2024-10-31 12:05

Oct 31 (Reuters) - CMS Energy (CMS.N) , opens new tab on Thursday beat Wall Street estimates for third-quarter profit, as the U.S. utility rides a record power consumption wave in the country. U.S. power consumption will rise to record highs in 2024 and 2025, the Energy Information Administration (EIA) said in a recent report, citing demand for artificial intelligence technology and data centres, and as homes and businesses use more electricity for heat and transportation. The company said it had contracted , opens new tabaround 230 megawatt power for large data centre expansions. The Jackson, Michigan-based firm posted adjusted profit of 84 cents per share for the quarter, beating analysts' average estimate 78 cents per share, according to data compiled by LSEG. A nearly 2% drop in operating expenses and a 4% rise in revenue helped CMS post higher quarterly profit. For the full-year 2025, it expects adjusted earnings of $3.52 to $3.58 per share, compared with estimates of $3.59. "We continue to make needed investments as outlined in our electric Reliability Roadmap by burying wires, installing sensors and adding other technology to build a smarter and stronger grid," said Garrick Rochow, CEO of CMS Energy. The utility also reaffirmed its 2024 adjusted earnings forecast of $3.29 to $3.35 per share. Sign up here. https://www.reuters.com/business/energy/cms-energy-beats-quarterly-profit-estimates-rising-power-demand-2024-10-31/

2024-10-31 12:04

Delays and production outages constrain growth Faster expansion should resume next year with new projects HOUSTON/NEW YORK Oct 31 (Reuters) - U.S. liquefied natural gas exports this year will rise about 2%, analysts estimate, the smallest annual increase since 2016 when the first big U.S. LNG export plant opened, launching a boom that drove the country's producers to the top of world gas exporters. Slower gains reflect delays and production outages and the absence of a new facility since March 2022 when Venture Global LNG's started up its Calcasieu Pass, Louisiana, project. This year's 2% increase in export volumes, to 12.1 billion cubic feet per day (bcfd), is down from 12% last year and the average growth rate of 43% between 2018 and 2022, according to data from the U.S. Energy Information Administration. The dollar value of U.S. exports reached a peak of $47.33 billion in 2022, when prices skyrocketed after Russia's invasion of Ukraine. Prices eased and last year's U.S. exports were valued at $34.27 billion, according to U.S. government data. Faster growth should resume next year when new projects start. Gains could rise around 14% to an estimated 13.8 bcfd in 2025, according to an EIA outlook. U.S. LNG capacity could more than double over the next four years, rising to around 17.8 bcfd next year, 20.6 bcfd in 2026, and reach 24.5 bcfd in 2028, analysts estimate. TWO STARTUPS AHEAD The seven big LNG export plants are capable of turning around 13.8 bcfd of natural gas into LNG for export. Since 2023 the U.S. has been the world's largest exporter of the superchilled gas. The 2024 forecast includes some output from two projects scheduled to start operation by year-end: Cheniere Energy's (LNG.N) , opens new tab Sabine Pass, Texas, expansion, and Venture Global's Plaquemines, Louisiana facility. A contractor's bankruptcy has delayed the third project that was due to open this year, the QatarEnergy and Exxon Mobil (XOM.N) , opens new tab Golden Pass joint venture. The partners say they expect to deliver first LNG in the second half of next year, but others see the delay stretching into 2026. "That sort of thing is very disruptive and so getting back up to speed when something like that is happening is a challenge," said Jason Feer, Poten and Partners Global head of business intelligence. This year's growth was constrained by maintenance and other outages at the second-largest U.S. export facility, Freeport LNG's 2.1-bcfd plant in Texas. Its output was cut by more than half for almost four months from mid January, according to the company and data from financial firm LSEG. Sign up here. https://www.reuters.com/business/energy/us-lng-exports-rise-smallest-pace-since-2016-2024-10-31/

2024-10-31 12:03

Complaint tests grievance mechanism tied to $600m loan Farmers demand higher prices and sustainable practices Cocoa trade impacted by poor harvests last season JOHANNESBURG, Oct 31 - Cocoa growers in Ghana filed a complaint with state regulator Cocobod on Thursday listing key environmental and social issues, including a demand for a "living income" for farmers. The complaint, which was signed by 30 farmers, also raised concerns over continuing deforestation, child labour and the use of pesticides by the world's second largest cocoa producer. It will test a grievance mechanism created by Cocobod as a prerequisite for a $600 million syndicated loan arranged by the African Development Bank (AfDB) in 2019. Cocobod's mandate gives it broad control over the regulation of farmer prices, cocoa marketing and pesticide distribution. "The AfDB sought to address precisely the type of environmental and social issues identified in this petition when it mandated the creation of the...grievance mechanism," the complaint, seen by Reuters, said. The document was submitted by the University of Ghana School of Law, the Civic Response non-profit organisation, and the Chicago-based Corporate Accountability Lab. Cocobod and the AfDB did not immediately respond to requests for comment. The cocoa trade has been roiled by poor harvests in West Africa last season that pushed global prices to record highs. Contracts are still trading well above historical averages, with December New York cocoa currently above $7,000 a ton. Cocobod raised Ghana's farmer price by nearly 45% to 48,000 cedis ($3,000) per metric ton for the 2024/25 season. The producers' complaint cited studies finding that only a fraction of Ghana's farmers earn a living income from their cocoa. "Cocobod must require companies to pay farmers a higher price...a living income," it said, adding higher prices were also "an essential first step towards eliminating child labour". Cocobod must also enforce companies' commitments on deforestation, ensure their supply chains are publicly transparent, ban the sale of dangerous pesticides and increase farm sustainability, the farmers said. Sign up here. https://www.reuters.com/world/africa/ghanas-cocoa-farmers-file-complaint-over-prices-child-labour-2024-10-31/

2024-10-31 12:00

Oct 31 (Reuters) - Refiner HF Sinclair (DINO.N) , opens new tab beat analyst estimates for third-quarter profit as higher fuel sales and a strong midstream segment offset a margin slump, particularly in the West and Mid-Continent regions. Shares of the company were up 1.8% premarket. The Dallas-based company joins rivals like Phillips 66 (PSX.N) , opens new tab and Valero (VLO.N) , opens new tab in beating analyst estimates but posting a drop in income. Refiners globally have faced declining profitability amid soft consumer and industrial demand, slowing economic growth, increasing electric vehicle adoption, and expanding global refining capacity. U.S. refinery margins, measured by the 3-2-1 crack spread , dipped to $14.28 in mid-September, the lowest since early 2021, reflecting lackluster fuel demand. HF Sinclair's refinery gross margin dropped nearly 59% to $10.79 per produced barrel, leading to a loss of $75.9 million compared to a net income of $790.9 million a year earlier. During the peak summer driving season in July and August, gasoline inventories decreased in six out of nine weeks of the third quarter, according to data from the U.S. Energy Information Administration, indicating a strong demand for fuel during this period. In its marketing segment, HF Sinclair's core profit rose 4.7% to $22.1 million on higher margins. The midstream segment saw a 10.6% increase in core adjusted profit due to higher revenues from increased volumes and tariffs. The company's refinery utilization averaged 101.2% in the quarter, compared with 88.8% last year, due to reduced turnaround activities. This led to a 0.7% rise in throughput and a 3.2% increase in refined product sales year-over-year. Excluding adjustments, HF Sinclair's earnings came in at 51 cents per share, well above analysts' estimates of 32 cents per share as per data from LSEG. Sign up here. https://www.reuters.com/business/energy/hf-sinclair-posts-third-quarter-loss-2024-10-31/

2024-10-31 11:41

ACCRA, Oct 31 (Reuters) - Ghana's currency is expected to face more pressure in the next week to Thursday, Kenya's could slip after weeks of stability and Uganda's is seen strengthening, traders said. The Nigerian and Zambian currencies are expected to be little changed. GHANA Ghana's cedi is facing headwinds because of persistent hard-currency demand driven by the manufacturing sector. LSEG data showed the cedi trading at 16.25 to the dollar on Thursday, compared to 16.02 at last Thursday's close. "The local unit remained under pressure in recent sessions as FX demand was strong. Liquidity has worsened in recent sessions, with interbank bids currently rising, while offers are non-existent," Sedem Dornoo, senior trader at Absa Bank Ghana, said. Another trader said the cedi's losses could continue for a long time unless there was a big increase in foreign-currency supply. KENYA Kenya's shilling has been steady for weeks but could weaken slightly in the next week. Commercial banks quoted the shilling at 128.50/129.50 per dollar, the same as last Thursday's closing rate. Dollar supply from remittances, tea exports and tourism has kept the shilling at the same level, one trader said. But he said he expected the dollar to strengthen globally next week, when the U.S. presidential election and a Federal Reserve interest rate decision will be in focus. "We could see the dollar continue to go up and the shilling to weaken further against the dollar," he said. NIGERIA Nigeria's naira is expected to hold steady thanks to central bank interventions and a reduction in foreign exchange demand. LSEG data showed the naira at 1,673 to the dollar on the official market on Thursday, versus around 1,676 a week earlier. The unit was quoted at around 1,730 to the dollar in street trading . "The central bank's dollar sales have increased liquidity, but importantly it has boosted market confidence," one trader said. UGANDA Uganda's shilling is seen trading with a firming tone as hard-currency inflows from remittances are anticipated. Commercial banks quoted the shilling at 3,656/3,666 to the dollar, compared to last Thursday's close of 3,660/3,670. Remittance flows from Ugandans working abroad typically increase in the last quarter of the year as they send money to relatives for the festive holidays. "As we enter November we'll start to see that cyclical increase in inflows," one trader said, adding the local unit will likely trade in a range of 3,630-3,660 against the dollar. ZAMBIA Zambia's kwacha is likely to hold steady due to hard-currency conversions by companies preparing to pay taxes. On Thursday the kwacha was trading at 26.57 per dollar from 26.60 on Wednesday last week. "Corporates will be selling dollars ... to pay taxes due in local currency," one financial analyst said. Sign up here. https://www.reuters.com/markets/currencies/africa-fx-ghanas-currency-seen-taking-further-strain-2024-10-31/

2024-10-31 11:38

Oct 31 (Reuters) - Canadian oil and gas producer Cenovus Energy (CVE.TO) , opens new tab posted a 56% slump in third-quarter profit on Thursday, due to a decline in production and throughput volumes as well as lower commodity prices. Global Brent crude averaged $78.3 a barrel in the reported quarter, nearly 9% lower than a year earlier, while Canadian natural gas prices slumped to their lowest level in more than two years. Cenovus said its total upstream production was 771,300 barrels of oil equivalent per day (boepd) in the quarter, down from 797,000 boepd a year earlier. Canada's oil sands projects and refineries undergo essential maintenance or turnarounds, which often involve temporarily shutting down production. Total downstream throughput for the quarter ended Sept. 30 fell 3% from a year earlier to 642,900 barrels of crude oil per day (bpd), due to a major turnaround at its Lima refinery. The refinery has a refining capacity of 183,000 bpd, per the U.S. Energy Information Administration. Cenovus shuttered an estimated 42,000-47,000 bpd of upstream production in the third quarter, compared to 11,000-14,000 bpd in the previous three months. "With planned upstream and downstream maintenance activities behind us, we are well positioned to deliver strong operations for the balance of the year and into 2025," said CEO Jon McKenzie. Separately, peer Canadian Natural Resources (CNQ.TO) , opens new tab also posted a drop in third-quarter profit on Thursday, due to a decline in production and lower crude prices. The Calgary, Alberta-based company's net income fell to C$820 million ($589.17 million), or 42 Canadian cents per share, in the three months ended Sept. 30, from C$1.86 billion, or 97 Canadian cents per share, a year earlier. ($1 = 1.3918 Canadian dollars) Sign up here. https://www.reuters.com/business/energy/cenovus-energy-posts-fall-third-quarter-profit-due-lower-production-2024-10-31/