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Eni confirms buyback and cuts capital expenditure, despite posting a smaller-than-expected profit drop
Eni, the Italian energy company, reported Thursday a net profit drop of 11% for the first three months adjusted. This was less than expected. The adjusted net profit was 1.41 billion euro ($1.60 billion), down from 1.58 million euros in the first three months of 2024. However, it was above the analyst consensus of 1,15 billion euro compiled by the firm. As a result of lower oil prices, state-controlled group announced it would reduce its planned net capital expenditures this year below 6 billion euro as part several mitigation measures worth 2 billion euros. Eni has confirmed its distribution strategy, which shareholders will be voting on in May. This includes a 1.5 billion euro share buyback. A weakening economy has led the group to lower its Brent oil price expectation from $75 per barrel to $65. The forecasts for natural gas prices and refining margins were also revised downward. This had a negative impact on the underlying cash flow of operations (CFFO) which was now estimated at 11 billion euro this year. ($1 = 0.8821 euro) (Reporting and editing by Francesca Landini)
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ITA reports that Myanmar's Wa State held a meeting to discuss the issuance of mining permits.
The International Tin Association (ITA), a group of tin mining companies, announced on Thursday that a meeting was held in Myanmar's Wa State on Wednesday. The ITA reported that mine investors, leaders of the mining bureau, and representatives from the Manxiang area attended the meeting. This clarified the application process for mining, concentrator, and prospecting permits. The ITA has warned that government fees are likely to increase, and this could put pressure on low-altitude mining and small- to medium-sized concentrators. Wa State is responsible for 70% of Myanmar's exports. Myanmar is the third largest producer in the world and China is its biggest supplier. The meeting was originally scheduled for the 1st of this month, but it had to be postponed due to a devastating earthquake. Traders were encouraged by the prospect of a meeting, as they believed that a mining ban in the area which had been in place for almost two years could be lifted soon. Wa State, unlike the majority of Myanmar which is controlled by the military junta maintains its own military, political system and economy. It's a state inside a country. The United Wa State Army (the militia affiliated with Myanmar's ethnic Wa minorities) controls large areas of Wa State. In August 2023, it suspended all mining in the areas that it controlled to protect its resources. (Reporting and editing by Christian Schmollinger, Muralikumar Aantharaman, and Lewis Jackson)
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Markets take stock of Trump’s U-turns as the relief rally fades away
Investors struggled to sort through the noise of the Trump administration, its erratic stance on tariffs, and the Federal Reserve leadership. In the past week, U.S. president Donald Trump has attacked Fed chair Jerome Powell, then retracted his calls for resignation. Investors are still unsure about the final state of tariffs against China, despite the many headlines surrounding it. A source said on Wednesday that, in the absence of talks with Beijing, the Trump administration was looking at lowering tariffs for imported Chinese goods. This follows a Wall Street Journal article that suggested that Trump's White House might consider reducing tariffs on Chinese imports. Treasury Secretary Scott Bessent later said that such a step would not be taken unilaterally. He echoed comments made by White House spokesperson KarolineLeavitt. I don't believe you'll ever be able to get used the flip-flopping and haphazard behavior we've seen. Tony Sycamore is a market analyst for IG. He said that it was extreme. "I think Trump is like that - he wants the best levers and he doesn't fear trying anything. He's not afraid to walk it back either if it fails." MSCI's broadest Asia-Pacific index outside Japan fell by 0.72%. This was in contrast to the Wall Street trend, which saw stocks rise on Wednesday amid hopes of a reduction of Sino-U.S. tensions. U.S. Futures pared their gains made earlier in the session. Nasdaq futures lost 0.32%, and S&P500 futures fell 0.23%. The EUROSTOXX futures fluctuated between gains and losses to end the session flat. FTSE Futures slipped 0.04%. The Nikkei ticked up 0.4%. Two sources familiar with this matter confirmed on Thursday that Ryosei Acazawa, Japan's chief tariff negotiator, is finalizing plans to visit the United States in April to have a second round with his counterpart. Hong Kong's Hang Seng Index fell more than 1%, while the CSI300 blue chip index in China was only up 0.06%. China's governor of the central bank said Wednesday, in Washington D.C. that the country will support the free-trade rules and multilateral trading system. Salman Ahmed is the global head of strategic asset allocation and macro at Fidelity. He said: "Short-term volatilities are quite extreme. This high volatility will continue. You have elevated volatility moving forward because the fundamental rules of the game, the economic world, are changing." Ahmed said this on the sidelines the IMAS Investment Conference 2025 and Masterclass in Singapore. On Wednesday, Katsunobu Kato, the Japanese Finance Minister, urged his G20 counterparts for cooperation in stabilising the markets. He warned that U.S. Tariffs and countermeasures by certain countries are hurting global economic growth and destabilising finance markets. Investor confidence in U.S. asset prices remained fragile, despite the dollar's recent recovery. The dollar dropped 0.5% against the yen to 142.75. The euro rose 0.25% to $1.1341 while the Swiss Franc rose 0.3%, or 0.8281 per US dollar. The 30-year yield was little changed, at 4.7960 percent. The benchmark 10-year rate was down 3.5 points at 4.3578%. Beth Hammack, President of the Federal Reserve Bank of Cleveland, said that on Wednesday there is still a lot of uncertainty about the future. She urged the central bank to be cautious in its monetary policy and to monitor the economy's performance. The markets are expecting a rate cut of around 80 basis points by December. Oil prices have stabilized in other markets after a drop in the previous session. Sources said that OPEC+ will consider accelerating their oil production increases in June. Brent crude futures rose 0.1% to $66.19 per barrel while U.S. Crude also gained 0.14%, to $62.36 a barrel. Gold continued its march towards a new record high. The yellow metal rose 1.1% to $3,324.23 per ounce.
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Oil prices steady after a 2% decline on OPEC+ production increase
Oil prices rose on Thursday, after falling by nearly 2% the previous day. Investors weighed a possible OPEC+ production increase against contradictory tariff signals from White House as well as ongoing U.S. Iran nuclear talks. Brent crude futures gained 8 cents or 0.12% to $66.20 a bar by 0505 GMT. U.S. West Texas Intermediate crude rose 9 cents or 0.14% to $62.36 a bar. The previous trading session saw prices drop by 2% after it was reported that several OPEC+ member countries would suggest to the group to increase oil production for a second consecutive month in June. This information came from three sources who are familiar with OPEC+ discussions. "While a move to increase risk yesterday lifted risk assets, oil fell behind due to OPEC+'s discord," ING analyst wrote in a report. Reports on Wednesday said that Kazakhstan, which produces 2% of the global oil output, and has consistently exceeded its quota in the past year, would prioritize national interest over OPEC+ when deciding production levels. OPEC+ has had disputes in the past over production quotas. One of these disputes led to Angola leaving OPEC+ by 2023. The ING analysts stated that "further disagreements between OPEC+ member countries is a clear downside threat, as they could lead to a pricing war." Prices rose on signs that U.S.-China trade talks could be nearing completion. The Wall Street Journal reported the White House was willing to reduce its tariffs against China by as much as 50% to start negotiations. Treasury Secretary Scott Bessent stated on Wednesday that the current import tariffs of 145% for Chinese goods heading to the U.S., and 125% for U.S. products going into China were unsustainable and had to be reduced before trade negotiations between the two parties could begin. White House Press Secretary KarolineLeavitt told Fox News that the tariffs would not be reduced unilaterally. Rystad analysts believe that a prolonged U.S. China trade war would reduce China's oil consumption growth by half, to 90 000 barrels per day. This is down from 180,000 barrels per days. The Financial Times reported that Trump was also considering tariff exemptions for imports of car parts from China. The U.S. will meet with Iran for a third round this weekend to discuss a possible agreement that would reimpose restrictions on Tehran's nuclear enrichment program. This could put downward pressure on the oil price. The market is looking for signs that a U.S. and Iran rapprochement may lead to easing sanctions on Iran's oil, and boosting supply. The U.S. imposed new sanctions on Iran on Tuesday, according to the Iranian foreign ministry's spokesperson. This showed "a lack of goodwill and a seriousness" in regards to dialogue with Tehran. (Reporting and editing by Sonali Paul, Tom Hogue and Colleen Hogue).
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Taiwan offers another $10 billion in aid to help deal with US tariffs
Taiwan's Premier proposed on Thursday another $10 billion as a budget special to help the economy cope with the impact U.S. Tariffs. Taiwan was due to receive 32% U.S. Tariffs in two weeks, but President Donald Trump suspended his "reciprocal Tariffs" for 90-days. At a press conference held in Taipei on Tuesday, Premier Cho Jung Tai said that the initial T$88.9 billion ($2.71billion) aid package will be increased up to T$410.9 billion ($12.61billion), which includes financing assistance for businesses, measures to stabilize the job market, and subsidies for electric. The special budget must be approved by the parliament. Opposition parties, which have a majority, have already imposed this year major cuts to Taiwan's budget. They claim they are targeting wastage. Taiwan's government began talks with the United States about tariffs, and has pledged to make new purchases worth billions of dollars to help reduce the island's huge trade surplus. Taiwan's trade talks with the United States are centered on increasing purchases of U.S. oil and natural gas, said President Lai Ching Te.
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Dalian iron ore prices rise on short-term demand but higher shipments limit gains
Iron ore futures continued to rise for the fourth session in a row on Thursday. This was supported by seasonal demand, optimism about U.S. China trade talks and seasonal demand. However, a stronger outlook due to increased shipments limited any further gains. As of 0304 GMT, the most-traded contract for September iron ore on China's Dalian Commodity Exchange was trading 0.28% higher. It was 724.5 yuan (US$99.31) per metric ton. The benchmark iron ore for May on the Singapore Exchange fell 0.44% to $99.8 per ton. ANZ reported that iron ore prices rose on the prospect of improved U.S.-China trading relations. U.S. Treasury secretary Scott Bessent stated on Wednesday that the high tariffs between Washington, D.C. and Beijing were not sustainable. The administration of President Donald Trump signaled an openness towards de-escalating trade wars between two of the largest economies in the world. Steel production gaining momentum also helped to support prices. ANZ reported that "improved profitability at steel mills saw production recover to 93 millions tons in March and kept Q1 production growth positive." According to Lange Steel's analysis of statistics from China Iron and Steel Industry Association, the daily average steel production by key steel companies was 2,113 million tons at mid-April. This represents a growth of 3.3% from one month to the next and a 3.1% rise from the same time last year. According to Mysteel, after a decline in February, the volume shipped from Port Hedland - the largest iron ore port in Western Australia - to China has increased by 30.3%. According to Mysteel, the total number of shipments to China in March was 41.2 million tonnes. Coking coal and coke, which are used to make steel, have both gained in value, rising by 1.05% and 1.666% respectively. The benchmark steel prices on the Shanghai Futures Exchange were flat. The price of rebar was 0.58% higher than the previous day, while hot-rolled coils were 0.44% higher. Wire rod fell 0.8%, and stainless steel dropped 0.24%. (Reporting and editing by Sherry Jab-Phillips; $1 = 7.2956 Chinese Yuan)
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Vaar Energi Misses Quarterly Profit Forecast
Oslo-listed oil and gas firm Vaar Energi on Wednesday reported a lower-than-expected operating profit for the first quarter, but said it would maintain its dividend level as it prepares for a sharp rise in output in coming months.Vaar's earnings before interest and tax (EBIT) for the January-March quarter fell to $972 million from $1.05 billion a year earlier, lagging the average $1.04 billion forecast in a company-provided poll of 12 analysts."In the current uncertain market environment our business remains resilient, with low free cash flow break-even and a highly flexible investment program of which 70% is uncommitted," Vaar's CEO Nick Walker said in a statement.The company maintained investment plans of $2.3 billion-$2.5 billion for 2025 and $2.0 billion-$2.5 billion annually for 2026-2030, but much of this has yet to be formally approved.Vaar said it would pay $300 million in dividends for the second quarter, maintaining its policy of returning to shareholders between 25% and 30% of cash flow from operations after tax for the full year.The Norway-focused company, majority owned by Italy's Eni ENI.MI, eyes significant growth of its output thanks to the startup of production from new fields.It expects petroleum production to rise to over 400,000 barrels of oil equivalent per day (boepd) in the fourth-quarter from 272,000 boepd in the first quarter.Vaar's flagship Balder X project will come on stream at the end of the second-quarter, after several delays, the company confirmed on Wednesday.Along with other new projects, including the partner-operated Johan Castberg oilfield in the Barents Sea, Vaar aims to add some 180,000 boepd in oil and gas production towards the fourth-quarter.Global oil demand is expected to grow at its slowest rate for five years in 2025 due to U.S. President Donald Trump’s tariffs on trading partners and their retaliatory moves, the International Energy Agency warned on April 15.(Reuters - Reporting by Nerijus Adomaitis; Editing by Terje Solsvik and Tom Hogue)
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VIKING Launches First CTV Immersion Suit for Women in Offshore Wind Industry
VIKING Life-Saving Equipment has launched the first Crew Transfer Vessel (CTV) immersion suit in the world designed for women working in offshore wind energy, using guidance on diversity and inclusivity from industry leaders Ørsted, Siemens and Vestas.The VIKING YouSafe Cyclone suit joins a growing portfolio of VIKING PPE whose fit and features reflect the safety needs of female seafarers, pilots and technicians in the marine and offshore industries.The most recent UK Government Industrial Strategy Offshore Wind Sector Deal study included a ‘minimum target’ for one third of the industry’s workforce to be by 2030 (2018 – 16%).In UK waters, and elsewhere, getting the right PPE in place to best serve the safety needs of women offshore has become a focus for equity and inclusivity strategy at Ørsted, Siemens and Vestas.“As a young industry, offshore wind offers a huge opportunity to change attitudes in the workplace, and to encourage the diversity, equity and inclusion women are entitled to expect.“Ørsted has identified female-specific PPE as part of the critical infrastructure we need for women to work safely offshore today and a necessity to attract more of them into this industry. We were delighted to work with VIKING as one of our key safety solution providers to take a significant step in the right direction,” said Lasse Hansen, Senior HSE Manager, PPE and TMSE, Ørsted.Delivered in high-vis GORE-TEX NARVIK, the female-fit YouSafe Cyclone suit is approved to the same dual SOLAS/MED and CE/ISO standard as the male version and is available in multiple sizes.Common features include compatibility with all standard offshore harnesses, durable Neoprene cuffs and neck seal, retro-reflective piping for increased visibility in dark surroundings, and a maintenance free zipper.“Bringing Cyclone to market has been a joy because we have worked with customers whose competitive position did not stand in the way of our common goal to deliver a safety necessity and level the playing field for women working offshore. Their response in spreading the word has also been phenomenal,” added Bettina Kjærgaard, Global Sales Manager Offshore Wind, VIKING Life-Saving Equipment.
European car sales increase in March, as electric vehicles offset falling combustion engines
The new car sales in Europe increased 2.8% in march, with double-digit increases in Britain and Spain. Industry data released on Thursday revealed that the increase in electric vehicle registrations for the month was offset by a decline in petrol and diesel vehicles.
The European Automobile Manufacturers Association's (ACEA) data showed that sales of fully-electric cars increased by 23.6% during the month.
Why it's important
As they struggle to reduce costs on their home markets, and fight the competition from China's automakers, European carmakers now have to deal with the effects that President Donald Trump’s 25% tariffs for auto imports are having. This is a major blow to the industry.
Trump's 145% tariffs on Chinese imports, and Beijing's retaliatory duties have also caused global growth predictions to be revised downwards. This has put automotive companies at risk.
By the Numbers
The ACEA data revealed that March sales of cars in the European Union (EU), Britain, and the European Free Trade Association(EFTA) increased to 1,42 million vehicles, after two months of decline.
Stellantis registered a 5.9% decline in registrations, while Volkswagen and Renault saw theirs grow by 10.3% and 130% respectively.
Tesla's third-month sales were down 28.2% on a year-over-year basis, and its market share dropped to 2%, from 2.9%.
The EU total car sales declined 0.2% on an annual basis, declining for the third consecutive month, despite the fact that the number of registrations for battery electric (BEV), electric hybrid (HEV), and plug-in hybrid cars (PHEV) increased by 17.1%, 23,9%, and 12.4%, respectively.
In March, 59.2% (up from 49.1% the year before) of all passenger cars registered in the country were electric vehicles.
Sales in Spain and Italy grew by 23,2% and 6,3%, respectively, whereas in France and Germany, they fell by 14,5% and 3,9%.
Registrations in Britain increased by 12.4%.
CONTEXT
Experts say that the growing interest in electric vehicles in Europe, which is the second largest EV market in the world, is largely a result of new EU emission standards and the introduction of cheaper electric cars, even though the EU recently proposed lowering the emission targets. Reporting by Greta Rose Fondahn in Gdansk and Alessandro Parodi; editing by Sandra Maler
(source: Reuters)