2024-10-22 12:35

Oct 22 (Reuters) - Singapore agencies said on Tuesday they were making progress in cleaning up an oil leak and there had been no new sightings of oil at sea or onshore as of 3 p.m. (0700 GMT). Shell (SHEL.L) , opens new tab reported on Sunday an oil leak from a land-based pipeline at Shell Energy and Chemicals Park Singapore on Bukom island, which was later said to have been stopped. "The clearing of the remaining trapped oil within the containment booms in the channel and the cleaning of the stained rock bunds and infrastructure are targeted to be completed in the coming days," Singapore agencies said in a joint statement on Tuesday. The agencies included the Building and Construction Authority, the Maritime and Port Authority of Singapore (MPA) and the National Environment Agency (NEA). Some said they were continuing to monitor for sightings of oil. Sign up here. https://www.reuters.com/business/energy/singapore-agencies-say-making-progress-cleaning-up-oil-leak-2024-10-22/

2024-10-22 12:19

Oct 22 (Reuters) - Philip Morris International (PM.N) , opens new tab raised its annual profit forecast after beating third-quarter estimates on Tuesday, betting on higher prices and resilient demand for its heated tobacco products and ZYN nicotine pouches. Growing consumer preference for smokeless alternatives to traditional combustible cigarettes and chewing tobacco products in the United States have supported demand for ZYN, which, according to the company, does not contain tobacco. The Marlboro maker has been investing to expand production capacity for ZYN, in an effort to meet its strong demand. U.S. ZYN shipments in the quarter grew 41.4% over the prior-year period, as supply-chain constraints started to ease. The company's flagship heated tobacco device, IQOS, also saw strong growth in regions such as Japan, Europe and Indonesia. Its consolidated shipment volumes for cigarettes rose 1.3% in the quarter, compared with a 0.4% rise in the preceding three months. Shares of the company were up nearly 3% in premarket trading. Philip Morris expects its 2024 adjusted earnings per share, excluding currency, to be between $6.85 and $6.91, compared with its prior range of $6.67 to $6.79. It reported revenue of $9.91 billion for the third quarter, versus analysts' estimate of $9.69 billion, according to data compiled by LSEG. Its quarterly adjusted profit of $1.91 per share also beat estimates of $1.82 per share. Last week, Philip Morris said it, along with peers British American Tobacco (BATS.L) , opens new tab and Japan Tobacco (2914.T) , opens new tab, would pay C$32.5 billion ($23.6 billion) to settle a long-running lawsuit in Canada. A Quebec court awarded damages to about 100,000 smokers and ex-smokers who claimed these companies failed to adequately warn consumers about cancer risks. Sign up here. https://www.reuters.com/business/retail-consumer/philip-morris-raises-annual-profit-forecast-strong-demand-nicotine-pouches-2024-10-22/

2024-10-22 12:10

BUENOS AIRES, Oct 22 (Reuters) - Argentina's beleaguered economy is set to rebound in 2025 after two years of recession as the government tries to spark a private sector-driven recovery with its "chainsaw" plan to shrink the size of the state, a Reuters poll showed. Household spending is expected to pick up thanks to a fall in inflation induced by President Javier Milei's austerity steps. At the same time, exports and investment are likely to rebound as a web of regulation is unwound. Gross domestic product will probably increase 3.5% next year following an estimated contraction of 3.7% in 2024 and a 1.6% drop in 2023, according to median estimates of 28 economists polled Oct. 14-18. "We expect the economy to begin to expand sequentially in the last quarter of the year and to keep doing so in 2025 led by a recomposition of private consumption, with stable public spending," said Juan Barboza, head of research at Grupo Mariva. "Energy sector output, which is already starting to take off, will continue rising and substituting imports while activity in the service and manufacturing industries normalizes," he added. In the poll, average inflation is seen collapsing to 53% next year from a dizzying 222% clip in 2024, a surge initially fed by a large devaluation of the peso at the end of last year aimed at correcting an artificially strong exchange rate. Energy investments could reach up to $15 billion in 2025 and $16.5 billion in 2026, due in part to a deregulation push that should facilitate exports and give companies more access to hard currency, a government official said last month. "However, 2025 is set to be a challenging year, as the country needs to make payments to bondholders while facing limited international reserves," said Mauricio Monge, Latin America economist at Oxford Economics. "And implementing further fiscal adjustments will be unlikely due to mid-term elections...Although Argentina could avoid defaulting in 2025 without turning to the IMF, it would deplete all of its buffers," he added. The government may find it harder to build on fiscal progress made this year, its first in office. But more revenue could come from mining exports later on, replenishing the central bank's coffers. Local markets have been on a roll, with the country's sovereign risk index falling to its lowest level since a major debt restructuring in 2020 amid rising confidence in tough cost-cutting measures. This, combined with rising U.S. dollar deposits related to a one-off tax amnesty, has helped keep in place the government's foreign exchange "crawling peg" system of a monthly 2% depreciation rate. The unusual bonanza has lessened the problems caused by Argentina's labyrinthine set of capital controls and multiple currency rates which the economic team is reluctant to eliminate, fearing this could lead to another big devaluation. But some investors think Milei should eventually honour his campaign promises of removing the state's hand from financial matters altogether and allow the local currency to trade more freely in a single market. "Keeping this scheme will slow down investments needed to drive significant growth to overcome 12 years of stagnation, which in turn could jeopardize the program's sustainability," said Federico Gonzalez Rouco, an economist at Empiria. (Other stories from the Reuters global economic poll) Sign up here. https://www.reuters.com/world/americas/argentinas-beleaguered-economy-set-rebound-2025-2024-10-22/

2024-10-22 12:03

Oct 22 (Reuters) - Hyundai Motor's (011760.KS) , opens new tab Supernal said on Tuesday it had partnered with a private jet charter firm and a passenger helicopter operator for the development of its air taxi infrastructure. Supernal plans to launch its five-seat, battery-powered electric vehicle take-off and landing (eVTOL) aircraft in 2028 for commercial intra-city passenger journeys. It is one of a bevy of firms worldwide developing battery-powered aircraft that can take off and land vertically to ferry travelers on short city trips, allowing them to beat traffic. The concept has been touted as the future of urban air mobility, drawing intense global interest, with numerous eVTOL companies going public. However, the industry needs to tackle regulatory hurdles and overcome battery limitations. They also have to convince the public that their aircraft are safe. Under the first agreement, Supernal and private jet charter provider Clay Lacy will prepare Clay Lacy's fixed base operator (FBO) locations for take off and landing operations. Announced on Tuesday, this marks Supernal's first FBO partnership. The other agreement, with Blade Urban Air Mobility, will focus on joint exploration of advanced air mobility network and operations. Under the three-year agreement, Blade, an air transport platform, and its operator partners will provide Supernal with feedback on aircraft design and safety for various operating markets. Sign up here. https://www.reuters.com/business/autos-transportation/hyundais-supernal-partners-with-two-firms-its-battery-powered-aircraft-2024-10-22/

2024-10-22 12:00

LAUNCESTON, Australia, Oct 22 (Reuters) - China is on track to import record volumes of iron ore in October, increasing the divergence between the demand for the steel raw material and the still weak output of the finished product. China, which buys almost three-quarters of global seaborne iron ore, is likely to import as much as 120 million metric tons this month, according to vessel-tracking and port data. This would be a strong rise from the official customs number of 104.1 million tons in September, and also represent an all-time high, eclipsing the previous record of 112.7 million in July 2020. The strength in iron ore imports stands in sharp contrast to the softness in steel production, which slid for a fourth consecutive month in September, dropping to 77.07 million tons, down 1.1% from August and 6.1% from the same month in 2023. China's steel output for the first nine months of the year was 768.48 million tons, down 3.6% from the same period in 2023, according to data released by the National Bureau of Statistics last week. If there is a positive from the September steel production data, it's that the pace of decline slowed from the 10.4% on-year drop in August. Whether the drop in steel output can be lifted to show an increase in the next few months largely depends on whether steel mills see rising demand on the back of Beijing's stimulus efforts. September was too early for any kick higher in steel demand, given the major stimulus announcements were just before month end. However, if the measures to boost the ailing property sector do bear fruit, it's likely to only result in an increase in actual demand in 2025. This makes the rush to buy more iron ore seem somewhat premature. PRICE DRIVEN IMPORTS October's imports are on track to reach 120.5 million tons, according to data compiled by commodity analysts Kpler, while LSEG analysts expect arrivals of 117.3 million tons. It's likely that steel mills and traders took heart from the stimulus efforts announced by Beijing, but lower spot prices for iron ore may also have boosted buying. The price of Singapore Exchange contracts dropped to the lowest in 22 months in September, hitting $91.10 a ton on Sept. 10. They then traded in a narrow range around that level until the end of the month, meaning that much of the iron ore arriving in October would have been secured at relatively low prices. Iron ore prices did surge in the wake of the stimulus announcements, reaching a three-month peak of $110.55 a ton on Oct. 7, before easing back to end at $104.21 on Monday. A more sober reflection of when China's stimulus is likely to actually result in increased steel demand may have led to iron ore prices moderating, but it's worth noting they have still held onto most of the gains made since the October low. The risk is that the strong import volumes end up being added to inventories, which could act as a drag on further price gains even if steel output does start to recover. Port inventories monitored by consultants SteelHome rose in the week to Oct. 18, hitting 147.2 million tons, up from a five-month low of 145.8 million the prior week. Stockpiles have risen strongly in the past 12 months, rising from a seven-year low of 104.89 million tons in the last week of October 2023 to a recent high of 151.8 million in late July. The opinions expressed here are those of the author, a columnist for Reuters. Sign up here. https://www.reuters.com/markets/commodities/china-iron-ore-imports-head-record-even-steel-output-slips-russell-2024-10-22/

2024-10-22 11:48

Restart work is expected to begin in Q1 2025 Constellation has ordered major equipment Microsoft would consider similar contracts to restart nuclear power plants Work includes refurbishing cooling towers and millions of feet of scaffolding Activists say they will challenge licensing for the plant THREE MILE ISLAND, Pennsylvania, Oct 22 (Reuters) - Giant cooling towers at Constellation Energy's (CEG.O) , opens new tab Three Mile Island nuclear plant in Pennsylvania have sat dormant for so long that grass has sprung up in the towers' hollowed-out bases and wildlife roam inside. Armed guard stations at an entrance to the shut concrete facility, surrounded by barbed wire, sit empty. The plant, which would run so loud when operating that workers were required to wear hearing protection, is nearly silent. "It's still eerie walking in here and it's, just, quiet," Constellation regulatory assurance manager Craig Smith said during a tour of the plant last week. Smith, who worked at Three Mile Island when Constellation shut the site’s remaining reactor in 2019, is now preparing for a restart. Constellation announced last month that it would revive the half-century-old Three Mile Island with the purpose of fueling Microsoft's (MSFT.O) , opens new tab data centers. Microsoft is expected to pay at least $100 a megawatt-hour, nearly double the typical cost of renewable energy in the region, as part of the 20-year power contract. The agreement shows the dramatic lengths Big Tech is willing to go to procure electricity for its artificial intelligence expansion and the undertaking by the U.S. power industry to meet that demand. The effort to restore Unit 1 at Three Mile Island is expected to take four years, at least $1.6 billion, and thousands of workers to complete the unprecedented task of restarting a retired nuclear plant. Constellation has already ordered costly equipment for the site and identified fuel for the unit's reactor core, with work expected to start early next year, according to Reuters' interviews with company executives, contractors and a tour of the site. Successfully resurrecting Three Mile Island, which is widely known for a 1979 partial meltdown that cast a pall over the U.S. nuclear sector for decades, would put the plant at the front edge of an industry revival. Nuclear creates large amounts of carbon-free electricity. That is attractive to companies, like Microsoft, that have climate pledges and face increasing public scrutiny for their voracious power use. Microsoft would consider signing other power purchase agreements to restart shut plants, Alistair Speirs, senior director of Microsoft's Azure Global Infrastructure, told Reuters. "I don't think anything's off the table," Speirs said. Relaunching Three Mile Island would supply to the regional grid 835 megawatts of electricity - enough for all of Philadelphia's homes - to help offset Microsoft's power consumption. A restart of the plant, however, is not certain. Three Mile Island, which will be renamed the Crane Clean Energy Complex, still requires licensing modifications and permitting. Local activists have also vowed to fight the project over safety and environmental concerns. If the plan suffers the same lengthy delays and cost overruns that have plagued nearly every nuclear build in the country's history, it could stymie other deals and set back Big Tech's quest to rapidly expand, power experts say. MILLIONS OF FEET OF BUILDING Earlier this year, Constellation finished initial testing of the plant's Unit 1 to determine whether it was financially reasonable to resurrect it. After learning that the central generator, which would cost hundreds of millions of dollars to replace, was in strong condition, the company moved ahead with its plan. “We have a perfectly ready-to-go main generator just waiting for the rest of the plant to get started,” said Smith, standing in front of a row of massive turbines. About a thousand carpenters, electricians, pipefitters and other tradesmen are expected to be deployed to the site, said Rob Bair, president of Pennsylvania Building Trades. Work will likely start in the first quarter of 2025 with restoring two 370-foot (113-m) high cooling towers, which were stripped bare after the plant shut. "There is a ton of equipment that has to go back in those towers," said Bair, whose father helped build Unit 1, which opened in 1974. Workers will be hoisted up the top of the towers to install lighting and restock the buildings from within. The structures' bases, which were once made of redwood, will be refurbished with modern materials. Next, restorations inside of the plant will begin: some major equipment will be replaced. Constellation recently ordered the site's main transformer, which is expected to cost around $100 million including installation, to be delivered in 2027. Piping and electrical work, scrubbing condensers and cleaning out power generators, will be among the next tasks. A million-gallon tank will be filled with water. Much of the analogue control room, with a panel installed in the early 1970s, will stay the same. A benefit of keeping the analogue system is that it would be more secure against cyberattacks, officials said. Completing the job will require several million feet of scaffolding, built by scaffologists, or carpenters with special licenses, to be assembled repeatedly around the island. "And all of that has to be done before you can even put fuel on the site," Bair said. The company has commissioned the fuel design for the reactor's core, said Constellation Chief Generation Officer Bryan Hanson. The core holds the enriched uranium, the fuel source for the plant, stacked in pellets and sealed in tubes. Constellation, which is the biggest U.S. operator of nuclear plants, will tap into fuel from its existing enriched uranium reserves as one of the final steps before starting up. The effort is part of a recent turnaround of U.S. nuclear power, which suffered from competition from cheap fuel and fears of meltdowns, said John Ciampaglia, CEO of Sprott Asset Management, which manages a large physical uranium fund. In Michigan, Holtec is in the process of trying to restart another reactor site. Constellation's stock price has soared by 135% so far this year amid fresh projections for record U.S. power consumption next year and a doubling of data center demand by 2030. Not everyone is enthused about the prospect of a nuclear comeback. The power plants produce waste that can remain radioactive for thousands of years. About a tennis court-size amount of spent nuclear fuel from Unit 1 is stored on Three Mile Island, which sits on a strip of land in the Susquehanna River. The decommissioning of Unit 2 is still underway about 45 years after the partial meltdown. Local activist Eric Epstein, who remembers the March 1979 incident, said he will fight Constellation's request to resume operating and water use licenses. "It's going to be a protracted battle," Epstein said. The first chance for the challenges comes on Oct. 25, when the Nuclear Regulatory Commission has scheduled its initial public hearing on Constellation's plan to restart Unit 1. Sign up here. https://www.reuters.com/business/energy/three-mile-island-nuclear-plant-gears-up-big-tech-reboot-2024-10-22/