2024-11-18 22:41

Plaquemines LNG costs are $2.35 billion over budget, document says Company expects pre-commercial cargoes to offset higher cost Initial plant to cost $9.8 billion after repairs completed HOUSTON/NEW YORK, Nov 18 (Reuters) - Venture Global LNG's second liquefied natural gas export plant, currently under construction in Louisiana, is $2.35 billion over budget and costs could still rise, according to financial documents prepared for its initial public offering of shares. The fast-growing LNG exporter blamed inflationary pressures and costs to keep construction on schedule. The ultimate cost of the Plaquemines LNG facility was projected to reach $21 billion to $22 billion, documents viewed by Reuters show. The company had no immediate comment. The 20 million metric tons per annum (MTPA) export facility likely will start producing superchilled gas in coming weeks. It could be one of two new U.S. LNG plants to start operations this year. Soaring costs for labor, steel and processing equipment have U.S. LNG developers suffering budget overruns and, in some cases, running well behind initial completion schedules. The Golden Pass LNG join venture between QatarEnergy (QATPE.UL) and Exxon Mobil (XOM.N) , opens new tab was more than $2 billion over budget and a year behind schedule when is lead contractor Zachry Holdings (ZHII.UL) filed for bankruptcy and exited the project earlier this year. Operations may begin late next year or early 2026. Venture Global has covered the $2.35 billion cost overrun and feels it should have enough cash, borrowing capacity and "access to sufficient commissioning cargoes proceeds" to meet further increases, the preliminary IPO documents showed. The company has said Plaquemines will have a similar commissioning period to its Calcasieu Pass LNG facility, with contract customers likely to receive their first cargoes in 2026 at the earliest, Venture Global LNG CEO Mike Sabel told Reuters in an interview late last year. Founded 11 years ago by an energy lawyer and investment banker, the company has quickly become a major exporter of liquefied natural gas, competing against larger rivals Cheniere Energy (LNG.N) , opens new tab, Freeport LNG and Sempra (SRE.N) , opens new tab. CONTRACT DISPUTES Venture Global's Calcasieu Pass 10 MTPA facility is now expected to cost $9.8 billion, inclusive of the repairs to faulty heat recovery steam generator that delayed full commercial operation, the documents show. Venture Global expects to spend another $343 million to complete the repairs, according to its consolidated balance sheet. The company is embroiled in contract disputes over the plant startup with BP (BP.L) , opens new tab, Shell (SHEL.L) , opens new tab, Edison (EDNn.MI) , opens new tab and Orlen (PKN.WA) , opens new tab that could cost it hundreds of millions of dollars. Venture Global has been commissioning Calcasieu Pass since March 2022 and has sold its commissioning cargo on the spot market earning operating profits of $8.4 billion between March 2022 and December 2023, documents show. Sign up here. https://www.reuters.com/business/energy/venture-global-lngs-second-plant-running-over-budget-document-shows-2024-11-18/

2024-11-18 21:47

Nov 19 (Reuters) - A look at the day ahead in Asian markets. Investors in Asia will likely take their cue from global dynamics and drivers given the dearth of local market-moving events on Tuesday, and if that's the case, the signs are reasonably encouraging. The rocky ride last week that saw a sharp reversal in stocks and risk appetite gave way to a much smoother start to this week on Monday. Broad measures of implied volatility, bond yields and the dollar all fell to varying degrees, paving the way for a rebound in riskier assets. There doesn't appear to be any fresh catalyst or impetus for the generally upbeat start to the week, so equally, one could argue that there's little guarantee Monday's global momentum will continue into Asia on Tuesday. But last week's selling was heavy, and many shorter-term speculative positions will have been cleaned out. The MSCI World and Nasdaq both posted their biggest losses in 10 weeks, and the MSCI Asia ex-Japan index had its worst week since June 2022. World stocks snapped a four-day losing streak on Monday while Asian stocks climbed for a second straight day, a surprisingly rare feat over the past six weeks. Investors continue to weigh up the outlook for U.S. interest rates in light of Fed Chair Jerome Powell's remarks last Thursday that the central bank is in no rush to raise them, and last week's relatively strong U.S. economic data. There's a case to make that the 'hawkish' swing in the rates market's implied Fed pricing since Powell's comments - and indeed, over the last several weeks - has limited room to run. It wasn't that long ago talk of a possible 75 basis point rate cut in December was circulating and traders were betting on the fed funds rate ending next year around 2.75%. Now, even a 25 bps rate cut next month is by no means assured, and the implied end-2025 fed funds rate is not much below 4.00%. Perhaps the pendulum has swung a little too far. Investors may also be reluctant to take firm directional bets ahead of Nvidia's results on Wednesday. The semiconductor giant, at the vanguard of the global AI frenzy, is the world's most valuable company, and an earnings 'beat' or 'miss' will help set the global market tone for the rest of the week and probably year. The local calendar in Asia on Tuesday is light. The main highlight will be the Reserve Bank of Australia's minutes of its last policy meeting, where it kept the cash rate steady at 4.35% and signaled the need to remain "vigilant" to upside inflation risks. The RBA is only expected to start its easing cycle in May next year, and even then cut rates just half a percentage point by next December. Here are key developments that could provide more direction to markets on Tuesday: - RBA meeting minutes - G20 summit in Rio de Janeiro - Euro zone flash inflation estimate (October) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-11-18/

2024-11-18 21:44

ADM's Q3 profit drops 28.3% after restatement Weak grain markets hurt profits and margins Company affirms recently lowered 2024 guidance Nov 18 (Reuters) - Global grain trader Archer-Daniels-Midland (ADM.N) , opens new tab reported lower third-quarter profits on Monday due to weakness in its grain business, an announcement delayed by the need to correct irregularities in accounts of its operating units. Prices for staple crops like corn and soybeans have slid to near four-year lows, hurting ADM's profits and margins, especially in its grain origination and crushing business. That division sources grains from growers and processes them for food, animal feed and other uses. Weak grain markets have added to the 122-year-old company's challenges after it was forced in March to correct six years of financial data. That followed an internal investigation which found sales between its nutrition business and other core units were not recorded properly. Further accounting irregularities surfaced more recently, and the Chicago-based company on Nov. 5 delayed its earnings release so it could amend financial statements for 2023 and the first two quarters of 2024. The emergence of more accounting errors has heaped pressure on ADM's leadership under CEO Juan Luciano and rattled investor confidence in the company. When it announced plans to delay its earnings report, ADM also cut its 2024 profit outlook, citing government policy uncertainty, slow demand and "internal operational challenges." ADM on Monday affirmed that updated guidance of $4.50 to $5.00 in earnings per share this year. The company's shares rose about 0.2% in after-hours trading to $52.83. Its filing with the Securities and Exchange Commission restated financial statements for 2023 and the first and second quarters of this year, although ADM said the revisions did not affect its consolidated results. Luciano on Monday said the company is focusing on improving internal controls. "Looking ahead, while we foresee softer market conditions into next year, we are taking actions to improve performance," he said. The company's total segment operating profit fell 28.3% to $1.04 billion in the quarter ended Sept. 30 after restatement, while profit for Ag Services & Oilseeds, its largest segment, slumped 43% in the same period. It reported net earnings of $18 million, or 4 cents per share, for the quarter, compared with $821 million, or $1.52 per share, a year ago. Sign up here. https://www.reuters.com/markets/commodities/adm-reports-drop-third-quarter-profit-2024-11-18/

2024-11-18 21:10

VIENNA, Nov 18 (Reuters) - Austrian steelmaker Voestalpine (VOES.VI) , opens new tab said on Monday its natural gas supply is secure even if Russia's Gazprom (GAZP.MM) , opens new tab stops deliveries to Austria altogether. Gazprom on Saturday halted supplies to Austrian energy company OMV (OMVV.VI) , opens new tab after OMV won an arbitration case against Gazprom awarding it more than 230 million euros ($244 million) in damages and said it would recover that money by not paying Gazprom's invoices. Gazprom's shipments to Austria via pipeline through Ukraine and Slovakia have continued, however. Flows into Austria are down by less than a fifth. "We have received assurances from our suppliers that we will receive the contractually agreed gas volumes even in the event of a possible interruption in supply from Gazprom Export," Voestalpine said in a statement in response to a Reuters question about security of supply. Voestalpine is one of Austria's biggest consumers of gas as steelmaking is energy-intensive. "In addition, Voestalpine obtains gas directly from various international sources and can also make use of the natural gas storage facility built in 2022, which alone will cover our current requirements in full for at least 3-4 months," it added, referring to its own reserves. Austria has long been heavily reliant on Russian gas. The country pledged to kick that habit soon after Russia's full-scale invasion of Ukraine in 2022. It says it is now prepared for an end to Russian gas supplies, with large gas storage facilities that are 93% full and other sources able to fill any supply gap. At the same time, it continues to obtain most of its gas from Russia. In September, the latest month for which data is available, 86% of imports came from Russia, according to the government's energy portal. ($1 = 0.9433 euro) Sign up here. https://www.reuters.com/markets/commodities/austrian-steelmaker-voestalpine-says-its-gas-supply-is-secure-2024-11-18/

2024-11-18 21:00

Tesla jumps 5.6% after media report that Trump could ease rules CVS Health gains 5.4% on new board appointments in Glenview deal Nvidia slips 1.3% ahead of quarterly results on Wednesday Indexes: Dow down 0.13%, S&P up 0.39%, Nasdaq up 0.60% Nov 18 (Reuters) - The Nasdaq and S&P 500 closed higher on Monday, recovering some losses as investors anticipate quarterly earnings from AI leader Nvidia (NVDA.O) , opens new tab, and Tesla (TSLA.O) , opens new tab jumped on the prospect of favorable policy changes from the incoming Trump administration. Nvidia reports third-quarter earnings on Wednesday when investors will assess demand for chips and the sustainability of the AI euphoria that drove much of the market's rally this year. The chip designer, which powered 20% of the S&P 500's return over the past year, is expected to drive nearly 25% of its EPS growth in the third quarter, according to BofA Global Research. Nvidia's shares fell 1.3% after a report said its new AI chips were overheating in servers. "While Nvidia is the last of the Magnificent Seven to report, you’ve seen a nice broadening in earnings and attention," said Carol Schleif, chief investment officer at BMO Family Office. "It'll be noteworthy, but it doesn’t feel like there's the same level of impetus around it as there was a quarter or two ago." The Dow Jones Industrial Average (.DJI) , opens new tab fell 55.39 points, or 0.13%, to 43,389.60, the S&P 500 (.SPX) , opens new tab gained 23.00 points, or 0.39%, to 5,893.62 and the Nasdaq Composite (.IXIC) , opens new tab gained 111.69 points, or 0.60%, to 18,791.81. Energy (.SPNY) , opens new tab stocks led the S&P, popping 1.05%, with consumer discretionary (.SPLRCD) , opens new tab also rising 1.04% as Tesla jumped 5.6% following a Bloomberg report that members of President-elect Donald Trump's transition team were seeking to ease U.S. rules for self-driving cars. Industrial (.SPLRCI) , opens new tab stocks were the biggest sectoral decliner. CVS Health's (CVS.N) , opens new tab shares gained 5.4% after the health insurer said it would add four new members to its board in an agreement with Glenview Capital Management. "I think a lot of specific sectors could be pretty volatile until we get more verbiage out of Trump's new picks later this month," Schleif said. Stock indexes have shed some of the sharp gains that followed Trump's decisive victory, but Wall Street remains fairly well-placed as 2024 winds down. Rising expectations that the Federal Reserve will slow the pace of policy easing and uncertainty over the impact of Trump's cabinet appointments led to the S&P 500 (.SPX) , opens new tab and the Nasdaq (.IXIC) , opens new tab logging their worst weekly losses in more than two months last week. With the key holiday shopping season set to commence, results from major retailers including Walmart (WMT.N) , opens new tab, Lowe's Companies (LOW.N) , opens new tab and Target (TGT.N) , opens new tab will be closely watched this week to gauge the strength of the U.S. consumer. Advancing issues outnumbered decliners by a 1.71-to-1 ratio on the NYSE where there were 159 new highs and 88 new lows. On the Nasdaq, 2,158 stocks rose and 2,150 fell as advancing issues and decliners had a 1-to-1 ratio. The S&P 500 posted 29 new 52-week highs and 13 new lows while the Nasdaq Composite recorded 69 new highs and 265 new lows. Volume on U.S. exchanges was 14.94 billion shares, compared with the 14.12 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-mixed-after-previous-weeks-slide-focus-shifts-back-earnings-2024-11-18/

2024-11-18 20:54

Nov 18 (Reuters) - Nippon Steel (5401.T) , opens new tab will not import steel to the U.S. from its international mills, the Japanese company's Executive Vice President Takahiro Mori said on Monday in a letter to United Steelworkers union members. Nippon is looking to close its $14.9 billion deal for U.S. Steel (X.N) , opens new tab by the end of the year before President-elect Donald Trump, who has pledged to block the deal during his campaign, enters the White House in January. In its effort to ease the challenges posed by the union and President Joe Biden, the company has pledged investments to US Steel and assured job security to the United Steelworkers union. It has also promised to sell a stake in a U.S. steel plant joint venture if the company succeeds in the buyout. In his letter, Mori reiterated the promises made over the past year and addressed concerns raised by union leaders, including USW President David McCall. "We are here to inform you, not to negotiate as President McCall has suggested. I have asked President McCall to meet, most recently on November 11. I await his response," Mori said. In September, an arbitration board jointly selected by the company and the USW, ruled in favor of the deal, but the union disagreed with the decision. Mori, who is scheduled for a U.S. visit next week, will meet steelworkers in Pittsburgh and also visit New York and Washington. The Japanese steel company is making efforts to finalize the deal, as the Committee on Foreign Investment in the United States has extended its review until the end of December. Sign up here. https://www.reuters.com/markets/commodities/nippon-steel-not-import-overseas-mills-bid-save-us-steel-deal-2024-11-18/