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Greek power utilities' first-quarter earnings hit by challenging renewables conditions
Public Power Corporation, Greece's largest electricity power company (PPC), reported on Tuesday a marginal drop in its first-quarter core profit adjusted. The reason given was the adverse weather conditions that affected renewable energy production. This decline was also affected by the lower revenues from distribution activities in Greece, and the seasonal profitability for distribution. PPC expects that this trend will reverse itself in the second half. The adjusted earnings before tax, depreciation and amortization (EBITDA), for the first three months of this year, were 453 millions euros ($510.12), compared to 459 million euro a year ago. In a press release, Chairman and CEO Georgios Stassis stated that "despite adverse hydrological conditions and wind conditions which affected renewables output during the first quarter as well as the seasonality of the distribution activity our performance remains resilient" and on target. Total investments by the utility in the first three months reached 0.48 billion euro, with an important 89% of that amount allocated to projects involving renewable energy sources (RES), flexible production, and distribution of electricity. PPC reported that its installed capacity for RES was 6.2 GW by the end of the third quarter. This is up from 4.7 GW in the same period last year. PPC, the company that operates Greece's main grid, said in its 2025-2027 Plan it planned to spend 10 billion Euros by 2027 to upgrade its distribution network and increase its renewables power to 11.8 GW. The company reiterates its forecast for 2025. It expects an EBITDA adjusted of 2 billion euro, a net profit adjusted after minorities over 0.4 billion euro, and a distribution of dividends of 0.60 euros per share.
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EU: Extreme weather damages EU farmers by 28 billion euro per year
An EU-backed study published on Tuesday found that the agricultural sector of the European Union loses 28.3 billion euro ($31.9 billion) per year due to extreme weather conditions made worse by climate changes. These losses, which equal 6% of EU annual crop and livestock production, are largely uninsured. Only 20-30% farmers' losses due to climate change are covered by public, mutual or private insurance, according to a report by Howden, an insurance broker. The report was backed by both the European Commission and European Investment Bank. Christophe Hansen, EU Agriculture Commissioner, said: "We must do something to cover any remaining losses." He encouraged countries to use EU farm subsidies to reduce climate risks. The farming industry in Europe is not only affected by climate change, such as droughts and extreme rain, but also puts pressure on the environment through methane pollution, fertiliser pollution, and industrial water use. Influential agriculture lobby groups also took aim at Europe's environmental agenda last year, staging protests for months to weaken the policies. Last week, the European Commission announced that it would be easing some of the environmental requirements for EU farm subsidies and also proposing new rules to accelerate emergency funding to farmers affected by natural disasters. The analysis found that farmers' crop losses could increase up to 66% if climate change is not addressed. At present, drought is responsible for more than half of all agricultural losses. The analysis found that in 2050, if the drought in southern Europe is particularly severe, losses could reach 20 billion euros in Spain and Italy. The European Investment Bank (the EU's lending arm) said that the analysis will guide its efforts to help farmers. This includes financing investments such as irrigation and providing loans and guarantee. According to a draft of the European Commission's water strategy that was leaked last week, the EIB plans to also increase its expenditure on water projects. This could be beneficial to farmers. A spokesperson for the EIB did not respond immediately to a question about this funding.
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As the dollar continues to fall, geopolitical uncertainties persist.
Tuesday, gold prices increased by more than 1% as the U.S. Dollar continued to weaken. Meanwhile, uncertainty remained over U.S. Tariff Policy and the Russia-Ukraine truce. Gold futures in the U.S. were up 1.5% at $3283.10 an ounce at 1049 ET (1449 GMT) while spot gold rose 1.6% to $3280.32. The dollar fell again on Tuesday due to the Federal Reserve's cautious stance on the economy. It had already fallen on Monday, after the ratings agency Moody's had downgraded U.S. sovereign credit rating last week. The dollar is weaker, making bullion more affordable for buyers of other currencies. There's still some uncertainty on the market. David Meger is director of metals at High Ridge Futures. He said that the Moody's rating downgrade and the weakening dollar has supported the precious-metals complex in general. Moody's has downgraded America from "Aaa to "Aa1", citing concerns over the growing national debt. Fed officials spoke on Monday, taking into account the implications of the downgrade and the unsettling market conditions. They continued to navigate a uncertain economic climate. Bullion is a good investment during times of geopolitical or economic uncertainty. "Gold will trade between $3,000 to $3,500 throughout the rest of the year." According to Edward Meir, Marex analyst, there is a short-term chart resistance at the $3.270 mark. Meger stated that the ongoing tensions between Russia, Ukraine and other countries are more important for platinum and palladium. This is because no deal would mean a lesser supply of these metals on the market. Russia is the second largest platinum and palladium producer in the world. The EU and Britain announced sanctions against Russia without waiting for the U.S. To join them on Tuesday, a day following President Donald Trump's meeting with Vladimir Putin in which he was unable extract a promise of a ceasefire for Ukraine. Platinum rose 3.8% to $1 035,53, its highest level since October 2024. Palladium climbed 2.7% to $1,001.25 and reached its highest level since February 14, a 3.8% increase. Spot silver increased 1.3% to 32.78 dollars. (Reporting by Sarah Qureshi in Bengaluru; Editing by Jan Harvey)
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Norway's Norges will vote for three Elliott nominations in Phillips 66 Board fight
Norway's sovereign fund has said that it will vote for three out of Elliott Investment Management’s four directors in a bitter fight over board seats at Phillips 66. Norges Bank Investment Management - one of Phillips 66’s 10 largest shareholders - detailed its plans in a table posted on its website. It said it would support former ConocoPhillips executives Brian Coffman, Sigmund Cornwallelius, and former Targa Resources executive Michael Heim. Phillips 66 shareholders will decide on the winner of Wednesday's annual meeting. Elliott wants to see shareholders elect four new directors who will help to overhaul corporate strategy. Elliott is pushing for the company to sell off assets, improve its performance in its refining operations and enhance its corporate governance. Phillips 66 tells investors that its strategy works and that none the activist hedge fund director candidates is needed. Three prominent U.S. advisory firms, Institutional Shareholder Services (ISS), Glass Lewis and Egan-Jones, who often make voting recommendations that influence shareholder decisions on controversial issues such as board elections, have thrown their support behind Elliott. They urged investors elect three, if not four, of the hedge funds candidates. (Reporting and editing by Mark Porter, Paul Simao, and Svea Herbst Bayliss)
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Kazakhstan's oil production rises 2% this May, defying OPEC+
A source in the industry said that Kazakhstan's oil output increased by 2% during May. This is a significant increase, which defies the pressure of OPEC+ to reduce Kazakhstan's production. Kazakhstan has consistently breached the OPEC+ production quotas. The country cites its difficulty in telling Western oil giants such as Chevron or ExxonMobil to reduce their plans. OPEC+ has confirmed that the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a collective known as OPEC+ decided to increase production in order to punish those members who did not adhere to the curbs. This was done to add downward pressure on the international oil price. Kazakhstan's oil output fell 3% in the month of April, but it still exceeded its OPEC+ quota. The energy ministry of the country did not reply to a question about production figures for May. Separately, it said in an e-mail that the production of the largest Tengiz oil field had reached the planned level. This meant the production for the country would not be increasing this year. The emailed comments continued, "Kazakhstan takes all measures to comply OPEC+ obligations as well as compensate for excess production." According to an industry source who spoke under condition of anonymity because of the sensitive nature of the situation in Kazakhstan, the country's crude production, excluding the gas condensate produced, averaged 1,86 million barrels of oil per day from May 1-19. This included 932,000 bpd for Tengiz. The output of Kazakhstan was reduced from 1.88 millions bpd to 1.82 million in March. Kazakhstan's OPEC+ quota rose from 1.473 to 1.486 millions bpd under the latest OPEC+ deal. The energy ministry of the country has stated that it is committed to OPEC+. It said that it would compensate for its overproduction by reducing the cumulative production by 1.3 millions bpd before April 2026. In addition, it stated it would put national interests ahead of those of OPEC+ in deciding on the production levels. Western oil majors such as Shell, TotalEnergies, Eni, ExxonMobil, and Chevron are involved in Kazakhstan oil projects. "We expect Kazakhstan to stabilize its production at around 1.8m bpd. Abu Dhabi Commercial Bank stated in a report that officials have indicated limited flexibility to lower output due to the fact that international firms control the field. (Reporting in Moscow, with additional reporting from Dmitry Zhdannikov. Editing by Guy Faulconbridge & Barbara Lewis).
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Ukraine wants G7 to lower price cap on Russian oil to $30 per barrel
Andriy Sibiha, the Ukrainian Foreign Minister, said that Ukraine wanted the Group of Seven Advanced Economies to lower its price limit on Russian oil shipped by sea to $30 per barrel. The G7's current price cap is $60 per barrel. This was imposed because of Russia's conflict in Ukraine. Sybiha, a journalist from Brussels, told reporters that the reasonable price cap for oil is 30 dollars. The European Union (EU) and Britain (UK) announced new sanctions against Russia on Tuesday. They said that the sanctions would target the "shadow fleet" in Moscow of oil tankers, financial firms and other companies which have allowed it to avoid being affected by the other sanctions imposed due to the conflict. Britain and the EU also said that they would work together to lower the cap on oil prices, which now imposes a much smaller discount on Russian crude oil due to the fall in global oil prices this year. EU officials who were briefed about the discussions have stated that the EU will suggest a price limit of $50 per barrel. Separately, Ukrainian President Volodymyr Zelenskiy stated that he spoke with European Commission President Ursula von der Leyen Tuesday and expressed his gratitude for the recent sanctions. "Russian oil and energy trade infrastructure are the most painful to Russia and, therefore, most useful for peace," wrote he on Telegram. The more pressure on Russia the more motivation Moscow will have to make real peace, he said. This was a day after U.S. president Donald Trump met with Russian President Vladimir Putin, but without a promise for a ceasefire to be made in Ukraine.
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17 injured in fire at Chevron platform off Angola
In a joint statement, the Angolan government and Chevron said that 17 people, including four serious injuries, were injured when a fire broke in the early morning hours of Tuesday on the deep-water Benguela, Belize, Lobito, Tomboco oil platform. Investigations are currently underway to determine the cause of a fire that occurred on the basement level of the multi-storey production platform of Block 14 in the Block 14 concession, some 60 miles (97 kilometers) off the coast of Cabinda. Angola's National Agency for Petroleum, Gas and Biofuels issued a statement referring to the injured. Chevron stated that the incident took place at a time BBLT was undergoing an annual maintenance, as part of a planned shutdown. All production had stopped at the site on May 1, this year. According to Chevron, the platform can accommodate 157 people. Chevron reported that the fire started around 3 am (0200 GMT). All personnel has been accounted for.
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Shell CEO, re-elected, responds to BP question by saying bar for deal is high
Shell shareholders re-elected Andrew Mackenzie as Shell's Chair and Wael Sawan as its CEO on Tuesday. When asked about a possible deal with rival BP, Wael Sawan said that the bar was high for mergers and purchases. Media reports Early this month Shell had reportedly been working with advisors to assess a possible acquisition of BP. Shell's annual meeting saw Sawan receive 98.7% support from shareholders, while Mackenzie received 91.4%. Helge Lind, BP's Chair, received only 76% of the vote at its annual general meeting after years with poor share performance. He is expected to step down in the next few months. Sawan echoed previous comments made when asked about reports in the media that Shell was considering a bid for BP. He said Shell's share price at present makes buybacks a particularly attractive way to spend money. Around 20.6% of shareholders voted in favor of a shareholder resolution that asked Shell to provide more information about its strategy for boosting LNG sales and how it is compatible with the goals to reduce carbon emissions. Shell's largest contribution to the energy transformation will be LNG, Sawan told Shell shareholders. He was referring to the possibility of replacing coal with gas to replace more polluting fuels. "LNG will be a low-carbon fuel with a wide range of applications that is essential to the energy transition." Methane is the main component of natural gas. It is a significant greenhouse gas that contributes to climate change along with carbon dioxide. All the other board members were also reelected, including Finance Director Sinead Gordon. (Reporting and editing by Shadia Nasralla)
Gold prices fall as investors wait for more information on US tariff policy
The gold price fell on Tuesday, as the markets stabilized after Moody's unexpected downgrade of U.S. debt. Investors then focused their attention on further developments in Russia and Ukraine peace talks, and U.S. trade policy.
As of 0836 GMT, spot gold was down by 0.2% to $3,223.69 per ounce. U.S. Gold Futures fell 0.2% to $3226.
Ricardo Evangelista is a senior analyst with brokerage firm ActivTrades. He said that traders are focusing on the optimism surrounding the US-China Trade and the renewed hope for peace in the Russia/Ukraine conflict.
Investors seem to have largely ignored the recent downgrade in the US credit rating from Moody's. Gold is likely to fall due to an increase in risk appetite, but its downside is limited by the lingering uncertainty.
Moody's reduced the U.S. credit rating from "Aaa to "Aa1", reducing risk appetite. Gold, a safe haven asset, rose more than 1% the previous day.
Donald Trump, the U.S. president, said Monday that Russia will begin negotiations with Ukraine immediately to reach a ceasefire.
As they navigated an uncertain economic climate, U.S. Federal Reserve officials carefully considered the implications of the downgrade and the unsettling market conditions.
Later in the day several Fed officials will be speaking, which could provide further insight on the economy and central bank policy.
The markets are pricing in a rate cut of at least 54 basis point this year.
"The gold prices are building up into a superzone over $3,200 and as long the price remains above that threshold, we will start to see more recoveries," said Carlo Alberto De Casa.
Other metals, such as spot silver, rose 0.9% to $32.33, platinum increased 0.9% to $1,000.35, and palladium fell 0.1% to $974.18.
(source: Reuters)