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Utility Exelon's forecasts for 2025 profits are above estimates
Exelon, the U.S. utility, forecast a profit for this year that was above Wall Street expectations on Wednesday. The company expects to gain from higher electricity and gas rates. U.S. utilities are seeking to increase customer bills in order to fund infrastructure improvements. This is because the electrical grids of the United States are facing extreme weather conditions and a growing demand for electrification by industry and data centers. Exelon plans to invest an additional $38 billion over the next four-years, a 10% increase on its previous plan. Jeanne Jones, CFO, said: "With the growth of our capital plan in four years driven by investment requirements across our regions we continue to anticipate 5-7% annualized earnings growth through 2028." Exelon announced that several of its rate cases were approved by regulators, and went into effect in early this year. Rate case proceedings are used by regulated utilities to determine how much customers will pay for electricity or natural gas. According to LSEG data, the Chicago-based firm expects its 2025 adjusted operating profit to range from $2.64 to $2.74 a share. This compares to the analysts' average estimate, which was 2.63 a share. Exelon reported adjusted operating earnings per share of 64 cents for the fourth quarter ending December 31. This was above analysts' estimates of 59 cents. The shares of the company were up more than 1% before the bell. (Reporting and editing by Vijay Kishore in Bengaluru, and Shailesh Kuber)
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Maguire: The dawn of Turkey's nuclear age is crucial to its clean energy plans
The world's biggest nuclear power pipeline could help Europe, the top coal-fired polluter in Europe, boost its power output and reduce future emissions. Global Energy Monitor (GEM) reports that Turkey is developing 4,800 megawatts of nuclear power generation capacity, which is the world's third largest pipeline. There are currently no nuclear power plants in operation. Once fully operational, the plant will generate 10% of Turkey's electrical needs. The Russia-built facility, on the South Coast, has experienced numerous delays and costs overruns, raising questions about its likelihood of starting up in time for the four planned stages. The country is experiencing a rapid increase in demand for electricity, and any delay in nuclear operations could lead to an acceleration of coal-fired energy production. NUCLEAR PHASES AND SANCTIONS The first Akkuyu unit, built by the Russian State Atomic Energy Corporation Rosatom is expected to be online in this year. It has a nominal capacity of 1,200 MW. According to Akkuyu, the equipment start-up, testing, and pumping station of the pressurized Water Reactor's cooling system and pumping stations began in early January. The site also passed an independent safety examination in January. The remaining three 1,200 MW power units will be added annually in 2026-2027-2028 at an estimated cost of $20 billion. The remaining reactors can be completed on schedule, given the state of construction of the site. Rosatom reported that it was having difficulty obtaining certain parts due to the sanctions imposed on several Russian entities after Russia invaded Ukraine in 2022. The new administration of U.S. president Donald Trump could face further delays and difficulties in sourcing after the imposition by Trump of new sanctions against Russia. COAL CRUTCH While Turkey's first nuke plant is being finished, its power companies continue to run the fleet of coal-fired units, which provided around 35% the electricity in Turkey last year. According to the energy think tank Ember's report, its coal plants will generate a record of 121 terawatt-hours (TWh) in 2024. They will also emit a record of 114 million tonnes of carbon dioxide. This is the highest amount of CO2 emissions in Europe. According to Kpler, a ship tracking firm, Turkey imported around 26.5 millions metric tons (or roughly 55 million metric tonnes) of thermal coal in 2024. This was the eighth highest national import total worldwide. In Turkey, hydropower plants produced the second most electricity last year. This was around 75 TWh. Gas plants generated about 63 TWh. The volatility of gas and precipitation prices in recent years has stifled the growth in gas and hydro-fired power generation, forcing Turkey's energy firms to remain dependent on coal as the main source of power. CAPACITY CLUSTER According to Turkey's pipeline of power capacity, there is no "Plan B" in place for the Akkuyu Plant in the event that it starts late. According to GEM, the energy data organization, there is currently no new coal-fired power capacity under construction. Only 890 MW worth of gas-fired power is being built. Around 20 MW geothermal power, around 160 MW hydropower, and 250 MW solar capacity are also being built. The new additions to capacity will increase the clean energy share in Turkey's mix of capacity to 49.5%. This is up from the current 47% and reduce fossil fuels to 50.5%. The total capacity of non-nuclear power plants currently being constructed in Turkey is less that 30% of planned nuclear capacity. The lack of alternative capacity development is a sign that the country has confidence in bringing up the nuclear plants as soon as possible. The limited capacity to increase power production in Turkey without the new fleet of nuclear reactors also means that the power companies will be reliant on the fossil fuel plants they currently have until Turkey finally enters the nuclear age. The author is a market analyst at
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Ukrainian graphite mine hopes Trump deal but says returns won't come instantly
Ostap Kostyuk, the CEO of the 90-year-old Zavallivsky Graphite mine in central Ukraine, dreams of producing graphite that is pure enough to be used for lithium batteries. He compares this to trying to make a Rolls-Royce "inside a garage" due to the lack of investment. Kostyuk is sitting on Europe's largest deposit of graphite. He sees an opportunity, but admits that profits won't come fast for American investors. Kostyuk said that the challenges of extracting minerals from Ukraine are a long-term commitment. He showed me the vast facility in Kirovohrad, where he was standing in front of old heavy machinery, and every surface had a thin coating of graphite, which rubbed away when touched. The vast mineral wealth of Ukraine's undersoil is the core of the joint partnership pitch that President Volodymyr Zelenskiy made to Trump. He wants security guarantees in a deal ending the war. In response, Trump has said that he wants $500 Billion worth of Ukrainian resources. He sent his Treasury Secretary Scott Bessent this week to Kyiv in order to meet Zelenskiy. Mineral Wealth In an interview with Zelenskiy last week, he unfurled a list of Ukrainian minerals. These include lithium, graphite and titanium, all of which are essential for manufacturing high-performance magnets as well as electric motors and consumer electronic products. He stated that less than 20% (including about half of its rare earth deposits) were under Russian occupation, and emphasized the need to protect what is left. Industry experts warn that despite the trillions of dollars in mineral wealth Kyiv claims to have untapped, it may take many years before investors see significant returns from a sector still reeling from chronic underinvestment and war. Volodymyr Landa, senior economist at Centre for Economic Strategy said that it was crucial to know what the United States were interested in. Ksenia Orynchak is the head of Kyiv’s National Extractive Industries Association. She said that the mining industry has "stagnated", and there have been no inflows of funds for the nine years in which she worked. She said that at the State Service of Geology where she worked between 2017 and 2019, the government allocated only a few millions hryvnias for all of the organization's activities. At a time, simple geological exploration costs 2 billion hryvnias (48 million dollars). Orynchak also said that Ukraine's mineral resources have been classified since more than 20 years, which makes it impossible to accurately estimate what Ukraine has. MACHINERY FROM THE SOVIET ERA The Soviet-era Zavallivsky Complex, whose equipment had last been modernised in 1965 illustrates the magnitude of the challenge. The mine, though hundreds of miles away from the front line, has been in desperate need of resources ever since the full-scale Russian invasion in February 2022 prompted the Australian partner to withdraw its funding. Several of Kostyuk’s employees are either in the military, or have died fighting for Ukraine. He said that despite the setbacks his plant was already producing a product which could be purified later into battery-ready SPG (spherical spherical Graphite). Kostyuk said, "We're ready for this technology." His facility's ultimate goal is to produce its own SPG. The graphite reserves in Ukraine, which are used to make electric vehicles batteries and nuclear power reactors, account for 20% of the global resource. He said that his company is ready to supply U.S. consumers with natural flake graphite in order to establish a Ukrainian name on U.S. market, as well as to search for new deposits of the material in Ukraine. He added that new digging projects, whether they are for graphite or any other important minerals, could take between five and seven years to begin producing. Kostyuk says that his factory desperately needs to be upgraded, but his workers have the knowledge and skills to make a big leap if they are given the right resources. He said, "I believe in the factory and in these people." "Everyone here wants to be at work." ($1 = 41.8330 hryvnias). (Editing by Tom Balmforth, Alex Richardson and Tom Balmforth)
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Austria's voestalpine demands EU steel tariff countermeasures and talks with US
The Austrian steelmaker, voestalpine, called on Wednesday for the European Union to take immediate countermeasures as well as trade negotiations with the U.S. in response to the steel tariffs announced earlier this week by President Donald Trump. Herbert Eibensteiner, CEO of voestalpine, said in a recent press conference that the American tariffs would certainly affect trade flows. He added that this shift "would be evident" over the next few months. The comments echo those of Aperam in France, which called on Brussels on Tuesday to intervene and curb imports should the new U.S. Tariffs encourage companies to ship to the EU. Eibensteiner stated that he was not the only person who urged the European Union to respond to this announcement. He called on the executive of the bloc to begin discussions on how to handle future reciprocal deliveries between the U.S. and the EU. Trump raised steel and aluminum import tariffs by a substantial 25% on Monday, an action that was condemned by the EU and Canada. The EU announced on Tuesday that it will respond to the new tariffs with "firm countermeasures proportionate to their severity". Voestalpine announced a decline in its third-quarter earnings on Wednesday and reduced its profit forecast for the full year, due to a weak European automotive market. (Reporting and editing by Milla Nissi; Kirsti Knolle and Marleen Kaesebier)
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MSCI removes Adani Green Energy from the key global index and adds Hyundai Motor India
MSCI has added one Indian company to its Global Standard Index late Tuesday, the carmaker Hyundai Motor India. Adani Green Energy was removed as part of the index revision for February 2025. Changes will be implemented at the close of the market on 28th February. MSCI's previous index reconstitution, in November, added five Indian companies to the global index, increasing India's weightage in the indicator that tracks emerging market to almost 20%. Overnight, the MSCI India Domestic Smallcap Index was rebalanced to include 20 Indian stocks, including Ola Electric Mobility and Sundaram Clayton, as well as Zaggle Prepaid Ocean Services. The MSCI Smallcap Index was reduced by 17 stocks. According to IIFL Capital and Nuvama Alternative and Quantitative Research the MSCI rejig may lead to an inflow of passive funds between $850 million and $1 billion to Indian markets. According to IIFL Capital, the private lender IndusInd Bank which is already a part of global standard index saw its weight increase, which could result in an influx worth $258 millions. MSCI has added eight Chinese stocks and deleted 20 from the second largest economy in the world. As part of this review, 107 securities will be deleted and 23 added to the MSCI Global Standard Indexes. India's weighting in the MSCI Global Standard Index dropped to 19% from 19.8% after the most recent revisions. China's weightage increased from 26.8% to 27.1%.
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Barrick Gold announces new share purchase plans after beating profit expectations
Barrick Gold Canada beat analyst's expectations for the fourth quarter profit on Wednesday due to higher gold prices and production. According to LSEG, on an adjusted basis the second largest gold miner in the world posted a profit per share of 46 cents, compared with the estimated 41 cents, for the quarter ending December 31. The quarter's gold production was 1.08 million ounces compared to 1.05 million in the same period last year. This is due to the North America, Africa, and Middle East operations exceeding expectations. In 2024, gold prices increased by over 27%, the biggest annual increase since 2010. This was due to safe-haven demands, rate reductions, and central bank purchases. Barrick reported that its average realized gold price rose to $2.657 per ounce during the fourth quarter of last year from $1.986. The industry's total costs, or all-in-sustaining costs, a measure of expenses, increased to $1.451 per ounce during the third quarter from $1.364 per an ounce a year ago. The company announced that it would be launching a new $1 billion share-buyback program, which will replace its previous program in place since February 14, 2024. (Reporting from Seher Dareen, Bengaluru. Editing by Maju Sam)
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Aluminium loses ground as copper gains on the back of tighter supply
On Wednesday, copper prices rose on tighter supply. Aluminium prices fell on profit-taking as well as concerns about the impact U.S. Tariffs will have on demand. By 1050 GMT the three-month contract for copper on London Metal Exchange (LME), which had reached its highest level in three months Monday, was up by 0.4% to $9,392 per metric tonne. Nitesh Sha, commodity strategist with WisdomTree, said: "What's clear is that metal markets are tightening. Copper supplies do not seem to be as abundant as they were back in 2024." The treatment charges (TC), which are the fees that miners pay to smelters in order to convert raw materials into metals, have declined, indicating an absence of material. A media report stating that Chinese authorities were exploring a plan for helping property giant Vanke fill a funding hole also helped the overall metals market. Metals prices have been affected by the ailing property market in China, the world's largest metal consumer. LME aluminum fell 1%, to $2,618 per ton, as investors liquidated long or bullish positions, amid uncertainty about the 25% tariffs President Donald Trump announced last week on imports of steel and aluminium, which are due to go into effect on March 12th. LME aluminium reached a three-week peak on Monday after tariffs were announced. Marex, a broker, said that the majority of the selling took place in China. Position reports showed the net long at the Shanghai Futures Exchange fell from 12,900 lots on Tuesday to 9,000. SHFE's aluminium production was down by 0.5% to 20,575 Yuan per ton. It's a tricky time. Shah said that it was difficult to predict whether or not these tariffs would be implemented and, if so, what impact they would have on demand. Zinc rose 1.8% to 2,871, while lead rose 0.6% to 1,991, and tin increased 0.9% to 31,435 dollars. Nickel fell 0.9% to 15,395. (1 Chinese Yuan Renminbi = 7.3088 Chinese Yuan) (Reporting and editing by Kirby Donovan; Eric Onstad)
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Trump prepares reciprocal tariffs amid trade war fears
Donald Trump's advisers on trade were finalising plans for the reciprocal duties that the U.S. President has promised to impose against every country which charges duties on U.S. imported goods, raising fears of an expanding global trade war. Separately the trade ministers from the 27 countries of the European Union are due to meet by video conference to decide their response to the European Commission President Ursula von der Leyen's statement that tariffs against the EU "will not be ignored". Trump shocked the markets on Monday with his decision to impose tariffs starting March 12 on all imports of steel and aluminum. Mexico, Canada, and the European Union condemned the plans, while Japan, Australia, and other countries said they wanted exemptions. Industries that depend on imports of steel and aluminum scrambled to reduce the expected cost increase. Trump announced last week that he would impose an additional 10% tariff for Chinese goods starting February 4. Chinese countermeasures will be implemented this week. He delayed the 25% tariff on goods coming from Mexico and Canada by a month, until March 4, to allow for negotiations about steps to secure U.S. border security and stop the flow of fentanyl. Many U.S. workers have welcomed the metal tariffs imposed on Monday, but manufacturing-heavy companies are deeply concerned about the next steps. They warn that the tariff increase will reverberate throughout supply chains and affect all businesses who rely upon the materials. Ahold Delhaize, a supermarket chain, and Siemens Energy have warned that tariffs will lead to higher prices because they want to pass on additional costs from imports. Steelmakers in Europe are also concerned that U.S. Tariffs could lead to an influx of cheap steel into Europe. French steelmaker Aperam If that happens, Brussels will intervene and curb imports. Austria's specialty steelmaker voestalpine Call us today to learn more about our services. On the EU to immediately take countermeasures Australia's Industry Minister meanwhile stated that the U.S. Tariffs will not derail Australia's plan to increase "green" aluminum exports. Ed Husic: "The world is in high demand for aluminium. We need it to transition to net zero." Reporters at the National Press Club, Canberra. "Our American friends, do you want to pay more money for this product you have a high demand for?" MONUMENTAL UNDERTAKING White House officials are being tight-lipped regarding the timing or structure of the next tariffs. One source has said that the announcement could come later this week. Trump announced on Monday that he will announce reciprocal tariffs within the next two business days for all countries who impose duties on U.S. products. He also said he is looking into separate tariffs for cars, semiconductors, and pharmaceuticals. Experts in trade say that structuring the reciprocal duties Trump wants presents big challenges to his team. This may explain why the latest tariffs were not announced Tuesday. William Reinsch said Trump officials can choose between a simple 10% or 20% flat tariff rate or a messier option that requires separate tariff schedules that match U.S. rates to those of other countries. A source who tracks the work on tariffs reported that details are still being worked out as late as Tuesday. Damon Pike is a principal and trade specialist with BDO International's U.S. division. He said that the reciprocal tariffs Trump envisaged would be a massive undertaking given that the 186 member countries of the World Customs Organization have different duty rates. "At an international level, you'll find 5,000 different product subheadings at the 6-digit level. That's 5,000 times 186 countries. "It's like an artificial intelligence project," said he. Trump could also use the International Emergency Economic Powers Act to justify tariffs on China, and those pending against Canada and Mexico. Pike added that, without IEEPA's help, it would take some sort of agency action before trade remedies could be imposed. "But everything seems to move quickly," he said. Reinsch stated that imposing reciprocal tariffs also ceded the control of U.S. tariff rates to other countries. "For instance, if Colombia had a high coffee tariff to protect their industry, we'd put a similar high tariff on Colombian Coffee, even though we do not grow coffee. "The only ones who would suffer are the U.S. consumer," he said.
Vitol CEO: European LNG prices have reached levels that will affect demand
The European price of liquefied gas (LNG), currently trading at a premium compared to Asia, is reaching levels which will begin to hurt demand, said the CEO of global energy and commodities firm Vitol on Wednesday.
"Europe is attracting more LNG, and the European price now exceeds the Asian price." Russell Hardy, speaking at the India Energy Week in New Delhi, said that it is usually the other way around.
The higher European prices and lower temperatures have led to a greater demand for LNG in the region.
Hardy stated that Europe will have sufficient gas to replenish its gas stocks, but added government intervention would be necessary to ensure adequate winter LNG supplies.
"We have a very unique situation, where the market for gas is in reverse going into the summer. So the price is higher for the summer than the price of January next year." "That's counter-intuitive for a market based on winter," he said. As Europe's demand in winter is usually higher than that of summer.
"So, you have this imbalance. The European Union is concerned with winter supply. Keeping people warm is also a priority. There's a worry today that this won't be possible without some force. This instruction is being developed in the EU, and will likely come with incentives, subsidies or negative-priced storage."
Gas Infrastructure Europe reported that Europe's gas storage tanks are 48.48% filled, compared to 67% last year.
Hardy said that while global LNG supply is "tight" at the moment, he doesn't expect any new policies from the top-producing country of the United States will change the global LNG supply balance. He added that 200 million new tons of LNG will be available on the market in the period 2028-2031.
He said that the U.S. policy changes may not have a major impact on the balance of the United States by 2030, but could affect it in the next 10 years. (Reporting and writing by Emily Chow, New Delhi; editing by Himani Sarkar & Kim Coghill).
(source: Reuters)