2024-02-21 22:07

HOUSTON, Feb 21 (Reuters) - TotalEnergies (TTEF.PA) , opens new tab 238,000 barrel per day (bpd) Port Arthur, Texas, refinery is operating at minimal production as it contends with multiple upsets on Wednesday, said people familiar with plant operations. The refinery has been struggling to complete a restart following a Jan. 16 plant-wide power outage after temperatures fell below 20 degrees Fahrenheit (minus 7 degrees Celsius). A company spokesperson did not reply to a request for comment. On Wednesday, the company reported multiple upsets in heaters for the refinery’s 150,000-bpd ACU-1 and 40,000-bpd ACU-2 crude distillation units along with the 51,000-bpd and 60,000-bpd vacuum distillation units as well as the 60,000-bpd DCU-2 coker were affected by the Wednesday malfunction, according to the TCEQ filing. CDUs break down crude oil into feedstocks for all other units while VDUs further refine gunky residual crude oil from CDUs into feedstocks for other units. The coker finishes the refining of crude oil by converting residual crude from the VDU into motor fuel feedstocks or petroleum coke. The refinery’s 76,000-bpd fluidic catalytic cracker-2 was also in operation, according to the sources. https://www.reuters.com/business/energy/totalenergies-texas-refinery-running-minimal-rates-say-sources-2024-02-21/

2024-02-21 21:56

Feb 21 (Reuters) - Nvidia (NVDA.O) , opens new tab on Wednesday forecast a roughly threefold surge in quarterly revenue that handily beat estimates as the company banked on towering demand for its industry-leading artificial-intelligence chips, sending its shares up 10% after-hours. The already-hefty demand for the company's data center chips and graphics processing units (GPUs) continues to grow as firms scramble to expand their AI offerings. Nvidia's silicon dominates the global market for AI chips, where it counts the likes of Microsoft (MSFT.O) , opens new tab among its customers. "The market was poised to sell the news following Nvidia's earnings, given the sky-high expectations and deteriorating macro conditions," Investing.com analyst Thomas Monteiro said. "However, once again, the company left no doubt that the AI boom is much more than just a stock market narrative, but rather, the most significant bet from corporations worldwide at this moment." The late-day stock jump lifted the market capitalization of the Santa Clara, California, company by more than $129 billion, and pushed up the shares of other AI-related companies including chip designer Arm Holdings . Nvidia and other hardware suppliers linked to AI computing added $160 billion of combined stock market value. Nvidia on Wednesday forecast first-quarter revenue growth of 233%, ahead of Wall Street expectations of 208% growth. For the first three quarters of 2023, Nvidia reported quarterly revenue that beat analyst estimates by between 10% and 20%. Some analysts raised questions about how long Nvidia will be able to sustain this pace of growth. The company forecast revenue for the current quarter of $24.0 billion, plus or minus 2%. Analysts on average were expecting revenue of $22.17 billion, according to LSEG data. Sales at the data center segment - its largest by revenue share, grew 409% to $18.4 billion in the fiscal fourth quarter, coming in above estimates of $16.8 billion, according to LSEG data. Data center revenue grew close to 280% in the previous quarter. The AI frontrunner's supply chains, which have been unable to match the soaring demand for Nvidia's chips, are also improving. But CEO Jensen Huang told analysts on a post-earnings conference call that there was no way the company can "reasonably" keep up on demand in the short term as it ramps up production. "(The) biggest question on minds for growth is how supply-constrained they remain and what demand looks like over time," said Ben Bajarin, chief executive of consulting firm Creative Strategies. Analysts expect major supplier Taiwan Semiconductor Manufacturing Co's (2330.TW) , opens new tab (TSMC) advanced packaging capacity to improve in the first half of the year. This will allow Nvidia to work through the central bottleneck to deliver more chips to customers. Nvidia reported fourth-quarter revenue of $22.10 billion, beating estimates of $20.62 billion. Adjusted for certain items, fourth-quarter earnings were $5.16 a share, compared with estimates of $4.64 a share, according to LSEG data. Nvidia expects its first-quarter adjusted gross margin to be 77%, plus or minus 50 basis points. Analysts on average forecast gross margin of 75.6%. Nvidia stock has gained more than 30% so far this year as it jockeys with Amazon.com (AMZN.O) , opens new tab and Alphabet (GOOGL.O) , opens new tab for a spot among the most valuable companies. As of Feb. 20, about $30 billion worth of Nvidia shares changed hands daily on average over the past 30 sessions, pulling ahead of electric vehicle maker Tesla (TSLA.O) , opens new tab, which averaged $22 billion per day over the same period. The AI poster child's revenue has continued to grow despite tightened restrictions on trade with one of its largest markets: China. Nvidia said in a filing on Wednesday it had received requests from antitrust regulators in France, the European Union, United Kingdom and China over its sale of GPUs and efforts to allocate supply. The company said it expects to receive additional requests from antitrust regulators in the future. In December, U.S. Commerce secretary Gina Raimondo told Reuters that the Biden administration is in discussions with Nvidia about permissible sales of artificial intelligence-chips to China. She said she had spoken with Nvidia's CEO, Huang, and that he was clear that Nvidia will work within the rules the Commerce Department establishes. https://www.reuters.com/technology/nvidia-forecasts-first-quarter-revenue-above-estimates-2024-02-21/

2024-02-21 21:51

Feb 21 (Reuters) - Marathon Oil (MRO.N) , opens new tab beat Wall Street estimates for fourth-quarter profit on Wednesday as the U.S. shale producer got a boost from higher production. Marathon reported a rise in its oil and gas output to 404,000 barrels of oil equivalent per day (boepd) from 333,000 boepd in the previous year. This increase in production helped offset decline in crude prices, which fell from their 2022 peaks. However, crude prices are still at levels where companies can produce profitably. Marathon said it U.S. average crude realized price fell to $77.28 per barrel in the reported quarter, from $84.29 per barrel, in previous year. The Houston-based company said that although winter weather is expected to lower first quarter production by about 4,000 net bpd, primarily concentrated in the Bakken, it expects no impact to its flat oil production guidance for the full year. Marathon expects to deliver total oil production of 190,000 net bpd at the midpoint of its 2024 guidance range. The company's adjusted profit was 69 cents per share for the three months ended Dec. 31, compared with analysts' average estimate of 63 cents per share, according to LSEG data. https://www.reuters.com/markets/commodities/marathon-oil-beats-profit-estimates-2024-02-21/

2024-02-21 21:49

Feb 21 (Reuters) - Ratings agency S&P Global said on Wednesday it now expects U.S. real GDP growth of 2.4% in 2024. Inflation will likely cool further in coming months despite the uneven disinflationary process so far, S&P said in a note. The ratings agency did not change its 2024 outlook for monetary policy and said it expects the Federal Reserve to cut its policy rate by 25 basis points at its June meeting, with cuts totaling 75 basis points by year-end. https://www.reuters.com/markets/us/sp-expects-us-real-gdp-growth-24-2024-2024-02-21/

2024-02-21 21:46

Feb 22 (Reuters) - A look at the day ahead in Asian markets. Equity markets across Asia are likely to rise on Thursday, assuming the initial gains in Nvidia shares in after-hours U.S. trading on Wednesday following the company's fourth-quarter earnings are sustained. The U.S. chip-making and artificial intelligence giant won't be the only influence - traders in Asia have on their plate PMI reports from Japan, Australia and India; inflation data from Hong Kong; and South Korea's latest interest rate decision and guidance. They will also have the chance to digest the U.S. Fed's January meeting minutes that showed policymakers were concerned about the risks of cutting interest rates too soon, and a spike in U.S. bond yields following an extremely weak , opens new tab 20-year auction. But for stocks, at the open at least, it will be all about Nvidia. Fourth-quarter revenue beat forecasts and the first-quarter outlook also exceeded analysts' expectations. Its shares rose 7% after the bell on Wednesday, but trading was extremely volatile. The recovery in Chinese stocks from recent five-year lows, meanwhile, continues. The Shanghai Composite and CSI 300 index of blue chip shares both gained around 1% and chalked up their longest winning streaks in over a year. Another up day on Thursday will seal their best runs since July 2020. The CSI 300 is now in the green for the year and the Shanghai Composite is creeping into positive territory. While investors have responded favorably to Beijing's efforts to prop up the market, inject liquidity into the banking system and boost economic activity, how long that positivity lasts is an open question. The latest market measure, reported by Bloomberg on Wednesday, is a ban on major institutional investors reducing equity holdings at the open and close of each trading day. Japan's Nikkei, meanwhile, continues to pause for breath at its recent lofty 34-year heights just below 39,000 points, as dollar/yen consolidates around the 150.00 level. Japan's purchasing managers index reports on Thursday could reveal whether the economy is any closer to exiting recession. Manufacturing activity has contracted every month except one since October 2022. Japan's government on Wednesday downgraded its view on the economy for the first time in three months on sluggish consumer spending, suggesting a bumpy path out of a recession in the face of slow wage recovery and lackluster industrial output. The Bank of Korea will keep its key policy rate on hold at 2.50% for a ninth consecutive meeting, according to all economists polled by Reuters, who stuck to their long-held view the first rate cut will be in the third quarter. Money markets indicate one 25-basis point rate cut will be delivered by August, and another by the end of the year. The won has weakened 3% against the U.S. dollar so far this year, but has strengthened 3% against Japan's yen. Here are key developments that could provide more direction to markets on Thursday: - Australia, India, Japan PMIs (February) - South Korea interest rate decision - Hong Kong inflation (January) https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-02-21/

2024-02-21 21:30

Feb 21 (Reuters) - U.S. oil producer APA Corp (APA.O) , opens new tab reported fourth quarter earnings that missed Wall Street estimates on weaker North Sea production, and forecast flat spending and production this year. Output was hit by a temporary shutdown during the quarter at its Beryl Bravo offshore platform and by compressor-related downtime at its Beryl Alpha and Forties assets in the North Sea. Shares were off 2.8% in aftermarket trading. The company, which in January disclosed a $4.5 billion acquisition of shale oil producer Callon Petroleum (CPE.N) , opens new tab, traded at $31.44 at 4 p.m. on the Nasdaq market. Oil and gas production remained flat at 414,000 barrels per day (boepd) for the fourth quarter and it forecast first-quarter production in the range of 396,000 to 398,000 boepd. Full year oil and gas output will be "relatively flat," the company said without providing a target. It plans to spend between $1.9 billion and $2 billion this year on new projects, flat to down from last year. This year's budget includes $100 million for exploration primarily in Alaska and $50 million for Suriname. "Given the potential for lower year-over-year commodities prices, we will prudently manage costs and high-grade capital to our most strategic opportunities," CEO John Christmann said in a statement. The Houston, Texas-based company reported adjusted net income of $1.15 per share for the quarter ended Dec. 31, compared with analysts' average estimate of $1.35 per share, according to LSEG data. https://www.reuters.com/business/energy/oil-producer-apa-misses-quarterly-profit-estimates-2024-02-21/