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Utility Evergy's forecast for 2025 is lowered due to cooler summers, as the company misses its quarterly profit estimate.
Utility Evergy missed Wall Street's adjusted profit estimates for its third quarter on Thursday and cut the upper end of the adjusted earnings forecast 2025 due to the impact from milder summer weather conditions and higher interest costs. The quarter saw a drop in earnings for utilities like Evergy due to a cooler than normal summer. In a press release, CEO David Campbell stated that while we have implemented cost-saving and mitigation measures across the company, they do not completely offset weather headwinds in the second and third quarters. The high interest rates have made it difficult for utility companies to build and maintain vital infrastructure at a time of rising electricity demand due to the AI-driven boom in data centres. Evergy reported that interest expenses increased 5.63% in the third quarter of 2009, to $152 millions. Operating expenses decreased 2.75% from a year ago to $1.15 Billion. According to LSEG, on an adjusted basis the company reported a profit per share of $2.03, falling short of estimates of $2.06, as per LSEG's data. The company expects its 2025 adjusted profit to range between $3.92 and $4.02 for each share, compared to the previous range of $3.92 and $4.12 shares. Evergy supplies power to over 1.7 million Kansas and Missouri customers through its operating subsidiaries Evergy Kansas Central and Evergy Missouri West. (Reporting from Varun Sahay in Bengaluru, Pooja Meon and Katha Kaalia in Bengaluru. Editing by Vijay Kishore.
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The sickly trees that are destroying Europe's climate goals
The European Union's governments decided to lower their 2040 emission-cutting target this week due to concerns about Europe's degraded forests. EU countries endorsed a Wednesday target to reduce their net greenhouse gas emission by 90% from 1990 levels by 2040 - an aim designed to keep them in line with the EU's legally binding commitment to achieve net zero emissions by 2020. The agreement also included flexibility in various sectors. The 2040 goal could be reduced in the future if Europe's peat bogs, grasslands and forests are unable to store and absorb millions of tons carbon dioxide as compensation for industrial pollution. In recent months, many governments, from Sweden to France, warned that Europe's forest are absorbing much less CO2 than they hoped. This is due to wildfires, droughts, and climate change. The agreement is a good achievement because it takes into account the uncertainties surrounding the CO2 uptake by forests, said Sweden's Environment minister Romina Pourmokhtari. FORESTS FALLING BELOW CO2 TARGETS Scientists have documented that climate change leads to more heatwaves, droughts, and slowing of tree growth. This sets the stage for wildfires as well as pest infestations. This year, wildfires charred more than one million hectares in the EU. It was the largest amount of land burned ever. According to the European Environment Agency, Europe's forests, land use and CO2 absorption has decreased by almost a third over the past decade due in part to climate change, but also because of increased logging. According to the Natural Resources Institute Finland, since 2021 forests in Finland have emitted more carbon dioxide than they have absorbed. Sweden's CO2 sink from forestry has been more than halved in the last 20 year. According to EU diplomats, Sweden and Finland backed the EU’s goal of reducing emissions by 90% and resisted attempts from other countries to further weaken this target. Both are equally important. In September, they warned that they would not meet the EU forest emission targets for 2030. They also said that they could face "dire" consequences on their economics if they had to reduce wood harvesting to comply. Sari Multala, Finland's climate minister, said that 14 out of 27 EU member states are not on track to meet their 2030 land use, land-use change, and forestry targets. Around 70% of Sweden, and Finland is covered by forests. Around 10% of Sweden's total exports are wood products, and Finland is almost half that amount. In Sweden, the wood industry employs around 140,000 people. In a letter sent to EU leaders last month, Ursula von der Leyen, President of the European Commission, promised to take measures to address the concerns about the 2030 LULUCF legislation. This was done to get their support for the 2040 climate target. ACCORD PROVIDES FLEXIBILITY IN TARGETS The climate target for 2040, which was agreed upon after long-lasting negotiations in Brussels, and before the world leaders met on Thursday in Brazil at the U.N. COP30 Summit, provided a number of options to address these concerns. According to the EU agreement, one option was to introduce an emergency brake that would allow governments to reduce their 2040 climate targets if they realized forests and land-based activities were not absorption CO2 as expected. France proposed this option. One option was to allow countries to purchase foreign carbon credits up to 5% to meet the 90% reduction goal. This could potentially reduce the domestic target by 5%. From the automotive industry to the defense sector, industries have expressed concern that they could be liable for any shortfall in emissions if forests and wetland play a diminished role. The final target stated that other industries would not be required to reduce emissions faster in order to meet the 2040 goal if natural eco-systems do not perform as expected. POLITICAL CHALLENGES Ahead The Joint Research Centre of the EU has stated that climate risks in forests can be managed through a reduction in intensive logging or by planting more tree species which could enhance CO2 storage. Sweden's Forestry Agency said that the best way to increase CO2 absorption from Sweden's forest was to reduce felling by 10%. The Environmental Objectives Committee of Sweden, a government agency, has also recommended that forestry companies be encouraged to allow trees to grow longer and reduce the amount of tree felling. The forestry industry is a major employer and generates thousands of jobs. The Swedish Forest Industries Federation stated that the proposals of the government committee would result in a 5%-6% drop in production, worth 8 billion Swedish crowns (US$849.66m) and potentially cost 7,200 positions.
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Solvay to build rare earths plant where the support is stronger in US
The CEO of Solvay, a chemical group, said that the company would be interested to build a processing plant for rare earths in the United States where there is more financial support than in Europe. Solvay is one of only a handful of companies outside China that can perform the difficult rare earths separation. In April, it began processing minerals for permanent magnets in its French facility. However, commercial production will depend on government and customer support. In order to reduce dependence on China, the United States, Europe, and their allies are racing to develop domestic industries that can produce super-strong rare earth magnetic materials, which are vital to defence, electronic devices, wind turbines, and electric vehicles. Solvay is still in talks with its customers and government officials, so it hasn't given the go-ahead for a 50-100 million euro investment to expand their French plant. CEO Philippe Kehren said this on a call with reporters. We continue to work closely with European policymakers to find ways to create these conditions. To be clear, he stated that he saw more support coming out of North America. MP Materials, the owner of the U.S.'s only rare earths mine signed a multi-billion-dollar deal with the U.S. Government in July to increase processing and production magnets. Kehren replied that Solvay was interested in building a separation plant in the United States if they received similar government support to MP Materials. "We are a global company with a unique knowledge." He said that they could take any rare earth source, separate it, purify it, and then supply to any customer. "MP Materials is also a miner so they need this know-how to separate and purify the material." A spokesperson responded that Kehren, when asked if Solvay has held discussions with the U.S. Government, had stated that Solvay was global and "in talks" with all stakeholders. Solvay, a French company, has a plant in La Rochelle, France, which was once one of the biggest in the world. But production fell over the years, as China increased its cheaper output, and now accounts for 90% of all rare earths processed in the world. Kehren stated that the company, which is 161 years old, currently produces a few hundred tons of neodymium praseodymium magnet rare earths per year and will be adding heavy elements dysprosium terbium to its production next year. (Reporting and editing by Alexandra Hudson; Eric Onstad)
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HSBC reduces emissions targets in the near term for polluting industries
HSBC released a new set of climate targets on Thursday that are softer and more flexible for near-term sectors like oil and gas. This is in response to the slow rate of change in real economy. The targets for the end of the decade follow a review that was announced by British bank earlier this year, when it dropped its goal to reach net-zero emissions in all of its operations by 2030. HSBC is still aiming for its operations, funded by the loan book, to produce zero emissions by 2050. It and other banks who have set similar climate goals say they want to help their clients finance the transition to lower-emissions business models. HSBC originally based their targets on an analysis by the International Energy Agency in 2021 of what would be required to achieve the global goal of limiting the warming of the planet by 1.5 degrees Celsius before mid-century. This work has been updated since to reflect slower progress than expected. HSBC’s new policy, announced on Thursday, now defines its goals for financed emission for high emitting sectors as a range rather than a single metric. The lower bounds of each range are aligned to the IEA’s 2024 scenario of net zero emissions, which is consistent with a global heating pathway of 1.5 degrees. While the upper bounds are aligned with a 1.7 degree pathway. The bank stated that it aims for a reduction of financed emissions between 14% to 30% by 2030, compared to a baseline year 2019. This is in line with the IEA scenarios. The latest update from Europe's largest bank on its transition plan shows how lenders are reducing some of their commitments to clients in order to reduce emissions. This is despite wider setbacks against climate change. The announcement comes at the same time as world leaders meet in Brazil for UN COP30 talks on climate change, and EU climate ministers have agreed to a softer target of cutting emissions by 90% from 1990 levels by 2040. HSBC's new policy reflects the commercial realities of today and the bank remains on track to reach its target of providing or facilitating sustainable finance worth $750 billion – $1 trillion by 2030. (Reporting and editing by Peter Graff, Lawrence White, Simon Jessop)
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DuPont increases core profit forecast for 2025 on strong electronics and healthcare demand
DuPont announced that it would raise its core earnings forecast for the full year and announce a share repurchase program of $2 billion after reporting earnings in the third quarter which exceeded Wall Street expectations, due to strong demand from electronics, healthcare, and water markets. The industrial materials manufacturer's forecast increase and share repurchase program, announced on Thursday, demonstrate confidence in the company's strategy to refocus its efforts on high-growth markets such as technology and water following the planned separation and divestiture of the Qnity electronics division and Aramids. The company will rely on the strong demand for semiconductors, biopharmaceuticals and water treatment in order to offset the persistent weakness of industrial and construction markets. Investors weighed a stronger quarter against a weaker near-term outlook as they swung its shares sharply during volatile premarket trading. Its shares rose more than 2.5%, before falling. LSEG data shows that DuPont's adjusted profit for the fourth quarter is 43 cents, which is slightly less than 45 cents. The company forecasted net sales of approximately $1.69 billion in the fourth quarter. This is also lower than analysts' average estimates of $1.72. Arclin, a rival company, announced in August that it would sell Aramids (which includes brands like body armor maker Kevlar) for $1.8 billion. DuPont’s board approved the separation of its electronics division, Qnity Electronics (which includes semiconductor technologies and solutions for interconnects), in October. The industrials segment's net sales increased by 4.8%, to $1.8 billion, in the quarter reported, and the electronics segment saw a 11.2% rise to $1.28billion, both in comparison to the previous year. "Ongoing strength across the electronics, healthcare, and water end markets, as well as our team's focus in operational execution, drove strong top-line and cash conversion growth," CEO Lori Koch stated. The company anticipates launching a $500,000,000 accelerated share purchase "immediately". The company now expects to earn about $1.60bn in operating earnings for the full year, as opposed to its previous forecast of $1.58bn. DuPont's adjusted profit per share was $1.09, compared to analysts' estimates of $1.06 each. (Reporting and editing by Pooja Deai in Bengaluru)
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Aluminum prices rise on better supply and demand prospects
Aluminum prices rose Thursday on the back of prospects for improved demand, and limited production growth in China, which is the world's biggest producer. By 1109 GMT, benchmark aluminium at the London Metal Exchange had risen 0.7% to $2 869 per metric tonne. On Monday, the metal reached $2.920 for its highest level since May 2022. Britannia Global Markets' head of metals, Neil Welsh, said that the price of aluminum is around its highs for this year, as tight supply and strong demand are supporting prices. The Chinese market has become tighter. Over the past few months, fund money has flooded into the LME Aluminium contract as investors bet on the end of the chronic oversupply in the market. Production in China is now close to the government's maximum capacity. The European Aluminium Premium, the premium that buyers of physical aluminium pay to the LME to cover tax, freight, and handling costs, has risen to $328, up from $183. At the beginning of the month, it reached $330, its highest level since February. Morgan Stanley wrote in a report that the rebound in premium was due to easing of pressure on the European primary metal market from Canadian primary steel and the expectation of costs associated with the EU's Carbon Border Adjustment Mechanism (CBAM). The note added that if construction activity improves in the first half 2026, and policy measures (CBAM and restrictions on scrap trade) are implemented, this could be the start of a durable margin upcycle. Copper, among other LME metals rose by 0.4%, to $10,736.50 per ton. The 21-day moving median at $10,785 was a strong resistance. Last week, the metal reached a record-high of $11,200 on concerns about a tightening global supply. Zinc rose 0.4% to $3.056, while lead fell 0.1% to $2,000, tin increased 0.5% to $35,800, and nickel gained 0.6% to $16,120. (Reporting and editing by David Goodman.)
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Green steel company Stegra has raised around half of the additional funds it requires, according to its CEO
Henrik Henriksson, CEO of Swedish green steel startup Stegra, said that it has raised around half the additional funds needed to finish a flagship facility and bolster its finances. He expects the banks to provide the remainder in the next six-months. Stegra (formerly H2 Green Steel) said it would raise an additional $1.1 billion to finish construction of its plant in northern Sweden, strengthen finances and to outsource some operations. Henriksson said at a conference held in Stockholm that "about half of the project was completed during the summer." He added that the process to obtain additional funding from the banks was just beginning. "But it would be a crises?" He said, "No, it's not." RENEWABLE POWER PLANT HYDROGEN MADE ON SITE HYDROGEN PLANT Stegra announced last year that it had secured loans of 6.5 billion euro ($7.6billion) and equity for a production plant which will use hydrogen produced on site from renewable electricity. Financial Times reported in October, however, that insolvency was discussed during a recent Stegra Board meeting. The report cited people familiar with Stegra's finances. Henriksson, in a press release at the time, said: "I do not recognise the one-sided image conveyed." "Our discussions are going well and according to plan. I am confident that we will be successful with our funding round." STEGRA APPLICATION FOR ADDITIONAL FUNDING FROM THE GOVERNMENT Henriksson announced on Thursday that Stegra has applied for more government funding. He said that this would send a clear signal that the Swedish government supports the project. Sweden is leading Europe in its efforts to transition from fossil fuel-based industries to nonpolluting energy. This shift has been fueled by cheap, low-carbon electricity. However, the green transition faces some challenges, including the bankruptcy of Northvolt, a battery manufacturer. Henriksson stated that customers are still willing to pay more for green steel. Recent customers paid a 35% higher premium than when they sold their first contracts for future production. The demand is increasing and we have sold out. $1 = 0.8575 Euros (Reporting and writing by Simon Johnson, Greta Rose Fondahn; editing by Terje Sollvik and Conor Humphries).
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Lanxess CEO expects gradual recovery in the chemical industry by 2026
Lanxess, a manufacturer of specialty chemicals, said that it anticipates a gradual rebound for the chemical sector in 2026 due to the German Government's proposed Infrastructure Programme and less economic uncertainty. German chemicals, which are the third largest in the country, have been under pressure for many years due to a combination of factors including low demand, high energy prices, supply-chain issues, an economic slowdown and the tariffs imposed by President Donald Trump. "Tariff uncertainties will remain, but on a smaller scale." In the coming year, there should be some uncertainty but not to the extent we experienced in this year," Matthias Zachert, CEO of BNP Paribas, said during a conference with analysts and journalists. The world has been thrown into chaos in the second and third quarters due to this tariff policy that is erratic... but at the other end of the tunnel, there's some light. CEO: INFRASTRUCTURE FUNDS MAY BOOST THE INDUSTRY BUT IT WILL TAKE TIMES Zachert stated that the stimulus program for Germany's defense and industrial infrastructure will have a bearing on industry in 2026. He said that "Order books" will be filled with more orders, which will affect different products such as screed coatings, pigments, and flame retardants. He did warn that the situation would not change over night, and that he expected a gradual rise in prices, with no immediate impact. Germany has implemented a number of fiscal measures that will help stimulate the economy. These include a 500 billion euro infrastructure fund, and a 46 billion euro tax relief package for businesses. Zachert said that the new government had only been in office since May. The implementation will take place at the different levels, such as the federal state and municipal level. Some European chemical and construction material companies, such as Evonik or Holcim, welcomed the fund in early November. They expect a boom for the chemical industry and the construction market of the region over the next 12 months.
DuPont's Q4 forecast is downbeat due to Qnity spin-off and Aramids sales
DuPont, a maker of industrial materials, forecast sales and adjusted profits for the current quarter below Wall Street expectations on Thursday. This was due to its planned spin-off of Qnity Electronics and Aramids divestiture.
Wilmington, Delaware based company is undergoing a strategic restructuring and trying to streamline its product portfolio. The chemicals industry is struggling with rising feedstock and energy prices.
The industry is also affected by the lack of demand, particularly in Europe where strict regulations have increased the costs of manufacturing.
DuPont announced in August that it would sell Aramids (which includes brands like body armor maker Kevlar) to Arclin, a competitor, for $1.8 billion.
In October, the board of directors approved the separation of Qnity Electronics, a division that includes semiconductor technologies as well as interconnect solutions.
LSEG data shows that DuPont's fourth-quarter adjusted profit is expected to be 43 cents per share. This is slightly less than the 45 cents anticipated by the market.
The company's forecasted net sales were about $1.69 Billion, which is also lower than the analysts' average estimate $1.72 Billion.
The industrials segment's net sales increased by 4.8%, to $1.8 billion, in the quarter reported, and the electronics segment experienced an increase of 11.2%, to $1.28billion, both in comparison to the previous year.
DuPont announced that it has authorized a new share purchase authorization up to $2 billion. It expects to begin a $500,000,000 accelerated share buyback in the near future.
Analysts' average estimates of $2.67 per shares have been replaced by the company's new expectation of $1.66 per share for full-year adjusted earnings.
DuPont's adjusted profit per share was $1.09, compared to analysts' estimates of $1.06 each. (Reporting and editing by Pooja Deai in Bengaluru)
(source: Reuters)