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Alberta projects C$9.4 billion deficit on lower oil prices
Alberta, Canada's oil-producing province, announced a C$9.4 billion ($6.87billion) budget deficit for the fiscal year 2026/27 on Thursday. This was a violation of its own rules regarding deficit financing. The province blamed lower global crude prices as a major factor in the decline of its resource revenues. Alberta is vulnerable to fluctuations in commodity prices, which has prompted the government to undertake a 'broad review' of its finances and expenditures, with the aim of restoring budget sustainability over the long-term. Alberta has the third largest oil reserve in the world, Canadian oil sands. Its economy is heavily dependent on the global crude oil prices which plummeted by 2025 because of concerns over an oversupply. Oil and gas companies pay a lot of taxes and royalties to the provincial government, which is used for funding public services such as healthcare and education. Budget documents estimate that non-renewable resources will account for 18% (compared to 21% in 2025/26) of the total revenue for the province. Alberta predicts the benchmark West Texas Intermediate crude oil price to average $60.50 a barrel in 2026/27. This is down from $74.34 only two years ago. Alberta's forecast of a C$4.1bn deficit for the fiscal year 2025/26 is expected to lead to a decline in corporate profits and incomes. Alberta also projects budget deficits between C$7.6 and C$6.9 for 2027/28, and 2028/29. This would violate the provincial legislation that prohibits more than three consecutive years of deficit financing. The projected deficit for 2026/27 is also C$4.5 billion larger than what's allowed under provincial law. "We made these rules and I'm breaking them." Alberta Finance Minister Nate Horner said to reporters that it bothers him more than anyone else. The province will seek to amend its fiscal regulations going forward. Alberta's government stated that it would need a WTI oil price between $74-$77 per barrel in order to balance its budget for 2026/27. According to the province, its budgetary problems are also a result of rapid population growth in recent years. This has been greater than any other province in Canada. Reporting by Amanda Stephenson, Calgary; editing by Nik Williams
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MP Materials profits up in Q4 on US Government Price Support
MP Materials, a rare earths company, reported a profit in the fourth quarter, surpassing analysts' expectations. This was due to its "price support agreement" with the U.S. Government and sales of magnetic materials. Rare?earths is a group of 17 metals used to make magnets, which turn energy into motion. This industry is dominated primarily by China. The U.S. agreement with MP Materials for 2025 was intended to reduce China's dominance of the materials that are used in the manufacture of weapons, electric vehicles, and electronics. MP?Materials owns the only rare-earths mine in North America, and it processes these critical minerals in California. The company also has a magnet plant in Texas. MP Materials reported a net income of 9.4 million dollars, or 5 cents a share, for the quarter that ended December 31. This compares to a loss of 22.3 million dollars, or 14-cents a share, during a similar period last year. The?U.S. MP Materials was guaranteed a price floor for rare earths of $110 per kilogram by the U.S. government. Since then, prices have more than doubled. The U.S. Government's $51 million price protection agreement revenue helped the company achieve its results. The company's earnings per share were 9 cents, excluding stock-based compensation costs and one-time items. According to LSEG's?IBES, analysts had expected the company to break even on this measure. After-hours trading saw shares fall 2.9% to $58,25. Last year, MP stopped "shipping rare Earths" to China for processing, ending a major revenue source. It has since increased processing in California. MP Materials' Texas magnet facility has been online for the last year. The company reported $19.9 in magnetics revenue and $8.4 in adjusted magnetics profits during the third quarter. The?company said Thursday that it would also build a second facility to manufacture 10,000 tons of magnets per year as part of an agreement with the U.S. Department of Defense.
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US steps up to strengthen rules on nuclear Fusion Energy
The U.S. Nuclear Regulatory Commission released a draft regulation Thursday, which will help regulate fusion energy. It is an emerging technology whose?supporters hope it can one day generate electricity without generating long-lasting?radioactive _waste. Since decades, companies and scientists in laboratories around the globe have tried to use large magnets or lasers to promote continuous nuclear fusion reactions. In these reactions, light atoms are forced to combine to release enormous amounts of energy. The leaders of the fusion energy industry met with officials from the U.S. Department of Energy in December last year. Department of Energy officials in December last year to encourage them to fund billions of dollar for?projects that seek to generate electricity using the same process as the sun. Days later, Donald Trump's company announced that it was entering the fusion industry through a $6-billion merger with Google-backed TAE Technology. The Thursday's framework proposal?concerns such issues as the possession, production and use of byproducts associated with fusion including tritium, a radionuclide. The NRC stated that fusion machines produce tritium and neutrons as well as neutron activation product "that must be properly contained in order to protect public safety and health." The NRC has voted that fusion will be regulated in 2023 under a framework less strict than the current fission technology, which is used to generate radioactive nuclear waste, but lacks a permanent storage facility. This waste is currently stored at nuclear plants all over the country. The Fusion Industry Association said that the NRC’s action on Thursday was an important step towards clear regulations. It was currently reviewing the draft. Fusion supporters?want power to be generated for the grid by 2030, but the technology faces challenges. The short fusion reactions that scientists have so far achieved would need to be continuously repeated over a long period of time in order to produce reliable electricity. The fusion companies?also have to develop materials that can endure continuous neutron blasts over the long-term. The NRC is accepting comments until May 27. (Reporting and editing by Jamie Freed; Timothy Gardner)
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GRAINS-Soybeans reduce profit after 20-month high on demand expectations
U.S. soybean futures fell on Thursday, a dip in profit-taking after the?hopes? for more U.S. demand and Chinese imports drove prices to their highest level since mid-2024. Corn futures fell with soybeans, but recovered to close the day higher as recent optimism about demand was not dampened by a smaller-than-expected export sales total. Wheat gained after three sessions of losses. Chicago Board of Trade may soybeans finished down 1-1/2 cents to $11.53-1/2 per bushel, after the most-active contract reached its highest level in 20 months. Soyoil Futures rose for the fourth consecutive?day, and reached their highest level since September 2023. The news that the U.S. Environmental Protection Agency would send a proposal for new biofuel blend mandates to White House on Wednesday was positive for both markets. This move will help to end recent uncertainty about the demand for biofuels, and feedstocks such as soy. The report released on Thursday, which revealed that the U.S. Government plans to reallocate 50% of biofuel blending obligations exempted from small refinery exemptions to big refiners lent support. Dan Basse is the president of AgResource Co. He said: "If we had a reallocation 50% of SREs that would be important, and it would mean there will?be a greater biofuel demand." The market was on edge as questions about the?soybean imports from China, the top soybean importer, were raised amid tariff uncertainty. CBOT May Wheat settled at $5.74-1/2 per bushel, up 4-3/4 cents after retreating from the three-month high reached at the beginning of the week. May corn closed at $4.43 1/2 a bushel, up 1-1/2 cents. The contract fell from a 1-1/2-month early high after weekly U.S. statistics showed a decline in export sales The lowest level for seven weeks. (Naveen Thukral contributed additional reporting from Singapore and Gus Trompiz from Paris; editing by Subhranshu Sahu and Mark Potter, Philippa Faletcher, and Paul Simao.)
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Ecuadorean legislators pass a reform to encourage mining investment
The National Assembly of Ecuador approved on Thursday reforms proposed by President Daniel Noboa to boost the nation's mining sector. However, environmentalists and indigenous groups have criticized these reforms. Changes include modifications to the environmental permitting process, as part of an attempt to attract investment into an industry that is struggling to gain traction. Reforms were passed by 77 votes for, 70 votes against and 4 abstentions. The most important change is the replacement of the existing environmental license by a more comprehensive "environmental authorization" to allow mining. The approval could take one of three forms, depending on the risk involved: a full licence, an environmental register, or an "environmental certificate". Officials say that the latter two options are more streamlined for projects with lower impacts, and can eliminate administrative obstacles which have traditionally delayed investment. Officials say that the fuller license is still applicable to?higher-impact projects. The development of large-scale mining in Ecuador is being hampered due to opposition from local communities and legal issues. Fruta del norte and Mirador copper mines, both in operation since 2019, are the two largest operations currently. Reforms are also aimed at establishing a protected mining zone, which would place troops in areas that were threatened by illegal mining operations and criminal gangs. These changes will also formalize small-scale "artisanal" miners. Ecuador's Environment and Energy Minister Ines Mánzano has said that the country has identified approximately 400 illegal mining sites across the nation. Environmentalists and indigenous groups have criticised the reforms. They argue that the replacement of the environmental licence weakens the state's environmental?controls. They say that the changes may also weaken the right of 'communities to prior consultation. In a press statement issued before the vote, the indigenous group Ecuarunari stated that "they want to legislate for large transnational mining corporations and against the country. This is especially against the environment as well as the rights of the communities." The reforms include changes that will open up the electricity sector for private investment. Reporting by Alexandra Valencia, Brendan O'Boyle and Daina Beth Solon
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Miami Herald reports that US officials met Castro's grandson at St. Kitts.
The Miami Herald reported that U.S. officials close to Secretary of States Marco Rubio met with the grandson Raul Castro, former Cuban leader. This was on the sidelines of the Caribbean Community Conference in St. Kitts-Nevis this week. Miami Herald cited unnamed sources to say that it wasn't clear whether Rubio met Castro's grandson Raul Guillermo Rodrguez?Castro. He is Raul Castro’s bodyguard, and also the son of the late head of Cuba’s GAESA conglomerate. Raul Castro played? Key role Cuban socialistism and Cuba's 1959 revolution. He was the brother of Fidel and served as president of the ruling Communist Party from 2008 to 2018. Axios reported last week that Rubio was holding secret discussions with Castro's grandson. Citing an unnamed Trump Administration official, the talks were described as "discussions on the future" rather than negotiations. Requests for comment were not immediately answered by either the U.S. State Department or Cuba's Foreign Ministry. Rubio said that he wouldn't comment on the reported meetings that took place on Wednesday but that the U.S. is always willing to speak to "officials of any government who have information to share with us." Rubio stated that "if someone within their system had information they could share with us regarding changes they are willing to make?or steps they're ready to accept, we would listen to them." Cuban officials are scheduled to speak with the media on Thursday. Reporting by Harold Isaac, Port-au-Prince; Sarah Morland, Mexico City. Editing by
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Venezuela fuel station operators declare emergency on minimal earnings-document, sources
The Venezuelan association of petrol station operators has declared an emergency due to what the 'operators' claim are low earnings. Sources and a document seen in? showed. According to a letter sent to the government by the Fenegas Association, the association has asked the government to standardize prices across the country. The letter stated that "Up until now, we have not been able to find a path to solutions which allow us to continue to provide our services in a safe and profitable manner, and our efforts at the moment to be heard are fruitless." In Caracas, the government has launched a pilot project that will see'super-premium' gasoline sold for $1 per liter instead of $0.50 as it was in 2020. The government is subsidizing the price of gasoline at all other stations in Venezuela, including those supplied by PDVSA. Gas stations in Venezuela charge in bolivars, but some charge in dollars. Others are subsidized and charge the bolivar equivalent of only $0.02 per liter. Gas station operators claim that their margins, regardless of the currency they use, are extremely thin. Three sources close to Fenegas have said that stations earn only one cent per litre sold, making it impossible for them to pay basic costs and salaries. One source said that the federation had met with representatives of the government on Wednesday in order to discuss the?urgent?request. This source stated that if you sold 50,000 liters of gasoline per month, you would earn $500. These $500 won't cover salaries, taxes or anything else. Internet, water, electric, everything, and fixed costs of a radio station are about $800. A source in the industry said that some stations with dollar prices have seen a huge drop in sales. "There are Caracas stations that have gone from selling more than 36, 000 liters of fuel in a day to just 1,000 or 2,000 liters. Why? "Because Venezuelans' purchasing power is not sufficient to pay in dollar," they explained. The Venezuelan Communications Ministry, which is responsible for all government press inquiries, did not respond immediately to a comment request. Reporting by
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Helleniq Energy's core profit rises 10% in the full year adjusted
Helleniq Energy, the Greek oil refiner, reported on Thursday a '10% increase?in core profit for the full year, which was boosted by high refining margins and record marketing performances, as well as growing contributions from their expanding power and renewables businesses. The group reported a full-year adjusted profit before interest, tax, depreciation, and amortisation of 1.13 billion euro ($1.33 billion), up from a previous year's 1.03 billion euro. The refinery's?output was 15 million metric tonnes, a little lower than expected due to planned a?turnaround? at the Elefsina refining plant, but the volume of sales remained at 15.6 millions tons. Exports accounted for more that half of this total. The company noted that improved crude sourcing and stronger global refining margins following the launch the group's Geneva-based trading division supported profitability. Helleniq Energy reported that international operations now account for approximately 40% of the group's earnings. This reflects growth in overseas marketing which led to a record-breaking adjusted EBITDA (89 million euros). The board proposes a final dividend per share of 0.40 euros, which will bring the total payout for the year to 0.60 euros, up from last year's 0.45 euros and representing a dividend yield of 7%. $1 = 0.8481 Euros (Reporting and Editing by David Goodman).
Sources: Nippon Steel is considering a convertible bond issue of $3.2 billion, according to sources
According to two sources familiar with the matter, Nippon Steel, Japan's largest steel company, is considering the sale of up to?500 billion yen ($3.2billion) in convertible bonds. This would be a transaction of unprecedented size in Japan.
Sources said that the steelmaker was considering making a decision this month. They declined to name them as the information wasn't public.
Reporting the potential issuance for the first.
Nippon Steel stated in a press release that nothing had been decided.
Following the release of this report, the company's shares fell by 2%.
According to LSEG, at 500 billion yen the convertible bond issuance would be largest of its kind in Japan. One source said that the issuance amount could be reduced, or the plan could be re-evaluated.
Sources said that Nippon Steel prefers to issue the convertible bonds in order to avoid a capital raise which would result in immediate share dilution. Also, as domestic interest rates are rising, they can be issued as zero-coupon bond.
At a set price, convertible bonds can be turned into shares.
The steelmaker needs capital to expand its overseas business, including in the U.S.A. and India?and for decarbonisation efforts.
Sources?stated that the company needs long-term financing to replace a 2 trillion yen bridge loan taken out last year for its acquisition by U.S. Steel.
Steelmaker's performance has declined due to tariffs imposed by President Donald Trump on imports of steel and the competition from Chinese exports.
Sources also claim that the Japan?Bank of International Cooperation (JBIC) is looking at lending Nippon Steel funds totaling approximately 1 trillion yen (6.37 billion dollars).
JBIC stated in a press release that it would not be commenting on specific cases.
(source: Reuters)