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Germany extends trusteeship over Rosneft subsidiary
The German economy ministry announced on Thursday that it will extend its trusteeship of the local subsidiaries of Rosneft, a Russian oil company, for a 5th time over a period six months. Rosneft is trying to sell off its German assets, including a 54.17 percent stake in PCK Schwedt. Rosneft, while still the legal owner of the entity, was stripped of its control when Berlin took over the entities after Russia's invasion in Ukraine in 2022. In a press release, a spokesperson from the Economy Ministry said that the federal government had decided to extend the trust administration beyond March 10. The statement stated that "ensuring security of supply remains the main goal for all actions taken in relation to Rosneft Deutschland." Bloomberg News had reported earlier that the trusteeship will be extended until September. Last October, a source with knowledge of the situation said that Rosneft had been negotiating a deal to sell its German subsidiary. In a statement, the ministry said Rosneft has given assurances that it is actively pursuing a sale. It aims to finish this transaction by the end of 2018. The government said that it would have other options if Rosneft failed to meet the deadline for the sale or if Rosneft unilaterally ended the cooperative route. Rosneft has stakes in both the MiRo refinery and Bayernoil, which are under state trusteeship. Reporting by Gnaneshwarrajan in Bengaluru, Markus Wacket, in Berlin; writing by Vera Eckert, in Frankfurt; editing by David Goodman, and Elaine Hardcastle
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Hindalco Industries, India, beats its quarterly profit forecast on the back of improved aluminum prices
Hindalco Industries reported on Thursday a higher-than-expected profit for the third quarter, thanks to higher aluminum prices. Aditya Birla Group's company, owned by the Aditya Birla Group, saw its consolidated net profits jump 60.2% in the quarter ending December 31, to 37.35 billion Rupees ($429.5 millions). LSEG data shows that analysts had on average expected a profit of 35.73 billion rupees. Hindalco’s India aluminium unit helped to mitigate the impact on its U.S. based Novelis, as aluminium prices rose for the third consecutive quarter during the October-December period. The benchmark prices for three-month copper and aluminium on the London Metal Exchange increased by 17% and 13% respectively in the third quarter compared to a year earlier. Metal prices rise as commodity prices increase, leading to higher profit margins. Hindalco’s operating revenue increased 10.6%, to 583.90 trillion rupees. Total expenses also increased 7.6%, to 535.63 trillion rupees. The revenue of Hindalco, the aluminium recycling company that is preparing to go public, Novelis, grew by 5.2%. Novelis accounts for over 56% (or more) of Hindalco’s total revenue. Novelis reported on Monday that "continued strong demand" for beverage packaging sheets was offset by lower automotive shipments and specialty shipments. Copper prices increased during the quarter and led to a nearly 15% increase in the copper segment. Bharat Goenka was appointed chief financial officer of the company on April 1, 2019. The rise in commodity prices also helped rivals Vedanta NALCO and Vedanta to exceed profit expectations for the third quarter. Hindalco shares closed 0.6% higher than the results.
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Froneman, CEO of Sibanye, will retire in September
Richard Stewart, the current head of operations for the Southern Africa region of Sibanye Stillwater, will succeed Neal Froneman as CEO of the company at the end September, the company announced on Thursday. Stewart joined Sibanye back in 2014. Investors have long viewed him as a potential successor to Froneman who will turn 66 this September. Froneman is the CEO of Sibanye, which was founded in 2013 by the merger of three Gold Fields mines. Sibanye is now a diversified mining company with operations in Southern Africa, the United States and gold and platinum group metals (PGM). Froneman also pushed for the purchase of zinc and lithium assets in Australia, as he wanted to position his company to take advantage of the green energy revolution. Sibanye's deal spree has put pressure on its balance sheet. The Johannesburg-based miner is also struggling with declining profits, as PGM, especially palladium prices, have fallen from their record highs in March 2022, following Russia's invasion. Reporting by Nelson Banya, Felix Njini and David Goodman. Editing by David Goodman.
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What plans do India's EV manufacturers have for their charging network?
India's carmakers have accelerated the deployment of chargers for electric vehicles as it prepares to launch new models this year. The world's No. 3 auto market is preparing for new model launches in 2018. The government has allocated $230 million to incentives for fast-charge station installation. Check out the current and future plans of EV manufacturers' charging networks. TATA MOTORS Tata Motors is India's leader in the EV market. It plans to double its charging points from 200,000 to 400,000 before 2027. Tata Power, Statiq and other EV charger operators will be installing 30,000 public charging points and a verified "Mega Charger" network in 500 locations within the next two-years. MARUTI SUZUKI Maruti Suzuki, India's leader in the overall car market, will install 1,500 chargers at its service stations. It also plans to provide home installation services. Suzuki Motor, the majority owner of the company, wants to provide EV charging stations every 5-10 km (3.1-6.2 mi) in India's 100 largest cities. HYUNDAI MOTOR INDIANA Hyundai Motor India said that it would have 600 public fast-charging stations by the end of 2031. This is up from 50 stations at the end 2024. ChargeZone, a private operator, provides its customers with access to more than 10,000 charging stations. JSW MG MOTOR INDIA The joint venture between SAIC Motor and the Indian government is the nation's No. According to its website, the No. 2 EV manufacturer has a network consisting of 1,559 EV charging stations. JSW MG Motor India is owned by China’s SAIC Group and India’s JSW Group. State-owned fuel retailer HPCL is a charging partner. FUEL RETAILERS The government-owned fuel retailers Indian Oil Bharat Petroleum, and Hindustan Petroleum together have installed India's largest EV charger network at 18,000 locations.
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India's NTPC is in talks with foreign firms about small reactors
A top executive at NTPC, India's largest power producer, said that the company is in discussions with foreign companies including those from Russia or the U.S. about building small nuclear reactors. The country has decided to build large nuclear reactors, but is now looking at smaller modular reactors that can be scaled to meet demand. Private investments in the sector. Prasenjit Pa, Executive Director and Head of Nuclear Wing at NTPC, said: "We've spoken to a Russian firm that operates a small modular reactor. Other firms, such as U.S. Holtec International Corp, have also approached us." Pal has not identified the Russian company or other U.S. firms, and Holtec has not responded to our request for comment. Pal stated that NTPC had sought permission from the government to proceed with discussions. However, he added that only China and Russia have SMR systems in operation. Pal stated that the company would begin construction on its first nuclear project of 2.8 gigawatts at Mahi Bhaswara, in the desert Rajasthan within 3-5 months. India currently has around 8 GW nuclear capacity. It aims to increase it to 20 GW in 2032, and to at least 100 GW in 2047. This will reduce its carbon footprint. Sama Bilbao y Leon said on the sidelines the India Energy Week that a change in Indian law to open the much-guarded sector of nuclear energy will boost private investment. India's strict liability laws for compensating victims of nuclear accidents have hindered the implementation of India's nuclear agreement with the U.S. and, with it, the participation of U.S. manufacturers of power plants such as General Electric or Westinghouse. (Additional reporting and editing by Sethuraman N; Leroy Leo).
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Sources say that GIP has hired banks to sell Vena Energy at a valuation of up to $10 billion.
Global Infrastructure Partners (GIP), a Singapore-based renewables energy company, has commissioned Morgan Stanley and Japan’s Mitsubishi UFJ Financial Group with managing the sale of a majority stake in Vena Energy. The deal could be worth up to $10 billion. Vena is a wholly owned subsidiary of GIP and has operations in Japan, North Asia and Southeast Asia as well as India and Australia. One of the sources said that financial advisers had begun to gauge interest from potential purchasers, but an official sales process was not yet launched. Sources said that the exact size of stake to be sold had not yet been determined. It could be the largest renewable transaction in the world this year. GIP, Morgan Stanley, and MUFG refused to comment. Vena didn't immediately reply to an email request for comment sent after Thursday working hours. GIP agreed to purchase Vena Energy (formerly known as Equis Pte) in 2017 for $3.7 Billion, with the help of co-investments by China Investment Corp, a Chinese state fund, and Canada's Public Sector Pension Investment Board. The International Energy Agency predicts that the energy demand in Asia will grow rapidly, particularly in Southeast Asia. This region is expected to account for over a quarter (25%) of the global growth in energy demand until 2035. Vena reported $277.6 millions in revenue and $185.6 million of earnings before interest taxes, depreciation, and amortization in the first half 2024. This was a 5% decline year-on-year. The country had 3.2 gigawatts of installed capacity, 2.4 trillion watt-hours of clean energy produced during that time period and another 1.1 gigawatts of capacity in construction. (Reporting from Andres Gonzalez, Kane Wu and Yantoultra ngui in London; additional reporting from Anton Bridge in Tokyo; editing by Susan Fenton).
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Commodity exchange Abaxx will launch a lithium carbonate contract March 7
Abaxx, a Singapore-based commodities exchange, plans to launch on 7 March a contract for lithium carbonate that can be delivered physically at three different locations. The company announced this on Thursday. Abaxx Technologies Inc., a Canadian-listed company, began trading the nickel sulfate contract, its first battery product, on January 10. A statement stated that the contract will be delivered in Singapore, Rotterdam, and Baltimore. The price is in U.S. Dollars and represents 1 metric ton lithium carbonate. There are no physical deliverable futures contracts for lithium carbonate outside China. Since its launch in July 20,23, the Guangzhou Futures Exchange in China has seen a strong increase in its Lithium Carbonate Futures. However, foreigners are not allowed to participate. The U.S. CME Group has contracts with cash settlements in both lithium carbonate and hydroxide, the first of which is a very popular contract. The London Metal Exchange also offers cash-settled contracts for lithium hydroxide. However, its contract failed to trade in this year. Both lithium carbonate and lithium hydroxide are processed forms of this mineral that is used in the batteries of electric vehicles. However, hydroxide cannot be physically delivered because it can't be stored. Abaxx had previously stated that it worked with a major manufacturer of lithium carbonate in order to support the contract. However, the statement didn't specify which brands or producers would be approved for this contract. The nickel contract on the exchange is the first ever futures contract in nickel sulphate. Abaxx has also contracts for LNG and carbon. (Reporting and editing by Christina Fincher, Eric Onstad)
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AEP's fourth-quarter profits rise as demand for electricity increases due to data centers
American Electric Power, a U.S. utility, posted an increase in its fourth-quarter profits on Thursday as the demand for electricity from commercial customers was boosted by data centers. Big Tech is investing billions of dollars in artificial intelligence and the infrastructure required to develop it. As a result, power utilities are experiencing a massive surge in demand. Bill Fehrman, CEO, said: "In 2024 we saw significant growth in commercial loads, due largely to the economic development of Indiana, Ohio, and Texas." The utility said that it expects retail loads to grow by up to 9% per year over the next three. It also stated that the company could handle more than 20 gigawatts in new growth. AEP also said that it was evaluating a $10 billion potential investment in its five-year plan for capital expenditures, which is currently $54 billion. Energy Information Administration (EIA) predicts that power consumption will reach new records this year and next due to the growing demand for data centers devoted to AI and cryptocurrency and because homes and businesses are using more electricity to heat and transport. AEP has approximately 5.6 million customers across 11 states, and the largest transmission system of electric power in the United States. The Columbus, Ohio, based company earned $664.11 million or $1.25 a share in the three-month period ended December 31 compared to $336.2 million or 64 cents a share last year. (Reporting and editing by Maju Sam in Bengaluru, Vallari Srivastava from Bengaluru)
Palm oil prices fall on Dalian crudes and Dalian oils.
Malaysian palm futures fell on Thursday, ending a five session rally. Weakened Dalian oils, and a decline in crude oil prices caused by the talks to end the Ukraine/Russia war, weighed heavily on the market.
At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for April delivery fell 65 ringgit (1.41%) to 4,556 Ringgit ($1,023.13) per metric ton.
Anilkumar bagani, head of commodity research at Mumbai's Sunvin Group, said that crude palm oil futures fell following a selloff on energy markets, after U.S. president Donald Trump launched diplomatic efforts to end Ukraine's war.
He said that the easing of the Ukraine and Russia war could mean the logistics costs are reduced, and the uncertainty around the Black Sea Sunflower Oil trade is resolved. This would allow the flow of oil to reach key destinations markets.
He added that the Black Sea Corridor is expected to see a decrease in freight rates, which will likely lead to a drop in sunflower oil and, consequently, put pressure on palm oils prices.
The oil prices dropped slightly due to a possible peace agreement between Russia and Ukraine, as well as the rising crude inventories of the United States.
Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures.
Trump began discussions on Wednesday with the Russian President Vladimir Putin as well as the Ukrainian President Volodymyr Zelenskiy in order to start talks about ending the conflict in Ukraine. China also called for peacekeeping measures to end the conflict.
Bagani noted that the downward pressure on the Chinese palm olein market and the decline in soyoil was also evident.
Dalian's palm oil contract, which is the most active contract, fell 2.2% while soyoil prices dropped 2.22%. Chicago Board of Trade soyoil was down by 1.1%.
As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils.
The palm ringgit's trade currency strengthened by 0.38% compared to the dollar. This made the commodity more costly for buyers who hold foreign currencies. ($1 = 4.4530 ringgit)
(source: Reuters)