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Southern Co exceeds its quarterly profit forecasts as US demand for power soars
U.S. utility Southern Co surpassed Wall Street expectations for third-quarter profits on Thursday, thanks to a surge in demand for electricity by businesses. Kilowatt-hours sold in the commercial sector grew 2.3% from the previous year's third quarter, while in the industrial sector they increased 1.5%. The extreme heat of the summer months increased the use of air conditioners, refrigerators and data centers in factories and offices. Businesses rushing to adopt artificial-intelligence technology also drove demand for power-hungry servers. In three years' time, data centers may consume up to 12% of the nation's production, which is nearly triple its current share. Electric utilities made $1.92 billion during the third quarter of 2018, up from $1.62billion a year ago The CEO Chris Womack stated that the results highlighted "momentum surrounding electric demand growth opportunities". Southern Co is the second largest utility in the United States, with 9 million customers. It serves the states of Alabama Georgia Illinois Mississippi Tennessee and Virginia. The company's operating revenues increased 7.5% for the quarter to $7.82 Billion. According to LSEG, the Atlanta-based company reported an adjusted profit per share of $1.60 for the three months ending September 30. This was compared to analysts' expectations of $1.51, according LSEG data. Sumit Saha, Bengaluru. Devika Syamnath, editing.
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Hurricane Melissa slams Caribbean and accelerates towards Bermuda
Hurricane Melissa, which swept through the Caribbean on Thursday and was seen gaining speed as it moved across open water towards Bermuda, left a path of destruction and high winds from Jamaica to Cuba. As the storm passed, people in the Bahamas and Turks and Caicos were slammed with rain and dangerous winds. Bermudans, located around 600 miles (970km) northeast of the last position of the storm, prepared for the expected evening arrival. Authorities in the region are struggling to keep up with the devastation. They have confirmed 25 deaths, 10 of which were children, in Haiti and four in Jamaica. According to the U.S. National Hurricane Center at 1200 GMT, Melissa had winds close to 105 mph (165 kph) and was downgraded to a Category 2. WALKING BAREFOOT IN MUD The Florida-based forecaster predicted that it would continue to accelerate northeastward, and "pass northwest of Bermuda" on Thursday before likely weakening Friday. Bermuda will, among other things, close its causeway Thursday night as well as all schools and ferry services on Friday. This is "out of a sense of abundance of caution," said National Security Minister Michael Weeks in a press release. He said: "I urge all residents to be vigilant as we face another natural threat to the way of our lives." He added that people should stay off the roads and check on their neighbors until further notice. Melissa, the strongest hurricane to ever directly strike Jamaica, struck the island on Tuesday. It had sustained winds of over 185 mph - far exceeding the minimum strength required for a hurricane classified as Category 5. Alfred Hines, aged 77, described how he narrowly escaped the floodwaters in a Montego Bay neighbourhood. He waded through thick mud with his bare feet. He said on Wednesday, "I saw the water around my neck and then (after) 10 minutes, I saw it at my waist. I made my escape." I just want it to be over and for things to return to normal. Kingston, the capital city of Jamaica, was spared from the worst damages and its airport is set to reopen Thursday. The U.S. forecaster AccuWeather estimates that Melissa will cost up to $22 billion dollars in economic losses and damages. Rebuilding could take 10 years or longer. The front page of the Jamaica Observer on Thursday read "DEVASTATION". EVACUATIONS & FLOODS AccuWeather reported that Melissa was the Caribbean’s third most intense hurricane recorded, and its slowest moving, making it particularly destructive. As the storm approached the Bahamas, the government evacuated nearly 1,500 people in one of the largest evacuations it has ever conducted. Video showed Wednesday that high winds tore up palm trees at a resort in the vicinity of George Town and created waves. The hurricane did not hit Haiti directly, but it pounded the Caribbean nation with rain for days. Authorities reported that at least 25 people died, mostly due to flooding in Petit-Goave. This coastal town is 64 km west from the capital, where a river burst it's banks. Haiti's disaster agency reported that at least 12 people were missing and 10 children had died. More than 1,000 homes in Haiti have been submerged and more than 12,000 people have moved to emergency shelters. According to initial media reports, Cubans in at least 241 isolated communities were still without communication on Wednesday after the storm passed through Santiago province. This affected up to 140,000 people. As the storm approached, authorities in eastern Cuba evacuated approximately 735,000 residents. Scientists claim that hurricanes are becoming more intense and occurring with greater frequency due to the warming of ocean water caused by greenhouse gas emission. Many Caribbean leaders are calling on heavily polluting nations to offer reparations, either in the form or aid. Reporting by Sarah Morland, Brendan O'Boyle, Steven Aristil, Herbert Villarraga, Dave Sherwood, Zahra Burton, and Maria Alejandra Cardona from Mexico City; writing by Andrew Heavens and editing by Timothy Heritage.
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Vulcan Materials posts quarterly results above estimates on strong construction demand
Vulcan Materials, the U.S. construction materials giant, reported quarterly profits and revenues above Wall Street expectations on Thursday. This was fueled by a resilient demand for concrete, asphalt, and other building aggregates. The company said that favorable weather conditions in most of its markets and strong public construction activities helped it boost aggregate shipments 12% during the third quarter. As we look ahead to 2026 ,...we anticipate continued strength in the public construction sector and an improved private non-residential outlook. This combination should also benefit a healthy pricing environment, said CEO Tom Hill. LSEG data shows that the company expects its 2025 adjusted EBITDA range to be between $2,35 billion and $2,45 billion. This is compared to analysts' estimates of $2,43 billion. Vulcan announced a third-quarter adjusted net profit of $2.84 a share, which was above the analysts' estimate of $2.72. The country's largest producer in construction aggregates reported a gross profit of 612,1 million dollars, an increase of about 23% compared to a year ago. The company reported $2.29 billion revenue for the third quarter ending September 30, exceeding estimates of $2.27. Reporting by Abhinav Paramar in Bengaluru
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Exclusive -State Street removes US Fund arm from climate group
State Street, third largest asset manager in the world, announced that it will withdraw the majority of its operations from the main global climate alliance of the sector, despite its efforts to retain its members by relaxing the rules. State Street's spokesperson did not give a reason for its decision to withdraw its U.S. division from the Net Zero Asset Managers program, but said that the European units would continue to be part of the State Street group. State Street's spokesperson stated that they were "determined to redefine our membership to NZAM in order to support our clients who have net-zero investment goals and objectives". State Street Investment Management's decision, which involves $5.4 trillion of assets, coincides with other major U.S. funds evaluating their memberships in light of rule changes. This is in response to political pressure from the United States and in advance of climate talks in Brazil. NZAM HAS CHANGED THE STATEMENT OF ITS MEMBERSHIP CONDITIONS NZAM was launched five years ago with the aim of addressing financial risks associated with climate change, and providing a platform for collective actions. However, critics have accused it of possible antitrust violations. Vanguard, followed by BlackRock as the industry leader, left the group. This prompted NZAM's review of their activities which culminated on Wednesday with confirmation that membership rules will be relaxed. JPMorgan’s fund division also left the group back in March. NZAM no longer requires members to achieve net-zero emissions portfolio by the mid-century or to set interim goals. Members will be asked to do simpler things, such as providing information on climate risk to clients. State Street refused to discuss the new rules or specify what percentage of assets would be covered by NZAM membership. Other firms that assess membership State Street stated that its EU and UK subsidiaries remain "subjected to our fiduciary duty to our clients", and added that its business "remains at all times independent in investment decisions". The language could be used to counter claims made in Texas, where the Republican Attorney General of Texas has sued State Street BlackRock and Vanguard for their climate records and cited NZAM membership as proof that they have engaged in improper collective behavior. A judge in August allowed the majority of claims to proceed. Maria Elena Drew said that T. Rowe Price, the Global Head of Sustainability at T. Rowe Price, would be reviewing whether it remained a signatory after a period of three months evaluation by NZAM. She said: "Whether or not we do, we are committed to making investment decisions and stewardship with an understanding all material risks, opportunities, and those related to climate and environment," Wellington Management sent an email to say that they were currently reviewing the NZAM commitment. We maintain that we believe material ESG factors, such as climate considerations can impact the long-term value and profitability of assets in which we invest. It is therefore in the best interests of our clients for us to analyse them. (Editing by Kirsten Doovan)
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Quanta raises its annual revenue forecast due to strong US demand
Quanta Services beat expectations for the third quarter results and raised its revenue forecast on Thursday. Growing power needs in the U.S. drove the energy contractor’s electric and renewables businesses. The company, which provides infrastructure services to the utility, renewable energy and technology industries, as well as communications, pipelines and energy, benefits from the surge in power demand for data centers, as well as from aging power grids and electrification, as it also benefits from onshoring manufacturing in America. It raised its revenue forecast from $27.4 to $27.9 Billion to between $27.8 and $28.2 Billion, citing an acceleration in demand for the larger electric segment. According to LSEG, the Houston-based company reported a quarterly adjusted profit per share of $3.33, compared to analysts' estimates of $3.26, LSEG data shows. The revenue for the third quarter ended in September rose 17.5%, to $7.63billion, as compared to estimates of $7.39billion. Quanta's adjusted profit forecast was reduced to between $10.33 to $10.83 per common share from its previous view of $10.28 - $10.88, while maintaining the midpoint at $10.58, which is in line with its estimates. (Reporting from Aatreyee dasgupta, Bengaluru. Editing by Sahal Muhammad)
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India claims that companies are licensed to import rare-earth magnets from China
India's Foreign Ministry announced on Thursday that Indian companies had received licenses to import rare earth magnets. This signals a relaxation of Beijing's export controls. China has become more powerful in its trade wars with the U.S. because of rare earths. Rare earths are a grouping of 17 elements which play an important role in planes, cars and weapons. Randhir Jaiswal, spokesperson for the Indian foreign ministry, announced the licensing decision at a press briefing. He did not give details about the companies who received approval or the number of licenses granted. China is the only country that has a near-absolute control over the technology used to convert rare earth minerals into magnets. In an effort to strengthen its geopolitical power, Beijing has restricted the exports of these materials, including to India. China had a busy day earlier in the morning Delay is acceptable The introduction of the latest round of export controls on rare earths is part of a deal reached between U.S. president Donald Trump and Chinese leader Xi Jinping. However, previous restrictions are still in place. Beijing has significantly increased its Export controls on rare earths This month, the list of controls was expanded to include five elements new and dozens of technologies for refining. These rules require that foreign producers who use Chinese materials comply with China's system of export control. China announced new export restrictions on industrial diamonds and electric battery equipment on October 9. Battery-related restrictions caused a global rush of customers. Reliance Industries in India, for example, has been urged to speed up shipments by the deadline of early November. China's export restrictions on rare earths has highlighted the dangers of being dependent on a single supplier. The April curbs caused shortages which threatened to disrupt the global auto production. (Reporting and editing by Sudipto Ganuly and Ed Osmond; reporting by Shivam Patel, Surbhi misra)
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PBF Energy posts smaller-than-expected loss as refining margins improve
PBF Energy posted a smaller-than-expected quarterly loss on Thursday, as higher margins helped the U.S. refiner offset downtime at its fire-hit Martinez refinery in California. The U.S. refinery margins are up from multi-year-lows. They have recovered from last year's slump, when profits dropped from their post-pandemic peaks and supply shocks caused by Russia's invasion in Ukraine 2022 faded. Valero Energy, Phillips 66 and other rival refiners also reported positive quarterly results. PBF Energy’s gross refining profit, excluding special items and other costs, was $9 per barrel during the third quarter of 2016, compared to $6.79 per barrel a year earlier. The company's crude and feedstocks output fell from 935.600 barrels per day to 871,000 bpd in the quarter reported, down from 935.600 bpd one year ago. After a fire in February, the company has said that operations at its Martinez refinery remain limited. During the limited period of operation, the total throughput of the 157,000 barrel per day refinery is expected to range between 85,000 and 105,000 barrels. PBF Energy anticipates resuming full operation by the end of the year, depending on approvals from regulatory agencies and availability of critical equipment. The company has received insurance proceeds totaling about $500 million. It expects that the rebuilding costs will be covered in large part. The current quarter is expected to see a total refinery throughput between 860,000 and 910,000 bpd. PBF lost 52c per share adjusted in the third quarter compared to estimates of a 67c loss per share. According to data compiled and analyzed by LSEG. (Reporting by Arunima Kumar in Bengaluru; Editing by Sahal Muhammed)
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Investors weigh US-China trade discussions as they consider the Fed rate cut that led to a 2% increase in gold.
Gold prices rose 2% on Friday, due to a weaker dollar after the Federal Reserve cut rates and investors' uncertainty about the outcome of the trade agreement between China and the United States. As of 1109 GMT, spot gold rose 1.3% to $3980.00 per ounce. U.S. Gold Futures for December Delivery fell 0.2% to $3.991.50 per ounce. Lukman Otunuga is a senior research analyst with FXTM. He said, "Gold seems to be pushing up as investors digested the outcome of Trump-Xi's meeting and the Fed’s decision to reduce interest rates for a second time this calendar year." The U.S. Central Bank delivered a 25 basis-point rate reduction on Wednesday. This brings the benchmark overnight rate into a range of target rates between 3.75% and 4.00%. Powell has tried to temper expectations about further rate cuts, but traders still price in a 70% chance of a reduction by December. Fed Chair Jerome Powell stated that officials are still struggling to come to a consensus on what the future holds for monetary policies and warned markets not to assume another rate reduction in December. Gold that does not yield is a good investment in low interest rate environments and economic uncertainty. In the meantime, U.S. president Donald Trump announced that he had reached a deal with China to lower tariffs in exchange for Beijing continuing U.S. soy bean purchases, maintaining rare earths exports and crackingdown on illicit fentanyl traffic. China has agreed to postpone the implementation of its latest round rare earth export controls. However, earlier restrictions on these critical minerals which have disrupted global trade still remain. Trump made his remarks after a face-to-face meeting with Xi, in Busan, South Korea. This marked the end of a whirlwind Asia tour, during which he touted his trade successes with South Korea and Japan, as well as Southeast Asian nations. Silver rose 1% in spot price to $48.03 an ounce. Platinum gained 1% at $1,600.66, and palladium increased 2.9% to $1441.99. (Reporting by Ishaan Arora in Bengaluru; Editing by Sumana Nandy, Subhranshu Sahu and Shailesh Kuber)
Can a COP29 deal clean up scandal-ridden carbon offsets?
An offer at the COP29 environment talks on trading carbon credits might see billions of dollars move into emissionsreduction jobs this years however after a. string of scandals, the marketplace will first need to win over wary. countries and neighborhoods.
Carbon trading is viewed as one way for richer nations to. fulfill their emissions reduction targets at the exact same time as. helping poorer nations move to greener energy and to enhance. their durability versus environment modification.
A U.N.-backed international market for producing and trading carbon. credits has actually been discussed for at least 10 years. In its. lack, a patchwork of voluntary requirements has actually resulted in a number. of situations where credits were found to not be providing the. climate advantages they declared.
While an early offer last week saw countries settle on some. quality standards, points still to be worked out include what. a worldwide computer registry to track trades and label carbon credits would. look like, and what info projects will need to divulge.
If a deal can be reached this week in Baku, Azerbaijan, the. main effect would be a confidence boost, stated Andrea Bonzanni,. international policy director at the International Emissions. Trading Association (IETA).
It would provide both nations and the economic sector with. the signal that there is agreement on the guidelines of the video game. And. that would suggest that business would invest with more. self-confidence, he included.
IETA has stated a U.N.-backed market could be worth $250. billion a year by 2030, and count towards offsetting an additional 5. billion metric lots of carbon emissions each year.
Governments including Bolivia, Singapore and Switzerland. have struck lots of agreements currently to do carbon credit. trades under the approaching U.N. guidelines, backing investments in. clean cookstoves and solar energy.
Others are anticipated to join in as they face pressure to reveal. development towards their national emissions-cutting targets.
Economic sector purchasers might consist of airlines, under a. U.N.-backed plan to scale up their purchases releasing in 2027,. as well as companies wanting to burnish their green credentials. with consumers and investors.
The one in charge of carbon task backer Key Carbon, Luke Leslie,. stated his firm would want to broaden its financial investments in countries. that rapidly get their regional market up and running.
CAUTION STAYS
While the prospect of selling credits might use a boost to. cash-strapped governments, some stay careful - or outright. opposed.
Ecological group Greenpeace has actually called offsets a. smokescreen while the WWF opposes their usage. Some regional. neighborhoods are also versus utilizing them.
Eriel Deranger, executive director of campaign group. Native Climate Action, and a member of the Athabasca. Chipewyan First Nation in northern Alberta, Canada, stated carbon. credits sidetracked from calls for more public funds for climate. action, and for companies to simply cut their own emissions.
It's going to do substantively nothing to actually reduce. our emissions, she stated.
For those countries which do decide to sell credits, African. Advancement Bank Chief Executive Akinwumi Adesina alerted versus. doing so too quickly or too cheaply, to avoid being short. altered.
Uganda's energy minister, Ruth Nankabirwa, stated her country. was seeking to attract financial investment in clean cookstove jobs,. but had yet to utilize credits.
It isn't clear how one can benefit, how the auditing is. done of carbon credits, she stated.
Nkiruka Maduekwe, director general of Nigeria's national. council on environment modification, concurred, describing high integrity. carbon credits as the secret.
The guidelines of the pc registry being dealt with at the police officer talks. this week will be main to answering those issues, but. governments are having a hard time to concur.
The European Union - which has actually dismissed using credits to. meet its domestic climate objectives - desires a registry that can. concern and handle credit trades, to help poorer countries gain access to. the market, individuals acquainted with the negotiations told Reuters.
The United States, nevertheless, is promoting for a computer registry. that just tracks credit trading, arguing that empowering it to. carry out trades could run the risk of providing a U.N. seal of approval to. credits with weak ecological qualifications, the sources said.
Even if an offer is reached in between nations, business may. still require government rewards to buy in, offered their pledges. so far have actually been voluntary and boards are concerned about. reputational threat, stated Sheri Hickok, president at carbon. project designer Climate Impact Partners.
Flooring business Interface and Australian telco. Telstra Group, formerly huge buyers of credits, both. informed Reuters a U.N. deal would not alter their choices to. exit the carbon markets, as they focus on cutting their. emissions straight.
(source: Reuters)