Tag Archives: Oil & Gas Refining and Marketing (NEC) (TRBC level 5)

Australian macquarie raises guidelines after the US winter freeze | Instant News


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.

FILE PHOTOS: The logo of Australia’s largest investment bank Macquarie Group Ltd adorns the main entrance to their Sydney headquarters in Australia, 28 October 2016. REUTERS / David Gray

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

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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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Germany looks at the possibility of green hydrogen with Russia – minister | Instant News


FILE PHOTOS: German Economy Minister Peter Altmaier leaves a press conference on the annual economic report in Berlin, Germany January 27, 2021. Odd Andersen / Pool via REUTERS

FRANKFURT (Reuters) – Germany is in close communication with Russia about the potential for “green” hydrogen production and transportation, said Economy Minister Peter Altmaier at the Russia-Germany conference.

Altmaier said in a webcast that Russia could work with Germany on the production and transport of green hydrogen which Germany hopes can expand on a large scale by sending renewable power from wind and sunlight via electrolysis to make synthetic fuels for industry, energy and transportation. .

Russian Industry Minister Denis Manturov said in the same webcast that Russia is ready to prioritize investing in technology.

Reporting by Vera Eckert; editing by Thomas Seythal

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Exxon will close Australian refineries | Instant News


FILE PHOTO: Exxon Mobil Corp logo seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil 24 September 2018. REUTERS / Sergio Moraes

(Reuters) – Exxon Mobil Corp on Wednesday said it would shut down Australia’s 72-year-old Altona refinery, the country’s smallest, and turn it into a fuel import terminal as the refinery struggled with low demand.

The decision by the US oil company to leave Australia with only two refineries, after BP Plc decided to close the Kwinana facility in April. Ampol Ltd is still looking into the future of its Lytton refinery.

“ExxonMobil’s decision to close the Altona refinery in Victoria is very disappointing,” said Angus Taylor, Australia’s minister of energy and emissions reduction, in a statement.

Global lockdowns and restrictions on international travel due to the coronavirus pandemic have cut demand, leaving oil refineries grappling with losses. Exxon said it took the decision because it was no longer economical to continue with the refinery.

Australia has offered a A $ 2.3 billion ($ 1.8 billion) fuel security package to address the financial difficulties facing refineries. Only Viva Energy, operator of what will be Australia’s largest remaining oil refinery in April, received.

Taylor said the closure of the Exxon refinery would not have a negative impact on Australian fuel holdings. The Altona plant employs about 300 people.

($ 1 = 1.2922 Australian dollars)

Reporting by Nikhil Kurian Nainan in Bengaluru; Edited by Ramakrishnan M. Dan Stephen Coates

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