2025-02-27 18:26

Feb 27 (Reuters) - U.S. independent power producer Vistra Corp (VST.N) , opens new tab reported fourth-quarter profit on Thursday, as strong electricity demand from AI data centers helped boost the company's earnings. Utilities have witnessed a surge in electricity demand as Big Tech pours billions of dollars into AI technologies and the infrastructure needed to develop them. AI data centers add to growing electricity use from advanced manufacturing and the electrification of industries like transportation, which has helped to drive U.S. power demand to record highs in 2024, with new records projected this year. Nuclear power operators like Vistra have been a top beneficiary of the demand surge, with the company's shares soaring nearly 258% in 2024, compared to a 19.6% rise in the S&P 500 utilities sector (.SPLRCU) , opens new tab in the same period. "We believe a new paradigm is already occurring and we expect it to continue," Vistra CEO Jim Walker said on a conference call. Its adjusted core profit from continuing operations for the fourth quarter rose to $1.99 billion, compared to $965 million the previous year, driven by higher income across most segments. The company said it is continuing to see rapid electricity demand growth across regional power markets PJM and ERCOT, with energy consumption growing faster than peak load. Vistra expects current-year adjusted core profit from continuing operations to be in the range of $5.50 billion to $6.10 billion, the midpoint of which is higher than the $5.66 billion it earned in 2024. The Irving, Texas-based company's net income for the three months ended December 31 came in at $490 million, compared with a loss of $184 million during the same period a year earlier. A fire erupted last month at a battery storage facility in Moss Landing, south of San Francisco, owned and operated by Vistra and one of the world's largest, prompting evacuation of the site and surrounding areas. No injuries were reported by the company or the authorities after the fire and Vistra has not yet disclosed the details of any financial hit from the incident. A gas plant has since restarted, but the site's two battery facilities are still offline. Vistra executives said it expected to recover up to total up to $500 million from insurance tied to the fire. Shares of Vistra initially jumped following earnings, but sank by 8% to $136 in midday trade. Sign up here. https://www.reuters.com/business/energy/vistra-reports-quarterly-profit-ai-boom-fuels-power-demand-2025-02-27/

2025-02-27 17:51

MEXICO CITY, Feb 27 (Reuters) - Mexico's FEMSA (FEMSAUBD.MX) , opens new tab, which controls one of the largest Coca-Cola bottlers and a network of convenience store chains, reported on Thursday a more than double increase in net profit for its fourth quarter compared to the same period last year. The company posted a net profit of 6.79 billion pesos ($325 million), up from the 3.12 billion pesos in the October-December 2023 period, driven by strong performance across its business operations and favorable foreign-exchange conditions. Chief financial officer, Jose Antonio Fernandez Carbajal, said in a conference call that FEMSA has successfully completed most of its planned divestments as part of its strategy. As a result, the company will propose a capital return to shareholders through a 4.2% increase in ordinary dividends, an additional extraordinary dividend, and share repurchases representing 2.9% of its market capitalization in 2025. Revenue for the quarter reached 208.31 billion pesos, a 12% increase from 184.73 billion pesos in the same period a year earlier. Shares of Mexico's Femsa gained about 6.5% in morning trading adding 37.2 billion pesos to company's market cap. ($1 = 20.8829 pesos at end-December) Sign up here. https://www.reuters.com/business/retail-consumer/mexicos-femsa-shares-jump-after-net-profit-doubles-2025-02-27/

2025-02-27 17:26

Canadian dollar falls 0.8% against the greenback Touches its weakest since February 4 at 1.4442 Price of oil rises 2.2% Bond yields trade mixed across the curve TORONTO, Feb 27 (Reuters) - The Canadian dollar hit a three-week low against the greenback on Thursday as U.S. President Donald Trump said that tariffs on Canadian goods will go into effect on March 4, clearing up some confusion on the timing and dashing hopes of a reprieve. The loonie was trading 0.8% lower at 1.4425 per U.S. dollar, or 69.32 U.S. cents, after touching its weakest intraday level since February 4 at 1.4442. It was the fifth straight day of declines for the currency. Trump said that his proposed 25% tariffs on Mexican and Canadian goods will go into effect next week as scheduled because drugs are still pouring into the U.S. from those countries. On Wednesday, Trump's comments on the matter seemed to suggest that he may push the deadline back for about one month until April 4. "If you were positioned for relief, this is a slap in the face," said Erik Bregar, director, FX & precious metals risk management at Silver Gold Bull. "It's an angry, get me out of the market, kind of move." The loonie touched a 22-year low of 1.4793 on February 3 in anticipation of tariffs which were then delayed. The price of oil , one of Canada's major exports, was up 2.2% at $70.11 a barrel as supply concerns resurfaced after Trump revoked a license granted to U.S. oil major Chevron (CVX.N) , opens new tab to operate in Venezuela. Canadian fourth-quarter gross domestic product data, due on Friday, could help guide expectations for further interest rate cuts by the Bank of Canada. Economists forecast annualized growth of 1.8%. Canadian bond yields were mixed across a steeper curve, with the 2-year down 1.4 basis points at 2.636%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-hits-3-week-low-tariff-reprieve-hopes-fade-2025-02-27/

2025-02-27 16:31

Brazil's 12-month current account deficit almost tripled in January FDI may not cover Brazil's deficit, central bank warns Trade surplus decline drives monthly deficit increase BRASILIA, Feb 27 (Reuters) - Brazil's 12-month current account deficit nearly tripled in January from a year ago and the central bank acknowledged it may soon go uncovered by foreign direct investment, something that only happened in the past decade during severe economic distress. This would signal a less favorable situation for the external accounts of Latin America's largest economy. Since foreign direct investment (FDI) consists of long-term investments in the productive activities of companies, it is widely seen by markets as a higher-quality source of financing to cover a country's current account deficit. According to central bank data on Thursday, Brazil's current account deficit reached $8.7 billion in the first month of the year, jumping from the $4.4 billion shortfall reported in January 2024 on the back of a shrinking trade surplus. Economists polled by Reuters had expected a narrower deficit of $8.3 billion. FDI for the month totaled $6.5 billion, broadly in line with the $6.55 billion projected by economists. Over the 12-month period, the current account deficit rose to 3.02% of gross domestic product, from just 1.11% of GDP a year earlier, marking the worst level since June 2020. It was still covered by FDI inflows, which stood at 3.16% of GDP on the same basis. However, the head of the central bank's statistics department, Fernando Rocha, said it is possible this may no longer be the case going forward, even if "for a while," reversing a situation "Brazil has lived with for decades." Despite the potential shift, Rocha emphasized that the country's position remains solid when considering other sources of financing for the current account, such as investments linked to external debt operations or portfolio investments in the capital markets. The latter are considered more volatile and often speculative. The monthly deficit was driven by a sharp decline in the trade surplus, which fell to $1.2 billion, a 78% drop from January last year. This was due to rising imports, reflecting an economy that remains resilient despite an aggressive monetary tightening cycle aimed at curbing inflation, coupled with a decline in exports. Central bank data showed the services account deficit widened by $1 billion to $4.6 billion, while the deficit in the factor payments account narrowed by $1.1 billion to $5.6 billion. Sign up here. https://www.reuters.com/markets/brazils-current-account-deficit-shows-steep-deterioration-nears-lack-fdi-2025-02-27/

2025-02-27 16:01

TSX ends down 0.8% at 25,128.24 Materials group loses 2.1% as gold falls RBC shares fall 3.6% after earnings report Nine of 10 major sectors end lower TORONTO, Feb 27 (Reuters) - Canada's main stock index fell on Thursday to a near six-week low as escalating global trade tensions fueled risk-aversion and despite stronger-than-expected earnings from three of Canada's big-five banks. The S&P/TSX composite index (.GSPTSE) , opens new tab ended down 200.12 points, or 0.8%, at 25,128.24, wiping out its gains over the previous three days and posting its lowest closing level since January 17. For the month, the TSX was headed for a decline of 1.6%. "Markets are going to be in very uncertain territory for some time here," said Michael Sprung, president at Sprung Investment Management. "The main thing causing confusion is the worry over tariffs, particularly with respect to Canada and Mexico, but now also with the threatened tariffs on the European Union as well." U.S. President Donald Trump said that his proposed 25% tariffs on Mexican and Canadian goods will go into effect on March 4 and threatened an extra 10% duty on Chinese imports because deadly drugs are still pouring into the U.S. from those countries. On Wednesday, Trump floated a 25% "reciprocal" tariff on European cars and other goods. The materials group, which includes fertilizer companies and metal mining shares, lost 2.1% as a stronger U.S. dollar weighed on gold prices . Royal Bank of Canada (RY.TO) , opens new tab, TD Bank (TD.TO) , opens new tab and Canadian Imperial Bank of Commerce (CM.TO) , opens new tab reported quarterly profit that beat analyst expectations. Shares of heavily weighted RBC fell 3.6%, TD was up 0.7% and CIBC ended 0.4% lower. The financials sector fell 0.7% and technology ended 1.2% lower. Energy was the only one of ten major sectors to end higher, adding 0.1%, as the price of oil settled up 2.5% at $70.35 a barrel on supply concerns. Shares of Veren Inc (VRN.TO) , opens new tab rose 9.4% after the oil producer reported better-than-expected quarterly results. Superior Plus (SPB.TO) , opens new tab shares ended 11.5% higher. The utilities provider exceeded quarterly revenue estimates. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-after-rbcs-upbeat-quarterly-results-2025-02-27/

2025-02-27 15:21

SAO PAULO, Feb 27 (Reuters) - Listed meat processor BRF (BRFS3.SA) , opens new tab said on Thursday food sales exceeded expectations in the first two months of the year in Brazil, with the company planning to expand production of processed foods to capture revenue from strong demand, executives said on Thursday. "Regarding 2025, we started the year quite well both in terms of volumes and market diversification," said the company's CEO Miguel Gularte in a conference call to discuss fourth-quarter earnings. "There are cost challenges, but we are prepared." The world's largest chicken exporter, BRF said on Wednesday fourth-quarter net profit was 868 million reais ($149.33 million), up 15% from the same period a year earlier. The annual result was the best in history. Still, BRF shares fell as much as 8.8% in mid-morning trading, as investors punished the stock because "results were the first in a while that missed market expectations," according to a Bradesco analyst in a note to clients about BRF's performance in the last quarter of 2024. BRF's CFO Fabio Mariano told analysts BRF sees a positive scenario for protein prices, with a "very balanced equation between supply and demand", including for chicken. In 2023, meat companies suffered from global chicken oversupplies. BRF processes pork and chicken, serving the domestic market and exporting to countries like China and the Middle East, among others. Regarding operations, the CFO highlighted that the growth in demand for processed foods in Brazil reduced idle capacity at BRF units, improving operating efficiencies. That will allow the company to allocate resources to expansion projects, especially in the processed and frozen food category. Sign up here. https://www.reuters.com/markets/commodities/brazil-food-processor-says-2025-food-sales-exceed-expectations-2025-02-27/