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Duke Energy's electricity rates beat quarterly estimates
Duke Energy beat Wall Street's expectations on Tuesday for revenue and profit in the first quarter, thanks to higher electricity prices, increased retail sales, and a colder Winter. U.S. utilities are arguing for higher electricity bills, as the power consumption surges due to the growth of AI data centers and increased manufacturing in the United States. According to the U.S. Energy Information Administration (EIA), the U.S. power demand is expected to reach record levels in 2025 and in 2026. This will be largely due to the expansion of Big Tech's data centers. After years of stagnation, the U.S. Nuclear industry has also become popular as businesses look for clean energy sources to power data centers. Duke said that it had signed letters of agreement on projects totaling 1 gigawatts for data centers last month. Duke Energy is focusing on upgrading its existing infrastructure and building new power plants to meet the growing demand. Brian Savoy, Duke's Chief Financial Officer (CFO), said that these investments were very cost-effective. Duke Energy will create 1 gigawatt in capacity over the next few years through upgrades and the extension of the lives of nuclear power stations. The U.S. Nuclear Regulatory Commission renewed Duke Energy's Oconee Nuclear Station operating licenses by 20 years in late March. Duke Energy's nuclear plants will provide more than half of their electricity to customers in the Carolinas by 2024. These plants represented over 96% the company's clean power production. A colder-than-expected-winter also helped the utility as customers needed more electricity and natural gas to heat their homes. The adjusted earnings for its electric utilities segment in the first quarter were $1.28 billion compared to $1.02 billion at the same time last year. Gas utilities posted a profit adjusted of $349 millions in the first quarter compared to $284 million one year ago. LSEG data shows that the quarter's revenue came in at $8.25billion, exceeding analysts' estimates of $8.06billion. Charlotte, North Carolina based company reported an adjusted profit per share of $1.76 for the three-month period ended March 31 compared to analysts' average estimates of $1.60. Reporting by Pooja menon in Bengaluru, and Laila kearney in New York. Editing by Sahal muhammed and Nick Zieminski.
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Saudi Arabia, US to discuss deal in mining, mineral resources, cabinet says
Saudi Arabia will discuss with the United States a possible agreement on cooperation in the areas of mining and minerals, according to a Saudi cabinet statement released by the state news agency. The Saudi cabinet did not give any details about the "memorandum" which would be negotiated between the Saudi Ministry of Industry and Mineral Resources and United States Department of Energy, according to the statement. The statement is made ahead of the visit to Saudi Arabia by U.S. president Donald Trump next week. Saudi Arabia is rapidly expanding its mining industry as part of Vision 2030, its economic diversification plan, which aims at weaning the economy away from oil. Gold, phosphate and bauxite are its primary resources. Saudi officials also doubled the estimate of the kingdom's mineral reserves last year, mostly due to rare earths. Reports in April indicated that Saudi Arabia's largest mining company Ma'aden was considering forming a rare-earths processing partnership with at least one foreign firm, including a U.S. firm. Ma'aden has been weighing a possible partnership with the U.S. based MP Materials or China's Shenghe Resources. Australia's Lynas rare earths and Canada's Neo Performance Materials are also being considered, according to sources. Saudi Arabia also increased its international mining presence by launching Manara Minerals, a joint venture with Ma'aden. The joint venture will invest in mining assets overseas. Manara's major international venture was to become a shareholder of Vale Base Metals, a $26 billion copper-nickel spinoff company.
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Conab raises its forecast for Brazil's crop of coffee, seeing an 'off-year record'
Conab, the national food agency, said that Brazil's total coffee production in 2025 is expected to reach 55.7 million 60-kilogram bag. Citing a recovery in robusta production, Conab increased its forecast by 7.5% over its January estimate. Conab stated that the new forecast was also 2.7% more than the 2024 crop. This represents an all-time record for the total output of coffee during an "off year" in the bi-annual arabica cycle which alternates years with higher and lower production. Conab stated that the higher forecast was mainly due a recovery of conilon crops - a robusta coffee variety. The statement stated that the good estimate of the total harvest was influenced mainly by the 28,3% recovery in average yields for Conilon crops. It added that robusta production is expected to rise 27,9% on an annual basis to a record 18,7 million bags. Conab stated that "this result is due to the consistent climate during the most crucial phases of the crops which has benefited positive blooming and a large quantity of fruits per cluster." In 2023, when Arabica was in its previous low year, total production should be 1.1% greater than it is today. Conab anticipates that yields will be higher by 4.1% this year than they were in 2024, at 30 bags/hectare. This is also higher than the 28 bags/hectare Conab projected in January. The area of production, however, is expected to grow 0.8%, to 2,25 million hectares (8.687 square miles). The agency reported that the production of Arabica coffee is expected to be 37 million bags. This represents a 6.6% decline from the previous crop, but it's still well above the initial estimate for this year (34.7 million). Reporting by Leticia Ficuchima and Isabel Teles, Additional reporting by Oliver Griffin and Editing by Gabriel Araujo Mark Porter and Margueritachoy
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Euronext rebrands ESG to aid European defense firms
Euronext, the European exchange operator, announced on Tuesday a number of measures designed to encourage investment in the defence industry. These include helping companies list their shares on stock markets or launch new bonds more quickly. The move comes after a push by the Trump administration to reduce the reliance on U.S. weapons and increase investment in the sector. Stephane Boujnah, CEO and Chairman of Euronext, said that the company was responding to "a new geopolitical system" by renaming ESG, which is an acronym for Environmental, Social and Government-driven investments, as Energy, Security and Geostrategy. Euronext released a statement saying that "European aerospace companies and defence firms have expressed an urgent need to heavily invest in their innovation, production and capacity to guarantee Europe's autonomy strategic for the next decade." Euronext announced that it would review the ESG indexes' methodologies to reduce the current exclusions of defence companies. According to the company, in line with its regulatory guidelines, "Euronext encourages ESG rating agencies" to limit their concept of controversial weapons to only those activities that are prohibited by relevant international agreements. The exchange reiterated its plans to launch a new set of indexes focusing on energy, geostrategy and security, which were unveiled in march. Indexes can be used to measure the performance of different market segments. Indexes can be used to create funds. ANALYSTS ARE SCEPTICAL Euronext announced that it will also support initial public offerings in the sector via its new IPOready Defence program, which is set to launch in the third quarter and receive funding from the European Union. Thyssenkrupp is currently in the process to spin off and separately list its warship division TKMS. It said that it would analyze the potential impact of the initiative. The report stated that "the geopolitical environment requires decisive actions to strengthen military readiness in Germany and Europe." There were very few details about the steps that would be taken to encourage more companies to go public, and some analysts were skeptical. Reg Watson, an ING analyst, said that while promoting defence IPOs was helpful, at the end of day the market is what determines whether IPOs are successful or not. Boujnah, during a conference call with journalists, said that Euronext can now reduce the time required to list European defense bonds to only two days. The announcements made on Tuesday are part of a larger geopolitical shift, as Europe tries to increase its military spending following the statement by U.S. president Donald Trump that Europe must be more responsible for its security. In March, Ursula von der Leyen, President of the European Commission, said that the EU can mobilize up 800 billion Euros ($906 billions) to boost its defence industry. European asset managers are reassessing the policies they have on defence investments as politicians and clients pressure them to relax restrictions and fund the race to arm. Euronext operates exchanges at Amsterdam, Brussels Dublin, Lisbon, Milano, Oslo, and Paris.
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Constellation Energy's first-quarter earnings misses estimates due to rising costs
Constellation Energy, the largest U.S. energy company, missed Wall Street's expectations on first-quarter profits. The major U.S. utility was hit by rising costs for building and operating its electricity infrastructure. Interest rates that are higher for longer can increase the cost of utilities and make it more costly to invest in electrical grid infrastructure. The net income of the company fell by around 87% compared to a year ago, and was $118 million for the quarter reported. Constellation Energy reported that interest expenses increased by nearly 15% compared to a year ago, to $146 millions in the quarter January-March. Total operating expenses increased by 18.5% to reach $6.34 billion. Company executives say that inflation is driving costs up. Constellation CEO Joseph Dominguez stated on a earnings call that "it's obvious that we're playing a new game in terms of cost." Dominguez stated that certain natural gas plant constructions, for instance, had tripled their cost in some cases over the past decade. Constellation Energy said it expects the U.S. Tariff to have a 1-2% impact on its capex plan for 2025-2026. This includes fuel. Constellation continued to move forward with its power deals for data centers. This included the reopening the former Three Mile Island Nuclear Reactor and the $16.4 billion purchase of Calpine, a privately owned natural gas and geothermal energy company. Constellation shares recovered in early trading, rising by about 6% after a drop of nearly 5% during premarket trade. Constellation executives stated that the company is on track to complete the deal by the end the year, despite the fact that the Calpine acquisition has been met with opposition from consumer groups based in the Mid-Atlantic region. Last month, it defended the planned acquisition of Calpine before regulators. According to data compiled and analyzed by LSEG, the Baltimore-based utility posted a profit adjusted of $2.14 for the three-month period ended March 31. This was below analysts' expectations of $2.22. Reporting by Katha and Sumit in Bengaluru; Laila Kearney, in New York. Editing by Krishna Chandra Eluri.
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WEC Energy reports higher first-quarter profits on strong demand for power
WEC Energy announced a 16.4% increase in its first-quarter profits on Tuesday, thanks to increased electricity consumption from residential, commercial and industrial customers. According to the U.S. Energy Information Administration, power consumption will reach new highs by 2025 and 26. This is due to AI, data centers, and residential and commercial consumers. WEC Energy’s natural gas deliveries to Wisconsin, excluding the natgas for power generation, increased by 15.5% during the first quarter. We Power and Wisconsin Public Service are the company's natural gas units. WEC Energy reported that residential power consumption increased by 5.5%, and retail sales rose by almost 3%. LSEG data shows that the company's operating revenue for the first quarter rose by 17.5%, to $3.15 Billion, compared to analysts' expectations of $2.82 Billion. WEC Energy's operating costs increased 18.5%, to $2.21 Billion. Interest expenses rose 16.1%. The company that provides electricity and natural gas to almost 4.7 million customers across Wisconsin, Illinois Michigan and Minnesota has reaffirmed their annual profit forecast. WEC Energy, based in Milwaukee, increased its net income to $724.2 millions, or $2.27 a share, during the first quarter of this year, up from $622.3, or $1.97 a share, one year ago. (Reporting and editing by Shounak dasgupta in Bengaluru)
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Constellation Energy's operating costs increase causes Constellation Energy to miss its first-quarter profit estimate
Constellation Energy, a U.S. utility, missed Wall Street's expectations for the first quarter profit on Tuesday. Higher operating and interest costs pushed its shares lower by nearly 5% during premarket trading. The net income of the company fell by around 87% compared to a year ago, and was $118 million for the quarter reported. The higher interest rates for longer can be a burden on utilities, as they make it more expensive to invest in critical infrastructure like electrical grids. Constellation Energy reported that interest expenses increased nearly 15% compared to a year ago, to $146 millions in the quarter January-March. Total operating expenses increased 18.5%, to $6.34 Billion. The company said that its $16.4 billion purchase of privately-held natural gas and geothermal company Calpine – a deal that was met with opposition from consumer groups – is on track to be finished by the end the year. Last month, the utility had explained to regulators its plan to acquire Calpine. According to LSEG, the Baltimore-based utility posted a profit adjusted of $2.14 for the three months ending March 31. This was below analysts' expectations of $2.22. (Reporting and editing by Krishna Chandra Eluri in Bengaluru, Katha Kalia, Sumit Saha)
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American Electric Power exceeds profit expectations, expects minimal tariff impacts
American Electric Power, which has benefited from increased demand from commercial clients, beat Wall Street expectations for its first-quarter profits on Tuesday. It also said that tariffs will have a minimal impact on the long-term plan of spending. Massive investments by Big Tech in artificial intelligence and infrastructure related to it have led to a surge of demand for electricity, which has encouraged energy producers' investments. AEP announced in February that it would increase its $54 billion capital plan to $10 billion due to the demand for data centres in the Midwest and Southern service areas of AEP. Bill Fehrman, CEO of GE Energy, said that capital investments were essential to improving reliability and customer service as well as meeting the new 20 gigawatts in power demand expected by the end decade. We have calculated that the direct tariff impact on our capital plan of $54 billion is very minimal, at around 0.3%. The U.S. Energy Information Administration said in April that the U.S. electricity consumption would reach new records in 2025 and 20,26. Demand for power will rise to 4,201 billion Kilowatt Hours (kWh) by this year. AEP reported that commercial load increased 12.3% during the quarter. Operating earnings for its vertically integrated utilities division were $349.9 millions, up from $300.3 million the year before. Transmission and Distribution utilities reported an operating profit of $192.3 millions, up from $150.3 million. AEP provides service to 5.6 million customers across 11 states, including Texas and Ohio. It has the largest transmission system of electric power in the U.S. The utility has reaffirmed their annual adjusted earnings per share forecast between $5.75 and $5.95. According to data compiled and analyzed by LSEG, the Colombus-based Ohio company reported an adjusted profit per share of $1.54 for the three-month period ended March 31. This was higher than analysts' estimates of $1.40.
Marathon Petroleum, a top US refiner, suffers a quarterly loss due to lower margins
Marathon Petroleum reported a loss for the first quarter. The company is the latest U.S. refining firm to be hit by reduced margins in a period of increased maintenance and turnaround activities across the industry.
The company reported that the results represented the second largest planned maintenance quarter of its history.
The Findlay-based company reported a refining margin of $13.38 per bar in the first quarter. This compares to $19.35 in 2024.
Turnaround activity, also known as planned maintenance, is usually performed by refineries in the first quarter of the year to prepare them for the increased demand during summer driving season.
The scheduled downtime limits the refineries' utilization, which in turn affects their ability to maximize margins. It also impacts quarterly performance.
U.S. refinery margins as measured by the 3-2-1 Crack Spread
Rivals Phillips 66, Valero Energy and HF Sinclair reported losses as well.
Marathon CEO Maryann Manen stated in a press release that "we are well positioned to meet the summer demand, as seasonal trends will improve margins. We remain optimistic about its long-term prospects."
Marathon, the largest U.S. refiner in terms of volume, reported that its crude capacity was utilized at 89% during the third quarter, which resulted in a total throughput 2.8 million barrels a day (bpd), up from 2.7 million bpd one year ago.
The company anticipates a total refinery output of 2.9 millions bpd in the second quarter.
The company's net loss for the quarter ended March was $74m, or 24c per share. This compares to a profit in the previous year of $937m, or $2.58/share.
According to data compiled by LSEG, analysts had on average expected a loss per share of 53 cents. (Reporting by Arunima Kumar in Bengaluru; Editing by Sriraj Kalluvila)
(source: Reuters)