2024-10-16 20:37

TSX ends up 0.5% at 24,561.20 Financials rise 0.7%; utilities add 2.2% Eight of 10 major sectors post gains Energy falls 0.5%; oil hits a two-week low Oct 16 (Reuters) - Canada's main stock index rose to a record high on Wednesday, led by bank sector gains as investors bet on faster interest rate cuts by the Bank of Canada that would boost the economy. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 122.12 points, or 0.5%, at 24,561.20, moving past the record closing high it notched on Friday. Financials, the most heavily weighted sector on the TSX, added 0.7%, as shares of Bank of Nova Scotia (BNS.TO) , opens new tab rose 1.3%. "Banks have been on a tear," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth. "This idea that interest rate cuts in Canada is good for our banks. I think we're going to see a lot more activity on the lending side." Chances of an unusually large 50-basis-point rate cut from the BoC next week have climbed to roughly 80% from 50% before the release of cooler-than-expected domestic inflation data on Tuesday. The utilities sector, which includes many high-dividend paying stocks that could particularly benefit from a faster pace of rate cuts, climbed 2.2%. The materials sector, which includes fertilizer companies and metal mining shares, edged up 0.3% as gold and copper prices rose. Saudi Arabia's Manara Minerals is closing in on a deal to buy a minority stake in First Quantum Minerals' Zambian copper and nickel assets, three people familiar with the details told Reuters. Shares of First Quantum (FM.TO) , opens new tab increased 2.4%. In contrast, Barrick Gold Corp (ABX.TO) , opens new tab shares fell 1.7% after the company said it produced less gold than expected in the third quarter. Eight of the 10 major sectors ended higher. Technology and energy both lost 0.5%. Energy shares were depressed as oil prices hit a two-week low . Sign up here. https://www.reuters.com/markets/tsx-futures-edge-up-higher-metal-prices-2024-10-16/

2024-10-16 20:29

Oct 16 (Reuters) - Kinder Morgan (KMI.N) , opens new tab fell short of Wall Street estimates for third-quarter profit on Wednesday and lowered its annual forecast as the U.S. pipeline operator contends with weaker commodity prices and lower crude volumes. Shares of the company, whose pipelines move about 40% of total U.S. natural gas production, fell 2.6% in extended trade. "For the full year, we expect refined product volumes to be slightly below our plan to 2% over 2023," President Thomas Martin said in a conference call. U.S. WTI crude oil prices declined about 8.1% during the third quarter from a year earlier and concerns persist over global demand. Crude and condensate volumes fell 4% from the year-ago quarter, while natural gas transported rose 2%. The company projected annual adjusted core profit to be 2% below its prior forecast, compared to previous expectations of in line or within 1-2% below. Kinder Morgan also cited start-up delays at its renewable natural gas facilities for the revised forecast. The company, like many U.S. energy peers, is pinning its hopes on the artificial intelligence boom-driven data center power need to buoy natural gas sales. "Data center demand has skyrocketed," CEO Kimberly Dang said. The overall gas market could grow by 25 billion cubic feet per day over the next five years, she said. The company said the Gulf Coast Express Pipeline, which it operates and holds a stake in, has green-lighted an about $455 million expansion project that would raise natural gas deliveries by 570 million cubic feet per day from the Permian Basin to South Texas markets. Kinder Morgan posted an adjusted profit of 25 cents per share, compared with analysts' average expectation of 27 cents, according to estimates compiled by LSEG. At its products pipelines unit, which includes refined products, adjusted core profit decreased about 11.5% to $277 million. The company is working with agencies to defend its permits related to the Cumberland gas pipeline project in Tennessee after a U.S. appeals court put them on hold. Sign up here. https://www.reuters.com/business/energy/kinder-morgan-misses-quarterly-profit-estimates-weak-prices-crude-volumes-2024-10-16/

2024-10-16 20:14

MADRID, Oct 16 (Reuters) - Alcoa (AA.N) , opens new tab said on Wednesday it was "progressing" toward a strategic cooperation agreement with Spanish renewable energy company Ignis to fund the operation of the U.S. metal producer's aluminium plant in northwestern Spain. Under the proposed deal, Alcoa would contribute 75 million euros ($81 million) and Ignis would make an initial investment of 25 million euros, giving it 25% ownership of the San Ciprian plant in the Galicia region, Alcoa said in a statement. Pittsburgh, Pennsylvania-based Alcoa said it would fund up to another 100 million euros as needed, while prioritising future cash returns. Any additional funding would be shared under a 75%-25% split between Alcoa and Ignis, respectively. The potential deal requires the approval of San Ciprian stakeholders, which include the Spanish government and regional authorities in Galicia. Alcoa has complained for years that steep energy prices in Spain had made its plant uncompetitive, which worsened when European power prices soared to record highs during the COVID-19 pandemic and the war in Ukraine. Earlier this year, Alcoa started looking to sell 100% of the San Ciprian plant. It said that no viable bid was made despite sharing information with 60 potential investors. ($1 = 0.9207 euros) Sign up here. https://www.reuters.com/markets/deals/alcoa-ignis-close-signing-joint-funding-deal-spain-aluminium-plant-2024-10-16/

2024-10-16 20:07

MARACAIBO, Oct 16 (Reuters) - A huge fire that erupted early on Tuesday at an oil tank in Venezuela's La Salina terminal operated by state company PDVSA wasextinguishedon Wednesday, authoritiessaid. The fire broke out during a storm at the facility used by the state oil company near Venezuela's western city of Cabimas to store and ship crude between domestic ports. Large balls of fire left a plume of black smoke and released hot steam, leaving a total of 24 employees and neighbors with minor injuries. Two explosions and the hot temperatures affected the tank's structure, according to videos seen by Reuters. On Wednesday, the fire was extinguished after more than 24 hours, said the firefighters in charge and the interior ministry, leaving the area blackened and covered with large pools of foam. "It was declared completely extinguished," Cabimas firefighters' chief Mufid Houmeidan told Reuters, adding that crews are continuing to cool off the tank with water. PDVSA confirmed the incident on Wednesday at crude tank 75012 and said firefighters stopped the fire from extending to other deposits. The neighboring Bajo Grande oil-exporting terminal was not affected. Fires and power outages are frequent at PDVSA's deteriorated infrastructure, often causing operations interruptions. Sign up here. https://www.reuters.com/world/americas/fire-venezuela-oil-terminal-that-started-tuesday-almost-extinguished-2024-10-16/

2024-10-16 19:55

THREE MILE ISLAND, Pennsylvania, Oct 16 (Reuters) - Constellation Energy (CEG.O) , opens new tab has ordered a main power transformer for the Three Mile Island nuclear reactor it is attempting to restart in Pennsylvania, pushing ahead with work critical to the plant's revival, Reuters learned on a tour of the site on Wednesday. The transformer is expected to be the biggest single piece of equipment that will need to be replaced for restart of the plant. It will cost about $100 million, said Constellation, the owner of the plant, which is investing $1.6 billion to revive the operation over the next four years. When deciding whether to move forward with a restart, Constellation surveyed the site to determine the condition of essential infrastructure and equipment, much of which has sat idle since the plant shut in 2019. "I have walked the facility top to bottom, every floor," Constellation Vice President of Generation Bryan Hanson said from inside the turbine deck at Three Mile Island, which is being renamed Crane Clean Energy Center. "The plant is in great condition." Constellation announced last month that it signed a 20-year power contract with Microsoft (MSFT.O) , opens new tab to help restart the plant. The nuclear reactor, which is located on an island in the Susquehanna River in Pennsylvania, is expected to supply 835 megawatts of power to offset Microsoft's data center electricity consumption. The sudden and voracious energy needs of Big Tech to power an expansion of artificial intelligence and cloud computing has doubled the country's projected electricity demand and led to a spate of unusual deals between power companies and the technology industry in the past year. No modern U.S. nuclear power plant has been restarted after fully shutting down, according to regulators. Three Mile Island is largely known as the site of the worst nuclear power accident in U.S. history. In 1979, a unit at the plant experienced a partial meltdown, which caused no deaths, but released small amounts of radioactive gases and raised concerns about the potential health effects on surrounding communities, including the state capital. That unit will not be restarted. Separate Unit 1, which Constellation wants to resurrect, shut in 2019 for economic reasons. Constellation expects Unit 1 to begin producing power in 2028, but there is a series of physical hurdles, along with U.S. and local regulations, that must be completed first. Among other major investments in resuming operations at the plant are work on the reactor's turbine, generator and cooling systems. Sign up here. https://www.reuters.com/business/energy/constellation-orders-100-million-transformer-three-mile-island-restart-2024-10-16/

2024-10-16 19:48

GEORGETOWN, Oct 16 (Reuters) - Energy firms TotalEnergies (TTEF.PA) , opens new tab, Qatar Energy, Petronas (PETRA.UL), Cybele Energy, Delcorp and International Group Investment have reached agreements with Guyana over terms of production sharing deals to explore five oil and gas offshore blocks, the energy ministry said on Wednesday. A tender launched in 2022 for areas in shallow and deep waters led to offers for eight blocks, part of the government's effort to diversify its energy industry dominated by a consortium led by Exxon Mobil (XOM.N) , opens new tab. The Exxon group, which also is in talks with the government over terms to explore offshore area S8 that is part of the tender, is interested in assessing carbon capture and storage opportunities within the block, the ministry said in a release. A production sharing agreement for that block is under review, the ministry added, without elaborating. A government official said in May that Guyana's cabinet had approved a bid by Qatar Energy, TotalEnergies and Petronas for exploring shallow water block S4 and negotiations over non-fiscal terms had begun. By then, the government had also initiated separate talks with Exxon, Hess Corp (HES.N) , opens new tab and CNOOC over their bid, Exxon's head for Guyana said. Final documents for the areas have not been signed. Guyana's energy ministry also said in the release that a response from local energy company Sispro is pending related to its offers for two of the blocks. Guyana's tender board said separately this month that local group VHE Consulting won a $1.5 million contract to audit Exxon's expenses and Guyana's profit oil share for the 2021-2023 period. Sign up here. https://www.reuters.com/business/energy/production-sharing-agreements-accepted-five-guyana-offshore-oil-blocks-2024-10-16/