2025-07-24 07:32
MADRID, July 24 (Reuters) - Spain's Repsol (REP.MC) , opens new tab confirmed its shareholder payout target on Thursday after second-quarter adjusted profit fell less than expected, despite a 175 million euro ($206 million) hit from a massive blackout in April and other smaller power-supply issues. The April 28 blackout that caused traffic chaos in cities, and left thousands stranded on trains and in elevators across the Iberian Peninsula, also cut power supplies to Repsol's five refineries and three chemical plants in the region. Sign up here. Some of its facilities also suffered from external power supply issues on April 22 and June 16. Since it can take one or two weeks for such plants to be fully operational after these events, their utilisation ratios fell significantly in the quarter. "All businesses, both quarterly and half-yearly, have improved their results, except for Industrial, which was impacted by the general blackout on April 28 in Spain," Chief Executive Josu Jon Imaz said in a statement. The company said it was already considering potential legal action once responsibilities related to the outage are officially determined. Spain's antitrust and energy watchdog is carrying out a probe into the blackout but hasn't said when it will release its findings. The company also said it had launched another 350 million euro share buyback, taking the overall amount for this year to 700 million euros, as it had previously pledged. Including dividends, shareholders will this year receive between 30% and 35% of the cashflow the company generates from operations, which is in the upper end of its target. Repsol booked a quarterly adjusted profit of 702 million euros, compared with 859 million euros a year earlier and a company-provided average forecast of 500 million. Net profit fell to 237 million euros from 657 million. The Spanish group also said it is selling its 40% stake in U.S. renewables developer Hecate. ($1 = 0.8494 euros) https://www.reuters.com/business/energy/repsol-keeps-payout-target-after-april-blackout-hits-quarterly-profit-2025-07-24/
2025-07-24 07:21
July 24 (Reuters) - Finnish biofuel maker and oil refiner Neste (NESTE.HE) , opens new tab reported stronger than expected core earnings for the second quarter driven by soaring sales of sustainable aviation fuel (SAF), sending its shares rising 13% in early trading. Neste's comparable quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) rose 42% from a year earlier to 341 million euros ($401 million). Sign up here. Analysts in a company-provided consensus had expected 302.5 million euros on average. "Our sustainable aviation fuel sales increased close to 80% quarter on quarter, benefiting from additional SAF production capacity at our renewables refinery in Rotterdam," CEO Heikki Malinen said in a statement. The rise in SAF sales drove the sales volume in Neste's renewable products unit to a new quarterly record of 1,096 thousand tonnes. The unit's sales volume margin fell 5% to $361 per tonne, but exceeded analysts' forecast of $329 per tonne. "We saw positive developments in the biofuel regulation both in the US and EU, largely supporting long-term renewables demand," Malinen, who joined the company last year, said. RBC analysts said in a research note that the second quarter was a "key litmus test" for Neste's new management, adding the results boded well for the investor sentiment. However, Malinen warned that the market environment was volatile and headwinds from global trade tensions were expected to continue. Neste has been battling an excess supply in the renewable fuels market, pressuring its sales volumes and leading to a reduction of around 510 jobs globally earlier in 2025. Alhough the group said it still expected its annual sales volumes to improve from 2024, it also forecast persisting oversupply in the renewable fuels market for the year. Oversupply, weak demand and high input costs had made Neste cut its forecast for the renewables sales margin three times in 2024. ($1 = 0.8500 euros) https://www.reuters.com/business/energy/finlands-neste-tops-earnings-forecast-soaring-saf-sales-2025-07-24/
2025-07-24 07:18
Macquarie says shareholders vote against executive pay Company may change pay systems after regulator intervention CFO, a possible CEO successor, unexpectedly leaves Shares down 5% SYDNEY, July 24 (Reuters) - Macquarie Group (MQG.AX) , opens new tab, employer of Australia's best-paid CEO, said on Thursday it will review its executive compensation following a regulatory compliance lawsuit as shareholders voted against its salary plans for the first time at its annual meeting. The investment bank also announced its chief financial officer was retiring, a surprise development which takes out one possible successor to current leader Shemara Wikramanayake who started in 2018, and reported a dip in first-quarter profit, pushing its shares lower. Sign up here. The rethink of its top-level pay reflects an unusual degree of investor pushback against a company nicknamed the millionaire factory due to its compensation as heightened regulatory scrutiny and weaker earnings at some of its global businesses stoke disquiet among shareholders. Macquarie said 25.4% of investors voted against the bank's remuneration report for the past year, meaning the bank will have a 'strike' recorded against it. If more than 25% of shareholders vote against an Australian company's remuneration report for two years running, shareholders can hold another vote on whether to dismiss the entire board. Macquarie shares closed down 5.1% at A$213.84, underperforming a 0.32% decline in the benchmark Australian index (.AXJO) , opens new tab. Cooling M&A activity and relatively subdued oil and gas markets have squeezed profit at two of Macquarie's four main operating units. Adding to the pressure on the investment bank, the Australian corporate regulator sued Macquarie in May accusing it of misreporting up to 1.5 billion short sales. Macquarie has said it picked up and reported the mistakes and is reviewing ASIC's claim. "It was always likely that there were going to be some observers who were going to say 'you should have gone more one way or the other'," Macquarie Chair Glenn Stevens told media before the annual meeting in Sydney. "I find it a little bit disappointing how many feel that, but it is what it is and we have to hear that message," Stevens, who was Reserve Bank of Australia governor from 2006 to 2016, said. At the meeting, Stevens told shareholders the "remuneration impacts ... will be an FY26 matter, about which the board will come to a view over the period ahead". CEO Shemara Wikramanayake earned A$30 million in 2024, making her the highest paid chief executive among ASX 100 companies and the only woman in Australia's top 20 highest paid executives, according , opens new tab to the Australian Council of Superannuation Investors. Macquarie said profit in the three months to June was lower than a year earlier due to lower contributions from its asset management arm and commodities and global markets unit. The company did not disclose specific profit figures in the limited trading update. "We see (Macquarie) as a great business caught in the midst of both its own transition and global realignment of geopolitical alliances and capital flows," said Jarden analysts in a client note. CFO Alex Harvey, asked by media to elaborate on his departure, said only that he had achieved what he set out to do and it was time to promote his deputy Frank Kwok. CEO Wikramanayake, asked about her future in the role, said: "I'm committed to Macquarie for as long as Macquarie needs me." https://www.reuters.com/business/finance/macquarie-shareholders-challenge-executive-pay-regulatory-earnings-stress-mount-2025-07-23/
2025-07-24 07:15
ECB rate decision due later in the day Risk sentiment lifted by progress in trade talks Dollar at more than two-week low Trump to visit Fed on Thursday July 24 (Reuters) - Gold prices extended losses on Thursday, as easing trade tensions dampened demand for safe-haven assets, overshadowing support from a weaker dollar. Spot gold was down 0.3% at $3,375.76 per ounce, as of 0644 GMT, after dropping 1.3% in the previous session. U.S. gold futures were down 0.5% at $3,381.20. Sign up here. "Yesterday, gold prices were seen building up for the next bullish run until the news came out on trade front, triggering some profit-taking," said Brian Lan, managing director at GoldSilver Central, Singapore. "We've seen the dollar has also weakened quite a bit, and of course, this also supports gold. So, I think this is a small retracement at this moment. We are, in fact, still quite bullish on gold." Signalling progress on the tariff front, U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports. The European Union and the United States are nearing an agreement that would impose 15% tariffs on European imports, while waiving duties on some items, according to officials from the European Commission. Risk sentiment in the wider financial markets rose on the back of progress in trade talks and hopes that more deals could be in the offering. Offering support to gold, the U.S. dollar index (.DXY) , opens new tab fell to a more than two-week low, making greenback-priced bullion less expensive for other currency holders. Investors were also looking forward to a rate decision from the European Central Bank due later in the day. The U.S. weekly jobless claims numbers due on Thursday and S&P Global's flash PMI data will be in focus to gauge economic health ahead of the Federal Reserve's monetary policy decision next week. Trump, a critic of Federal Reserve Chair Jerome Powell, will visit the U.S. central bank later in the day, the White House said. Spot silver slipped 0.4% to $39.13 per ounce, platinum eased 0.3% to $1,407.90 and palladium dropped 1% to $1,265.44. https://www.reuters.com/world/china/gold-slips-easing-trade-tensions-offset-support-soft-dollar-2025-07-24/
2025-07-24 06:51
LONDON, July 24 (Reuters) - British Gas owner Centrica (CNA.L) , opens new tab said on Thursday its adjusted operating profit halved in the first half of this year, due to mild weather, falling wholesale energy prices and weaker returns from gas storage. The company said its operating profit for the six months ended June 30 fell to 0.5 billion pounds from just over 1 billion in the same period last year. Sign up here. Core profit or EBITDA also fell, to 0.9 billion pounds from 1.4 billion. "The first half of 2025 has seen more challenging conditions for British Gas Energy residential and Centrica Energy, with lower commodity prices and spreads impacting our Infrastructure businesses," the company said in a statement. British Gas, Centrica's retail energy arm, was impacted by warmer than normal weather, which impacted energy demand, while its gas and power trading business had fewer opportunities to deploy capital given wholesale price volatility, driven by news about U.S. tariffs, EU regulation, and geopolitical factors. However Centrica still plans to raise its full-year dividend per share for 2025 to 5.5 pence, as announced previously in February, up 22% from the previous year. "There is still much more to do across the group, including improving our commercial performance in services & solutions," CEO Chris O'Shea said in a statement, as the division's customer base fell 2% in the first half of the year. Earlier this week Centrica announced it had signed an agreement to acquire a 15% equity stake in Britain's new nuclear project Sizewell C. The group's total funding obligation is capped at 1.3 billion pounds and the investment will generate a return on equity of 10.8% through the construction and initial operations phase, it said. ($1 = 0.7371 pounds) https://www.reuters.com/business/energy/centricas-first-half-profit-falls-due-mild-weather-lower-energy-prices-2025-07-24/
2025-07-24 06:38
LONDON, July 24 (Reuters) - Oil prices rose on Thursday, buoyed by optimism over U.S. trade negotiations that would ease pressure on the global economy and a sharper-than-expected decline in U.S. crude inventories. Brent crude futures had gained 52 cents, or 0.76%, to $69.03 a barrel by 1040 GMT. U.S. West Texas Intermediate crude futures climbed 60 cents, or 0.9% to $65.85 per barrel. Sign up here. "The U.S. crude inventory draw and the trade efforts are adding some support to prices," said Janiv Shah, an analyst at Rystad. Two European diplomats said on Wednesday that the EU and the United States were moving towards a trade deal that could include a 15% U.S. baseline tariff on EU imports and possible exemptions, potentially paving the way for another major trade agreement following the Japan deal. On the supply side, U.S. Energy Information Administration data on Wednesday showed U.S. crude inventories fell last week by 3.2 million barrels to 419 million barrels, exceeding analysts' expectations in a Reuters poll for a 1.6 million-barrel draw. Oil had also seen some support from a suspension of Azeri crude exports from the Turkish port of Ceyhan and a brief halt to loadings at Russia's main Black Sea ports which has since been resolved. BP (BP.L) , opens new tab said that organic chlorides were detected in some of the oil tanks in the terminal at Ceyhan, adding that oil loading continued from some of the tanks with chloride levels assessed to be within normal specifications, while export activities via the BTC pipeline also continued. But analysts expect oil price gains to remain limited. "Uncertainty over U.S.-China trade talks and peace negotiations between Ukraine and Russia is limiting further gains," said Hiroyuki Kikukawa, chief strategist of Nissan Securities Investment, a unit of Nissan Securities, predicting WTI would likely remain range-bound between $60 and $70 a barrel. Russia and Ukraine held peace talks in Istanbul on Wednesday, discussing further prisoner swaps, though the two sides remain far apart on ceasefire terms and a possible meeting of their leaders. "Next to watch would be the demand indicators as we are in the peak season and any upside or downside would impact refining margins," Shah added. https://www.reuters.com/business/energy/oil-prices-gain-us-trade-optimism-drop-crude-inventories-2025-07-24/
