2025-03-26 08:00

Ithaca starts restructuring process that will involve job cuts 2025 production expected between 105,000 and 115,000 boepd Declares interim 2024 dividend of $200 million March 26 (Reuters) - North Sea oil and gas group Ithaca Energy (ITH.L) , opens new tab has launched a restructuring process that it expects to lead to job cuts, it said on Wednesday. The process, which follows the completion of Ithaca's acquisition of Eni's (ENI.MI) , opens new tab UK assets, is expected to be completed by July 1, it said. It has not disclosed the exact number of jobs that will be affected. Sign up here. Ithaca bought nearly all of Eni's UK oil and gas producing assets last year in an all-stock deal worth around 754 million pounds ($975.8 million), with an aim to become one of the biggest independent North Sea energy companies. The deal allowed Ithaca to forecast higher production for 2025. The London-listed company said on Wednesday it expects full-year 2025 output in the range of 105,000-115,000 barrels of oil equivalent per day, above last year's 80,200 boepd. Its 2024 production was about 14% higher than in the previous year, and Ithaca also declared an interim dividend of $200 million to be paid in April. On Tuesday, Ithaca also said it would acquire Japan Petroleum Exploration's (Japex) (1662.T) , opens new tab North Sea business for $193 million. Beyond 2025, the group expects to maintain production above 100,000 boepd in the medium-term from its existing producing asset base and the start-up of the Rosebank development in the North Sea. Its 2024 profit after tax fell to $153.2 million from $292.6 million a year earlier, largely due to a higher tax burden in 2024. Last year the UK's Labour government increased the energy profits levy, raising the headline tax rate on oil and gas activities to 78%, one of the highest rates globally. In 2025 Ithaca expects to make cash tax payments in the range of $235 million to $265 million, primarily driven by the profits levy. https://www.reuters.com/business/energy/ithaca-energy-expects-higher-production-2025-2025-03-26/

2025-03-26 07:44

Climate-focused investors decry strategy revamp Activist investor Elliott also dissatisfied Glass Lewis expects BP to improve disclosure LONDON, March 26 (Reuters) - Proxy advisors Institutional Shareholder Services Inc (ISS) and Glass Lewis recommend that shareholders vote in favour of the re-election of BP's (BP.L) , opens new tab board and management at the April 17 annual general meeting, according documents seen by Reuters. BP stock has underperformed rivals Shell (SHEL.L) , opens new tab and Exxon (XOM.N) , opens new tab in the last five years, which investors have blamed in part on the company's 2020 plan to focus on growing its renewable business while cutting oil and gas production. Sign up here. Having watered down that plan, BP accelerated its pivot back to hydrocarbons in a strategy revamp last month. Activist shareholder Elliott Management, which has a near 5% stake in BP, has met several BP shareholders to try to forge a consensus for more changes at the oil major that could include cost cuts and a potential leadership reshuffle, two shareholders have told Reuters. Another BP activist investor, Follow This, has called for a vote against Chair Helge Lund, claiming he should have offered investors a say on scrapping energy transition targets, a view echoed by other climate-focused shareholders. "While some shareholders may have wished for an opportunity to vote on the Company's climate plans given substantial revisions, the decision not to present such a vote does not, in ISS's view, constitute a material failure of governance," ISS said. Glass Lewis said in its recommendation document that "while we have some concerns surrounding the transparency of the decision not to present the updated climate strategy for a shareholder vote, we do not consider it appropriate for shareholders to vote against the re-election of director Lund on this basis at this time." "We will, however, continue to monitor this issue, and expect the Company to improve its disclosure regarding its engagement on these matters going forward." https://www.reuters.com/business/energy/proxy-advisor-iss-recommends-votes-re-election-bp-board-executives-2025-03-26/

2025-03-26 07:41

UK CPI +2.8% in Feb vs Reuters poll +2.9% Fall in clothing prices helps bring down inflation Sterling and short-term bond yields fall Some economists expect May rate cut by Bank of England Others say central bank will want more time LONDON, March 26 (Reuters) - British inflation slowed more than expected in February, bringing some relief to consumers ahead of a likely new pick-up in price growth and to finance minister Rachel Reeves before her budget update speech on Wednesday. Consumer prices rose by 2.8% in annual terms in February after a 3.0% increase in January, the Office for National Statistics said, as clothing and footwear prices fell for the first time in more than three years. Sign up here. Economists polled by Reuters had pointed to a reading of 2.9% in February while the Bank of England had expected 2.8% in a set of forecasts published in early February. Sterling fell by more than a third of a cent against the U.S. dollar. Two-year British government bond yields, which are sensitive to speculation about BoE interest rates, fell by almost seven basis points, on track for their biggest daily fall in almost two months. Economists warned that rising energy prices will push inflation up again soon. "February's slowdown is a false dawn as notable near-term price rises are already baked in, with next month's jump in energy bills and national insurance likely to push inflation perilously close to 4% sooner rather than later," Suren Thiru, Economics Director at accountancy body ICAEW, said. RATE CUT CAUTION He said the BoE would remain wary about price pressures. "While a May policy loosening remains on the table, rate setters will want to gauge the effect of April’s major jump in business costs and any measures announced in the Spring Statement before proceeding with another rate cut," Thiru said. But Luke Bartholomew, deputy chief economist at investment firm Aberdeen, said the BoE would probably take comfort from Wednesday's data. "This report does not fundamentally change the outlook for inflation, but it should keep the path clear for another interest rate cut in May," Bartholomew said. The central bank expects consumer price inflation to peak at 3.75% in the third quarter of this year - almost double its 2% target - driven mostly by higher energy costs and regulated tariffs for household utility bills and bus fares. Last week, the BoE warned investors against assuming that borrowing costs would be cut quickly. The Office for National Statistics said services inflation - closely watched by the BoE - held at an annual rate of 5.0%, against expectations for a fall to 4.9%. The central bank had expected it would rise to 5.1% in Wednesday's data. James Smith, an ING economist, said the services inflation data represented a tentative sign that the government's increase in employer taxes from next month was having an impact on prices. "It should still fall back in the second quarter, though, keeping the Bank of England on track for three further rate cuts this year," Smith said. https://www.reuters.com/world/uk/uk-ons-says-inflation-slowed-28-february-2025-03-26/

2025-03-26 07:40

Markets relieved as UK to borrow less than expected DMO plans record low share of long-dated bond sales Reeves likely to raise taxes in autumn, investors say LONDON, March 26 (Reuters) - British bond investors cheered lower-than-expected UK borrowing plans on Wednesday, but warned the government was likely to need tax hikes later this year if economic growth remains weak. Finance minister Rachel Reeves cut the government's plans for spending increases to get back on track towards her fiscal targets, restoring the 9.9 billion-pound ($12.77 billion) headroom against her fiscal rules that had been wiped out by lower growth and higher borrowing costs. Sign up here. Markets held on to near-term positives. The UK's Debt Management Office said it would sell 299 billion pounds of gilts in the upcoming fiscal year, below the 304 billion pounds banks polled by Reuters had anticipated. That followed lower-than-expected inflation data earlier in the day that had added to traders' bets on Bank of England rate cuts. Britain's 30-year bond yield fell as much as 7 basis points (bps) and was last down 5 bps at around 5.32%. The gilt market has been on edge since Reeves's tax-and-spend budget in October, with benchmark borrowing costs touching their highest since 2008 in January. The scars of a mini-budget crisis in 2022 that sparked a gilt rout have loomed. Allianz Global Investors portfolio manager Ranjiv Mann said markets had been nervous that borrowing plans could have come in higher than expected. "Coming just below 300 billion (pounds) certainly gives comfort to the market," said Mann, who continues to favour gilts in his portfolios. Ten-year gilt yields fell as much as 6 bps but were last 2 bps lower at 4.735%, little changed from before Reeves' statement. The gilt sale announcement was further sweetened by the lowest proportion of longer-dated gilt issuance in the DMO's 27-year history at 13% of the total, relief to that part of the market under particular pressure from high funding needs. Sterling weakened slightly from before Reeves' statement and was last down 0.4% at $1.2887 . Britain's FTSE 100 (.FTSE) , opens new tab stock index was last up 0.25%, while broader European stocks (.STOXX) , opens new tab fell 0.75%. TAX HIKES COMING While investors welcomed Reeves restoring Britain's fiscal headroom and her commitment to self-imposed fiscal rules, a challenging growth backdrop meant she was likely to need to create more headroom again in the autumn budget, they warned. Britain's budget watchdog, the Office for Budget Responsibility, halved its forecast for growth this year to 1% and warned U.S. President Donald Trump's threats to impose new reciprocal tariff rates next week could cut the size of Britain's economy by up to 1%. "There is a risk that she (Reeves) will have to reinstate part of the headroom in the autumn and to the extent that she has delivered welfare and departmental spending cuts, that increases the likelihood that she will have to go down the road of increasing taxes," said Aviva Investors senior economist and strategist Vasileios Gkionakis. While the OBR raised its growth forecast for the coming years, Invesco global market strategist Arnab Das said falling longer-dated yields suggested the market did not fully believe that assumption, adding he did not rule out tax hikes. The OBR also estimated borrowing would be almost 50 billion pounds higher between now and the end of the decade than expected five months ago. "Today the market is dealing with the immediate threat of increased (gilt issuance) now, which didn’t happen," said Artemis fund manager Liam O'Donnell, who closed a position favouring gilts over German bonds last week. "But the situation for the Labour government hasn't changed in terms of the financing requirement for the UK being on an increasing path." ($1 = 0.7754 pounds) https://www.reuters.com/markets/currencies/pound-weakens-slightly-after-cooler-than-expected-british-inflation-2025-03-26/

2025-03-26 07:34

Investors led by TPG to buy 90% of Indian wind division Deal tackles 'fragmented and competitive' landscape - exec Siemens Energy shares at top of DAX FRANKFURT/DUESSELDORF, March 26 (Reuters) - Siemens Energy (ENR1n.DE) , opens new tab will sell 90% of its wind turbine business in India and Sri Lanka to an investor group led by the climate investment arm of buyout group TPG (TPG.O) , opens new tab, in the latest move aimed at fixing its struggling renewables division. Siemens Gamesa, Siemens Energy's loss-making wind turbine division, holds a 30% market share in India but had said it was considering strategic options for the business, citing cut-throat competition. Sign up here. "It's a very fragmented and competitive landscape," Vinod Philip, Siemens Energy's board member in charge of Siemens Gamesa, told Reuters. "This deal allows us as Siemens Gamesa to tackle the other markets in a more focused manner." Philip said the new company could also become a cost-effective Indian supplier to Siemens Gamesa, helping to diversify its global supply chain. No financial details of the transaction were disclosed. Shares in Siemens Energy rose to the top of Frankfurt's blue-chip index (.GDAXI) , opens new tab following the news, trading 3.9 higher at 1126 GMT. As part of the deal, Siemens Energy will transfer around 1,000 employees and two manufacturing plants in India to the new entity, it said. Around 1,200 of its local staff will not be part of the deal and will remain with Siemens Energy, the company said. Siemens Gamesa has an installation base of nearly 10 gigawatts in India and provides service to more than 7 GW worth of turbines under long-term agreements, it said, adding the market was expected to add 57 GW of capacity by 2032. Philip said the focus remained on fixing Siemens Gamesa's onshore business, which has suffered from a quality crisis around its newer generation 4.X and 5.X turbine models. An updated version of the 4.X turbine has been brought back into the market and Philip said there were "good conversations" with customers in Europe about it. https://www.reuters.com/business/energy/siemens-energy-sells-most-indian-wind-business-tpg-led-investor-group-2025-03-26/

2025-03-26 07:30

TOKYO, March 26 (Reuters) - Tokyo Gas (9531.T) , opens new tab aims to nearly double its net profit in the 2026 fiscal year and plans to expand in the United States, Japan's biggest city gas provider said in a medium-term management plan released on Wednesday. The company said it expects net profit to grow to 131 billion yen ($871 million) in the 2025-26 fiscal year, which begins on April 1, from 72 billion yen for the year ending this March. It sees its dividend rising by 10 yen to 80 yen per share in the current fiscal year. Sign up here. It also plans a new share buyback of up to 120 billion yen in the first half of the 2026 fiscal year, it said. Tokyo Gas said it wants to increase coordination between its liquefied natural gas trading and shale gas businesses in the United States and expand there, while also building its LNG trading worldwide, mainly through Singapore and London. "Our shale gas business is expected to become a major profit pillar in FY2025" the company's statement said. Overall, it is aiming to invest of over 1.1 trillion yen and plans shareholder returns of over 200 billion yen in fiscal years 2026-2028. The company may also sell around 100 billion yen worth of real estate, it said. The company's presentation did not mention U.S. activist investor Elliott Management, which bought a 5.03% stake in Tokyo Gas and has urged it to divest parts of its extensive real estate portfolio to boost shareholder value. Tokyo Gas shares closed 2% down in Tokyo. ($1 = 150.4700 yen) https://www.reuters.com/business/energy/tokyo-gas-expects-net-profit-nearly-double-fy26-2025-03-26/