2025-02-12 07:09
Sverdrup is largest North Sea oilfield TotalEnergies, Aker BP seek licence review Process set to last 12-18 months, Aker BP says OSLO, Feb 12 (Reuters) - TotalEnergies (TTEF.PA) , opens new tab and Aker BP (AKRBP.OL) , opens new tab are seeking an independent review of their stakes in Equinor's (EQNR.OL) , opens new tab Johan Sverdrup oilfield with a goal of boosting their holdings in the North Sea's largest producing field, Aker BP said on Wednesday. Built across several offshore oil and gas licences, Sverdrup is currently owned 42.63% by its operator Equinor, while Aker BP holds 31.57%, Norwegian state-owned oil firm Petoro 17.36% and France's TotalEnergies (TTEF.PA) , opens new tab the remaining 8.44%. The owners of the field, which began producing oil in 2019, have the right to seek reviews of their stakes based on production and reservoir data. Both TotalEnergies and Aker BP used an option to call for a redetermination - a process to decide again on their stakes - in January, Aker BP CEO Karl Johnny Hersvik told reporters. "I'm not going to speculate on the results of such a process, but obviously we wouldn't have done that if we didn't expect a positive change," Hersvik said. He told Reuters that redetermination could lead to a possible change in ownership rates at Sverdrup, but declined to comment on how big the adjustments could be. "The future production (share) will be according to the new stake, and then you're compensated for the stake that you should have had previously, but back to a certain date," Hersvik said. Any such compensation would likely be made in the form of additional oil volumes for the partners to sell. Equinor said that as the Sverdrup operator, it was running the redetermination process in accordance with regulations. Hersvik said he expected the process to last about 12 to 18 months. TotalEnergies and Petoro did not immediately respond to requests for comment. Sverdrup is expected to produce around 720,000 barrels of oil equivalent per day on average in 2025, close to its level in 2023-2024, Equinor said last week. Aker BP's share of Sverdrup's output accounted for about half of the company's production in 2024. Sign up here. https://www.reuters.com/business/energy/total-aker-bp-seek-bigger-stakes-giant-equinor-oilfield-2025-02-12/
2025-02-12 07:07
JOHANNESBURG, Feb 12 (Reuters) - South Africa's rand slipped on Wednesday, after data showed U.S. consumer prices rose more than expected last month, raising the prospect of the Federal Reserve holding interest rates higher for longer. At 1520 GMT, the rand traded at 18.55 against the U.S. dollar , more than 0.2% lower than its previous close. The dollar index was last up about 0.4% against a basket of currencies. The U.S. consumer price index jumped 0.5% in January after gaining 0.4% in December, the Labor Department's Bureau of Labor Statistics (BLS) said on Wednesday. Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. monetary policy in the absence of major local drivers. Fed Chair Jerome Powell told the U.S. Congress on Tuesday that the central bank was not in a hurry to cut interest rates and a reduction would be considered only if inflation eased or the job market weakened. On the stock market, the Top-40 (.JTOPI) , opens new tab index hit a fresh high and closed up about 0.5%. South Africa's benchmark 2030 government bond was weaker, with the yield up 5.5 basis points at 9.205%. Sign up here. https://www.reuters.com/markets/currencies/south-african-rand-stable-after-powells-cautious-comments-us-inflation-focus-2025-02-12/
2025-02-12 07:04
Quarterly dividend increased by 5% 2025 capex seen at $5.5 bln-$6 billion vs $4.8 billion in 2024 Aims to sustain output above 500,000 boepd beyond 2030 Q4 EBITDA at $2.72 billion vs consensus of $2.66 billion OSLO, Feb 12 (Reuters) - Norway's Aker BP (AKRBP.OL) , opens new tab raised its quarterly dividend by 5% on Wednesday and said capital expenditure is set to rise sharply this year, as the oil and gas company aims to boost output in the next five years. Norway's second-largest listed oil company, partly owned by BP (BP.L) , opens new tab, said it would increase its quarterly dividend to $0.63 per share from $0.60. Aker BP expects its 2025 oil and gas production to decline to 390,000-420,000 barrels of oil equivalent per day (boepd) from 439,000 boepd last year, before rising to more than 500,000 boepd in 2028 as new offshore fields come on stream. "We have a clear pathway to sustain production above 500,000 barrels per day beyond 2030, with ambitions for further growth," Aker BP's CEO Karl Johnny Hersvik said in a statement. After generating a record $6.4 billion cash flow from operations on a full-year basis in 2024, the company was in a strong financial position to develop new fields while paying increased dividends to shareholders, he added. The company is in the midst of a major push to increase its production organically after expanding briskly via mergers and acquisitions in the decade leading up to 2020. Ongoing developments include the $10.7 billion North Sea Yggdrasil field currently estimated to hold 700 million barrels of oil equivalent (boe). Aker BP said on Wednesday it would aim to increase the field's resource base to 1 billion boe. The company plans to allocate $5.5 billion-$6 billion in capital spending in 2025, up from $4.8 billion in 2024, and to spend another $450 million on exploration, it said in the quarterly report. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to $2.72 billion in the fourth quarter from $3.17 billion a year earlier, slightly exceeding the $2.66 billion expected in a poll , opens new tab of 19 analysts compiled by Aker BP. Analysts at DNB Markets brokerage said they expected a "neutral-to-slightly negative" reaction for Aker BP's share price on Wednesday as the 2025 capital spending appeared to be guided somewhat higher than previously expected. Sign up here. https://www.reuters.com/business/energy/aker-bp-raises-dividend-after-q4-core-profit-beat-2025-02-12/
2025-02-12 07:02
SYDNEY, Feb 12 (Reuters) - Australia's industry minister said on Wednesday the nation's plan to boost "green" aluminium exports would not be derailed by the threat of U.S. tariffs, saying American customers would only end up paying more for a product in global demand. After U.S. President Donald Trump said he would consider an exemption for Australia from a flat 25% tariff on steel and aluminium imports, his adviser Peter Navarro told CNN in an interview "Australia is just killing our aluminum market". The executive order imposing tariffs said the volume of aluminium from Australia had surged after it was granted a tariff exemption by Trump in 2018, and was 103% higher in 2024 than the average volume for 2015 to 2017. "Australia has disregarded its verbal commitment to voluntarily restrain its aluminum exports to a reasonable level," the order read. Industry Minister Ed Husic said on Wednesday that Australia would argue vigorously for a new exemption for its aluminium as a strong ally with defence ties, and would not cut back aluminium exports to the United States, where there is high demand on the West Coast. "The world has a high demand for our aluminium; we need it as part of transition to net zero," he told reporters at the National Press Club in Canberra. "The question is for our American friends do you really want to pay more for that product that you've got a big demand for?" The centre-left Labor government of Prime Minister Anthony Albanese faces a national election by May, and announced a plan last month to spend A$2 billion for aluminium smelters to switch to renewable electricity to secure up to 75,000 direct and indirect jobs. Labor has organisational ties to the metal worker union, one of Australia's largest unions. Husic, who said he was the son of a metal worker, said aluminium exports support thousands of jobs in rural Australia. Australia, the world's sixth-largest aluminium producer, accounted for 1% of steel imports into the U.S. and 2% of its aluminium imports. Sign up here. https://www.reuters.com/markets/commodities/australia-wont-curb-green-aluminium-exports-us-avoid-tariff-says-minister-2025-02-12/
2025-02-12 06:21
EU trade ministers meeting later on Wednesday to decide response to US tariffs Siemens Energy will pass on extra costs of tariffs Supermarket chain Ahold warns food prices will go up Steelmakers worry about flood of imports into EU Trump tariffs dominate Q4 earnings FRANKFURT/GDANSK/LONDON, Feb 12 (Reuters) - Supermarket group Ahold Delhaize and Siemens Energy said on Wednesday U.S. import tariffs will lead to higher prices as they pass on the costs, while speciality steelmaker voestalpine urged Brussels to retaliate for duties threatened by Donald Trump. Executives around the world are scrambling to offset the cost of the U.S. president's move to impose 25% tariffs on aluminium and steel and keep up with changing U.S. trade policies that threaten to upend industries from autos to consumer goods to energy. On Wednesday, Trump's trade advisers were finalising plans for the reciprocal tariffs the U.S. president has vowed to impose on every country that charges duties on U.S. imports, ratcheting up fears of a widening global trade war. Trade ministers of the 27-country European Union were preparing to meet later by videoconference to determine their response after European Commission President Ursula von der Leyen said moves against the bloc "will not go unanswered". Siemens Energy (ENR1n.DE) , opens new tab expects to take a hit from tariffs with its network in Mexico the most exposed to extra charges on power equipment supplies. CEO Christian Bruch said he could not quantify the impact, but that price increases would be passed on to customers, echoing comments from other executives in recent weeks. Trump's trade policy has dominated conference calls with media and investors during the fourth-quarter earnings season. Supermarket group Ahold Delhaize (AD.AS) , opens new tab expects U.S. tariffs on Mexico and Canada to lead to price increases for food and vegetables as well as paper products, group CEO Frans Muller told Reuters. The company which runs U.S. chains including Food Lion, Stop & Shop, and Hannaford, is considering sourcing more products from the West Coast and states such as Florida, should Mexican products become less competitive, Muller added. "If there would be tariffs on Mexican fruit and vegetables or Canadian paper products, then we will have an inflationary effect in those categories," Muller said in an interview. European shares extended gains to hit a record high on Wednesday, showing some resilience to the uncertain global trade backdrop. Barclays' European equity strategists said on Wednesday the tariff threats are for now looking more like a negotiation tool, although there is still some risk for stocks exposed to tariffs and foreign exchange, such as autos and consumer staples. "Both could therefore see some relief if tariffs aren't as bad as feared," they said. The bank's back-of-the-envelope calculations suggest European companies could take a 5-10% hit to earnings from 10% tariffs in a "worst-case" scenario. RETALIATION Steelmakers in Europe are worried about a potential fresh flood of cheap steel into the EU as happened in 2018 under the first Trump presidency. Austrian speciality steelmaker voestalpine (VOES.VI) , opens new tab called on the European Union to take immediate countermeasures and start negotiations with the U.S. regarding tariffs. French steelmaker Aperam (APAM.AS) , opens new tab on Tuesday called on Brussels to intervene to curb imports if U.S. duties on all steel and aluminium imports prompt companies to ship more to the European Union instead. Chairman of Taiwan's Foxconn (2317.TW) , opens new tab said the world's largest contract electronics manufacturer and Apple's AAPL.O main iPhone maker can adjust its production around new U.S. tariffs. Sign up here. https://www.reuters.com/business/energy/siemens-energy-reports-record-135-billion-order-book-2025-02-12/
2025-02-12 06:19
Island increases greenhouse gas-reduction goal Minister says Taiwan under threat from climate change TAIPEI, Feb 12 (Reuters) - Taiwan aims to get more than $1.5 billion in investment from insurance funds to help finance the island's green energy transition as part of its climate change and carbon reduction goals, Environment Minister Peng Chi-ming has said. Although most countries missed Monday's U.N. deadline to set new climate targets, Taiwan has been eager to show it is a responsible member of the international community and ahead of the curve in tackling the issue. Taiwan is not a member of the U.N. because of the objections of China which views the island as its own territory, and so is not a signatory to the Paris climate agreement. Taiwan President Lai Ching-te last month announced a more ambitious carbon emissions reduction goal to reduce greenhouse gas emissions by 26% to 30% by 2030 compared to 2005 levels. The previous target was 23% to 25%. Peng, speaking this week to Reuters at his ministry near Taiwan's presidential office, said that ESCOs, or Energy Service Companies that design, build and arrange financing for energy-saving schemes, were an attractive investment. The environment ministry, along with the economy minister and Taiwan's financial regulator, the Financial Supervisory Commission, have formed a working group to channel funds from the insurance industry into ESCOs. First phase investment is planned at T$10 billion ($304.92 million), expanding to T$50 billion ($1.52 billion) in the second phase, added Peng, who holds a doctorate in atmospheric sciences and was a weather broadcaster. "ESCOs can provide long-term stable returns and are suitable for the insurance industry to invest in," he added, without giving a timeframe. Taiwan is phasing out coal-fired power stations and shifting to liquefied natural gas, as well as investing in solar and wind projects. Peng said that subtropical Taiwan faced worse heat waves, stronger typhoons and more intense droughts, and thus had to take climate change seriously. Taiwan recorded its hottest year on record in 2024, and in 2021 Taiwan experienced its worst drought in half a century after no typhoons - which the island relies on to replenish its reservoirs - made landfall the previous year. "For countries at our latitude, drought is a real danger," Peng said. "Although we have sufficient resilience to deal with it at the moment, we can't rule out even more extreme situations won't happen." ($1 = 32.7960 Taiwan dollars) Sign up here. https://www.reuters.com/sustainability/sustainable-finance-reporting/taiwan-environment-minister-eyes-insurance-funds-help-with-green-transition-2025-02-12/
