2023-10-31 20:35

Oct 31 (Reuters) - Lithium producer Livent Corp (LTHM.N) posted a lower-than-expected quarterly profit on Tuesday and cut its annual revenue and earnings forecast, citing expansion delays in Argentina. Shares of the Philadelphia-based company, which supplies lithium for Tesla (TSLA.O) and BMW (BMWG.DE), fell more than 4% in after-hours trading to their lowest level of the year so far. Livent said it has struggled to attract key specialists to its expansion project in rural northern Argentina and faced trouble importing needed replacement parts, among other issues. That's pushed the opening of the expansion to next year from a previous estimate of 2023. The expansion is expected to boost production by 20,000 metric tons annually. The Argentina site is Livent's only active lithium mine, although it is developing projects in Quebec. Despite recent concerns about slowing EV adoption, Livent said it continues to see strong demand for the battery metal. "We see (lithium) supply continuing to be the constraint on demand," Livent CEO Paul Graves told investors on a conference call on Tuesday. The company posted third-quarter net income of $87.4 million, or 42 cents per share, compared to $77.6 million, or 37 cents per share, in the year-earlier period. Excluding restructuring charges and other one-time items, Livent earned 44 cents per share. Analysts had expected earnings of 46 cents per share on the same basis, according to IBES data from LSEG. Livent cut its 2023 revenue forecast to a range of $890 million to $940 million, from a previous forecast of between $1.03 billion to $1.13 billion. Livent said its merger with rival Allkem (AKE.AX) is on track to close by the end of the year. The combined company will be called Arcadium Lithium. https://www.reuters.com/markets/commodities/livent-quarterly-profit-up-13-cuts-forecast-flat-lithium-sales-2023-10-31/

2023-10-31 20:13

WASHINGTON, Oct 31 (Reuters) - The U.S. on Tuesday imposed a form of sanctions on Myanma Oil and Gas Enterprise (MOGE), the U.S. Treasury Department said, but stopped short of imposing full blocking sanctions on the ruling junta's main source of foreign revenue. The action, first reported by Reuters, prohibits certain financial services by Americans to the state oil and gas enterprise starting on Dec. 15, the Treasury said in a statement, in the first direct action against the state-owned enterprise. Washington has previously targeted its leadership. Financial services include loans, accounts, insurance, investments and other services, according to Treasury guidance. Washington held back from adding the enterprise to the Specially Designated Nationals list, which would effectively kick it out of the U.S. banking system, ban its trade with Americans and freeze its American assets. Washington also slapped sanctions on three entities and five people whom the U.S. Treasury Department said were connected to Myanmar's military, according to the statement, in action coordinated with Britain and Canada. "Today’s designations close avenues for sanctions evasion and strengthen our efforts to impose costs and promote accountability for the regime’s atrocities. We continue to encourage all countries to take tangible measures to halt the flow of arms, aviation fuel, and revenue to the military regime," U.S. Secretary of State Antony Blinken said in a separate statement. Britain added five individuals and one entity involved either in providing financial services to the regime or the supply of restricted goods including aircraft parts. Canada imposed sanctions against 39 individuals and 22 entities for supporting Myanmar's military regime. Neither country mentioned MOGE in its announcement. Myanmar's embassy in Washington did not immediately respond to a request for comment. Reuters was unable to reach MOGE for comment. Myanmar has been in crisis since a 2021 military coup and a deadly crackdown that gave rise to a nationwide resistance movement that won the backing of several ethnic minority armies. Rights groups and United Nations experts have accused the military of committing atrocities against civilians in its efforts to crush the resistance. The junta says it is fighting "terrorists" and has ignored international calls to cease hostilities. "Today’s action ... maintains our collective pressure on Burma’s military and denies the regime access to arms and supplies necessary to commit its violent acts," the Treasury's Under Secretary for Terrorism and Financial Intelligence, Brian Nelson, said in the statement, using the Southeast Asian nation's former name. "We remain committed to degrading the regime’s evasion tactics and continuing to hold the regime accountable for its violence." The U.N. human rights expert for Myanmar in September called on the U.S. to further tighten sanctions on the country's military rulers to include the state oil and gas enterprise. Human rights advocates have repeatedly called for sanctions on MOGE, but Washington had so far held back. "I welcome the long-overdue imposition of sanctions on the #Burma junta’s oil & gas enterprises. The junta uses the profits from these companies to commit human rights abuses against innocent Burmese people," Senator Jim Risch, the top Republican on the Senate Foreign Relations Committee, said on social media. U.S. oil major Chevron (CVX.N) said in February it had agreed to sell its stake in an offshore gas joint venture that included MOGE. Chevron did not immediately respond to a request for comment about Tuesday's sanctions. Washington in June issued sanctions against state-owned Myanmar Foreign Trade Bank (MFTB) and Myanma Investment and Commercial Bank (MICB), which allowed the junta to use foreign currency to buy jet fuel, parts for small arms production, and other supplies. Myanmar military officials have played down the impact of sanctions. MOGE provides hundreds of millions of dollars each year to the junta, according to the Treasury statement. Washington also imposed sanctions on three entities it said have assisted the junta in importing arms, dual-use goods and other materials, including from Russian entities under U.S. sanctions, according to the statement. Sky Royal Hero Company Limited, a Myanmar entity that the Treasury said contracted repair work from sanctioned Russian entities and has a relationship with a Myanmar defense procurement company already subject to U.S. measures, was among those targeted. Five officials, including the Chief of General Staff for Myanmar's Army, Navy and Air Force, were also targeted. Tom Andrews, UN Special Rapporteur on the human rights situation in Myanmar, said Tuesday's move by the U.S., Britain and Canada were important steps forward and called on UN member states to take stronger action to support the people of Myanmar. "The announcement of a U.S. ban on financial services that benefit Myanmar Oil and Gas Enterprise (MOGE) will tighten the spigot on the junta’s single largest source of revenue," Andrews said in a statement. https://www.reuters.com/business/energy/us-targets-myanmars-state-oil-gas-enterprise-with-form-sanctions-2023-10-31/

2023-10-31 20:08

OTTAWA, Oct 31 (Reuters) - Canadian Prime Minister Justin Trudeau ruled out any further carve-outs from the federal carbon tax scheme on Tuesday, amid mounting pressure from provinces seeking measures similar to an exemption on home heating oil announced last week. Trudeau's Liberal government said it would pause the carbon levy on heating oil in Atlantic Canada for three years to offset the high price of the fuel, which is mainly used in the Maritime provinces, and help homeowners counter cost-of-living increases. The move sparked dismay from some climate think-tanks who warned it risks undermining Ottawa's key emissions-reduction policy, and prompted other provinces to call for further carve-outs. Trudeau said home heating oil had been exempted because it was so much more expensive and polluting than other types of fuel and disproportionately used by lower-income households. "There will absolutely not be any other carve-outs or suspensions of the price on pollution," Trudeau told reporters in Ottawa. On Monday Saskatchewan Premier Scott Moe vowed to stop collecting the federal carbon tax on homes heated with natural gas from 2024 if Ottawa does not expand the exemption. Federal Natural Resources Minister Jonathan Wilkinson said the government expected Moe "to comply with the laws of the land" and it was a requirement that the carbon tax be collected. Alberta Premier Danielle Smith has also complained that there will be no exemption for people using natural gas to heat their homes. Ontario Premier Doug Ford urged the government to eliminate carbon pricing altogether. Canada, the world's fourth-largest oil producer, is aiming to cut emissions 40-45% below 2005 levels by 2030 and a steadily rising carbon price that will hit C$170 a tonne by 2030, from C$65 a tonne currently, is a key part of its climate plan. https://www.reuters.com/sustainability/sustainable-finance-reporting/canada-pm-trudeau-rules-out-further-carbon-tax-exemptions-2023-10-31/

2023-10-31 19:29

ABU DHABI, Oct 31 (Reuters) - Fossil fuel companies must face up to their responsibilities to cut the CO2 emissions fuelling climate change, the U.S. Climate Envoy John Kerry said on Tuesday, as countries prepared to debate the future of fossil fuels at this year's U.N. COP28 climate summit. The oil and gas industry is expected to be in focus at the COP28 summit from Nov. 30 to Dec. 12 in the United Arab Emirates, a major oil producer. Dozens of countries plan to push for the world's first deal to phase out CO2-emitting coal, oil and gas. Kerry, U.S. special envoy on climate change, said the onus was on fossil fuel companies to prove they can be part of global efforts to cut CO2 emissions. "My message to the oil and gas companies is very simple. There's only one reason that we're in this crisis and it is principally the way we provide our energy," Kerry told Reuters. "We are demanding public responsibility. And we are looking at those companies and feeling that they could do so much to help us win this battle." The United Arab Emirates' incoming COP28 President Sultan Al Jaber - who is also the head of the country's state oil firm ADNOC - has defended the inclusion of industry in the event, and is asking oil and gas firms to make CO2-cutting pledges there. Major oil and gas companies have touted investments in carbon removal and carbon capture and storage technologies as part of their net-zero emissions plans, as well as some renewable energy and hydrogen. Yet some like Shell and BP have rolled back their commitments in recent months even as they reported record earnings. Daniel Westlén, Sweden's state secretary for climate, told Reuters that while U.N. climate negotiations are strictly between governments, fossil fuel companies must also be involved. "Replacing 80% of the primary energy in the world with something else - it's like replacing the blood veins and vessels when the patient is up and running. It's going to be hard to do it without them," he said. "You need a plan, to plan ahead. And most probably that plan has to involve the fossil fuel companies somehow - but the end goal is phasing out the fossil fuels," he added. Kerry said oil and gas' company investments in nascent technologies like direct air capture and carbon capture in storage is welcome but it is too early to say whether it will have any impact on global greenhouse gas emissions. "Their investment is crucial, but we don't know yet whether it's a fig leaf or not. There are a lot of questions about whether or not they can ever produce at scale. That's yet to be tested," he said. Jennifer Morgan, Germany's special envoy for climate action, said credible oil company plans must address greenhouse gas emissions from operations as well as their use by consumers. Morgan said the companies also must eliminate methane emissions and ramp up spending on renewable energy. "They need to be shifting their investments because ... it's something around 5% right now that's going into renewables ... and it needs to be more around 50%," she told Reuters. https://www.reuters.com/sustainability/cop/us-climate-envoy-demands-public-responsibility-fossil-fuel-firms-2023-10-31/

2023-10-31 19:28

Oct 31 (Reuter - Energy giants BP(BP.L) and Norway's Equinor(EQNR.OL) have booked hundreds of millions of dollars worth of impairments on their U.S. offshore wind power portfolios in recent days, the latest examples of a renewable energy industry in turmoil. Danish energy company Orsted (ORSTED.CO), the world's largest offshore wind farm developer and a big player in the U.S., said in late August it may see $2.3 billion in U.S. impairments due to supply delays, high interest rates and a lack of new tax credits. It will report third quarter earnings on Wednesday. The companies are among several energy firms trying to build new offshore wind farms in the U.S., but feeling pain, raising questions about the future of fleet of projects that U.S. President Joe Biden hopes can help fight climate change. Biden’s administration wants the U.S. to deploy 30,000 megawatts (MW) of offshore wind by 2030 from a mere 41 MW now, a key part of his plan to decarbonize the power sector and revitalize domestic manufacturing, and has passed lucrative subsidies aimed at helping companies do that. But even with regulatory rules and subsidies in place, developers are facing a whole new set of headwinds. Here is what they are: INFLATION The U.S. offshore wind industry has developed much more slowly than in Europe because it took years for the states and federal government to provide subsidies and draw up rules and regulations, slowing leasing and permitting. However, as government policies started to line up in the industry's favor in recent years, offshore wind developers unveiled a host of new project proposals, mostly off the U.S. East Coast. Two small projects came into operation - Orsted's five-turbine Block Island wind farm off Rhode Island and the first two test turbines of U.S. energy firm Dominion Energy's (D.N) Coastal Virginia Offshore Wind off Virginia. Then came a hitch. The COVID-19 pandemic gummed up supply chains and increased the cost of equipment and labor, making new projects far more expensive than initially projected. "It appears the offshore wind industry bid aggressively for early projects to gain a foothold in a promising new industry, anticipating steep (cost) declines similar to those for onshore wind, solar and batteries over the past decade," Eli Rubin, senior energy analyst at energy consulting firm EBW Analytics Group, told Reuters. "Instead, steep cost gains threw project financing and development into disarray," Rubin said, noting many contracts will likely be renegotiated as states look to decarbonize, with higher prices ultimately falling onto power customers. INTEREST RATES Financing costs also spiraled as the U.S. Federal Reserve boosted interest rates to tame inflation. Many contracts for offshore wind projects have no mechanism for adjustment in the case of higher interest rates or costs. Some developers have paid to get out of their contracts rather than build them and face years of losses or low returns. In Massachusetts, two offshore wind developers, SouthCoast Wind and Commonwealth Wind, for example, agreed to pay to terminate deals that would have delivered around 2,400 MW of energy, enough to power over one million homes. In New York, offshore wind developers Equinor and BP also sought to boost the price of power produced at their planned projects there, but were rejected. Orsted, meanwhile, told utility regulators in June that it would not be able to make a planned final investment decision to build its proposed 924-MW Sunrise Wind project unless its power purchase agreement was amended to factor in inflation. INSUFFICIENT SUBSIDIES Biden’s administration has sought to supercharge clean energy development with passage of the Inflation Reduction Act (IRA), a sweeping law that provides billions of dollars of incentives to projects that fight climate change. Since the law passed last year, companies have announced billions of dollars in new manufacturing for solar and electric vehicle (EV) batteries across the U.S. But the offshore wind industry is not fully satisfied. Bonus incentives for using domestic materials and for siting projects in disadvantaged communities are too hard to secure, developers say, and they are crucial to making projects work in a high-cost environment. The credits are each worth 10% of a project's cost and can be claimed as bonuses on top of the IRA's base 30% credit for renewable energy projects - bringing a project's total subsidy to as much as 50%. Equinor, France's Engie (ENGIE.PA), Portugal's EDP Renewables (EDPR.LS), and trade groups representing other developers pursuing offshore wind projects in the U.S. told Reuters they are pressing officials to rewrite the requirements, and warning of lost jobs and investments otherwise. https://www.reuters.com/sustainability/why-us-offshore-wind-industry-is-doldrums-2023-10-31/

2023-10-31 19:00

NEW YORK, Oct 31 (Reuters) - FTX founder Sam Bankman-Fried concluded his defense in his fraud trial on Tuesday, saying he felt "regret" for not looking into the $8 billion his hedge fund borrowed from the cryptocurrency exchange before it collapsed last November. During a second day of cross-examination, the 31-year-old former billionaire said he had thought it "permissible" for his Alameda Research hedge fund to use money that FTX customers had deposited into a bank account the fund controlled. FTX directed customers to deposit funds into the Alameda account before the exchange had its own bank account. Bankman-Fried said he believed that Alameda's borrowings were being recorded on its main FTX account, and only learned it was not in October 2022. "I deeply regret not taking a deeper look into it," he said. Bankman-Fried was trying to convince the 12-person jury to acquit him of the two counts of fraud and five counts of conspiracy he faces. Prosecutors say Bankman-Fried illegally looted billions of dollars of customer funds to prop up Alameda, made speculative venture investments, and donated upwards of $100 million to U.S. political campaigns. He could face decades in prison if convicted. Bankman-Fried frequently looked toward jurors as he testified, occasionally frowning or smirking at how Sassoon framed her questions. His father, Stanford Law School professor Joseph Bankman, attended Tuesday's session, once passing a note to his son's lawyers. Sassoon challenged Bankman-Fried on how he had talked with other FTX executives about a bug had that had in June 2022 inflated Alameda's debt to FTX, but did not investigate it deeply despite owning 90% of Alameda. "They also were busy, and I had prioritized getting the high level update," he said. Sassoon also grilled Bankman-Fried on what she called his "cozy" relationship with officials in the Bahamas, where the cryptocurrency exchange was based. Bankman-Fried said he could not remember whether he offered to pay the Bahamas' $11.6 billion national debt, or gave the prime minister and his wife courtside seats at a Miami Heat basketball game at the team's home arena, then named for FTX. Sassoon then showed Bankman-Fried a text message in which he told co-workers the couple sat courtside at a game. The prosecutor also asked about Bankman-Fried's decision to let FTX customers in the Bahamas withdraw funds after withdrawals for others had been halted. Bankman-Fried said he thought Bahamian regulators had suggested allowing it. Earlier in the trial, former FTX executive Gary Wang, who pleaded guilty to fraud and agreed to cooperate with prosecutors, said Bankman-Fried sought to transfer control of funds to the Bahamas after FTX's Nov. 11, 2022, U.S. bankruptcy because he thought authorities might let him stay in charge. The embassy of the Bahamas in Washington did not immediately respond to a request for comment. Under direct examination from his lawyers, Bankman-Fried had testified that he had made "mistakes" that hurt FTX customers and employees but denied defrauding anyone or stealing funds. https://www.reuters.com/legal/sam-bankman-fried-grilled-cozy-relationship-with-bahamas-officials-2023-10-31/