2024-11-01 12:31

Nov 1(Reuters) - Dominion Energy (D.N) , opens new tab beat Wall Street estimates for third-quarter profit on Friday, as the electric utilities company benefited from lower costs and steady electricity demand during hot weather. Utilities are set to gain from growing electricity demand, driven primarily by AI technology and data centers, alongside increased power usage in homes and businesses amid record temperatures. The U.S. Energy Information Administration (EIA) forecasts power consumption to hit record peaks in 2024 and 2025. The Richmond, Virginia-based company's total operating revenue rose to $3.94 billion in the third quarter from $3.81 billion last year, while total operating costs fell 2% to $2.72 billion. Last month, Dominion signed an agreement with e-commerce giant Amazon (AMZN.O) , opens new tab to explore developing a nuclear project near the utility's existing power station in Virginia. Dominion's Virginia utility services the world's largest data center market, which surpasses the combined capacity of the next five largest data center markets in the United States, according to the company. The company narrowed its full-year operating earnings forecast to $2.68-$2.83 per share, maintaining a $2.75 midpoint, slightly below analysts' expectations of $2.77 per share, according to LSEG data. It reported operating earnings of 98 cents per share in the July-September quarter, ahead of analysts' estimates of 93 cents per share. Sign up here. https://www.reuters.com/business/energy/dominion-energy-beats-q3-profit-estimates-lower-costs-steady-demand-2024-11-01/

2024-11-01 12:29

LAGOS, Nov 1 (Reuters) - Nigeria faces one of its worst hunger crises with more than 30 million people expected to be food insecure next year, a one third jump from this year due to economic hardship, a joint report by the government and United Nations said on Friday. Nigeria, Africa's most populous nation, is grappling with a cost of living crisis that led to deadly protests in August. Economic hardship has worsened after President Bola Tinubu started austerity reforms, including devaluing the naira and ending a decades-old petrol subsidy, fuelling inflation. The analysis, conducted twice a year in 26 states and the federal capital, projected that 33.1 million people would be food insecure by August next year. That compares with 24.8 million by end of this year. "Several factors are driving this trend, but most prominently are economic hardship coupled with record high inflation, a record rise in food prices and record high transportation costs," a statement accompanying the report said. Chi Lael, World Food Programme spokesperson in Nigeria told Reuters that "economic decisions to strengthen the country in the long term, in the short term have felt like a direct attack on people's wallets, hitting hardest every time they try to buy food." Finance Minister Wale Edun said on Thursday 5 million households had so far received cash handouts of 25,000 naira ($15.45), as part of the government's programme to help the most vulnerable families. High food prices have contributed the most to inflation, which advanced to 32.70% in annual terms in September from 32.15% in August. Flooding and insecurity in northern states continued to hit agriculture, further driving up food prices beyond the reach of many families. Last month's floods destroyed an estimated 1.6 million hectares of crops, mainly in the northern food basket states, potentially causing production losses of a combined 1.1 million tonnes for maize, sorghum and rice, the joint statement said. That is enough to meet the daily food needs of about 13 million people for a year. In financial terms, the potential cereal crop losses amount to almost $1 billion in economic losses, the statement added. ($1 = 1,618.2600 naira) Sign up here. https://www.reuters.com/world/africa/nigerias-hunger-crisis-deepens-with-33-million-risk-report-says-2024-11-01/

2024-11-01 12:19

BEIJING, Nov 1 (Reuters) - China's city of Shanghai on Friday issued fresh measures to boost auto sales, offering subsidies for trade-ins, according to a municipal statement. The city will provide a 15,000 yuan ($2,106.45) one-time purchase subsidy for qualified individual buyers of new all-electric vehicles priced above 50,000 yuan from Nov.1 to Dec.31. Buyers of new fuel efficient gasoline cars will receive 12,000 yuan subsidy for the same period. The subsidies will apply to those who trade in old cars not registered in Shanghai. ($1 = 7.1210 Chinese yuan renminbi) Sign up here. https://www.reuters.com/business/autos-transportation/shanghai-introduces-new-subsidies-autos-trade-ins-2024-11-01/

2024-11-01 12:12

MUMBAI, Nov 1 (Reuters) - Political turmoil after Japan's ruling coalition lost its majority in a snap election last weekend could lead the Bank of Japan to delay its next interest rate hike until January, a former BOJ board member said on Friday. "If the yen depreciates further (against the dollar), the probability of a rate hike by Bank of Japan in December will increase, but otherwise I think that January of next year could be likely," said Takahide Kiuchi, who sat on the BOJ board from 2012 to 2017. Kiuchi told the Reuters Global Markets Forum , opens new tab that if dollar-yen rises above 155 and the government is forced to intervene in the currency market again, it may pressure the BOJ to hike rates to arrest further yen depreciation. Despite various rounds of intervention in 2024, the yen fell to a 38-year low of 161.96 per dollar on July 3 and then reversed its downtrend after the BOJ's July 31 decision to raise interest rates to 0.25%. On Friday the yen was 0.4% lower on day at 152.63, having risen on Thursday on less dovish comments from BOJ Governor Kazuo Ueda after the bank kept rates on hold. "The BOJ's basic policy stance has not been changed," said Kiuchi, now an executive economist at Nomura Research Institute, adding that he expected the bank to reach a terminal policy rate of around 0.75% by mid-2025. The head of the opposition party, Yuichiro Tamaki -- whom the ruling LDP is courting for support after losing its majority in the lower house -- said the BOJ should wait for at least six months before hiking interest rates. Kiuchi believes the ruling party will have to accept the opposition party's policy stance that ultra-easy monetary policy should be maintained until wage gains increase sustainably above inflation. "Maybe BOJ is refraining from making a comment on the political situation, but I think the political situation could be very influential for the Bank of Japan monetary policy," Kiuchi said. "That's a large risk." (Join GMF, a chat room hosted on LSEG Messenger, for live interviews: https://lseg.group/3KFHrhe , opens new tab) Sign up here. https://www.reuters.com/world/japan/japan-political-turmoil-risk-boj-december-hike-former-board-member-says-2024-11-01/

2024-11-01 12:12

Nov 1 (Reuters) - Petrochemicals manufacturer LyondellBasell (LYB.N) , opens new tab fell short of Wall Street's expectations for third-quarter profit on Friday due to declining refining margins and weakness in its chemicals segment, sending its shares lower 2.8% in premarket trading. Refining margins have been down globally as oil demand growth remains below average due to China's slowing economy. LyondellBasell recorded lower margins, driven by compressed gasoline and distillate crack spreads and high refining operating rates, with the Maya 2-1-1 industry crack spread decreasing approximately $15 per barrel. Crack spread is the price difference between a barrel of crude oil and the petroleum products refined from it. Crude throughput decreased by around 8,000 barrels per day due to unplanned downtime in the reported quarter. The company reported a loss of $23 million in its refining segment in adjusted EBITDA, compared to a year-ago core profit of $105 million. The chemicals maker also said year-end seasonality would result in softer demand across most businesses in the fourth quarter, with sequentially higher natural gas and ethane feedstock costs moderating North American integrated polyolefins. Manufacturing activity in the Eurozone declined in September, as demand fell sharply despite factories slashing prices. Germany, which accounts for 6% of LYB's total revenue after the United States, saw its worst drop in factory performance in 12 months, while China, the company's third-biggest market according to data compiled by LSEG, saw its manufacturing activity contract in July. Adjusted core profit in LyondellBasell's Intermediates & Derivatives segment, which makes oxyfuels and intermediate chemicals, fell 55% to $317 million from the year-ago period. Revenue for the quarter ended Sept. 30 was $10.32 billion, down from $10.63 billion last year. This compares to analysts' estimate of $10.60 billion, according to data compiled by LSEG. The company posted an adjusted profit of $1.88 per share in the July-to-September quarter, compared to analysts' estimate of $1.98 per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/markets/commodities/lyondellbasell-misses-quarterly-profit-estimates-falling-refining-margins-2024-11-01/

2024-11-01 12:12

Nov 1 (Reuters) - Canada's Imperial Oil (IMO.TO) , opens new tab reported a lower third-quarter profit on Friday as a slump in refining margins and lower commodity prices offset higher production. Global oil prices dropped during the quarter on weaker-than-expected demand from top importer China and concerns about an oversupply in the market. Benchmark Brent crude averaged $78.30 a barrel in the reported quarter, nearly 9% lower than last year, while the U.S. WTI was down 8.3%, weighing on earnings for oil and gas companies. Imperial Oil's overall production averaged 447,000 barrels of oil equivalent per day (boepd) in the third quarter, up from 423,000 boepd. Meanwhile, refinery throughput volumes fell to 389,000 barrels per day (bpd) from 416,000 bpd, reflecting the impact of turnaround activities at the Nanticoke and Strathcona refineries, the company said. Refinery utilization in the third quarter fell to 90% from 96%. Imperial Oil's net profit fell to C$1.24 million ($890,484.74), or C$2.33 per share, in the quarter, from C$1.6 billion, or C$2.76 per share, a year earlier. ($1 = 1.3925 Canadian dollars) Sign up here. https://www.reuters.com/markets/commodities/imperial-oil-reports-lower-third-quarter-profit-2024-11-01/