Tag Archives: Iron & Steel (TRBC level 4)

Italy’s Eni pledged to be carbon neutral by 2050 in its latest green push | Instant News


MILAN (Reuters) – Italian energy group Eni on Friday stepped up its ambition to reduce greenhouse gas emissions, pledging to become clean carbon neutral by 2050, as it seeks to keep pace with the industry’s pace under pressure from investors to go green.

FILE PHOTO: Italian energy company Eni logo is seen at a gas station in Rome, Italy August 16, 2018. REUTERS / Max Rossi / File Photo

Like his peers, Eni is stepping up plans to transition to cleaner fuels as governments around the world scale up green deals to tackle the climate crisis and power economies.

“We are committed to the full decarbonization of all our products and processes by 2050,” said Chief Executive Claudio Descalzi. “Our plans are concrete, detailed, economically sustainable, and technologically proven.”

Graph: Strategic Presentation of ENI 2021-2024 –

Eni shares were speeding up after the plan was launched, up 2.3% at 1324 GMT versus a flat European oil and gas index.

In an update to the cleanup efforts announced last year, Eni said it would cut absolute emissions by 25% by 2030 from 2018 levels and 65% by 2040.

Eni’s plans come just days after newly appointed Italian Prime Minister Mario Draghi has put climate change at the core of his plans for Italy and said his government intends to increase renewable energy and green hydrogen production.

Eni, which derives most of its revenue from oil and gas, said the goal of decarbonization by 2050 will be achieved by increasing yields from bio refineries, increasing renewable capacity, deforestation initiatives, carbon capture and other green projects.

“These are targets, not aspirations,” Descalzi told analysts during the plan presentation, adding that management salaries would be tied to it.

The world’s top oil and gas companies have set targets for reducing greenhouse gas emissions from their operations and the use of the products they sell.

Royal Dutch Shell pledged to eliminate net carbon emissions by 2050, raising its ambition from its previous target, as its oil production declined from its 2019 peak, while Total changed its brand as part of a push to diversify and grow electricity and renewable energy production.

Eni said he would combine his renewable and retail businesses to grow his customer base in synergy with green ambitions.

Revealing the short-term target until 2024, Eni said production would increase by 4% per year, with upstream spending of around 4.5 billion euros per year.

Eni plans to spend a total of 7 billion euros per year over the next four years, with more than 20% of that allocated to green projects and retail and renewable businesses combined.

Eni said it would once again base its dividend policy on Brent prices, saying a base price of 0.36 euros per share would start from an annual Brent scenario of $ 43 per barrel, two dollars lower than the previous level.

The company will buy back shares for 300 million euros if Brent reaches $ 56 per barrel, and more if the price rises.

Earlier on Friday, Eni posted a better-than-expected net profit adjusted for the fourth quarter as oil prices strengthened after what Descalzi said was “a year unlike any other in the history of the energy industry” sending full-year profits tumbling.

“We will never forget this extraordinary year marked by the most unexpected and disturbing crisis we have ever seen,” said Descalzi.

Graph: Eni vs European Oil and Gas Sector –

Additional reporting by Stefano Bernabei; Edited by Edmund Blair and David Evans

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2-Eni Italia UPDATE beat expectations in last quarter after ‘year like no other’ | Instant News


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MILAN, Feb 19 (Reuters) – Italian energy group Eni’s fortunes picked up in the last quarter of this year as firmer oil prices after “a year like no other” saw full-year profits fall.

Adjusted net income for the fourth quarter was 0.66 billion euros ($ 798 million), down 88% on the year but beating analyst expectations for a 0.04 billion euro loss.

But for the full year, it reported a loss of 742 million euros compared to a gain of 2.876 billion euros in 2019 after what Eni Chief Executive Claudio Descalzi said was “a year unlike any other in the history of the energy industry”.

The unprecedented drop in demand triggered by the COVID-19 pandemic saw big European rivals Shell and BP as well as big US companies Exxon Mobil and Chevron report heavy losses for the year.

Eni’s shares fell sharply last year, hitting their lowest level in a quarter century as the health pandemic rocked oil markets.

In the fourth quarter production fell 11% to 1,713 million barrels of oil equivalent per day but the company said full-year production was on target.

Like its competitors, Eni has cut its investments to offset the impact of the pandemic and spent 35% less last year at 5 billion euros.

Adjusted cash flow for the year fell to 6.7 billion euros compared with guidelines for 11.5 billion euros on Brent oil prices of $ 60 per barrel.

“By taking advantage of the actions we took, our adjusted cash flow for 2020 … was able to finance our capex, with a surplus of 1.7 billion,” said Descalzi.

The companies, which said they were well-equipped to deal with this year’s uncertain trading environment with liquidity of around 20.4 billion euros, confirmed a 2020 dividend of 0.36 euros per share.

In a note, Royal Bank of Canada said Eni remains one of the more leveraged names among integrated oil companies.

“We see Eni’s aggressive strategy around the energy transition as posing a risk to shareholders from time to time,” he said.

Eni, like other European peers, is cleaning up his business as investors increase pressure on the oil and gas sector to fight climate change.

It will release its new business plan on Friday.

By 1019 GMT Eni’s shares were down 1.1%, while the European oil and gas index was down 0.5%.

($ 1 = 0.8271 euro)

Additional reporting by Stefano Bernabei; Edited by Edmund Blair and David Evans

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Fortescue declared a bumper dividend, but faced setbacks in a green push | Instant News


MELBOURNE (Reuters) – Fortescue Metals Group increased its dividend payout Thursday, but the boom in costs at a major development project in Western Australia is tarnishing its ambition to become a green energy powerhouse.

FILE PHOTO: The Australian Fortescue Metals Group (FMG) logo can be seen on bulk carriers loading iron ore in the coastal city of Port Hedland in Western Australia, 29 November 2018. Image taken 29 November 2018. REUTERS / Melanie Burton

The world’s fourth-largest iron ore miner now estimates the cost of its Iron Bridge magnetite project to be $ 3 billion, $ 400 million more than previously estimated as it delays first production to the second half of 2022 from the first half.

Earlier this week, Fortescue announced the resignation of its chief operating officer and two iron ore executives as part of a 12-week review of the high-grade ore project – a major part of the miner’s strategy to upgrade its product to win market share. and meet China’s preference for high quality ore.

“With (the review) underway, we have limited confidence in the new guidance,” RBC said in a report, while Moody’s called the swelling, caused by increased labor and logistics costs, “credit negative.”

The project is expected to produce 22 million tonnes when fully upgraded.

An update to the project was made with the miner’s first-half earnings report on Thursday which posted a 66% jump in profit, a record dividend and boosted its annual delivery forecast.

“I think what has happened in the last 24-48 hours has indeed given the market pause on its plans to deliver new projects, new technology overseas,” said UBS analyst Glyn Lawcock.

“(But) the market is very surprised by the fact that they are getting good payouts. I think the market is concerned about the jump in capital spending on Iron Bridge, commitments to spend more on renewable energy, and to reduce dividends. “

Joining BHP Group and Rio Tinto counterparts in giving investors the benefit of strong iron ore prices back, Fortescue announced a higher-than-expected interim dividend of A $ 1.47 per share, up from A $ 0.76 last year. .

China’s focus on infrastructure last year pushed up iron ore prices by more than 50%.

GREEN AMBITION

Fortescue last year embarked on an aggressive plan to develop a worldwide renewable energy project, called Fortescue Future Industries, and led by billionaire founder and largest shareholder Andrew Forrest, known as “Twiggy”.

Forrest, Australia’s second richest person, saw his personal fortune grow by A $ 1.65 billion ($ 1.28 billion) on Thursday thanks to his 36.3% stake in the company.

Among the projects are ammonia and hydrogen, and technology to use hydrogen produced from renewable energy to make steel, which is now one of the most polluting industries in the world.

Fortescue disclosed details of funding for FFI, with an allocation of 10% of net profit after tax, or approximately $ 400 million, to fund renewable energy growth, and another 10% to fund other resource growth options.

Despite the green push, Fortescue has refused to follow its counterparts Rio Tinto and Glencore who this week said they would set a coverage target of 3 to reduce customer emissions. Gaines said Fortescue was focused on reducing emissions on a “global scale”.

Fortescue’s first-half profit after tax was $ 4.08 billion, up from $ 2.45 billion a year earlier. This is in line with a $ 4.09 billion consensus of 10 analysts put together by research firm Vuma Financial.

Iron ore shipments are estimated to be in the range of 178-182 million tonnes for the financial year, up from the previous range of 175-180 million tonnes. Its stake was up 1.9% to A $ 24.88.

($ 1 = 1.2897 Australian dollars)

Reporting by Sameer Manekar and Rushil Dutta in Bengaluru; Edited by Arun Koyyur and Jacqueline Wong

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Fortescue Australia increases the cost estimates for the main project, declaring big dividends | Instant News


MELBOURNE (Reuters) – Fortescue Metals Group on Thursday raised its cost estimates and postponed the timeframe for its main Iron Bridge Magnetite project in Western Australia, while announcing higher returns and big dividends.

FILE PHOTO: The Australian Fortescue Metals Group (FMG) logo can be seen on bulk carriers loading iron ore in the coastal city of Port Hedland in Western Australia, 29 November 2018. Image taken 29 November 2018. REUTERS / Melanie Burton

The world’s fourth-largest iron ore miner now expects the total project cost to be $ 3 billion, $ 400 million more than previously estimated, and is delaying first production to the second half of 2022 from the first half.

The project is expected to produce 22 million tonnes when fully upgraded.

As part of a review of the high-grade ore project, a key part of Fortescue’s strategy to improve its products and win market share, the company earlier this week announced the resignation of its chief operating officer and two other executives in its iron ore division. .

An update was made in the miner’s first-half earnings report on Thursday in which it boosted its annual delivery forecast and reported a 66% jump in profit.

“I think what has happened in the last 24-48 hours has indeed given the market pause on its plans to deliver new projects, new technology overseas,” said UBS analyst Glyn Lawcock.

“(But) the market is very surprised by the fact that they are getting good payouts. I think the market is worried about a surge in capital spending for Iron Bridge, a commitment to spend more on renewable energy and so that dividends can be reduced, “he added.

Fortescue also announced a higher-than-expected interim dividend of A $ 1.47 per share, up from A $ 0.76 last year, joining BHP Group and Rio Tinto counterparts in benefiting investors from rising iron ore prices.

China’s focus on infrastructure last year prompted a more than 50% rise in iron ore prices, which hit a record in December on the China’s Dalian Commodities Exchange.

The payment sent a windfall of A $ 1.65 billion to the company’s largest shareholder, Andrew Forrest who is Australia’s second richest person with a net worth of A $ 23 billion, according to Forbes.

The stock was up 2.6% to A $ 25.04.

Fortescue estimates iron ore shipments will be in the range of 178-182 million tonnes for the financial year, up from the previous range of 175-180 million tonnes.

Net profit after tax for the first half was $ 4.08 billion, up from $ 2.45 billion a year earlier. This is in line with a $ 4.09 billion consensus of 10 analysts put together by research firm Vuma Financial.

Fortescue said it would allocate 10% of its net after-tax profit to fund renewable energy growth through its new unit, Fortescue Future Industries (FFI) and 10% to fund other resource growth opportunities.

Reporting by Sameer Manekar and Rushil Dutta in Bengaluru; Edited by Arun Koyyur and Jacqueline Wong

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UPDATE 2-block Australian state commission South32 coal mine expansion | Instant News


(Added 32 South comments)

MELBOURNE Feb 5 (Reuters) – Australia’s planning agency on Friday blocked plans to extend global miner South32 Ltd’s coal mine in the state of New South Wales, citing concerns over the potential irreversible impact on Sydney’s water resources.

The New South Wales Independent Planning Commission decision halted South32’s plans to extend the life of the underground metallurgical coal mine Dendrobium until 2048.

In its decision, the commission found “the risk of adverse environmental impacts is high, and that these impacts cannot be properly managed and are likely to be irreversible.”

“We know there are risks, like there are currently in coal mining applications,” said Peter O’Connor, mining analyst at investment firm Shaw and Partners. “Is this a corporate breaker? Not. Is that disappointing? Yes. “

Diversified miner shares fell 3.3% in early trading, well below their miners’ counterparts.

South32, who may appeal the decision, said it was investigating the commission’s findings and would continue to engage with state governments and agencies on the project.

It is expected that the project will contribute 500 jobs, A $ 714 million in royalties, taxes and tariffs, and provide a net gain of A $ 2.8 billion to the nation’s economy over the life of its mine.

Meeting coal demand is likely to face long-term material constraints as China’s steel consumption declines, the functioning of relatively mature infrastructure and the peak of urbanization has passed, said Morningstar analyst Mathew Hodge.

Therefore, the impact in South 32 which has relatively high coal production costs will not be material, he added. (Reporting by Nikhil Kurian Nainan in Bengaluru and Melanie Burton in Melbourne; Editing by Tom Hogue & Shri Navaratnam)

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