SABIC, a petrochemicals company, makes a profit in the third quarter but fails to meet market expectations
Saudi Basic Industries Corp. (SABIC), a major petrochemicals company in the world, reported a net profit of $1.5 million for the third-quarter, compared to a loss the previous year. This was due to higher revenues and core profits. In a press release, the company reported that its net profit for three months ended September 30 was 1 billion riyals (266.27 millions dollars), compared to a loss last year of 2.87 billions riyals. LSEG data shows that the third-quarter profits missed analysts' expectations by 1.6 billion riyals. The net income for the quarter reported fell from 2.18 billion riyals to just 1 billion riyals ($266.27 millions).
Australia should be leading the energy transition. But is it missing out? Russell
Australia's abundance of minerals and renewable energy, stability of government, and proximity to Asia's growing markets makes it a country that is well-positioned to benefit from the energy transition. The mood was a bit downbeat this week at the International Mining and Resources Conference in Sydney, which brought together the entire mining and resource sector. Speaker after speaker highlighted the opportunities available, but there was always a warning that Australia risks missing the boat by losing out to competitors…
Australia should be leading the energy transition. But is it missing out? Russell
Australia's abundance of minerals and renewable energy, stability of government, and proximity to Asia's growing markets makes it a country that is well-positioned to benefit from the energy transition. The mood was a bit downbeat this week at the International Mining and Resources Conference in Sydney, which brought together the entire mining and resource sector. Speaker after speaker highlighted the opportunities available, but there was always a warning that Australia risks missing the boat by losing out to competitors…
PPA Platform reports that European renewable energy prices dropped in Q3, PPA platform.
The price of European power purchase agreements for green electricity dropped by 12.4% during the third quarter, compared to the same period in 2023. This was revealed on Thursday by the price tracking platform LevelTen. The report cited several factors, including the decline in inflation as well as the volatility of markets following COVID-19 and a 2022 energy shortage. The variety of PPA offtake opportunities is perhaps greater than ever before. PPAs are long term agreements between solar and wind developers and corporate power users. PPAs are long-term agreements between corporate power users and solar and wind project developers.
Alcoa and Ignis are close to signing a joint funding agreement for Spain's aluminium plant
Alcoa announced on Wednesday that it is "progressing", towards a strategic agreement of cooperation with the Spanish renewable energy company Ignis, to fund the operations of the U.S. Metal Producer's aluminum plant in northwest Spain. Alcoa announced that the proposed agreement would see Alcoa contribute 75 million Euros ($81 million), and Ignis make an initial 25 million Euro investment, giving Ignis 25% ownership of San Ciprian in Galicia. Alcoa, based in Pittsburgh, Pennsylvania, said it would provide up to 100 million more euros if needed, prioritizing future cash flows. Alcoa will share any additional funding with Ignis in a 75-25 split.
EU Energy Ministers Discuss Ukraine Energy Crisis and Russian LNG
Officials said that EU energy ministers met on Tuesday in Luxembourg to discuss the rising Russian LNG imports into the EU, Ukraine's energy shortages before winter and how to equalize energy prices among member states. In June, the EU approved a 14th set of sanctions including a ban of transhipments of Russian Gas as of March of next year. However, it did not impose a complete ban. Belgium and the Netherlands saw a dramatic increase in imports since then. In a Monday letter, France and nine countries asked the European Commission for stricter reporting requirements on Russian LNG (liquefied natural gases) by storage companies and suppliers.
Germany allocates $3 billion to decarbonisation subsidies
According to the German economy ministry, the German government has allocated up to 2.8 billion euro ($3.1 billion) for 15 industrial companies to help them decarbonise their operations under its first "climate protection contract" round. Berlin, as part of Germany’s goal to achieve climate neutrality by 2045 will provide 15-year subsides to companies such as those in the glass, paper, and chemical sectors in exchange for them reducing their carbon emissions during production. Over the 15-year contract period, it is expected that these 15 projects will contribute to a 17 million metric ton reduction in emissions.
Grid operators claim that Britain will have enough energy this winter to meet the needs of its citizens
The UK's electricity and Gas Grid Operators expect enough supplies this winter with more power imported and domestic production available than last season and high gas storage in Europe, said they on Tuesday. National Gas and Britain's National Energy System Operator, (NESO), publish annual reports on the supply and demand for the upcoming winter to assist businesses and governments in preparing. Craig Dyke is the director of system operations for NESO. NESO's base case for the de-rated margin is 5.2 gigawatts for winter 2024/25. This is 8.8% of the peak average demand for cold spells. It is up from 4.4 GW or 7.4% of last winter.
VEGOILS - Palm oil rises by more than 4%, the biggest increase in over a month on higher oil and soyoil
The price of crude oil and Chicago soyoil drove the increase in Malaysian palm oils futures by more than 4%. At the close of the day, the benchmark palm oil contract on Bursa Derivatives Malaysia Exchange for December delivery rose by 190 ringgit or 4.74% to 4,196 ringgit (1,006.72) per metric tonne, the highest gain recorded since July 3, 2023. The contract rose by 4.79%, reaching an intraday high of 4198 ringgit per metric ton in the first session. The contract also rose 5.03% in two consecutive sessions. A Kuala Lumpur-based trader stated that Crude Palm Oil Futures increased in the second session…
Energy prices are falling, putting pressure on big oil's huge payouts
Analysts said that major energy companies will borrow billions of dollars to maintain payouts to shareholders or reduce the rate of share purchases in response to a decline in oil prices following more than two years' bumper profits. Since decades, the majors have attracted investors with their promises of steady payouts. However, the shift to low-carbon energy has cast doubt on the long-term prospects of the industry. Since the beginning of 2022, BP, Chevron Exxon Mobil Shell, France's TotalEnergies, and Exxon Mobil have distributed more than $272 Billion in dividends and stock repurchases to investors.
Natural gas producers ask Harris for answers on the battleground state
Drillers from Pennsylvania, an energy-rich state, called on Democratic presidential nominee Kamala Harris this week to explain her stance on natural gas. The energy industry touts it as a clean fuel but climate activists claim that the fuel is a threat to global warming. In January, President Joe Biden froze new LNG export permits to examine their environmental impact. This was a move made in the election year in order to gain support from the green voting blocs of his party. Harris is now facing Donald Trump, a Republican who has stated that he will immediately lift the freeze on permits if elected.
Richard Holtum is named new CEO of Trafigura
Trafigura announced on Tuesday that Richard Holtum would take over as CEO of the global trading house Trafigura at the start of next year. On the same day, Jeremy Weir will be taking over the group chairmanship from the departing CEO, who has held this position for more than 10 years. Holtum will join Trafigura’s board of directors in October and will hand over his position as global head for gas, renewables, and power to Igor Marin, the current head of energy trading. The Board of Directors unanimously chose Richard Holtum as the leader of Trafigura.
Chevron CEO criticizes Biden's natural-gas policies and says fuel is essential for AI
Michael Wirth, CEO of Chevron, criticized U.S. president Joe Biden on Tuesday for "attacks" on the natural-gas industry. He also emphasized the critical role that Permian gas plays in accelerating the growth of artificial intelligence. The CEO's comments followed new plans by the government to ensure that power-hungry AI centers do not undermine U.S. Climate Goals. The White House created a taskforce on AI Datacenter Infrastructure last week to coordinate policies that align with government economic and environmental goals. Wirth said that the AI industry's energy needs are increasing and it is better to use low-carbon gas than coal.
Brazil's hydropower is at risk due to the drying of river basins
Data collected by London Stock Exchange Group show that soil moisture in Brazil's major river basins for hydropower production has dropped to a level not seen since the early 1990s. This means that a severe drought could continue even when rains come back. The tropical rains that feed Brazil's vast river network allow hydropower plants generate two-thirds of Brazil’s electricity. But years of low rainfall have hurt this sector, driving up energy prices and fueling inflation. This has led economists forecasting a new round of interest rate increases.
Harbour Energy, UK to complete Wintershall Dea Asset Deal in September
Harbour Energy, of Britain, said Tuesday that it expected to complete the purchase of Wintershall Dea assets by early September. This is a change from its previous estimate of early in the 4th quarter. Harbour's shares rose 7.2% to 301.10p at the opening of morning trading. The biggest British North Sea oil-and-gas producer has said that it has made significant progress in satisfying the completion conditions, including regulatory approvals from Mexico. Harbour produces and develops oil and gas on the continental shelfs of the United Kingdom, Norway, Indonesia, Vietnam, and Mexico.
New Zealand passes law to reverse oil and gas exploration ban
New Zealand announced on Monday that it will pass laws before the end of the year to reverse an offshore oil and natural gas exploration ban and to take urgent steps to eliminate regulatory hurdles for importing liquefied gas (LNG), amid energy shortages. The right-of centre government wants to attract investment into the oil and gas industry in the country. This law will end the ban on exploration that has been in place since 2018 outside of onshore Taranaki. Energy prices have risen to the highest level among developed economies due to severe shortages in the past few weeks, according to Prime Minister Christopher Luxon.
UK energy prices rise 10% due to extreme weather and geopolitics
The British energy regulator Ofgem raised the price cap for household energy bills on Friday by 10%, from October 1, to a level of 2,250.64 pounds per year. This increase was blamed on extreme weather conditions and conflicts like the war in Ukraine. Brearley stated that the increase in price cap will be difficult for many families. The 10% increase for a dual-fuel household on Friday was slightly higher than analysts' expectations. Cornwall Insight, an energy consultancy, said that the cap would rise by 9% because wholesale prices for gas and electricity have risen in the last few months.
Shell and PetroChina expand Surat coal-seam gas project in Australia
Shell and PetroChina announced on Monday that they have decided to expand their Surat coal-seam gas project in Queensland. This comes amid calls from the British oil giant for increased investment to boost the local energy supply. The decision was made at a moment when executives in the industry have been pressing for government action to bring investments back that were halted by state interventions to reduce energy prices and increase domestic supply. The Australian energy market operator, as well as the competition watchdog…
Survival of the fittest: petrochemical manufacturers battle global glut
The survival mode of petrochemical producers is on in Europe and Asia. Years of capacity building in China, the top market for petrochemicals, and high energy prices in Europe have pushed margins down two years in a row. The weakness of the sector is concerning for an oil industry that looks to petrochemicals as a way to maintain profits in future years when transportation fuel demand will fall with the energy shift. Industry executives and analysts report that major producers in Asia, Europe, and North America are cutting costs by selling assets…
Exxon Secures Lead in top US Oilfield with $60B Buy of Shale Rival Pioneer
Exxon Mobil agreed to buy U.S. rival Pioneer Natural Resources in an all-stock deal valued at $59.5 billion that would make it the biggest producer in the largest U.S. oilfield and secure a decade of low-cost production.The deal, valued at $253 a share, combines the largest U.S. oil company with one of the most successful names to emerge from the shale revolution that turned the U.S. into the world's largest oil producer in little more than a decade.Exxon Chief Executive Darren Woods said in a media briefing the combination provides a big opportunity for synergies between the companies."We basically closed this deal fairly quickly…
