2024-04-26 11:52

April 26 (Reuters) - Oil refiner Phillips 66 (PSX.N) New Tab, opens new tab reported a first-quarter earnings miss on Friday, as seasonal maintenance and a renewable fuels conversion project at its Rodeo, California, refinery weighed on profits. Phillips' market capture, a measure of refining profit compared with industry benchmarks, fell to 69% in the quarter from 93%, even as its crude capacity utilization was above last year at 92%. The company said its realized margins slumped about 47% to $10.91 per barrel in the first quarter from a year earlier, led by nearly a 50% decline in Gulf Coast margins Seasonal maintenance activities, primarily at its downstream catalytic units in the Gulf Coast, limited the refiner's ability to make higher-value products, Mark Lashier, CEO of Phillips 66, said during the company's earnings call on Friday. "We're still maximizing our crude utilization throughput, but that crude turned into intermediates instead of clean products by design because of the turnaround work we had underway," he said. Shares of the refiner were down nearly 3% on Friday. On the West Coast, its renewables conversion project at its Rodeo refinery incurred a $180 million loss during the quarter, also weighing on its quarterly earnings. The market had expected a noisy West Coast refining result given Rodeo startup, but margins were also weaker than forecast in other regions, TD Cowen analyst Jason Gabelman said in a note. The Rodeo Renewable Energy Complex produces 30,000 barrels per day of renewable fuels. The facility is on track to produce approximately 50,000 barrels per day of renewable fuels by the end of the second quarter, according to its earnings report. Activist investor Elliott, which revealed a $1 billion stake in Phillips last year, has been pushing the company to address underperformance in refining and speed up cost cuts. Refiner margins have scaled back from the peaks achieved after Russia's invasion of Ukraine in 2022, amid a rise in global refining capacity that has led to a drop in fuel prices. Rival Valero (VLO.N) New Tab, opens new tab topped profit estimates on Thursday despite routine maintenance work at its refineries. Phillips 66 said it has launched a sales process of its retail marketing business in Germany and Austria as part of its plan to divest non-core assets of about $3 billion. The Houston-based company reported adjusted earnings of $1.90 per share for the three months ended March 31, compared with analysts' estimates of $2.17 per share, according to LSEG data. Sign up here. https://www.reuters.com/markets/commodities/phillips-66-misses-first-quarter-profit-estimates-2024-04-26/

2024-04-26 11:39

NEW DELHI/MOSCOW/ LONDON, April 26 (Reuters) - A ship controlled by U.S.-sanctioned Russian shipping giant Sovcomflot (SCF) discharged fuel oil at a western Indian port on Friday, two sources familiar with the matter said, indicating a resumption in the use of SCF vessels to supply Moscow's key market after a brief halt. The SCF Baltica, carrying 90,000 metric tons of fuel oil for Reliance Industries (RELI.NS) New Tab, opens new tab, operator of the world's biggest refining complex at Jamnagar in Gujarat state, was expected to leave the port later on Friday after full discharge, the sources said. Indian refiners including Reliance became wary of receiving cargoes on Sovcomflot (FLOT.MM) New Tab, opens new tab vessels after the U.S. imposed sanctions on the Russian shipping giant on Feb. 23 and designated 14 crude oil tankers as property in which Sovcomflot had an interest in the wake of the Ukraine war. However, during a visit to India earlier this month, U.S. officials noted the sanctions on the 14 designated SCF vessels but also said Washington wants stable global oil supplies and has not asked India to cut Russian oil imports, remarks that sources at Indian refiners said helped to assuage concerns. The SCF Baltica is not among the 14 ships that were slapped with sanctions in recent months by Washington. SCF declined to comment. Reliance also did not respond to a request for comment. Gabon-flagged SCF Baltica was listed on SCF's website as part of its fleet of oil tankers. The vessel is managed by the United Arab Emirates-based Stream Ship Management and its owner was listed as Ashbourne Navigation care of Stream Ship Management, shipping databases show. Stream Ship could not be located for comment. Another tanker, Vladimir Tikhonov, which is expected to arrive next week carrying Russian oil, is also managed by Stream Ship Management and listed on SCF’s website as part of its fleet, data showed. India is the largest consumer of Russian seaborne oil, sold at a discount after Western nations shunned purchases from Moscow for its invasion of Ukraine. Reliance mainly buys Russian crude but also imports fuel oil for processing at its coker to produce refined fuels. More Indian refiners are scheduled to receive Russian oil cargoes loaded on SCF vessels, according to LSEG flows. Earlier this month, Sovcomflot's CEO said that U.S. sanctions are limiting the company's tanker activity. To squeeze Russia's oil revenue, the Group of Seven (G7) large economies and their allies have imposed a $60 per barrel price cap for Russian oil if Western services such as shipping and insurance are used. And to protect its freight and insurance premium outgo to Western nations, Russia wants to supply its oil, mostly sold by traders, using its own vessels and insurance cover. Russian insurer Ingosstrakh (INGSI.MM) New Tab, opens new tab has provided cover for SCF Baltica, freight documents showed. Resumption of trade in SCF vessels will help Russia protect its freight earnings. Below is the list of SCF vessels expected to arrive in India in April and May, according to LSEG data. Sign up here. https://www.reuters.com/markets/commodities/india-receives-oil-cargo-russian-scf-tanker-after-brief-halt-sources-say-2024-04-26/

2024-04-26 11:37

UAE first Arab state to operate nuclear plant Location could be closer to Saudi border or existing plant UAE signed COP28 agreement to triple global nuclear energy DUBAI, April 26 (Reuters) - The United Arab Emirates will tender shortly for the construction of a new nuclear power plant that would double the number of the small Gulf state's nuclear reactors, three sources familiar with the matter said. The UAE, a U.S. security partner, became the first Arab state to operate a nuclear power plant when in 2021 it opened in the South Korean-built Barakah facility in Abu Dhabi. The UAE plans to seek bids this year, potentially within the next few months, to build four new reactors, the sources with direct knowledge of the matter said, requesting anonymity to discuss details that are still private. The sources said the UAE aims to award the tender and start construction as soon as this year so that the new plant would be operational by 2032 in order to meet projected energy needs. The tender would be open to any potential bidders, including U.S., Chinese and Russian firms, the sources said, adding that South Korea would not be treated as a preferred bidder. Asked about plans for a second plant, the Federal Authority for Nuclear Regulation (FANR) said it was ready to review and issue the necessary licences and regulations that would be needed when and if the government decides to build new plants. The UAE energy ministry referred Reuters to FANR for comment. State-owned Emirates Nuclear Energy Co (ENEC), which owns the Barakah nuclear power plant, referred Reuters to a public statement it ran in January stating that it was,"focused on exploring opportunities in the UAE and overseas to maximize the full value of the expertise developed in nuclear mega project program delivery and technology deployment, subject to confirmed demand, and approvals from the relevant UAE authorities." The UAE government media office did not immediately respond when asked for comment. Russia is a big player in nuclear reactor construction, along with China which is rapidly scaling up its global nuclear energy ambitions. If Russia or China were selected as bidders for the UAE plant this could potentially create tensions with the U.S., which has sought to isolate Moscow over the Ukraine invasion and has become increasingly concerned over the Gulf states' deepening ties with Beijing. The UAE, which signed a nuclear energy cooperation agreement with the U.S. in 2009, says its nuclear programme is peaceful and solely for energy purposes to decrease its reliance on oil. It was one of the countries that signed an agreement at the United Nations climate conference held in Dubai late last year to triple global nuclear energy output over the next three decades. Elsewhere in the Middle East, Egypt is developing its first nuclear plant, built by Russia. Saudi Arabia has ambitions for a civilian nuclear programme but has refused so far to sign a cooperation agreement with the U.S. that would block the Gulf state from enriching uranium. The South Korean-built Barakah nuclear power plant, located in Abu Dhabi on the coast towards Saudi Arabia and Qatar, is expected to provide a quarter of the country's electricity. The fourth and final reactor of the Barakah plant is due to start commercial operations this year, bringing the nuclear power plant to full operating capacity. Locations under consideration for the new nuclear plant include a coastal site nearer to the border with Saudi Arabia, sources said. It could also be built closer to the existing plant at Barakah, they said. Sign up here. https://www.reuters.com/business/energy/uae-planning-second-nuclear-power-plant-sources-say-2024-04-26/

2024-04-26 11:32

April 26 (Reuters) - Oil giant Chevron Corp (CVX.N) New Tab, opens new tab beat estimates for first-quarter profit on Friday as higher production volumes in the U.S. helped offset a hit from weak natural gas prices and fuel margins. The second largest U.S. oil producer posted a profit of $5.5 billion in the quarter ended on March 31, down from $6.57 billion, or $3.46 per share from a year ago. Results beat consensus by 2% as recent acquisitions bolstered oil and gas volumes. Chevron and Exxon Mobil(XOM.N) New Tab, opens new tab, which posted first quarter results that missed Wall Street consensus estimates, are feeling the pinch of weak energy prices and fuels margins that have cooled in the last year. A glut of natural gas and a warmer-than-expected winter slashed natural gas prices, eating into earnings. "U.S. production was up 35% from a year ago, and we continued to meet major project milestones," CEO Mike Wirth said in a statement. Chevron said results were sustained by higher production brought by the acquisition of PDC Energy, Inc and sustained strong execution in the Permian and Denver-Julesburg (DJ) Basins. Shares fell 1.4% in pre-market trading to $163.35. Chevron said first quarter oil and gas production jumped 12%, to 3.34 million barrels of oil equivalent per day (boepd). Earnings from pumping oil and gas were $5.24 billion, up from $5.16 billion in the same period a year ago. But profits from producing gasoline and chemicals fell sharply, to $783 million from $1.8 billion a year ago. Refining suffered from weaker margins and higher operating expenses, the company said. Chevron reported adjusted per share profit of $2.93 for the first quarter, beating analysts' consensus estimate of $2.87. GUYANA Late last year, Chevron offered to buy Hess Corp (HES.N) New Tab, opens new tab for $53 billion to get a foothold in oil-rich Guyana's lucrative offshore fields. The deal, however, has been stalled by a regulatory review and challenged by Exxon Mobil (XOM.N) New Tab, opens new tab, which claims the right to Hess's Guyana assets. Exxon and partners aim to double production capacity to 1.3 million barrels of oil equivalent per day (boepd) by the end of 2027. Chevron said "the merger with Hess is advancing" and it intends to certify substantial compliance with the Federal Trade Commission's second request in the coming weeks. "We remain confident that a preemption right does not apply to this transaction and believe this will be affirmed in arbitration," it said. Management will provide more details on a conference call at 11 a.m. ET with investors looking for year-ahead guidance and an update on the arbitration case Chevron shares has underperformed rival Exxon by about 10 percentage points so far this year, amid challenges to its proposed acquisition of Hess. Sign up here. https://www.reuters.com/markets/commodities/chevron-reports-q1-profit-beat-2024-04-26/

2024-04-26 11:22

BERN, April 26 (Reuters) - Climate protection is very important for the Swiss National Bank, but the issue should be tackled by politicians rather than central banks, SNB Chairman Thomas Jordan said on Friday. "It is also important... we are serious and do not give the impression that we can solve all the problems of the world with monetary policy," Jordan told the SNB's shareholder meeting. Environmental groups mounted a protest outside the event in Bern, demanding the SNB offload its investments in companies which they say are linked to global warming and climate change. The SNB already had exclusion criteria in its investments, no longer holding stakes in coal-producing companies, Jordan said, noting that it was important the central bank did not implement policy which may not have popular support. "It is the democratically legitimized authorities that are actually able or responsible to make these decisions. Parliament, government and so on," he said. "They can introduce management tasks, emissions trade or subsidies. This is not the task of the National Bank." Instead, the SNB worked better with a narrow mandate which focused on price stability, Jordan said. Sign up here. https://www.reuters.com/sustainability/climate-energy/climate-change-matter-politicians-not-central-banks-snb-2024-04-26/

2024-04-26 11:19

BEIJING, April 26 (Reuters) - China General Nuclear Power Group (CGN) has secured its first yuan-denominated trade finance to import Chinese PV modules for a solar plant in Brazil, official media said on Friday. The 160 million yuan ($22.8 million) deal, financed by ICBC Brazil, will involve shipments of photovoltaic modules and inverters produced by Longi Green Energy , the world's top solar manufacturer, according to state-run Xinhua news agency. CGN started construction on the project, a 165MW solar power plant in northeastern Brazil's Ceará, early this year, the Xinhua report said. CGN Chairman Yao Zhigang was quoted as saying that the financing "offers yet another successful example of RMB internationalisation, and at the same time effectively controls project construction costs". China's central bank authorised ICBC Brazil to become a renminbi clearing bank in February 2023, saying it would promote bilateral trade and investment. Longi did not immediately respond to a request for comment on Friday evening. Sign up here. https://www.reuters.com/sustainability/china-general-nuclear-lands-first-yuan-trade-finance-brazil-solar-plant-2024-04-26/