BRASILIA (Reuters) – Brazilian market regulator CVM said on Tuesday it had opened a second investigation into the announcement of an overhaul in state-controlled oil giant Petrobras, which sparked a two-day stock sell-off that wiped out more than 100 billion reais ($ 18.3 billion) . the value.
CVM on Monday announced the opening of an investigation into the leadership change announced by Brazilian President Jair Bolsonaro on Friday in a social media post. The commission said it was opening a second investigation in response to investors’ complaints.
SYDNEY (Reuters) – Macquarie Group raised its earnings guidance on Monday, sending stocks to a 12-month high, as the North American energy business’s hefty profits from a winter storm swept Texas and other states.
Macquarie said it expects fiscal 2021 profit to jump by as much as 10%, following warnings two weeks ago that revenues will be “slightly down”.
The energy business unit, which is designed to move large amounts of gas to meet unexpected demand, alone raised the investment bank’s estimated overall return to about A $ 400 million, analysts said.
“Extreme winter weather conditions in North America have significantly increased short-term client demand for Macquarie’s ability to maintain critical physical supplies across the commodity complex,” the company said in a statement.
Macquarie is North America’s second largest gas marketer, after major oil company BP. It purchases natural gas and moves it along pipelines and networks, usually from low-use areas to high-demand markets.
A deadly winter storm that crippled infrastructure and left millions of Texans without electricity forced generators to compete for natural gas supplies, driving up prices sharply in a deregulated market.
Supply difficulties had given Macquarie an unexpected advantage.
“Macquarie appears to be making good use of financial market volatility and dislocation,” Bank of America Securities analysts said in a note, as it raised its earnings forecast for the Sydney-based firm.
Macquarie’s performance last year was hurt by the pandemic, with weak deal-making and worsening economic conditions driving up the cost of impairment.
However, a strong initial public offering of its majority-owned data analytics software business, Nuix, late last year and a refresh in the energy business have helped push its share price back to pre-pandemic levels.
The company, which also operates Australia’s largest asset manager and investment banking business, is bracing for an extra boost from a rebound in local M&A activity this year.
Macquarie shares rose 4.31% to A $ 148.39 early Monday, the highest level in a year, outperforming the broader flat market. Share prices declined slightly in afternoon trading.
Earlier this month, the Sydney-based financial conglomerate had forecast full-year revenue for the group to be “slightly” lower than its 2020 fiscal year.
Macquarie’s Global Commodities and Markets Division accounts for nearly 40% of its group revenue. Analysts have previously raised concerns that the pandemic could erode the division’s profits if high-energy industries shut down.
Reporting by Paulina Duran and Jonathan Barrett; Additional reporting by Shriya Ramakrishnan; Edited by Peter Cooney, Jane Wardell & Shri Navaratnam
RIO DE JANEIRO (Reuters) – Management executives of Petroleo Brasileiro SA are considering resigning en masse after the Brazilian government decided to replace Chief Executive Roberto Castello Branco, three people close to management said, asking not to be named because the information is personal.
President Jair Bolsonaro previously said he had decided to appoint former Defense Minister Joaquim Silva e Luna as CEO of a state-controlled oil company.
Reporting by Sabrina Valle; Edited by Christian Plumb
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.
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
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