2024-07-25 21:31
July 26 (Reuters) - Oilfield services firm Baker Hughes (BKR.O) , opens new tab beat analysts' estimates for second-quarter profit on Thursday, powered by higher demand for its drilling services and equipment in international markets. The results echo those from SLB (SLB.N) , opens new tab and Halliburton (HAL.N) , opens new tab, as strong global demand helps the world's largest oilfield firms counter weakness in North America due to mega mergers among oil majors and lackluster natural gas prices. International rig count, an indicator of future production, was marginally up at 963 on an average in the second quarter, from a year earlier, according to Baker Hughes data. Total revenue from Baker Hughes' international segment rose 5.4% to $2.99 billion, while total revenue from its North America segment slipped 1.8% to $1.02 billion. A slump in natural gas prices due to high inventories and lower demand forecast had prompted operators in the U.S. to rein in activity. Baker Hughes, in a post earnings call on Friday, said it continues to have a "positive outlook for global gas market" "Rise in generative AI could provide upside to our current expectations for natural gas demand to increase by almost 20% between now and 2040," CEO Lorenzo Simonelli said on the conference call. The rapid growth of data centers fueled by generative AI is set to boost U.S. electricity consumption, prompting experts to foresee increased demand for natural gas as a reliable energy source. Baker Hughes declared quarterly dividend of 21 cents per share, reflecting a 5% jump compared to the same quarter last year. The company reported an adjusted profit of 57 cents per share for the three months ended June 30, compared with analysts' average estimate of 49 cents, according to LSEG data. Sign up here. https://www.reuters.com/business/energy/baker-hughes-beats-second-quarter-profit-estimates-2024-07-25/
2024-07-25 21:24
LA PAZ, July 25 (Reuters) - The Bolivian department of Santa Cruz has declared a state of emergency through the end of this year due to extreme weather including wildfires, the departmental government said in a decree published on Thursday. The latest wildfires in eastern Bolivia are preventing fuel supplies from reaching certain areas by train, local reports said. This has exacerbated ongoing diesel shortages that began earlier this week in the South American country and made it harder for firefighters to reach affected areas. "A departmental emergency is declared due to the climatic changes, which have and are causing heavy rains, floods, droughts, strong winds, extreme temperatures, forest fires, environmental pollution and other events," the decree said. The state of emergency, in effect through Dec. 30, calls on the government to free up funding and resources to rapidly address the disasters. "With regards to the problem with diesel we're facing, we acted responsibly as the national government and planned the purchase of diesel that has been on ships in Chilean ports for several days due to weather," Bolivian President Luis Arce said on Thursday evening, explaining that a storm surge in Chilean ports has kept fuel from being unloaded. The diesel was purchased from Russia, a country to which Bolivia has turned to in order to overcome its recent fuel shortages. According to LSEG, the vessel Zeynep with 33,000 metric tons of diesel reached the Chilean coast this week from the Baltic Sea. Bolivia, which has seen a spike in deforestation in recent years, has large wetland areas and a big chunk of South America's Amazon rainforest. It noted that 14 municipalities had declared disasters due to rains, landslides and flooding, six due to drought and one due to drought and forest fires. Julieta Valverde, the government's natural resources director for Santa Cruz, told Reuters on Thursday around 200,000 hectares (494,210 acres) were affected by around 25 active fires. "The government is currently attending to 10," she said. Scientists predict that this month could beat the July record for the most fires ever recorded in that month in Bolivia, when the full scale of the damage recorded by satellite imagery is analyzed. Sign up here. https://www.reuters.com/business/environment/bolivias-santa-cruz-department-declares-emergency-due-extreme-weather-2024-07-25/
2024-07-25 20:43
TSX ends down 0.1% at 22,608.03 Posts its lowest closing level since July 11 Industrials fall 1.1%; materials end 1.2% lower Mullen Group beats Q2 estimates, shares rise July 25 (Reuters) - Canada's main stock index fell to a two-week low on Thursday, led by declines for industrial and metal mining shares, as recent disappointing earnings from some economically sensitive companies weighed on the market. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended down 31.54 points, or 0.1%, at 22,608.03, its lowest closing level since July 11. "We are being dragged down by two key areas - gold and industrials," said Philip Petursson, chief investment strategist at IG Wealth Management. "You have some economically sensitive companies that are disappointing (on earnings) as of late." Shares of Canadian National Railway (CNR.TO) , opens new tab were down 2%, adding to the decline on Wednesday when the company reported quarterly results that missed estimates. The company has suspended its freight service through Jasper, Alberta, due to raging wildfires, according to a report in the Globe and Mail. The industrials group was down 1.1% and materials, which includes metal miners and fertilizer companies, lost 1.2% as gold prices fell. Boyd Group Services Inc was among the biggest decliners. Its shares were down 8.2%, falling to a seven-week low. Technology clawed back some of its recent declines, gaining 0.5%, while energy added 0.7% as the price of oil settled 0.9% higher at $78.28 a barrel. Mullen Group Ltd (MTL.TO) , opens new tab was a standout, with its shares jumping 9.3% after the logistics provider beat earnings estimates. Sign up here. https://www.reuters.com/markets/tsx-futures-slip-oil-metal-prices-fall-2024-07-25/
2024-07-25 20:41
Stellantis, Nissan profits hit by problems in U.S. market Shares hit by poor results Ford's EV business weights on earnings Stellantis ready to axe unprofitable brands LONDON/DETROIT, July 25 (Reuters) - Problems in the highly competitive U.S. car market including weak prices, high inventories and difficult logistics dented profits and hit shares of automakers including Ford Motor (F.N) , opens new tab, Stellantis (STLAM.MI) , opens new tab and Nissan (7201.T) , opens new tab on Thursday, as they scramble to find a fix. Global automakers are facing a weakening outlook for sales across major markets such as the U.S., while also juggling an expensive transition to electric vehicles and growing competition from cheaper Chinese rivals. U.S. automaker Ford plunged 16% after its second-quarter profit missed analyst expectations, weighed down by high warranty costs and a cash-burning electric vehicle business. Shares in Milan-listed Stellantis lost nearly 9% after earlier hitting their lowest in almost a year. Nissan dropped 7%, sending the stock of its French alliance partner Renault (RENA.PA) , opens new tab down as well despite posting a first-half profit that beat estimates. Automakers were dragged down by excess inventory in the United States, in part due to a June software outage that slowed or halted some dealerships' operations. New-vehicle supply at the start of July was more than double the year-ago period, according to Cox Automotive. Cox analysts expect inventories to normalize in a couple of months as the effects of the CDK software outage wane. Still, investors are wary of higher inventories as motor vehicle output has been strong in the United States. "Most investors have cited concerns on pricing risk emerging, especially amid rising inventory," Barclays analyst Dan Levy wrote in a note this week. U.S. federal data shows average spending per vehicle has ebbed of late. Honda (7267.T) , opens new tab U.S. sales chief Lance Woelfer said inventories haven't been an issue for the Japanese automaker in the United States, but it affects everyone when any automakers struggle as that can then affect pricing. "It creates a market dynamic you need to be aware of and adjust to," he said. Woelfer said this year has been about balancing inventories and demand. Honda's U.S. sales are expected to rise 10% this year. Nissan was hit hard by higher inventories, as its fiscal first-quarter profits were virtually wiped out and it slashed its annual outlook due to deep discounting in the U.S. market to get cars off lots. CEO Makoto Uchida said it was a "tough one" to optimise inventory buildup in the United States and it would focus on better cars it can charge more for. Ford has been beset by structural inefficiencies and by its electric vehicle business as it struggles to gain traction in that market. The company's EV and software unit posted a $1.1 billion operating loss for the quarter and expects that business to lose up to $5.5 billion for the year before taxes. WEAKENING OUTLOOK FOR SALES World No. 4 automaker Stellantis said it was taking steps to fix weak margins and high inventory in the U.S. after delivering worse than expected first-half results. CEO Carlos Tavares said he will not hesitate to axe underperforming brands in its sprawling portfolio. "If they don't make money, we'll shut them down," he said. He has maintained since Stellantis was created in 2021 from the merger of Italian-American automaker Fiat Chrysler and France's PSA that all of its 14 brands including Maserati, Fiat, Peugeot and Jeep have a future. Stellantis' profit margins have been higher than its peers in recent years, but in a note Bernstein analysts said its margins were now not far above those of General Motors (GM.N) , opens new tab, which posted solid results earlier this week and raised its annual profit forecast. "This raises questions over Stellantis' cost efficiency reputation," they wrote. Its shares have fallen more than 20% this year, worst among the major European carmakers. The world's number 3 automaker by sales, Hyundai (005380.KS) , opens new tab, posted strong second-quarter results, lifted by U.S. sales of premium SUV models and hybrid vehicles, which helped it offset prolonged weakness in South Korea. Like Stellantis, Nissan plans to bolster sales from new and refreshed models in the second half, including the Armada and Murano SUVs. "It's totally unclear what vehicles that Nissan is selling in the United States are popular," said Seiji Sugiura, an analyst at Tokai Tokyo Intelligence Laboratory. "As the competitiveness of the models in their lineup is falling, they have no other choice but to make new vehicles, sell those and hope that they will be popular." Sign up here. https://www.reuters.com/business/autos-transportation/us-car-market-gives-stellantis-nissan-rough-ride-2024-07-25/
2024-07-25 20:29
RIO DE JANEIRO, July 25 (Reuters) - Brazilian Finance Minister Fernando Haddad said on Thursday that G20 finance leaders were poised to endorse a joint declaration on international tax cooperation addressing issues such as the taxation of super-rich individuals. "I like to see the declaration not as the end of a journey, but as a starting point," said Haddad in his public remarks opening a discussion of taxation with his counterparts. He also called on the group to "advance towards a coordinated global minimum tax on billionaires" - a proposal Brazil has pushed with its presidency of the Group of 20 major economies this year. Sign up here. https://www.reuters.com/business/finance/brazil-cheers-g20-statement-tax-cooperation-citing-taxation-super-rich-2024-07-25/
2024-07-25 20:28
July 25 (Reuters) - A raging wildfire has devastated the western Canadian tourist town of Jasper, potentially destroying up to 50% of structures, and firefighters were trying Thursday to save as many buildings as possible, authorities said. Jasper is in the middle of mountainous Jasper National Park, in the province of Alberta. The town and the park, which draw more than 2 million tourists a year, were evacuated on Monday, when officials estimated there were up to 10,000 people in the town and a further 15,000 visitors in the park. "There is no denying that this is the worst nightmare for any community," Alberta premier Danielle Smith told reporters, while choking back tears. "We're seeing potentially 30% to 50% structural damage ... that's going to be a significant rebuild," she said, adding the fire was still out of control. Parks Canada said there had been a "significant loss" of buildings inside the town but added it could not give specific details of the damage, or which areas had been burned and it urged residents not to return. Video from the town showed vehicles and entire blocks burned to the ground, including a historic Anglican church. Jasper resident Eva Korduliakova heard the news that her home was burning from thousands of kilometers (miles) away on Thursday morning, while visiting family in the Czech Republic with her seven-year-old son. "I am a single mum who became homeless and jobless overnight," she wrote in an email. "Our house is gone. I didn't get a chance to grab any of my belongings." Jasper Mayor Richard Ireland said the town was beginning to come to terms with "the devastating impact" of the fire. "Last night's wildfires have simply ravaged our small tight-knit mountain community, the destruction and the loss that so many of our residents are facing simply defies description," he told a press conference, his voice breaking. One major concern for responders is if the fire damages the Trans Mountain oil pipeline, which can carry 890,000 barrels per day (bpd) of oil from Edmonton to Vancouver. "At this time there is no indication of damage to our infrastructure, and the pipelines continue to operate safely," pipeline operator Trans Mountain said in a statement. CN Rail (CNR.TO) , opens new tab said it suspended rail operations through the town on Wednesday afternoon as the wildfire conditions worsened. The Port of Vancouver, Canada's largest, said it expected to see delays to the movement of goods through the port in the coming days due to the events in Jasper. The federal government and other cities in Alberta are sending emergency crews. In addition, a total of 400 firefighters from Mexico, South Africa, Australia and New Zealand are due to arrive in the coming days. 'WALL OF FLAMES' There are currently 176 wildfires burning in Alberta, more than 50 of which are out of control. Around 10 of those blazes are close to the border with British Columbia, where there are 423 wildfires burning and dozens of evacuation orders and alerts. Prime Minister Justin Trudeau said on Thursday afternoon he had convened a meeting of the Incident Response Group to discuss the Alberta wildfires. "Every federal agency is coordinated, sending resources to Jasper, deploying evacuations support to the area, and reinforcing firefighting efforts on the ground," Trudeau said in a post on X. The federal government said in April that high temperatures and tinder-dry forests meant this could be a catastrophic year for wildfires in Canada. The Jasper fire was caused by a lightning strike on Monday afternoon and fuelled by strong winds, according to Parks Canada. Flames from the blaze rose 100 meters (328 feet) high, and strong wind gusts on Wednesday afternoon pushed the fire 5 km(3 miles ) in less than 30 minutes, said Alberta Public Safety and Emergency Services Minister Mike Ellis. "Any firefighter will tell you there's little to nothing you can do when you have a wall of flames coming at you like that," Ellis said. Environment Canada is forecasting 10 mm to 20 mm (0.4 to 0.8 inch) of rain for Thursday, which might help firefighters. The Jasper Park Lodge, one of the largest hotels in town, said the fire had reached its grounds. The 400-room residence is run by Fairmont, a group owned by France's Accor (ACCP.PA) , opens new tab. The Jasper fire could be one of the most damaging in Alberta since a 2016 conflagration that hit the oil town of Fort McMurray, forcing the evacuation of all 90,000 residents and destroying 10% of all structures in the city. Sign up here. https://www.reuters.com/world/americas/huge-wildfire-burns-down-part-western-canadian-town-rain-forecast-2024-07-25/
