2025-04-24 11:44
MILAN/LONDON, April 24 (Reuters) - The British government and Italian energy group Eni (ENI.MI) , opens new tab have reached an agreement for the launch of the Liverpool Bay carbon capture (CCS) project, opening the way to the construction phase for the decarbonisation initiative. The project will allow the transport of carbon dioxide (CO2) from industrial plants across the northwest of England and north Wales through new and re-purposed infrastructure to Eni's depleted gas fields in Liverpool Bay. Sign up here. It also involves the construction of 35 km of new pipelines to connect industrial plants to the Liverpool Bay CCS network, Eni said in a statement. https://www.reuters.com/sustainability/climate-energy/uk-eni-sign-go-ahead-liverpool-bay-carbon-capture-project-2025-04-24/
2025-04-24 11:43
April 24 (Reuters) - Keurig Dr Pepper (KDP.O) , opens new tab reported first-quarter revenue and profit above Wall Street expectations on Thursday, helped by strong demand for its energy drinks and beverages among U.S. consumers. WHY IT IS IMPORTANT The Snapple maker saw resilient demand for its higher-priced ready-to-drink beverages, especially in the U.S. market, fueled by new flavor variants including Dr Pepper Blackberry and Snapple Peach Tea & Lemonade. Sign up here. Keurig has also benefited from the popularity of energy-drink maker Ghost's products, having bought a 60% stake in October. In contrast, bigger rival PepsiCo (PEP.O) , opens new tab cut its annual profit forecast and warned of higher production costs and more volatility from President Donald Trump's trade tariffs, after narrowly missing quarterly profit estimates. MARKET REACTION Shares of Keurig Dr Pepper, which have risen about 10% so far this year, were up about 2% in premarket trading. CONTEXT U.S. consumers may face a surge in product prices following President Donald Trump's tariffs on trading partners. Tariffs have put the company's business in Canada and Mexico at risk, especially as Canadian consumers boycott certain U.S. products. Coffee prices could also rise further due to tariffs, hurting the company's margins and consumer demand. An ongoing destocking at retailers is expected to weigh on some packaged foods makers, but RBC analyst Nik Modi said Keurig's increased distribution of La Colombe coffee, Electrolit beverages and Ghost energy drinks may help offset those pressures. BY THE NUMBERS Keurig Dr Pepper posted an adjusted profit of 42 cents per share for the quarter, beating analysts' average estimate of 38 cents per share, according to data compiled by LSEG. Net sales rose 4.8% to $3.64 billion, compared with estimates of $3.57 billion. Its biggest segment, U.S. Refreshment Beverages, saw an increase of 11% in sales. The company reaffirmed its annual revenue and profit forecasts from February. https://www.reuters.com/business/retail-consumer/keurig-dr-pepper-beats-profit-estimates-strong-us-demand-2025-04-24/
2025-04-24 11:36
NEW DELHI/KARACHI, May 16 (Reuters) - India suspended its participation in the Indus Waters Treaty with Pakistan last month after the killing of 26 civilians in Kashmir, which New Delhi blames on Islamabad. Pakistan denies the charges, which led to the worst fighting between the countries in decades before a ceasefire was agreed last week. The treaty had survived three wars and other conflicts between the bitter rivals, while withstanding many twists and turns in diplomatic ties. Reuters reported on May 16 that Delhi is considering projects that would likely reduce the flow of water into Pakistan from rivers allocated to that country. Sign up here. India says it will "keep the treaty in abeyance until Pakistan credibly and irrevocably abjures its support for cross-border terrorism," while Islamabad says "any attempt to stop or divert the flow of water belonging to Pakistan" will be an "act of war." WHAT IS THE INDUS WATERS TREATY? The nuclear-armed neighbours disagree over use of the water from rivers that flow downstream from India into the Indus river basin in Pakistan. The use of the water is governed by the Indus Waters Treaty, which was mediated by the World Bank and signed by the neighbours in September 1960. The agreement split the Indus and its tributaries between the two countries and regulated water sharing. India was granted the use of water from three eastern rivers - Sutlej, Beas and Ravi - while Pakistan was granted most of the three western rivers - Indus, Jhelum and Chenab. There is no provision in the treaty for either country to unilaterally suspend or terminate the pact, which has clear dispute resolution systems. WHAT ARE THE CONCERNS OVER WATER? The countries have argued over and disputed several projects on the Indus and its tributaries for years. Pakistan is heavily dependent on water from this river system for its hydropower and irrigation needs. Pakistan says India unfairly diverts water with the upstream construction of barrages and dams, a charge India denies. Pakistan is concerned that India's dams will cut flows on the river, which feeds 80% of its irrigated agriculture. It has asked for a neutral expert and then an arbitration court to intervene in two recent hydropower projects. India has accused Pakistan of dragging out the complaints process, and says the construction of its Kishanganga and Ratle hydroelectric projects is allowed under the treaty. It has also sought modification of the pact to get around such delays. WHAT COULD THE SUSPENSION CHANGE? The suspension of the accord is not expected to have an immediate impact on the flow of water to Pakistan as India does not have enough storage capacity. However, water at a key receiving point in Pakistan briefly fell by as much as 90% in early May after India started maintenance work on some Indus projects. India's move could also bring uncertainty to Pakistan's agricultural system. The suspension means India can stop sharing crucial information and data on release of water from barrages/dams or on flooding, Indian officials said, adding that New Delhi will also not be obliged to release minimum amounts of water during the lean season. HOW HAS PAKISTAN REACTED TO THE DECISION? Pakistan says the treaty is a binding international agreement brokered by the World Bank and contains no provision for unilateral suspension. Ghasharib Shaokat, the head of product at Pakistan Agriculture Research, called the treaty the backbone of the country's agriculture sector. "It puts our agricultural future on shaky ground. If water flows become erratic, the entire system takes a hit — especially irrigation-dependent crops such as wheat, rice, and sugarcane," Shaokat said. "Yields could drop. Costs could rise. Food prices would likely spike. And small-scale farmers, who already operate on thin margins, would bear the brunt of it." Khalid Hussain Baath, chairman of a national farmers' union in Pakistan, painted the move as an act of belligerence. "This is a true war," Baath said from Lahore. "We already have a water shortage because of climate change. Low rainfall this year, and limited snow means that the water level is already 20-25% lower than last year." https://www.reuters.com/world/asia-pacific/what-is-indus-waters-treaty-between-india-pakistan-2025-04-24/
2025-04-24 11:30
April 24 (Reuters) - U.S. electric and gas utility CMS Energy (CMS.N) , opens new tab on Thursday reported a rise in first-quarter profit, helped by higher power demand. The U.S. Energy Information Administration in February forecast power demand to hit record highs in 2025 and 2026, as electric companies are seeing a surge in data center demand. Sign up here. The company said nearly 90% of supply chain will be domestically sourced after it warned of supply-chain issues from potential tariffs in the last quarter. Ontario Premier Doug Ford said in March that electricity producers in the province will be required to add a 25% surcharge on power exported to the U.S., in response to President Donald Trump's tariffs on Canada. Despite Michigan's minimal reliance on Canadian electricity, Ontario's threat could risk the reliability of U.S. electrical grids. CMS Energy's revenue rose 12.4% to $2.45 billion for the first quarter, beating analysts' average estimate of $2.24 billion, according to data compiled by LSEG. Total quarterly operating expenses rose to $1.95 billion from $1.76 billion a year-ago, while the utility increased its capital expenditure by 15% to $23 billion. U.S. power companies are upgrading grid resiliency amid rising power demand from data centers to cater to the artificial intelligence wave. CMS Energy's first-quarter net income attributable to shareholders rose to $302 million, or $1.01 per share, from $285 million, or 96 cents per share, a year ago. The Jackson, Michigan-based firm earned $1.02 per share on adjusted basis in the first quarter, in line with analysts' expectation of $1.02, according to data compiled by LSEG. https://www.reuters.com/business/energy/cms-energy-posts-higher-profit-strong-power-demand-data-centers-2025-04-24/
2025-04-24 11:25
April 24 (Reuters) - PG&E Corp (PCG.N) , opens new tab missed first-quarter profit estimates on Thursday, as the power company was hurt by higher operating and interest expenses. Higher-for-longer interest rates push up borrowing costs for utility companies, which typically need more capital for expenses such as maintaining the grid. Sign up here. PG&E said its interest expenses rose 2.7% to $734 million in the first quarter from a year earlier. Multiple wildfires scorched tens of thousands of acres across Los Angeles in January in what is now expected to be the most costly natural disaster in U.S. history. The area's electric utilities have also come under increasing scrutiny. PG&E plans to construct nearly 700 miles of underground powerlines and 500 miles of other wildfire safety system upgrades between 2025 and 2026. PG&E said that average residential electric rates were lower in March than they were a year earlier and it expects natural gas delivery rates to remain flat in 2025. The company's total operating revenue was $5.98 billion in the quarter, missing analysts' estimate of $6.14 billion, according to data compiled by LSEG. For the quarter ended March 31, the company's total operating expenses were up 3.8% at $4.76 billion. The Oakland, California-based company reaffirmed its forecast for adjusted core earnings to be between $1.48 and $1.52 per share. Analysts have expected $1.50 per share. The utility also said it added nearly 3,000 customers in the quarter to its electric grid system. On an adjusted basis, PG&E reported a profit of 33 cents per share, compared with the average analyst estimate of 34 cents. https://www.reuters.com/business/energy/power-company-pge-misses-first-quarter-profit-estimates-higher-expenses-2025-04-24/
2025-04-24 11:23
April 24 (Reuters) - CenterPoint Energy (CNP.N) , opens new tab reported a fall in first-quarter profit on Thursday, but the U.S. utility raised its capital expenditure plan to meet expected demand from data centers used for artificial intelligence technologies. A winter storm in January across the U.S. Gulf Coast brought major cities like Houston and New Orleans to a near-standstill and broke records for the coldest day across the regions. Sign up here. The ensuing damage to power lines and widespread outages increased the operating and maintenance (O&M) costs for utilities. CenterPoint said its O&M costs rose 5.4% from a year ago to $747 million during the quarter. Costs for natural gas, fuel and purchased power rose nearly 28% to $1 billion. But the company raised its 10-year capital expenditure plan through 2030 by $1 billion to $48.5 billion, expecting a surge in demand from AI companies. U.S. utilities have been adding billions of dollars to their capex plans as they field massive requests for new power capacity from Big Tech firms scouring the country for viable locations for new data centers. CenterPoint had raised its 10-year capital budget in the previous quarter as well. The utility said on Thursday that requests for new connections grew by nearly 7 gigawatts since the end of January, strengthening its "conviction in the robust economic outlook for (Texas) and the capital investment increase we announced today.” CenterPoint provides electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas. The Houston, Texas-based company said its net income fell to $297 million, or 45 cents per share, in the quarter ended March 31, from $350 million, or 55 cents per share, a year ago. https://www.reuters.com/business/energy/centerpoint-spend-more-meet-ai-power-demand-despite-fall-quarterly-profit-2025-04-24/
