2024-11-06 23:29

Nov 6 (Reuters) - Nutrien (NTR.TO) , opens new tab fell short of Wall Street expectations for third-quarter profit on Wednesday, as the fertilizer producer struggled with lower crop prices, sending U.S.-listed shares of the company down 2.3% after the bell. Tight global supply, low channel inventories and seasonal demand in several key markets have kept prices for nutrients such as potash and phosphate high at a time when crop prices have declined, forcing farmer to curb spending on fertilizers. "Global phosphate markets remain tight supported by Chinese export restrictions and production outages in the U.S. We anticipate some impact on global demand due to tight supply and weaker affordability," the company said. Nutrien lowered its outlook for annual phosphate sales volumes to be in the range of 2.4-2.5 million tonnes from 2.5-2.6 million tonnes previously. However, Nutrien raised its annual forecast for potash sales volumes, owing to expectations of stronger demand in key markets. Other producers are also hopeful about a rebound in demand and prices during the second half of 2024. The company's net profit fell nearly 70% to $25 million in the third quarter, while net sales declined 5% to $5.35 billion. Lower sales volumes and a decline in seed margins in key markets led to a 23% fall in adjusted core profit at Nutrien's retail segment - its largest by revenue. Nutrien's results are in contrast to peers including CF Industries (CF.N) , opens new tab, and Norwegian firm Yara International(YAR.OL) , opens new tab, both of which posted higher quarterly profits. The Saskatoon, Canada-based firm posted an adjusted profit of 39 cents per share for the three months ended Sept. 30, compared with analyst's estimates of 46 cents per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/markets/commodities/nutrien-misses-third-quarter-profit-estimates-2024-11-06/

2024-11-06 23:20

HOUSTON, Nov 6 (Reuters) - Midstream company Energy Transfer (ET.N) , opens new tab on Wednesday said it has received requests for connections to more than 90 power plants and data centers that could total some 16 billion cubic feet per day (bcf/d) of new natural gas demand. Energy-hungry data centers needed to expand technologies like artificial intelligence are expected to account for 8% of power demand in the U.S. by 2030, compared with 3% in 2022, according to a Goldman Sachs report in May. Pipeline and storage operator Energy Transfer has received requests to connect to over 40 prospective data centers across ten states, which could consume up to 10 bcf/d of natural gas, the company said on a company earnings call. It has received requests from more than 45 power plants, which could total another 6 bcf/d of natural gas demand. "We are already seeing increasing power needs across several of our natural gas pipelines, driven by AI data center and power plant growth," said co-Chief Executive Officer Tom Long. Energy Transfer's pipelines lay within a couple of miles of some of the new power plants and data centers that are potentially set to be built, executives said. Co-CEO Marshall McCrea warned the company would not likely take on all of the requests it had received. "Do we expect to get 16 bcf/d? No, we do expect to get our fair share," said McCrea, acknowledging competition from other midstream companies hoping to cash in on the rising demand. The Texas-based company reported higher third-quarter profit on Wednesday as it transported record volumes of crude oil on its systems. It reported net income of $1.18 billion versus $584 million in the third quarter of last year. The company saw exported crude volumes jump 49% compared with the same period last year, while crude transportation volumes were up 25%, hitting a partnership record. Sign up here. https://www.reuters.com/business/energy/energy-transfers-q3-profits-jump-it-transports-record-volumes-crude-2024-11-06/

2024-11-06 22:36

Nov 6 (Reuters) - Atmos Energy (ATO.N) , opens new tab raised its quarterly dividend for 2025 on Wednesday and reported a rise in fourth-quarter profit, as the natural gas utility was helped by higher rates. The company said higher rates in the distribution segment boosted its operating income by $33.4 million in the quarter, helping it report about a 20% rise in the segment at $64.6 million, from the previous year. Atmos delivers natural gas to about 3 million distribution customers across eight U.S. states. The company, which also operates about 5,700 miles of transmission pipelines in Texas, said quarterly operating earnings in its pipeline and storage unit rose 20.2% to $120.4 million, from the previous year. Lower storage build and hotter weather in the quarter boosted the amount of gas needed to keep air conditioners humming, creating demand for natgas pipelines in the U.S. The gas utility also raised its dividend to 87 cents per share for fiscal 2025, 8.1% higher than fiscal 2024. The company said it expects diluted earnings of $7.05 to $7.25 per share and capital expenditure at about $3.7 billion for fiscal 2025. The Dallas, Texas-based company's net income was at $134 million, or 86 cents per share, in the quarter ended Sept. 30, compared with $119 million, or 80 cents per share, a year earlier. Sign up here. https://www.reuters.com/business/energy/atmos-energy-reports-rise-q4-profit-higher-rates-raises-2025-dividend-2024-11-06/

2024-11-06 22:31

Christi Craddick reelected to lead Texas oil regulator for another six years Texas oil production has ballooned since the start of Craddick's tenure in 2012 Pressure mounts on the Railroad Commission to handle orphan wells issue HOUSTON, Nov 6 (Reuters) - Texas on Tuesday reelected conservative incumbent Christi Craddick as chairman of the state's oil regulator, marking her third term in the position and a win for the industry that has seen production surge during her tenure. Texas, home to the Permian Basin, is the largest oil producer in the United States, pumping some 5.8 million barrels per day (bpd), according to the latest government figures. The Texas Railroad Commission (RRC), which Craddick will chair for another six years, regulates the industry, overseeing everything from well permitting to pipeline safety. Craddick, a Republican, defeated Democrat Katherine Culbert, Green Party member Eddie Espinoza, Libertarian Hawk Dunlap and Independent Richard McKibbin. Craddick first took office in 2012, around the beginning of the U.S. shale revolution, which propelled the country to become the world's top oil producer. Since then, Texas oil production has ballooned from an average 1.98 million bpd to hitting a record at 5.8 million bpd in August this year, according to the Energy Information Administration. In her third term, Craddick will face mounting pressure from landowners, environmentalists and other industry groups on the issue of orphan wells, which have been drilled and abandoned by operators. There were 8,376 orphan wells as of Oct. 31 across Texas, according to the RRC, though the actual number could be far higher. "I would like the Commission to streamline orphan well plugging and abandonment, and adoption processes," said Reed Goodman, independent operator and owner of JayBird Resources, which has operations adjacent to the Eagle Ford shale play in South Texas. The Railroad Commission has also come under fire recently after so-called zombie wells caused a series of well blowouts. Zombie wells are abandoned production sites that spring back to life and pollute the surrounding air, soil and groundwater. Environmental groups also want RRC put a stop to routine flaring at oil wells, increase permitting fees to force oil companies to pay for the cleanup of orphan wells instead of the taxpayer, and to stop the storage of oil in areas that could contaminate groundwater. Sign up here. https://www.reuters.com/world/us/texas-voters-reelect-conservative-craddick-lead-oil-regulator-2024-11-06/

2024-11-06 21:56

Albemarle reports $1.11 billion net loss in Q3 Company slashes capital budget amid 71% drop in lithium prices CEO Masters expects lithium prices to stay low for the foreseeable future Nov 6 (Reuters) - Albemarle (ALB.N) , opens new tab, the world's largest lithium producer, said on Thursday it lost more than $1 billion in the third quarter and that it would slash its capital budget amid a 71% drop in prices for the electric vehicle battery metal. The results underscore the supply glut engulfing the entire lithium industry amid oversupply from China and a softening of aggressive EV adoption rates that has dragged down prices for the ultralight metal. Charlotte, North Carolina-based Albemarle is making business decisions on the assumption that lithium prices stay in their current range of roughly $12 to $15 per kilogram for the foreseeable future, CEO Kent Masters told Reuters. "We do think the price is going to be lower for longer," Masters said. "We're positioning the company to compete at that level." The company last month announced its second reorganization in as many years, describing the move to shrink its business units as necessary to "adapt to dynamic market conditions." The moves - including cutting at least 6% of its staff - are expected to save at least $300 million to $400 million each year moving forward. The company also cut its 2025 capital budget in half from this year's levels to a range of $800 million to $900 million. Masters said the trimmed budget would be used to maintain facilities that operate "at the lower end of the cost curve," although he declined to name specific sites. Albemarle, which has also cut other costs twice this year, reported a net loss of $1.11 billion, or $9.45 per share, compared with a net profit of $302.5 million, or $2.57 per share, in the year-ago quarter. Revenue fell more than $1 billion to roughly $1.35 billion, although volumes of lithium sold rose from the year-ago quarter. The sales drop was partially offset by long-term supply contracts with customers that include Tesla (TSLA.O) , opens new tab. Shares fell less than 1% in after-hours trading to $96.50. The company has been financially supported in part by Washington, including a recent grant of $67 million from the Energy Department. Funds that Albemarle has received under President Joe Biden are expected to all or partially dry up once President-elect Donald Trump takes office in January, a concern that dragged down shares of Albemarle and peers on Wednesday. "We work on both sides of the aisle," Masters said when asked about the U.S. election results. "The energy transition is happening. It's a global dynamic. We'll have to see what Trump does." FUTURE DEMAND EXPECTATION Lithium miners got a partial reprieve from the oversaturated market in September when China's CATL said it would cut production. Albemarle and its peers have repeatedly said they expect demand for lithium to jump later this decade. North American EV sales hit a record in the third quarter, executives noted, adding that they expect EV prices to match those of internal combustion engine vehicles by next year. Interest has been red-hot in the space from outsiders, including Exxon Mobil (XOM.N) , opens new tab. One of Albemarle's top rivals, Arcadium (ALTM.N) , opens new tab, agreed last month to be bought by mining giant Rio Tinto (RIO.L) , opens new tab in a $6.7 billion deal that will create the world's third-largest lithium producer. Masters said Albemarle is not looking to acquire a rival. "At this stage, I don't see us being acquisitive," he said. "If we're on someone else's list, that I can't control." Albemarle plans to discuss the quarterly results on a Thursday morning call with investors. Chile's SQM (SQMA.SN) , opens new tab, the world's second-largest lithium producer, is set to post quarterly results later this month. Sign up here. https://www.reuters.com/markets/commodities/albemarle-loses-more-than-1-billion-q3-falling-lithium-prices-2024-11-06/

2024-11-06 21:48

Nov 7 (Reuters) - A look at the day ahead in Asian markets. Investors in Asia wake up on Thursday to a global market landscape redrawn by Donald Trump's resounding U.S. election victory that has propelled Wall Street to new highs and sparked a huge surge in the dollar and U.S. bond yields. Any appetite for 'risk on' trades in sympathy with the U.S. equity rally will be largely offset, perhaps completely snuffed out, by tighter financial conditions from the rise in Treasury yields and the dollar. Emerging market currencies fell across the board in Wednesday's global session - Mexico's peso slumped as much as 3% before recovering - and Asian exchange rates could come under heavy selling pressure on Thursday too. Depending on the speed and extent of the selloff, some central banks may feel forced to intervene. The central banks of India and Indonesia, for example, have intervened in the FX market already this year to support their weak currencies. At one point earlier on Wednesday the U.S. dollar was up nearly 2% on an index basis, which would have been its biggest one-day rise since June 24, 2016 - the day after the Brexit referendum, which sank sterling. The dollar gave back some gains and Treasuries clawed back some of their heavy losses late on Wednesday, as the huge spike in yields attracted strong demand at an auction of 30-year bonds. Will investors in Asia on Thursday stick with the so-called 'Trump trades' - bets linked to higher federal spending, deficits and inflation, and greater deregulation - or will they exert restraint, and await more attractive levels to re-enter? Among the biggest moves of Wednesday's session was bitcoin's rise of almost 10% to a record high of $75,459 as investors bet on the Trump administration implementing policies that will help cement cryptocurrencies' place in the financial ecosystem. As if the U.S. election tumult wasn't enough, the Federal Reserve announces its interest rate decision on Thursday after a two-day meeting. This could provide investors with the cover to reduce risk exposure and trade more defensively on Thursday. Perhaps fittingly, the first full day of market trading in Asia following Trump's victory sees the release of Chinese trade and foreign exchange reserves data. China has been the main target of Trump's fiery rhetoric about global trade and how the US has suffered from unfair practices practiced by Beijing. He has said imports from China will be subject to tariffs of 60%, perhaps even higher. Official figures on Thursday are expected to show that export growth accelerated in October to an annual rate of 5.2%, boosted by steep discounts, while imports likely shrank 1.5%, according to a Reuters poll. Thursday's calendar also includes the latest Australian trade figures, GDP data from the Philippines, and second-quarter earnings from Japan's Nissan. Here are key developments that could provide more direction to markets on Thursday: - Further reaction to U.S. presidential election - China trade (October) - Philippines GDP (Q3) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-pix-graphic-2024-11-06/