively. $1 = 87.3830 Indian Rupees (Reporting and editing by Manvi Pan and Bharathrajeswaran, Bengaluru)
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Swiss stocks: Factors to be on the lookout for February 27
Here are the key factors that could affect Swiss stocks Thursday: CLARIANT AG TotalEnergie has been accused of violating the 2020 Competition Law. The company says it denies these allegations. MEYER BURGER TECHNOLOGY AGR The bondholders have approved the changes to the convertible bonds that mature in 2027 or 2029, to inject new capital into business. FEINTOOL HOLDINGS AG The company did not provide any guidance for the year 2025. It cited continued low visibility in Europe. KUDELSKI - The company plans to eliminate 160 jobs as part of its restructuring in 2025. BUSINESS STATEMENTS SULZER AG: The company reported sales of 3.53 billion Swiss Francs for the full year. BOSSARD Holding AG - The company reported a full year EBIT totalling 100.1 million Swiss Francs. BACHEM HOLDING AG: The company reported a group total sales of 605.3 millions Swiss Francs for the full year. BYSTRONIC - The company anticipates a slight decline in sales and a loss of operating income for 2025. SWISS RE AG Q4 results due. ANALYSTS VIEWS ALCON AG - JP MORGAN RAISES TARGET PRICE TO CHF 94.7 FROM CHF 79.6 SIKA AG - JP MORGAN RAISES TARGET PRICE TO CHF 209 FROM CHF 200 ECONOMY Swiss Q4 GDP is due at 8am GMT. Seen +0.2% Q/Q, +1.6% Year-on-Year Swiss Q4 GDP SA & Sports final QQ due by 0800 GMT. Reporting by Zurich and Gdansk Newsrooms
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Russell: Asia's declining crude oil imports will challenge demand estimates for 2025
Asia's crude imports have a weak start for 2025 as the continent's largest supplier, Russia, is slowed by new sanctions and China's continued decline in purchasing. According to LSEG Oil Research, Asia's imports are expected to reach 26.17 millions barrels per day in the first two month of this year. This is down by 780,000 barrels per days from 26.96million bpd during the same period last. The Organization of Petroleum Exporting Countries' (OPEC) forecast of a solid growth in demand this year is now in doubt after the drop of 3% in crude oil imports in Asia during the first two month of 2019. China was the main driver of the decline in Asia's crude oil imports during the period January-February. The world's largest oil importer saw arrivals of 10,42 million bpd in this period, down from 11,26 million bpd in the first two months in 2024. In the first two months 2025, the decline in China's crude oil imports has accelerated from the rate of decline in 2024. According to official data from customs, China's oil imports in 2024 will be 11.04 million barrels per day (bpd), a decrease of 210,000 bpd or 2.1% compared to the previous year. Property construction is a major weak sector in the world's second largest economy. The rapid adoption of trucks that run on liquefied gas has led to a decrease in diesel demand. OPEC's February monthly report predicted that China's demand for crude oil would rise by 310,000 bpd from last year in 2025, but the slow start of imports during the first two months makes this seem optimistic. INDIA STRENGTH India, Asia's largest oil importer, has had a strong start to 2025. Arrivals of 4,98 million barrels per day (bpd) in the first two month were up by 280,000 bpd compared to the 4,70 million bpd during the same period in 2017. It's important to note that India's January imports were 5,08 million bpd and that these fell to 4,87 million bpd by February. This shows that India was struggling to secure the same amount of discounted Russian oil that it had over 2024. In January, the outgoing administration under former U.S. president Joe Biden introduced new restrictions on Russia's oil imports. These sanctions primarily targeted the shadow fleet of crude tankers that transport crude to India or China, which are the two remaining major buyers of Russian oil. According to commodity analysts Kpler, Asia's imports seaborne Russian crude will fall to their lowest level in February since 2022. In February, a total of 67.2 millions barrels of Russian oil, or 2.40 million bpd is expected to arrive. This is down from 2.75million bpd imported in January, and only half the 3.97million bpd peak imports in May 2023. Asia's imports will have fallen for the fourth consecutive month in January, showing that Western sanctions imposed after Moscow's invasion of Ukraine in February 2022 are working. It is possible that Asia's imports will increase in the coming months. This could be because traders are able to find ways around sanctions, as they have in the past. Or, if the new U.S. president Donald Trump eases sanctions in an effort to end the conflict with Ukraine. The question remains, however, whether Asia's crude imports are strong enough to meet forecasts of rising demand in this year. These are the views of the columnist, an author for.
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Rio Tinto Pilbara Mine workers seek collective bargaining
The Australian Mining and Energy Union announced on Thursday that it would launch a Petition at Rio Tinto’s Paraburdoo Mine in the Pilbara Region, which would allow workers the opportunity to begin bargaining for collective agreements for the first 20 years. The union said that workers are voting to make an agreement which would guarantee annual wage increases as living expenses rise. Additional demands include pay equity, fair and detailed classification, and career advancement. The union will likely take the next step in implementing "same work, same pay" legislation if a collective agreement is not in place. This step is being taken as Australian unions test this legislation. Unions claim that it equalises wages between labour-hire workers who do similar jobs to company employees, while companies say it blunts their ability to pay higher salaries for better performance. In June of last year, unionised workers applied for orders stating that 1,700 workers hired by BHP at three large coal mines located in Queensland would receive the same job and pay. BHP earlier opposed the law, claiming it would lead to inflationary wage pressures and put Australian jobs in danger. In November 2024, the Albanese Labor Government implemented the "same job, Same Pay" changes, which resulted in pay increases for "more than 3,300 workers". Rio Tinto has not responded to an immediate request for comment about the petition. Reporting by Shivangi lahiri in Bengaluru, and Melanie Burton in Melbourne. Editing by Mrigank dhaniwala and Rashmi aich.
Chinese steel exports and iron ore are both hampered by higher imports
Iron ore prices fell more than 1% in the futures market on Thursday. This was due to escalating trade measures against Chinese steel, and an increase of iron ore imports by China, which is the top consumer.
The May contract for iron ore on China's Dalian Commodity Exchange ended the morning trading 1.05% lower, at 803 Yuan ($110.48).
The benchmark March ore traded on the Singapore Exchange fell 1.4% to $104.4 per tonne.
Hexun Futures, a broker, said that Australian shipments increased dramatically, while Brazil shipments also recovered. The output of molten steel decreased from month to month.
The outlook for Chinese exports of steel, which is deteriorating as more countries impose duties on Chinese steel products, also impacted sentiment.
Following the decision by U.S. president Donald Trump to impose 25% tariffs across all steel products earlier this month, Vietnam announced an anti-dumping levied on Chinese steel. South Korea has decided to provisionally impose tariffs of up to 38% on Chinese steel plates imported.
In response to Trump's tariff threat, the EU is also considering a steel import ban.
Mysteel, in a separate report, citing CISA statistics, reported that the daily crude steel production in mid-February by member mills in the China Iron and Steel Association reached a seven-month-high of 2,15 million tons.
The benchmark steel prices on the Shanghai Futures Exchange were flat. Hot-rolled coil and rebar both fell by 0.03%, while stainless steel and wire rod gained 0.5%.
Coking coal and coke, which are both steelmaking ingredients, also suffered modest losses. They fell by 0.41% each. $1 = 7.2682 Chinese Yuan (Reporting and editing by Sherry Jacobi-Phillips).
(source: Reuters)