2024-04-08 21:37
April 8 (Reuters) - The Unified Command completed a line integrity test on the Main Pass Oil Gathering (MPOG) company's pipeline system near Plaquemines Parish, southeast of New Orleans, the U.S. Coast Guard said on Monday. "Following a successful line integrity test of the MPOG line, the Unified Command has stood down its work to respond to the oil release observed on November 16," they added. A line integrity test confirms that all points are leak-free. In Nov 2023 an oil spill was reported near the Main Pass Oil Gathering (MPOG) Co's pipeline system in the Gulf of Mexico. A failed subsea connector was identified on the MPOG line that did not hold pressure during the integrity test and was successfully replaced on Feb. 21, Coast Guard in the statement. As per the release, the integrity test completed on Friday, did not identify any other segments requiring further assessment as the line was able to maintain pressure. The Unified Command did not confirm whether the connector was related to the Nov. 16 release. Get weekly news and analysis on the U.S. elections and how it matters to the world with the newsletter On the Campaign Trail. Sign up here. https://www.reuters.com/world/us/us-coast-guard-gives-all-clear-after-louisiana-spill-response-2024-04-08/
2024-04-08 20:56
April 8 (Reuters) - Southwest Gas Holdings (SWX.N) , opens new tab unit Centuri Holdings said on Monday it is seeking a valuation of up to $1.8 billion in its initial public offering in the United States. Centuri, which builds and maintains energy networks that power millions of homes and businesses across the U.S. and Canada, said it plans to raise about $260.4 million by offering 12.4 million shares priced between $18 and $21 apiece, according to a regulatory filing. Icahn Partners LP and Icahn Partners Master Fund LP, the investment entities affiliated with billionaire Carl Icahn, have agreed to buy nearly 2.6 million shares of Centuri in a private placement at a price per share equal to its IPO price, Centuri said. It is the latest in a series of companies that have pursued going public over the past few months, encouraged by rising bets of interest-rate cuts this year and a soft landing for the economy. Walmart-backed digital marketing company Ibotta filed for an IPO in the U.S. last month, in the week that saw strong debuts from social media platform Reddit (RDDT.N) , opens new tab and chip firm Astera Labs (ALAB.O) , opens new tab. Centuri, which has more than 12,500 employees and operates across 43 U.S. states and two Canadian provinces, plans to list on the New York Stock Exchange under the symbol "CTRI". Last year, parent company Southwest Gas said it plans to separate Centuri through an IPO, use the proceeds to cut its debt and reduce its ownership after the launch. UBS Investment Bank, BofA Securities, J.P.Morgan and Wells Fargo are among the underwriters for Centuri's offering. Get U.S. personal finance tips and insight straight to your inbox with the Reuters On the Money newsletter. Sign up here. https://www.reuters.com/markets/deals/southwest-gas-unit-centuri-holdings-seeks-18-bln-valuation-us-ipo-2024-04-08/
2024-04-08 20:51
NEW YORK, April 8 (Reuters) - Futures traders have reduced bets on how much the Federal Reserve will cut rates this year to the lowest level since October, LSEG data showed on Monday, amid evidence of continued strength in the U.S. economy. Fed funds futures contracts for December on Monday reflected expectations of around 60 basis points in rate cuts this year, compared to some 150 basis points that had been priced at the start of 2024. The prospect of a first 25 basis point cut in June stood at 49%, down from 57% a week ago, CME Group data showed on Monday. Expectations for how deeply and how soon the Fed will cut rates have shifted rapidly over the last few months, as investors grow increasingly doubtful that policymakers will be able to lower borrowing costs without sparking an inflationary rebound in a strong economy. The Fed has projected it will cut rates by 75 basis points this year. Treasury yields, which are swayed by interest rate expectations, have moved higher as a result. The benchmark 10-year yield, which moves inversely to bond prices, hit its highest level since November on Monday. Data on Friday showed unexpected strength in the labor market, the latest in a series of reports reflecting stronger-than-expected growth. In January, policymakers introduced language saying they would keep the policy rate in its current 5.25%-5.5% range until they have "greater confidence" that inflation is headed to the Fed's 2% goal. The combination of strong data and limited progress on inflation in the last couple of months has amplified the calls among top officials - including Chair Jerome Powell - to be "patient" as they approach the decision on when to cut rates. Investors will be closely watching the Consumer Price Index for March, which will be released on Wednesday, to further assess the chances of rate cuts this year. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/fed-rate-cut-expectations-2024-fall-lowest-since-october-2024-04-08/
2024-04-08 20:14
April 8 (Reuters) - Oil sands producer Syncrude Canada, majority-owned by Suncor Energy (SU.TO) , opens new tab, will pay C$390,000 ($287,187.04) after pleading guilty to a health and safety charge relating to the death of a worker on one of its sites in June 2021, the Alberta government said on Monday. The worker had been operating an excavator to build a berm at a site near Fort McKay in northern Alberta when the bank the excavator was on slumped into water, Alberta Occupational Health and Safety said in a statement. The excavator cab became submerged and the worker drowned. It was one of five deaths at oil sands sites run by Suncor, Canada's second-largest oil producer, between late 2020 and mid-2022. The fatalities contributed to pressure from U.S.-based activist investment firm Elliot to overhaul management and operations at Suncor, and prompted the resignation of former CEO Mark Little. Syncrude Canada pleaded guilty on April 4 to one charge of failing to ensure the health and safety of a worker, while four other charges brought under the Alberta Occupational Health and Safety Act were withdrawn. Under a scheme known as creative sentencing, the company will pay C$390,000 to two University of Alberta centers and the Alberta Municipal Health and Safety Association to help develop safer practices around trenching and excavation work. Suncor is facing a separate set of charges, laid on March 29, related to the death of another worker, Brandon Nelson, in July 2022 in Fort McMurray. In that incident, the worker was struck by a piece of equipment that fell from a crane, according to the Alberta Occupational Health and Safety website. "That matter is now before the courts and we are going to review the charges and determine the next steps," said Suncor spokeswoman Sneh Seetal, adding there had been a thorough investigation following the fatality. "Our safety procedures did not meet our expectations." In the company's annual report, released last month, CEO Rich Kruger said there had been no deaths or life-threatening injuries in 2023. ($1 = 1.3580 Canadian dollars) The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/suncors-syncrude-canada-pay-c390000-after-worker-fatality-2024-04-08/
2024-04-08 19:00
HOUSTON/MEXICO CITY, April 8 (Reuters) - Mexico's state energy company, Pemex, is planning to cut at least 330,000 barrels per day (bpd) of crude exports in May, leaving customers in the United States, Europe and Asia with a third less supply, two sources said. The plan follows the withdrawal of 436,000 bpd of Maya, Isthmus and Olmeca crudes this month, ordered by Pemex to its trading arm PMI Comercio Internacional because it needs to supply more to its domestic refineries as it targets energy self-sufficiency. Pemex has no option other than applying monthly cuts to exports after its crude production in February fell to the lowest level in 45 years and the country's refineries, including a new facility in the port of Dos Bocas, began taking in more crude oil. Dos Bocas alone is expected to need an average of some 179,000 bpd of crude this year, according to official figures. Neither Pemex nor its trading arm immediately responded to a request for comment. Over the weekend, a deadly fire at a key offshore platform in the Gulf of Mexico also meant Pemex had to halt production at several wells, one of the sources said. It is not clear how many barrels would be cut as a result. Pemex exported 1.03 million bpd of crude last year, and 945,000 bpd in January-February. Mexico's energy ministry expects domestic processing to increase to an average of 1.04 million bpd this year from 713,300 bpd in 2023, leaving fewer barrels available for exports in the remainder of the year. "May cuts are expected to be between 10 million and 14 million barrels (in total)," another source said. Even though the cuts are significant and expected to be applied on a monthly basis from April onward, Pemex's trading arm has not declared force majeure over supply contracts, the sources, who are traders, said. Most of the contracts include provisions to allocate monthly volumes of specific crudes depending on availability, the sources added. The volumes are agreed mid-month. Pemex and the government of President Andres Manuel Lopez Obrador said earlier this year that the Dos Bocas refinery, in Mexico's Tabasco state, would start producing gasoline and diesel in the first quarter. While the refinery has begun processing crude in recent months, it has yet to contribute to the domestic market with finished motor fuels. Apart from the increased local demand, dwindling reserves - especially at old Gulf of Mexico fields - is another challenge, a separate source, at the energy ministry, said. There have been "discrepancies" in Mexico's data on reserves, the source said, adding that these currently overestimate both the amount of crude oil Pemex can technically recover at a cost that is financially feasible, and the quality of the crude oil itself. "The prognosis for the future is not encouraging," the source said. "The (production) decline is unavoidable." The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/mexico-cut-least-330000-bpd-crude-exports-may-sources-say-2024-04-08/
2024-04-08 18:30
April 8 (Reuters) - Global shipments of personal computers returned to growth in the first quarter after two years of decline, according to preliminary results from market research firm International Data Corporation (IDC) released on Monday. The PC market grew 1.5% from a year earlier, with 59.8 million shipments in the first quarter, and returned to pre-pandemic levels with the onset of a refresh cycle for PCs that were purchased during the pandemic, the report New Tab, opens new tab added. WHY IT'S IMPORTANT The availability of AI-capable PCs is expected to bolster demand for the devices, helping the market rebound from a lull in orders after the pandemic-driven buying spree. CONTEXT PC demand over the past two years was also affected by the economic landscape, with high interest rates and sticky inflation forcing businesses and customers to delay system upgrades. According to IDC, the growth in the first quarter was largely driven by easy year-over-year comparisons, and the easing inflation has been also helping spark a recovery in the Americas as well as Europe. But weakness in China, the largest consumer of desktop PCs, continued and affected global sales of devices, IDC said. The popularity of desktops is waning in favor of laptops, especially in China. Last month, another research firm, Canalys, said New Tab, opens new tab that PC market in the United States is expected to grow in 2024 and 2025 at 7% and 10%, respectively. KEY QUOTE "Despite China's struggles, the recovery is expected to continue in 2024 as newer AI PCs hit shelves later this year and as commercial buyers begin refreshing the PCs that were purchased during the pandemic," said Jitesh Ubrani, research manager with IDC's Worldwide Mobile Device Trackers. BY THE NUMBERS China's Lenovo Group (0992.HK) New Tab, opens new tab topped the list again, with 23% market share, followed by HP Inc (HPQ.N) New Tab, opens new tab and Dell Technologies (DELL.N) New Tab, opens new tab attaining market share of about 20% and 15.5%, respectively. Apple (AAPL.O) New Tab, opens new tab saw a 14.6% rise in shipments in the quarter and had a market share of 8.1%. The Technology Roundup newsletter brings the latest news and trends straight to your inbox. Sign up here. https://www.reuters.com/technology/global-pc-market-returns-growth-first-quarter-after-two-year-decline-idc-says-2024-04-08/
