2024-11-07 12:10

CAPE TOWN, Nov 7 (Reuters) - Angola intends to replicate its maiden multi-year licensing round for oil and gas acreage from 2026, a senior government energy official said on Thursday, as the country looks to boost production and investment. The first multi-year auction for 50 onshore and offshore blocks was for 2019-2025, as Angola strives to arrest a steep decline in crude oil production from mature oilfields. "We have already started to work on a plan for after 2025 and are currently executing our exploration strategy which is the evaluation of different sedimentary basins of the country," Alcides Andrade, a board member at Angola's National Agency of Petroleum, Gas and Biofuels (ANPG) said. "It is an aggressive approach we believe we need to have," he said, adding it was unclear at this stage how many blocks in total would be up for grabs. Production in Africa's second largest crude oil producer after Nigeria has stabilised at just over 1.1 million barrels a day (bpd) after reaching a peak of around 2 million bpd in 2008. Andrade, speaking on the sidelines of an energy conference in Cape Town, said during the first four licensing rounds in the multi-year strategy, 35 concessions have been awarded thus far. "The plan is by the end of this year to be close to 41 concessions and then next year to 50," he said. ANPG estimates more than $60 billion of new investment will flow over the next five years in currently producing concessions, besides "tens of billions" more from new license holders in the future, Andrade said. Sign up here. https://www.reuters.com/business/energy/angola-plans-more-multi-year-oil-gas-license-rounds-2024-11-07/

2024-11-07 12:03

By Andy Bruce, Suban Abdulla and David Milliken LONDON, Nov 7 (Reuters) - The Bank of England cut interest rates on Thursday for only the second time since 2020 and said future reductions were likely to be gradual, seeing higher inflation and growth after the new government's first budget. The Monetary Policy Committee voted 8-1 to cut interest rates to 4.75% from 5%, a stronger majority than expectations in a Reuters poll for a 7-2 vote in favour of a cut. Catherine Mann dissented, preferring to keep rates on hold. "We need to make sure inflation stays close to target, so we can't cut interest rates too quickly or by too much," BoE Governor Andrew Bailey said in a statement. "But if the economy evolves as we expect it's likely that interest rates will continue to fall gradually from here," he added, broadly echoing his language after September's meeting. The BoE predicted that finance minister Rachel Reeves' budget last week - which entails big increases in tax, spending and borrowing - would boost the size of Britain's economy by around 0.75% next year but barely improve annual growth rates in two or three years' time. Her plan was likely to add just under half of a percentage point to the rate of inflation at its peak in just over two years' time, the BoE said, causing inflation to take a year longer to return sustainably to its 2% target. The BoE's cautious language on the future interest rate cuts was similar to previous months, in keeping with investors' view that it is likely to cut interest rates more slowly than the European Central Bank. The BoE did not refer to Donald Trump's U.S. election victory, which has prompted a big reduction in bets that the Federal Reserve will cut interest rates aggressively. Financial markets on Wednesday were pricing between two and three interest rate cuts from the BoE in 2025 - down from around four before the budget. The BoE said inflation was likely to rise to around 2.5% by the end of this year from 1.7% in September and hit 2.7% by the end of next year, before falling gradually below its 2% target by the end of the three-year forecast. Government decisions to raise the cap on bus fares, hike value-added tax on private school fees and increase employers' social security contributions were likely to boost inflation. With the latter measure combining with a 6.7% hike in the national minimum wage, the BoE said employers faced rising costs - although it could not be certain of the overall effect on inflation as employers might respond by sacking staff or accepting lower profits. While the BoE downgraded its forecast for average economic growth this year to 1% from 1.25%, reflecting recent revisions to past growth, it raised its forecast for 2025 to 1.5% from 1%. "This reflects the stronger, and relatively front-loaded, paths for government consumption and investment more than offsetting the impact on growth of higher taxes," the BoE said. While the BoE's forecasts for growth and inflation include the impact of higher spending and taxes, they do not include the effect of a big rise in market borrowing costs since the budget as it set those assumptions beforehand and did not update them. If the now higher market interest rates were factored in, the outlook for inflation and growth would likely be a bit lower. The BoE repeated its message that monetary policy would need to stay "restrictive for sufficiently long" to return inflation sustainably to the 2% target. (([email protected] , opens new tab)) Keywords: BRITAIN BOE/ Sign up here. https://www.reuters.com/markets/rates-bonds/bank-england-cuts-rates-sees-higher-inflation-after-reeves-budget-2024-11-07/

2024-11-07 11:49

Nov 7 (Reuters) - Canada's Barrick Gold (ABX.TO) , opens new tab missed Wall Street estimates for third-quarter profit on Thursday, weighed down by higher costs and lower production at its Nevada mines. Total gold output at Nevada Gold Mines fell to 385,000 ounces in the July-September quarter, compared with 401,000 ounces in the preceding three months, the company reported in October. Meanwhile, all-in sustaining costs (AISC) for gold, an industry metric reflecting total expenses, rose to $1,507 per ounce in the quarter, from $1,255 per ounce last year. U.S.-listed shares slipped 1.6% in premarket trade. Newmont (NEM.N) , opens new tab, the world's biggest gold miner, also reported a rise in costs in the third quarter due to higher contractual labor costs. Barrick's realized price for gold rose 29.4% to $2,494 per ounce during the quarter, tracking a rally in bullion prices following a 50 basis point rate cut by the U.S. Federal Reserve and safe heaven demand due to the conflict in the Middle East. Copper AISC rose 10.5% year-over-year, even as it declined quarter-over-quarter. The Toronto-based miner reiterated it was on track for an improved performance in the fourth quarter with production ramp-ups at Pueblo Viejo at the Dominican Republic and higher output from its Nevada mines. Barrick said full-year production at its Loulo-Gounkoto project in Mali - where it is currently locked in a dispute related to an agreement with the government - would be at the top end of its forecast. On an adjusted basis, the world's second-largest gold miner posted a profit of 30 cents per share for the quarter ended Sept. 30, compared to analysts' average estimate of 31 cents, according to data compiled by LSEG. Sign up here. https://www.reuters.com/markets/commodities/barrick-gold-misses-profit-estimates-2024-11-07/

2024-11-07 11:48

Nov 7 (Reuters) - TC Energy's (TRP.TO) , opens new tab third-quarter profit beat Wall Street estimates on Thursday, helped by higher volumes of natural gas transported through its pipelines in the United States. The U.S. Energy Information Agency said gas consumption in the United States would rise from a record 89.1 billion cubic feet per day (bcfd) in 2023 to 90.1 bcfd in 2024. U.S. imports of crude oil from Canada also hit a record in July, benefiting pipeline firms such as TC Energy. "Underpinned by wide-scale electrification, demand for natural gas and reliable power generation continues to reach record highs," TC Energy CEO Francois Poirier said. Pipeline operators are also banking on moving more natural gas than earlier due to power demand associated with artificial intelligence operations, cryptocurrency mining and data centres. Earnings from TC Energy's U.S. natural gas pipelines, its largest segment, rose to C$1.33 billion ($957.66 million) from C$782 million a year earlier. The company reported overall revenue of $4.08 billion, beating the average analyst estimate of C$3.97 billion, according to data compiled by LSEG. Last month, TC Energy completed the spin off of its liquids pipeline business as it looks to focus on moving natural gas and reduce debt. On an adjusted basis, the company earned C$1.03 per share in the quarter, compared with estimates of 95 Canadian cents. ($1 = 1.3889 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/tc-energys-third-quarter-profit-beats-estimates-2024-11-07/

2024-11-07 11:47

Toronto Stock Exchange closes up 0.85% Adds over 465 points in two days after Trump's victory Federal Reserve's 25 bps rate cut fuels optimism Nov 7 (Reuters) - Canada's main stock index zoomed past its all-time high, adding another over 200 basis points on Thursday as investors piled up more shares from the day before after former President Donald Trump won the presidential race. The Federal Reserve's anticipated 25 basis points reduction in interest rates further fueled the optimism. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab closed up 208.48 points, or 0.85%, at 24,845.93, its highest till date and clocking a return of 19% this year. "Optimists are focusing on how Trump is better for American business policies," said Matt Skipp, chief investment officer at SW8 Asset Management, "Everybody's glad the uncertainty is removed," he said, adding the expected rate cut by the Fed kept the momentum alive. Fed Chair Jerome Powell said on Thursday that the U.S. economy was performing remarkably well and could perform even better in 2025. "If anything, people feel next year - I've heard this from several people - that next year could even be stronger than this year," he said during a news conference after the rate cut decision. There have been concerns that the return of Trump could mean uncertainty in trade policies, taxes and tariffs, which could make the work tough for the Fed and many other central banks of countries whose economies are closely coupled with the U.S. Canada is the second biggest trading partner of the U.S. and exports around three-quarters of its total outbound shipments. It also imports 60% of all its imported goods from its neighbor. "Overall, everything seems to be hanging in this very positive vibe in the market right now," Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth, said, adding the current optimism was led by hopes the new president would cut taxes significantly. Among sectors, the basic materials or mining companies index (.GSPTTMT) , opens new tab was up almost 2%, led by a clutch of gold and silver mining companies. The technology index (.SPTTK) , opens new tab was up 1.66%, supported by Lightspeed Commerce (LSPD.TO) , opens new tab, which shot up by almost 7% after the software maker beat second-quarter profit estimates. The index of real estate and energy companies also went up over a percentage point on the day. Across the border, Wall Street's main indexes also stuck to their rally seen on Wednesday. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-ahead-feds-rate-decision-2024-11-07/

2024-11-07 11:45

PARIS, Nov 7 (Reuters) - EDF is in talks with three companies to power their 1 gigawatt (GW) data centre projects in France, an executive at the French utility said on Thursday, as demand for the power-hungry operations booms on growing use of artificial intelligence. State-owned EDF is the world's largest producer of nuclear power, which is increasingly viewed as a potential source of clean energy for technology companies. Marc Benayoun, executive director in charge of clients and territories at EDF, told a press briefing that the data centre projects were still seeking suitable sites. He declined to comment on which companies were involved. French electricity demand has not fully recovered from a pandemic-induced downturn and EDF is set to export up to 90 terawatt hours (TWh) of electricity this year, Benayoun said. EDF typically exports about 40 TWh a year but exports have jumped in 2024, helped also by lower prices than in markets such as Germany. Future demand for electricity will come with transportation electricification as well as demand from industry and data centres, Benayoun added. Sign up here. https://www.reuters.com/business/energy/frances-edf-talks-deals-power-three-1gw-data-centres-2024-11-07/