2024-11-12 23:47

Nov 12 (Reuters) - Mexico plans to set aside about $6 billion from its 2025 draft budget for heavily indebted national oil company Pemex and would help its debt obligations next year, Bloomberg News reported on Tuesday, citing people familiar with the matter. Despite government efforts to reduce debt, Pemex carries financial debt of about $100 billion and provider debt of about $20 billion. Sign up here. https://www.reuters.com/business/energy/mexico-plans-set-aside-6-billion-pemex-draft-budget-bloomberg-reports-2024-11-12/

2024-11-12 23:38

Novavax drops 6% on cut to annual revenue forecast Honeywell jumps to record high as Elliott discloses stake Tesla ends 5-day rally with 6% drop Indexes down: Dow 0.86%, S&P 500 0.29%, Nasdaq 0.09% Nov 12 (Reuters) - Wall Street's three major indexes closed lower on Tuesday as investors booked some profits from a post-election rally and waited anxiously for U.S. inflation data due this week. The indexes had rallied to record highs since the Nov. 5 U.S. election as investors bet on a boost to equities from President-elect Donald Trump's proposed tax cuts and the prospect of easier regulatory policies. But investor enthusiasm dampened on Tuesday with concerns around whether the next U.S. administration's policies would exacerbate inflation. European shares lost 2% as European Central Bank policymakers warned that increased tariffs from Trump would hamper global growth. Some of the stocks expected to perform well under Trump gave back gains with shares in electric car maker Tesla (TSLA.O) , opens new tab closing down 6% on Tuesday after rising nearly 40% since Election Day. The small-cap Russell 2000 index (.RUT) , opens new tab fell 1.8% after closing at a three-year high on Monday. And rising U.S. Treasury yields hurt equities as bond investors priced in Trump policies. "The 10-year Treasury yield is kind of creating a headwind against the equity rally. There's sort of these conflicting signals where investors are celebrating all of these growth initiatives but the bond market is pushing back," said Jack Ablin, chief investment officer at Cresset Capital. "The problem is between tariffs, tax cuts and immigration restrictions, it really is pushing on creating inflation pressure that the bond market can't ignore." Russell Price, chief economist at Ameriprise Financial, said the decline in stocks overseas added some pressure to U.S. stocks, along with profit-taking ahead of inflation data. "When we opened up already experiencing some downside with the very strong run that we've had, investors tend to look to take some profits just in case stocks continue to slide," Price said. On investors' radar is Wednesday's consumer price inflation data, followed by producer prices inflation and retail sales data later this week, as these could provide clues about the U.S. Federal Reserve's policy path going forward. The data presents a near-term risk to investments, said Price. "It very likely is contributing to a little bit of the downside that we're seeing today." The Dow Jones Industrial Average (.DJI) , opens new tab fell 382.15 points, or 0.86%, to 43,910.98, the S&P 500 (.SPX) , opens new tab lost 17.36 points, or 0.29%, to 5,983.99 and the Nasdaq Composite (.IXIC) , opens new tab lost 17.36 points, or 0.09%, to 19,281.40. The Dow's biggest decliner was Amgen (AMGN.O) , opens new tab, which closed down more than 7% due to a late-session sell-off. Brokerage Cantor Fitzgerald said Amgen's experimental obesity drug MariTide showed a 4% loss in bone mineral density in data that was published in February. Among the S&P 500's 11 major industry sectors, materials (.SPLRCM) , opens new tab led declines with a 1.6% loss followed by healthcare (.SPXHC) , opens new tab, which was dragged down by Amgen. The communications services index (.SPLRCL) , opens new tab was the biggest sector gainer, adding 0.5%. Meanwhile Minneapolis Federal Reserve Bank President Neel Kashkari said Tuesday afternoon that U.S. monetary policy is "modestly restrictive," with short-term borrowing costs continuing to slow inflation and the economy, but not by a lot. Richmond Fed President Thomas Barkin had said earlier in the day that the U.S. central bank is ready to respond if inflation pressures rise or the job market weakens. Biotech firm Novavax (NVAX.O) , opens new tab dropped 6% after cutting its annual revenue forecast due to lower-than-expected sales of its COVID-19 vaccine. Honeywell (HON.O) , opens new tab hit a record high and closed up 3.8% after activist investor Elliott Investment said it has built a stake worth more than $5 billion in the industrial conglomerate. Declining issues outnumbered advancers by a 3.48-to-1 ratio on the NYSE where there were 328 new highs and 101 new lows. On the Nasdaq, 1,328 stocks rose and 3,012 fell as declining issues outnumbered advancers by a 2.27-to-1 ratio. The S&P 500 posted 55 new 52-week highs and 16 new lows while the Nasdaq Composite recorded 193 new highs and 129 new lows. On U.S. exchanges, 15.29 billion shares changed hands compared with the 13.17-billion average for the last 20 sessions. Sign up here. https://www.reuters.com/markets/us/futures-pull-back-focus-turns-election-economic-data-2024-11-12/

2024-11-12 23:18

RWE responds to investor calls for buybacks Cites weaker U.S. offshore wind, hydrogen prospects RWE now targets midpoint of range for adjusted annual EBITDA RWE's nine-month adjusted EBITDA fell 30% but beat poll FRANKFURT, Nov 13 (Reuters) - RWE (RWEG.DE) , opens new tab shares rose 8.3% on Wednesday after the group announced a 1.5 billion euro ($1.6 billion) share buy-back, citing a weaker rationale for investments in U.S. offshore wind after Donald Trump's election and a slower ramp-up of European hydrogen. By launching the buyback, which will start during the fourth quarter and run over 18 months, Germany's biggest utility is succumbing to growing investor pressure to review its capital allocation in the face of challenged returns for clean energy projects. Analysts received the decision positively. "Capital allocation has been a significant point of debate on RWE," commented RBC Europe equities research. RWE also issued better-than-expected nine-month financial results, a slight guidance hike for the full year, and confirmation of a 1.1 euro per share 2024 dividend target. Its shares had previously lost 27% in the year to date. The company said the risks for offshore wind had risen in light of the election of Trump, an outspoken critic of the technology, as the next U.S. president. It said its project off the U.S. east coast could be delayed due to outstanding permits. It also warned that a planned hydrogen ramp-up in Europe was not going as planned, adding this could delay its efforts to build electrolyser capacity, chiming with similar comments by smaller rival Uniper (UN0k.DE) , opens new tab last week. RWE's move reflects broader fears of what Trump's return to the presidency could mean for clean energy investments in the U.S., with parts of current President Joe Biden's clean technology agenda expected to be scrapped. However, CFO Michael Mueller said that while there was caution on offshore wind, his company still viewed onshore wind, solar and battery project in the U.S. as attractive, citing energy demand, especially for data centres. IMPROVED FULL-YEAR OUTLOOK RWE gave a slightly more optimistic view for 2024, saying it now expected to hit the midpoint of target ranges for adjusted core profit and adjusted net profit, citing improved prospects for its trading unit and gas-fired power plants. The group previously expected earnings before interest, tax, depreciation and amortisation to hit the lower end of an adjusted range of 5.2 billion to 5.8 billion euros, and an adjusted net profit of 1.9 billion to 2.4 billion euros in 2024. RWE's nine-month adjusted EBITDA fell 30% to 3.98 billion euros, but came in above the 3.87 billion euros expected in a poll provided by the company on Oct. 29. ($1 = 0.9424 euros) Sign up here. https://www.reuters.com/business/energy/rwe-buyback-up-125-bln-worth-shares-lifts-adjusted-profit-forecast-2024-11-12/

2024-11-12 23:11

Aethon assets could be sold or listed on stock market in 2025 Upstream ops among largest privately-owned US natgas producers Goldman, Citi working with Aethon on options Nov 12 (Reuters) - U.S. energy-focused investment firm Aethon Energy Management is exploring options for its natural gas production and midstream assets that include a sale or an initial public offering at a valuation of about $10 billion, including debt, people familiar with the matter said on Tuesday. The deal deliberations come as the boom in artificial intelligence and data centers is driving up demand for power, which in turn is boosting the prospects of gas producers. Roughly 42% of the U.S. power supply in 2023 was generated by burning gas, according to data from the U.S. Energy Information Administration. Aethon is working with investment bankers at Goldman Sachs (GS.N) , opens new tab and Citigroup (C.N) , opens new tab to evaluate its options, the sources said, adding any transaction would likely happen in 2025. The upstream assets of Aethon, which primarily focus on the Haynesville shale formation in Louisiana and East Texas, constitute one of the largest privately-held U.S. gas producers. While the assets are owned and operated by Aethon, investment firms RedBird Capital Partners and Canada's Ontario Teachers' Pension Plan also hold sizable stakes. If the assets are sold, it would add to the record-breaking wave of consolidation within the U.S. oil and gas industry over the past two years. Notable recent deals include EQT's (EQT.N) , opens new tab purchase of pipeline operator Equitrans Midstream, and the tie-up between Chesapeake Energy and Southwestern Energy that resulted in the formation of Expand Energy (EXE.O) , opens new tab. The sources, who requested anonymity as the deliberations are confidential, cautioned that any deal is not guaranteed and Aethon could ultimately keep the assets. Aethon, Citi, Goldman and RedBird declined comment. OTPP did not immediately respond to a comment request. This is not the first time that Aethon has explored options for its assets. Reuters reported in 2022 that it was seeking buyers for its Louisiana assets, which represent the majority of the firm's upstream operations. With production and pipelines located along the Gulf Coast, Aethon's assets also benefit from the growth of U.S. gas export capabilities. Last year, the U.S. became the largest exporter of liquefied natural gas (LNG). In May, Aethon struck a deal that could allow it to purchase two million metric tons per annum of LNG, while it simultaneously acquired Tellurian's upstream assets for $260 million. Tellurian and its Driftwood plant were subsequently sold to Woodside Energy (WDS.AX) , opens new tab. Dallas-based Aethon was founded in 1990 by veteran oil and gas investor Albert Huddleston, and has over the years invested in energy assets across a number of U.S. shale basins. Apart from its Haynesville assets, Aethon owns upstream facilities in Wyoming, with total company production at roughly 2.5 billion cubic feet per day in 2023, according to its website. Aethon also owns more than 1,400 miles (2,250 km) of pipelines across the same geographic footprint. Sign up here. https://www.reuters.com/business/energy/investment-firm-aethon-explores-options-10-billion-us-natgas-assets-sources-say-2024-11-12/

2024-11-12 22:56

Nov 12 (Reuters) - Canada's Suncor Energy (SU.TO) , opens new tab raised its quarterly dividend on Tuesday after the integrated oil and gas firm beat estimates for third-quarter profit, as it benefited from higher oil production and demand for refined products. Data from the U.S. Energy Information Administration showed that the country's total oil consumption rose in July to the highest seasonal level since 2019. In July, gasoline demand was also at the highest seasonal levels since 2019, whereas jet fuel demand was the highest for any month since August 2019. The Canadian firm's quarterly upstream production was up 20% at 828,600 barrels per day (bpd), from the previous year and refinery utilization was up at 105%, with throughput of 487,600 bpd. Last year, Suncor completed the acquisition of French energy firm TotalEnergies' (TTEF.PA) , opens new tab Canadian operations for C$1.47 billion ($1.07 billion) to bolster its bitumen production capacity. Its total oil sands bitumen production in the quarter ended Sept. 30 was at 909,600 bpd, up 15.6% from the previous year. The company also raised its quarterly dividend by 5% to 57 Canadian cents per share, from the prior quarter. The company reported an adjusted profit of C$1.48 ($1.06) per share for the three-month period, compared with analysts' average estimate of C$1.08 per share, according to data compiled by LSEG. ($1 = 1.3946 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/suncor-energy-beats-third-quarter-profit-estimates-2024-11-12/

2024-11-12 22:31

Minister orders industrial relations board to halt strike Dispute affects over C$1.3 bln of goods a day, minister says Union in British Columbia says it will take fight to court OTTAWA, Nov 12 (Reuters) - Canada on Tuesday moved to end labor disputes at the country's biggest ports, including Vancouver and Montreal, citing economic damage and the potential for driving away trading partners. It was the second time in a few months that the Liberal government has stepped in to halt a dispute. In August it ordered an end to work stoppages at the country's two largest railway companies. Labour Minister Steven MacKinnon said he had directed the country's industrial relations board to order an end to the strike and impose binding arbitration. "As the economic losses threaten the country and begin to mount, it is up to the government to ensure that ... we can get on with the economic life of this country and avoid layoffs and other carnage," he told a press conference. "Canadians have a limited tolerance right now for economic self-harm." The dispute - which MacKinnon said was affecting more than C$1.3 billion ($932 million) in value of goods every day - had already hit shipments of canola oil, forest products and other goods. Business groups welcomed the announcement. International Longshore and Warehouse Union Local 514, which represents supervisory longshore workers at the heart of the British Columbia dispute, said it will file a legal challenge to the minister's orders. "We will fight this order in the courts," said Frank Morena, ILWU Local 514 president, in a statement. "And we will not forget how these employers and this federal Liberal government have attacked not only the ILWU but all of labor." The Canada Industrial Relations Board, which is independent but takes direction from Ottawa, would take a few days to issue the relevant orders, MacKinnon said. The left-leaning government has previously stated its preference for resolving labor disputes through collective bargaining. MacKinnon said he had been forced to intervene after federal mediators reported the talks at Montreal and Vancouver were at an impasse. The left-of-center opposition New Democrats, a pro-union party that is propping up the minority Liberal government, accused Ottawa of caving in to employers. "Back-to-work orders suppress wages for all Canadians, so billionaires get richer and the rest of Canadians fall further behind," leader Jagmeet Singh said in a statement but made no mention of bringing down the Liberals. The Teamsters union that represents employees at the two main rail companies has filed court challenges against rulings by the labor board that forced them back to work. "The government is sending a dangerous message: employers can bypass meaningful negotiations, lock out their workers, and wait for political intervention to secure a more favorable deal," the Canadian Labour Congress said in a statement. The Montreal Longshoremen's Union rejected a final offer made for a new labor contract, leading to a lockout being declared. Exports of canola oil and forest products from West Coast ports, including Vancouver, have halted. "These work stoppages are impacting our supply chain, hundreds of thousands of Canadian jobs, our economy and our reputation as a reliable international trading partner," said MacKinnon, who said employers and unions had not been acting urgently enough. "I've directed the Canada Industrial Relations Board to order that all operations and duties at the ports resume and to assist the parties in settling their collective agreements by imposing final and binding arbitration," he said. ($1 = 1.3943 Canadian dollars) Sign up here. https://www.reuters.com/world/americas/canada-moves-end-disputes-ports-vancouver-montreal-2024-11-12/