Suncor Energy tops second-quarter profit estimates
The Calgary, Alberta-based company reported an adjusted profit of 71 Canadian cents per share for the three months ended June 30, beating analysts' average estimate of 69 Canadian cents per share, according to data compiled by LSEG.
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The Independent
21 minutes ago
- The Independent
Toyota reports a 37% drop in profit, cuts its forecast due to Trump's tariffs
Toyota 's profit plunged 37% in the April-June quarter, the company said Thursday, cutting its full year earnings forecasts largely because of President Donald Trump's tariffs. The Japanese automaker said it based its report on the assumption that Trump's tariffs on exports from Japan, including autos, would be 12.5% starting this month. As of now they stand at 15%. The world's top automaker also makes vehicles in Mexico and Canada. Toyota's profit in the last quarter totaled 841 billion yen, or $5.7 billion, down from 1.33 trillion yen in the same period the year before. Its quarterly sales rose 3%. The status of those exports is unclear since Mexico and Canada are beneficiaries of the U.S. Mexico Canada Agreement, renegotiated from a 1990s pact during Trump's first term in office, that eliminated most tariffs and trade barriers between the three countries. Toyota Motor Corp.'s April-June profit totaled 841 billion yen ($5.7 billion), down from 1.33 trillion yen in the same period of 2024. Quarterly sales rose 3% to 12 trillion yen ($82 billion). Toyota said the tariffs cost its quarterly operating profit 450 billion yen ($3 billion). Cost reduction efforts and the negative impact of an unfavorable exchange rate also hurt its bottom line. The company, which makes the Camry sedan and Lexus luxury models, forecast a 2.66 trillion yen ($18 billion) profit for the full fiscal year ending in March 2026, down from an earlier forecast for a 3.1 trillion yen ($21 billion) profit. Toyota earned nearly 4.8 trillion yen in the previous fiscal year. 'Despite a challenging external environment, we have continued to make comprehensive investments, as well as improvements such as increased unit sales, cost reductions and expanded value chain profits,' Toyota said in a statement that outlined its efforts to minimize the impact of the tariffs. At the retail level, Toyota sold 2.4 million vehicles globally, with sales growing in Japan, North America and Europe from the previous year, when global retail totaled 2.2 million vehicles. Analysts say Toyota is likely among the worst hit by the tariffs among global companies, even compared with other Japanese automakers. ___
Reuters
22 minutes ago
- Reuters
US energy exporters face likely letdown in any US-India trade deal
LITTLETON, Colorado, Aug 7 (Reuters) - The fresh 25% tariffs slapped on Indian goods by U.S. President Donald Trump this week are being viewed by many as a negotiating tactic designed to force India to buy more U.S. energy products and other goods going forward. But even though India's fast-growing economy is the fifth largest globally, India's energy importers may have far less room to maneuver than they might appear. Tight corporate operating margins, cost-sensitive consumer markets, binding long-term import contracts and slowing economic growth all limit India's ability to spend big on U.S. oil, LNG, coal and refined products over the near term. At the same time, India's location at the base of Asia means it is far closer to other major energy product exporters than it is to the United States, which would trigger sharply higher shipping costs if it were to switch to U.S.-origin products. No doubt some Indian corporations will be cajoled into pledging major U.S. purchases and investments during upcoming trade negotiations, which may boost sentiment in Washington, D.C. But U.S. exporters of oil, gas, coal and fuels that are hoping for massive, viable and binding purchase commitments by Indian buyers are likely to be left disappointed. It's not just its import needs that India has to worry about. The United States is by far India's largest export market, and has accounted for nearly 20% of all Indian exports in recent years, according to International Monetary Fund (IMF) data. In 2024, the value of India's exports to the United States was just over $80 billion, while its imports from the U.S. totalled just under $45 billion. As the U.S. is more than twice as large as India's next largest export market - the United Arab Emirates - it will be nearly impossible for the country to replace lost U.S. consumers with other buyers. That means that trade negotiators will remain committed to healing trade ties with Washington as quickly as possible, and will be looking at every possible means of reducing the trade imbalance. The rapid rise in India's purchases of Russian crude oil since mid-2022 has been a sore point for the U.S. and Europe, and has been a focal point during the recent trade talks. Average monthly crude oil flows from Russia to India jumped from around 3.2 million barrels a month between 2018 and 2021 to 50 million barrels a month since mid-2022, data from Kpler shows. That more than 15-fold surge in Russian oil purchases by India provided Moscow with critical import earnings while it grappled with the fallout from its war in Ukraine, and seriously undermined international efforts to cut funding to Moscow. However, while India's refusal to join Western-led sanctions drew ire from the international community, its willingness to step up imports of Russian oil ensured that its refiners and fuel consumers were shielded from any rise in global oil prices. Indeed, the opposite has occurred as Indian importers were able to extract steep discounts from Russian oil sellers who were desperate to secure sales wherever they could. Those cheap imported Russian barrels in turn allowed major Indian refiners such as Reliance ( opens new tab to expand supplies and fuel the country's economic growth since 2020. Indian authorities have stated that providing energy security for its 1.4 billion population has been the main driver of its oil import programme, and that the new tariffs are unfair given that the country is only acting in its own self-interest. What's more, any aggressive pivot away from cheap Russian oil to pricier U.S. crude would drastically change the economic outlook for Indian oil refiners and consumers, and likely result in a surge in fuel prices that would cause economic harm. Since 2022, the official prices of the main grade of Russian oil imported by India have averaged around $70 a barrel, which is around $10 cheaper than the price of the main U.S. crude for export over that same period, data from LSEG shows. As Indian importers likely secured their Russian oil supplies at even lower prices, the real discount compared to U.S. prices is likely larger. That in turn means that there is almost no prospect of Indian refiners being able to profitably switch to U.S. crude any time soon, even if pressured to do so. U.S. trade negotiators have touted U.S. liquefied natural gas (LNG) as a means of reducing trade gaps, as a single LNG cargo can cost several million dollars. However, Indian energy product importers have arguably even less scope to switch out current suppliers for the U.S. here. The primary limiting factor is that Indian gas importers are already locked into long-term purchase deals with suppliers such as Qatar and the United Arab Emirates, and face stiff penalties for breaking contracts. And even if Indian buyers were prepared to tear up those deals in favor of buying from the U.S. instead, they would face a surge in shipping costs that could make overall cargo costs uneconomical. The journey time for an LNG tanker from the U.S. to India is around 30 days, which is six times longer than the trip from Qatar. U.S. coal exporters will likely face similar difficulties in dislodging Indonesia from India's coal import pipeline. The Indonesia to India shipping time is around 11 days, compared to around 27 days for the trip from the U.S. East coast. Such a yawning gap in journey times and shipping costs means that India's trade negotiators may not be able to rely on its energy consumers to close the trade gap, and will need to look elsewhere to secure a trade deal with the U.S. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.
Reuters
22 minutes ago
- Reuters
Container shipping group Maersk posts Q2 profits above forecast, raises full-year outlook
COPENHAGEN, Aug 7 (Reuters) - Shipping group A.P. Moller-Maersk ( opens new tab on Thursday reported second-quarter operating profit above expectations and raised its full-year profit forecast. "Even with market volatility and historical uncertainty in global trade, demand remained resilient, and we've continued to respond with speed and flexibility," CEO Vincent Clerc said in a statement. Maersk now expects underlying earnings before interest, tax, depreciation and amortisation (EBITDA) this year of between $8 billion and $9.5 billion, compared with its previous guidance of between $6 billion and $9 billion. Maersk said EBITDA rose 7% year-on-year in the second quarter to $2.3 billion, compared with $1.98 billion expected by analysts. Sales rose 3% year-on-year to $13.1 billion between April and June, compared with $12.61 billion expected by analysts in a company-compiled poll.
