2025-02-20 12:46
Naturgy plans to buy up to 10% of share capital To sell the shares in the market Naturgy pledged to increase dividend Board to expand to 16 members from 12 MADRID, Feb 20 (Reuters) - Spain's Naturgy (NTGY.MC) , opens new tab plans to buy back almost 2.5-billion euros ($2.6 billion) of its shares, up to 10% of its capital, then resell them in the market, the power company said on Thursday as it pledged to increase its free float. Naturgy shares rose 5.2% after it also promised to raise dividends until 2027 and reshape its board of directors, seeking to boost investor confidence following recent ownership changes. Naturgy was the target of a failed takeover attempt last year and saw the entry of BlackRock (BLK.N) , opens new tab into its capital. More recently, Australian investment fund IFM, Naturgy's fourth largest shareholder, moved to seek a second seat on the board. The performance of Naturgy's shares has also been hit by its limited free float - or shares available to the public for trading. Buying back shares to then place them on the market will help increase its free float and return to the main stock market indices, Executive Chair Francisco Reynes told analysts. "We believe Naturgy is using its balance sheet to help fix issues of its reference shareholders," RBC analyst Fernando Garcia said in a note. If the plan moves ahead, Naturgy will pay 26.5 euros a share and expects its main shareholders to participate in the offer in proportion to their stake. The company said it would raise the dividend paid out of 2024 results to 1.60 euros a share, up from 1.40 euros the previous year. Shareholders will see their remuneration gradually increased to 1.90 euros a share in 2027. And at the next general meeting on March 25, shareholders will be asked to approve an expansion of the board to 16 members from the current 12, a change that would allow the company to meet IFM's request to have a second seat, it said in a statement. Under the plan, Spanish holding firm Criteria, which owns a 26.7% stake, would have four seats on the board, up from three currently. BlackRock (BLK.N) , opens new tab - which got its stake through the acquisition of investment fund GIP - and private equity firm CVC (CVC.AS) , opens new tab each own more than 20%, and would both see their board representation increase to three from two at present. Naturgy posted a 4.3% decline in 2024 net profit of 1.90 billion euros. ($1 = 0.9575 euros) Sign up here. https://www.reuters.com/business/energy/spains-naturgy-raises-dividend-strategic-update-2025-02-20/
2025-02-20 12:18
LONDON/ATHENS, Feb 20 (Reuters) - Italian and Greek authorities are investigating two separate incidents involving tankers that were damaged in January and February, the vessels' Athens-based operator Thenamaris said. Thenamaris said on Wednesday the Seajewel tanker had suspended routine cargo operations on February 15 and that there had been "no harm to the environment as a result of the incident". Italian prosecutors have opened a terrorism investigation over an explosion over the weekend that damaged the Seajewel, which was anchored off the coast of northern Italy, the chief prosecutor of the city of Genoa said on Thursday. Thenamaris said on Thursday separately that Greek authorities were investigating what happened with the Seacharm, in an incident which took place in January. "The vessel (Seacharm) is currently undertaking normal operations," Thenamaris said. Sign up here. https://www.reuters.com/world/europe/italian-greek-authorities-investigating-incidents-with-two-greek-tankers-ship-2025-02-20/
2025-02-20 12:12
LONDON, Feb 20 (Reuters) - Frigid temperatures across the U.S. Northeast have led to a surge in heating oil demand since the start of the year, helping to offset a slowdown in consumption caused by reduced industrial activity and renewable alternatives over recent years. U.S. inventories of distillate fuels, which include diesel and heating oil, dropped to their lowest seasonal level since 2014 this month, data from the Energy Information Administration (EIA) showed. The decline mirrors a sharp rise in heating oil consumption. The four-week average of distillates product supplied, a proxy for demand, has averaged 3.9 million barrels per day since the start of the year, 9% above last year's levels and 6.5% higher than the previous five-year average over the same period, according to the EIA data. The increased use of heating oil has an obvious explanation. In January, temperatures in the United States were roughly 10% below last year's average and more than 5% below the long-term historical average for the month, based on American Gas Association data. The cold weather boosted heating oil demand by an estimated 100,000 barrels per day in both December and January, according to estimates by the International Energy Agency (IEA). This also helped to push U.S. East Coast diesel refining margins to an 11-month high this week. Adding to the pressure on U.S. domestic diesel supply, exports increased from the U.S. Gulf Coast oil refining hub, reaching 3.9 million metric tons in January, almost 20% above last year, according to analysis firm Kpler. ECONOMIC CONTRACTION Although bitter temperatures have caused a temporary spike in diesel and heating oil demand, the negative trend in U.S. distillate consumption because of a lack of growth in energy-intensive sectors is almost certainly intact. Distillate fuel demand declined in 2024 by 70,000 barrels per day from the previous year to 4.1 million bpd, according to the EIA, the second consecutive year of declines. This is unsurprising, as U.S. manufacturing has contracted for most of the last two years, according to the purchasing managers’ index (PMI) from the Institute for Supply Management (ISM). Diesel consumption is a gauge of industrial activity such as car manufacturing, cement and steel plants, construction and heavy transportation, which all require a lot of energy. The manufacturing slump in turn has led to reduced activity in the U.S. trucking industry, which contracted in December, bringing tonnage to its lowest point since January 2024. The EIA forecasts a growth in diesel consumption this year and next. And while the PMI survey noted a modest uptick in U.S. manufacturing in January, this will likely be short-lived if President Donald Trump follows through on plans to levy a new round of tariffs on China and all steel and aluminium imports. RENEWABLES RISING Meanwhile, fossil fuel-based diesel demand faces another challenge: the growing popularity of renewable diesel, particularly in the West Coast states of California, Oregon and Washington, which all have clean fuel regulations. Renewable diesel, which can be a substitute for traditional transportation and heating oil, is produced using waste, cooking oils and grease. Its consumption rose to 240,000 bpd in 2024 from 190,000 bpd a year earlier and 50,000 bpd in 2020, EIA data show. Ultimately, distillate demand remains closely correlated with industrial activity, even if it is no longer a perfect proxy for U.S. economic activity more broadly, given the rapid growth of less energy-intensive sectors. That means distillate fuel use will probably slump in the coming months as temperatures rise, unless Trump backtracks on policies likely to leave U.S. manufacturing out in the cold. Sign up here. https://www.reuters.com/markets/commodities/cold-weather-boosts-us-diesel-masking-economic-challenges-2025-02-20/
2025-02-20 12:10
Feb 20 (Reuters) - Targa Resources (TRGP.N) , opens new tab forecast full-year adjusted core profit above analyst expectations on Thursday, benefiting from increased demand and higher transport volumes of natural gas and natural gas liquids through its pipelines. The U.S. Energy Information Administration (EIA) reported that oil production in the country rose 260,000 barrels per day (bpd) month-over-month to a record 13.46 million bpd in October as demand surged to its highest levels since the pandemic. Oil and gas transportation companies in the U.S. gained in 2024, fueled by hopes of growing electric generation associated with artificial intelligence operations, cryptocurrency mining and data centers, with Targa rising nearly 104% last year. U.S. natural gas futures rose 24.3% in the quarter ended December 31, positively impacting pipeline operators' margins, reducing operational costs and potentially boosting natural gas transportation demand. Targa's total quarterly natural gas sales were up nearly 2% at 2.78 billion British thermal units per day (BBtu/d) from the previous year. NGL pipeline transportation volumes were up at 871,500 barrels per day (Bbl/d) in the October-to-December quarter, from 722,000 bbl/d last year. NGL sales in the company's logistics and transportation segment were 1.23 billion Bbl/d in the reported quarter, compared with 1.13 billion Bbl/d a year earlier. On an adjusted basis, Targa's adjusted core profit was $1.12 billion in the reported quarter, beating analysts' average estimate of $1.10 billion, according to data compiled by LSEG. Targa forecast continued growth across its Permian footprint, which is expected to drive record production at the basin, NGL pipeline transportation and LPG export volumes in 2025 compared with records set in 2024. The Houston, Texas-based company expects 2025 adjusted core profit to be between $4.65 billion and $4.85 billion. Analysts were estimating a profit of $4.63 billion. Sign up here. https://www.reuters.com/business/energy/pipeline-operator-targa-forecasts-core-profit-above-estimates-boost-gas-volumes-2025-02-20/
2025-02-20 11:45
Feb 20 (Reuters) - Canadian oil and gas producer Cenovus Energy (CVE.TO) , opens new tab posted a fall in fourth-quarter profit on Thursday, as lower commodity prices and weak refining margins offset higher production. U.S.-listed shares of the company fell 1.4% before the bell. Average Brent crude futures dropped 3% in 2024, as major consumer China's economy remained weak and the OPEC+ producer group postponed planned supply increases and extended deep output cuts to the end of 2026 in a sign of weak demand. Integrated oil companies, including Exxon and Chevron, have seen a drop in profitability in their refining segments as margins return to normal levels after a period of extraordinary gains that were driven by sanctions on producer Russia over its invasion of Ukraine. Cenovus said its total upstream production rose slightly to 816,000 barrels of oil equivalent per day (boepd) in the quarter, from 808,600 boepd a year earlier. Total refining throughput for the fourth quarter was 666,700 barrels (bbl) per day, compared with 579,100 bbl per day a year ago. The Canadian energy sector faces an uncertain future as U.S. President Donald Trump imposed 25% tariffs on Canadian imports in early February, but later delayed them by a month. Canada has been the biggest source of U.S. oil imports for over two decades and supplied more than half of all crude imports into the country in 2023, according to the Energy Information Administration (EIA). Cenovus had earlier forecast upstream production of between 805,000 and 845,000 boepd for the current year, higher than the 797,200 boepd it produced in 2024. The Calgary, Alberta-based company's net income fell to C$146 million ($102.78 million), or 7 Canadian per share, in the three months ended December 31, from C$743 million, or 32 Canadian cents per share, a year earlier. ($1 = 1.4205 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/canadas-cenovus-energy-quarterly-profit-falls-weak-oil-prices-2025-02-20/
2025-02-20 11:44
Feb 20 (Reuters) - Singaporean food conglomerate Wilmar International (WLIL.SI) , opens new tab reported a bigger-than-expected fall in full-year core net profit on Thursday and flagged challenging conditions for its palm oil refining segment in fiscal 2025. The company, one of the world's largest food producers, reported a 23.3% decline in core net profit at $1.16 billion for the twelve months ended December 31. Analysts had expected $1.40 billion profit, according to data compiled by LSEG. While the contribution from the firm's oilseeds business improved towards the end of the second half, continued challenging operating conditions for its tropical oils business and weaker performance in sugar merchandising weighed on Wilmar's profits, the company said. Profit from the plantation and sugar milling segment decreased to $269.1 million in fiscal 2024 from $500.1 million the previous year. Lower sugar prices and sales volume in the second half weighed on the segment. Wilmar posted a full-year revenue of $67.38 billion, up from $67.16 billion reported in fiscal 2023. "Palm oil refining is expected to remain challenging while we are cautiously optimistic that oilseeds business will perform satisfactorily as a record soybean crop production is expected in Brazil in 2025," said Kuok Khoon Hong, chairman and chief executive officer. The company also proposed a final dividend of S$0.10 per share, slightly lower than S$0.11 per share declared last year. Sign up here. https://www.reuters.com/business/retail-consumer/singapores-wilmar-international-posts-23-fall-annual-profit-2025-02-20/
