2025-02-27 21:24

Feb 27 (Reuters) - EOG Resources (EOG.N) , opens new tab beat fourth-quarter profit estimates on Thursday, as higher production at the oil and gas firm helped offset lower oil prices. Shares of the company were, however, down 3.5% after market hours as its net income more than halved, falling to $1.25 billion from $1.998 billion in the year-ago quarter. Overall quarterly revenue fell 12% to $5.59 billion due to the lower oil revenues and losses from derivative contracts. Operating expenses also rose 3.6% from last year. But quarterly crude equivalent volumes were up 6.7% at nearly 1.1 million barrels of oil per day (boepd) from the previous year, and the company expects to pump between 1.1 million boepd and 1.14 million boepd in 2025. Data from the U.S. Energy Information Administration showed that oil production in the country rose to a record in October, as drilling and well efficiencies helped companies put out more oil than before. The company's in-house drilling motor program helped lower well costs by 6%, Chief Executive Officer Ezra Yacob said. EOG is also targeting a low single-digit percentage reduction in well costs in the current year. The Houston, Texas-based company expects total expenditures to be in the range of $6 billion to $6.4 billion. It spent $6.23 billion in 2024. Roth MKM's analysts also noted that EOG reported cash flow per share of $4.77, which was 0.5% below the consensus of $4.79 due to higher cash taxes. It expects to keep steady year-over-year activity levels in the Delaware basin, with a step up in activity in the Utica and Dorado basins. Last year, it repurchased 25.8 million shares for $3.2 billion, and has $5.8 billion remaining on its current repurchase authorization. The company reported an adjusted profit of $2.74 per share for the quarter ended December 31, compared with the analysts' average estimate of $2.57 per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/eog-resources-beats-fourth-quarter-profit-estimates-2025-02-27/

2025-02-27 21:00

Snowflake surges on upbeat 2026 product revenue forecast Salesforce falls on downbeat annual revenue forecast US weekly jobless claims rise more than expected S&P 500 -1.59%, Nasdaq -2.78%, Dow -0.45% Feb 26 (Reuters) - The S&P 500 and Nasdaq ended sharply lower on Thursday, weighed down by a slump in chipmaker Nvidia after its quarterly report failed to rekindle Wall Street's AI rally, while investors focused on data pointing to a cooling U.S. economy. Nvidia (NVDA.O) , opens new tab tumbled 8.5%, evaporating $274 billion in stock market value, after the Silicon Valley company gave a weaker-than-expected quarterly forecast for gross margin that overshadowed an upbeat revenue outlook. Chipmakers Broadcom (AVGO.O) , opens new tab dropped more than 7% and Advanced Micro Devices (AMD.O) , opens new tab lost 5%, pulling the Philadelphia chip index (.SOX) , opens new tab down 6.1%. The launch of low-cost artificial intelligence models from China's DeepSeek in January has cooled Wall Street's AI rally, while an analyst report this week suggesting Microsoft was scrapping some data center leases also raised concerns of AI overcapacity. With Nvidia's results and outlook failing to impress investors with high expectations, its stock has now fallen almost 20% from its record-high close on January 6. "Nvidia's earnings were good, but not like the blockbuster earnings that they've been delivering for a while," said Scott Welch, chief investment officer at Certuity. The S&P 500 dropped 1.59% to end the session at 5,861.57 points. The Nasdaq tumbled 2.78% to 18,544.42 points, while the Dow Jones Industrial Average declined 0.45% to 43,239.50 points. It was the Nasdaq's deepest one-day percentage drop in a month. Volume on U.S. exchanges was heavy, with 15.8 billion shares traded, compared to an average of 15.3 billion shares over the previous 20 sessions. The Cboe Volatility Index (.VIX) , opens new tab, Wall Street's "fear gauge" closed at its highest since December 19. While tech stocks dipped, other parts of the market saw gains. The S&P energy index (.SPNY) , opens new tab rose 0.5%, tracking a jump in crude prices after U.S. President Donald Trump canceled oil major Chevron's license to operate in Venezuela. Also weighing on investor sentiment, data showed jobless claims jumped more than expected in the previous week, while another report reiterated that economic growth slowed in the fourth quarter. Thursday's data follows reports over the past week that suggested the economy was stalling, fears of which have also put all three major U.S. indexes on track for monthly declines. "We're now seeing inflation fears give way to growth fears, and that, in turn, is causing stocks to go, at best, sideways, and potentially even down," said Michael Green, chief strategist at Simplify Asset Management in Philadelphia. On the trade front, Trump floated a 25% reciprocal tariff on European cars and other goods. He also said tariffs on Mexico and Canada will go into effect on Tuesday. Investors are focused on monthly Personal Consumption Expenditure data, which is the Federal Reserve's preferred inflation gauge, due on Friday. Traders expect the Fed to lower borrowing costs by at least 50 basis points by December, according to data compiled by LSEG. Shares of Salesforce (CRM.N) , opens new tab dropped 4% after the business software seller forecast fiscal 2026 revenue below expectations. Snowflake (SNOW.N) , opens new tab surged 4.5% after the data analytics provider forecast fiscal 2026 product revenue above estimates. Viatris (VTRS.O) , opens new tab plummeted 15% after the drugmaker forecast downbeat annual results. Warner Bros Discovery (WBD.O) , opens new tab jumped 4.8% after saying it expects streaming profits to double this year. Declining stocks outnumbered rising ones within the S&P 500 (.AD.SPX) , opens new tab by a 1.7-to-one ratio. The S&P 500 posted 20 new highs and 13 new lows; the Nasdaq recorded 42 new highs and 269 new lows. Sign up here. https://www.reuters.com/markets/us/nasdaq-futures-lead-gains-nvidia-results-ease-ai-demand-fears-2025-02-27/

2025-02-27 20:42

SAO PAULO, Feb 27 (Reuters) - Brazilian financial institutions see greater fiscal risks and a worsening economic cycle over the next three years in Latin America's largest economy, according to a central bank survey released on Thursday. Of the 91 financial institutions surveyed, 52 cited the fiscal picture as the main risk to financial stability, up from 42 in the last quarterly survey in November. The data underscores lingering market concerns over Brazil's mounting public debt, driven by high interest costs and rising mandatory expenditures, which have grown under leftist President Luiz Inacio Lula da Silva. Financial institutions are less willing to take risks and have a worsening assessment of asset prices and access to funding and liquidity, the survey showed. Globally, the risks for the next three years are mainly associated with U.S. economic policy and geopolitical conflicts. The research also showed increased concern about default risks and activity. More than 50% of respondents said the economy is in contraction, up from just over 25% in the previous survey. The central bank has said it will closely monitor economic data over time to confirm any signs of slowing activity. Stronger-than-expected growth and a tight labor market have increased inflationary pressures, prompting policymakers to raise interest rates by 275 basis points since September to 13.25%. The central bank has already signaled another 100 basis-point hike at its next policy meeting in March. Sign up here. https://www.reuters.com/world/americas/brazilian-financial-institutions-see-growing-fiscal-risks-cenbank-survey-shows-2025-02-27/

2025-02-27 20:33

Feb 27 (Reuters) - Chilean industrial conglomerate Empresas Copec (COPEC.SN) , opens new tab on Thursday posted a profit for the last three months of 2024 that rose 15% thanks to larger pulp volumes and lower costs at its forestry unit, Arauco (ANTCOC.UL). Arauco accounts for the bulk of Copec's earnings, though Copec also operates a sizeable fuel-distribution business, holds stakes in mining and runs a fleet of fishing ships and factories. The firm's profits in the fourth quarter landed at $191 million compared to $166 million a year earlier, while earnings before interest, taxes, depreciation, and amortization (EBITDA) edged down 1.7% to $644 million and revenues dipped 6.4% to $6.77 billion. The results landed below the forecasts of analysts polled by LSEG, who had predicted a quarterly net profit of $209.9 million, EBITDA of $680.1 million and revenues of $7.03 billion. Copec said it had made progress on its "Sucuriu Project," in Brazil, with construction set to start in April on the $4.6 billion pulp mill that is set to produce some 3.5 million metric tons of dry cellulose a year. Copec has said production should begin the last quarter of 2027. On Thursday, Copec said it had spent $126 million on the project last year. Sign up here. https://www.reuters.com/markets/commodities/industrial-giant-copec-posts-q4-profit-up-15-2025-02-27/

2025-02-27 20:23

Ukraine concerned by lack of security guarantees Investment fund would hold revenue from resources Details of fund agreement still to be negotiated US seeks alternative for Chinese resources THE HAGUE, Feb 27 (Reuters) - A framework agreement outlining U.S. access to revenues from Ukraine's natural resources in exchange for security guarantees has legal gaps that must be filled in future negotiations, four experts told Reuters a day before the countries' leaders meet in Washington. A draft of the deal seen by Reuters outlines the creation of a joint U.S.-Ukraine-managed "Reconstruction Investment Fund." It contains reassuring language, but the United States does not offer Kyiv the security guarantees it craves. It is expected to be signed on Friday when U.S. President Donald Trump meets Ukraine's Volodymyr Zelenskiy. The deal envisages the Ukrainian government contributing 50% of future monetisation of any state-owned natural resource assets to the fund. But it provides no amounts, timeline or details about the fund's management. That is not surprising and is what would be expected from a framework agreement, said Brian McGarry, assistant professor of international law at Leiden University, who has advised developing states on treaty negotiations. "It creates obligations to cooperate, but it does not have any binding specific commitments of a defence nature. That is exactly what we see in this agreement. The U.S. has not given concrete assurances," McGarry said. One diplomatic source, who requested anonymity to discuss sensitive matters, said the document "appears to be a pretty good deal for both sides." Despite the absence of security guarantees, terms outlined in the framework may come as a relief to Ukraine, with Trump dropping his initial demand for $500 billion in compensation for military support already provided. Zelenskiy said on Wednesday the success of the minerals deal will hinge on talks with Trump, citing its lack of firm U.S. security guarantees. The document does say that funds will be reinvested "to promote the safety, security and prosperity of Ukraine" to be worked out in a fund agreement that will address future financial distributions. The U.S. government "will maintain a long-term financial commitment to the development of a stable and economically prosperous Ukraine," the document states, but it does not specify what that means. McGarry added that details will have to be worked out in future negotiations that could result in a binding treaty. UNPRECEDENTED APPROACH One element that stood out to McGarry is that the draft explicitly states that in future negotiations about the fund, Ukraine and the U.S. "will strive to avoid conflicts with Ukraine's obligations" on its path to join the European Union. "There is at least in principle interesting political support for that process," he said, amid Washington's increasingly antagonistic stance towards the EU. Ukraine has deposits of 22 of the 34 minerals identified by the EU as critical, including industrial and construction materials, ferroalloy, precious and non-ferrous metals, and some rare earth elements. Trump's aims appear to be twofold. Recoup Washington's financial and military support for Ukraine since Russia's full-scale invasion three years ago and limit U.S. reliance on Chinese resources. China, with whom Trump has threatened a trade war, is the world's largest producer of rare earths, which are used to make magnets found in electric vehicles, weaponry and electronics. The framework agreement makes no reference to a dispute mechanism and Washington's share of a future fund is also left open for discussion, said Duke University international law professor Tim Meyer. "The agreement demonstrates some uncertainty on the U.S. side about whether the government has the authority to take the kind of interest in the fund that the agreement contemplates," he said, adding that a negotiated fund agreement would likely require congressional approval. Guillermo Christensen, a national security and international trade expert at U.S. law firm K&L Gates, said the framework offered "a unique and unprecedented approach" not seen in other national agreements. Sign up here. https://www.reuters.com/world/experts-cite-legal-gaps-trumps-minerals-deal-with-ukraine-2025-02-27/

2025-02-27 20:19

Feb 27 (Reuters) - American Electric Power (AEP.O) , opens new tab and its transmission affiliate Transource Energy LLC will invest approximately $1.7 billion in transmission system upgrades to improve reliability and deliver more power to meet growing demand, AEP said on Thursday. AEP said in a statement that it will invest across states within the footprint of regional transmission organization PJM Interconnection, including Indiana, Maryland, Ohio, Virginia, and West Virginia. Pennsylvania-based PJM coordinates the movement of wholesale electricity in all or parts of 13 U.S. states and the District of Columbia. AEP and Transource's proposals were approved by the PJM board "to address forecasted conditions that would create reliability concerns," the statement added. About $1.1 billion of the investment will go through Transource Energy as part of a joint venture with Dominion Energy (D.N) , opens new tab and FirstEnergy Transmission LLC, AEP said. The remaining $600 million has been approved for AEP's transmission companies and operating companies in Indiana, Ohio, and Virginia. All projects are in the early stages of development, AEP said. Sign up here. https://www.reuters.com/business/energy/aep-transource-invest-17-billion-power-grid-upgrades-meet-rising-demand-2025-02-27/