Latest news with #SeherDareen
Zawya
12-03-2025
- Business
- Zawya
Amazon, Google sign pledge to support tripling of nuclear energy capacity by 2050
Major companies such as Amazon and Google on Wednesday signed a pledge to support the goal of at least tripling the world's nuclear energy capacity by 2050, on the sidelines of the CERAWeek conference in Houston. Shale company Occidental and Japanese heavy machinery maker IHI Corp also added their names to the pledge. The pledge is expected to gain more support over the coming months from industries including maritime, aviation and oil and gas, said the World Nuclear Association (WNA), the nuclear industry group that facilitated the pledge, in a press release. The pledge adds on to the vow from over 30 countries, which also aimed to triple capacity by 2050 in 2023. Nuclear energy, a source of clean power, generates 9% of the world's electricity from 439 power reactors, according to WNA. As of early 2025, the world has only around 411 nuclear power reactors operating, with a combined capacity of 371 gigawatts. (Reporting by Seher Dareen in Bengaluru; Editing by Shreya Biswas)
Yahoo
01-03-2025
- Business
- Yahoo
EOG Resources falls on lower 2025 free cash flow despite fourth-quarter profit beat
By Seher Dareen (Reuters) - EOG Resources beat fourth-quarter profit estimates on higher production, but shares fell 4.1% on Friday as the company forecast higher capital expenditure for the current year. The higher spend and cash costs in 2025 led to a lower-than-expected free cash flow target, which came in at $4.7 billion compared to an expected $5.2 billion, per analysts polled by LSEG. "Essentially our capital and volume growth is similar to 2024, the free cash is a little bit less, and the two drivers really are increased cash costs and a bit of an increase in operating expenses in the field," said company executives in the post-earnings call. "We've got nearly $100 million increased capital internationally," they added, noting that volumes from its two natural gas exploration joint venture projects — one with Bahrain's Bapco Energies and the Coconut project with BP in Trinidad — would only show up in 2026. EOG's earnings beat on Thursday came despite the company's expenses rising 3.6% in the reporting quarter compared to last year, and overall quarterly revenue falling 12% to $5.59 billion due to the lower oil revenues and losses from derivative contracts. Quarterly crude equivalent volumes were up 6.7% at nearly 1.1 million barrels of oil per day (boepd) from the previous year, and the company expects to pump between 1.1 million boepd and 1.14 million boepd in 2025. The Houston, Texas-based company expects total expenditures to be in the range of $6 billion to $6.4 billion. It spent $6.23 billion in 2024. It expects to keep steady year-over-year activity levels in the Delaware basin, with a step up in activity in the Utica and Dorado basins. The company reported an adjusted profit of $2.74 per share for the quarter ended December 31, compared with the analysts' average estimate of $2.57 per share, according to data compiled by LSEG. Sign in to access your portfolio
Yahoo
10-02-2025
- Business
- Yahoo
Labor, inflation to weigh on gold miners' results
By Seher Dareen (Reuters) - Higher labor costs and sticky inflation could continue to weigh on gold miners' profits going into 2025, analysts said, but soaring prices of the yellow metal should still boost free cash flow. Gold prices rose nearly 27% in 2024, the most since 2010, and have jumped to all-time highs this year. [GOL/] Analysts at Bank of America said companies under its coverage might generate free cash flow of around $3 billion in the fourth quarter, with more expected in 2025. However, higher costs could weigh on earnings, which caused both Newmont and Barrick to miss estimates in the third quarter. "I think we're going to have that inflation story still continue to play out in the next year or so," said Sarah Tomlinson, director of mine supply at consultancy Metals Focus, adding that labor was one of the biggest costs for miners. Newmont missed profit estimates for the third quarter largely on higher contracted labor costs. Its all-in sustaining costs (AISC), an industry metric reflecting total expenses, rose nearly 13% from the same quarter last year. Similarly, Barrick saw its AISC rise nearly 20%. Fewer people are seeking out mining careers, which could also be because of the perception of the industry as dirty and polluting, according to Metal Focus' mine supply research analyst Ross Embleton. On Wednesday, Barrick is expected to report an adjusted earnings per share of 41 cents for the fourth quarter, according to data from LSEG. The company had, in January, said it would "no longer be putting out preliminary production results". Bank of America analysts expect the Canadian miner to narrowly miss its gold production guidance for 2024 on the back of its royalty disagreement with the Malian militia at its Loulo-Gounkoto mine and the "very challenged ramp-up" of the Pueblo Viejo mine in Dominican Republic. "We assume the (Loulo-Gounkoto) mine ultimately restarts in late 2025E with ramp-up to full run-rate production in 2026E, but under less favorable economic terms for Barrick," the brokerage said in a note in January. Mali represents 14% of Barrick's gold output and the company generated $949 million in revenue from its operations there in the first nine months last year. Newmont is expected to report an adjusted earnings per share of $1.09, according to LSEG data, on Feb. 20. It could increase its dividend on the cash from its asset divestments and higher gold price but would need to balance it by its share buyback program, Scotiabank analysts said. Analysts at Scotiabank also predicted flattish production this year compared with the last. Overall, in the fourth quarter of last year and going into 2025, miners could focus more on margins instead of production growth, alongside cost controls, said David Hove, VP of metals & mining at Jefferies. Sign in to access your portfolio
Yahoo
27-01-2025
- Business
- Yahoo
Big Oil in no rush to 'drill baby drill' this year despite Trump agenda
By Sheila Dang and Seher Dareen HOUSTON - Wall Street expects U.S. oil and gas companies to keep a lid on spending in 2025 and keep their focus on generating shareholder returns, despite calls by President Donald Trump to "drill, baby, drill." Big Oil begins reporting fourth-quarter results this week, and outlooks for the coming year should reflect the dissonance between Trump's oil and gas-maximizing agenda and investor expectations. The industry has pushed in recent years to drive down costs and increase production by using more efficient technology rather than drilling many new wells. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. Producers also must contend with lower global oil prices as the post-pandemic demand rebound runs its course and as China's economy struggles. Benchmark Brent crude oil prices are projected to average $74 per barrel in 2025, down from $81 in 2024, according to the U.S. Energy Information Administration. Overall, for the U.S. exploration and production sector, analysts at Scotiabank expect companies to target up to 5% production growth this year, and flat to slightly lower year-over-year capital expenditures. The exception is Exxon Mobil, which plans a large increase in production. The largest U.S. oil company intends to more than triple its production in the Permian, the top U.S. shale field, and pump 1.3 million barrels per day from its lucrative operations in Guyana by 2030. "We expect most oil and gas producers to remain disciplined with capital expenditures," said Rob Thummel, senior portfolio manager at Tortoise Capital. "However, less regulation will make it easier to increase drilling activity if commodity prices reach levels that are too high." Chevron, which reports results on Friday, is expected to grow production by about 3% this year and in the mid-single digit percentage in 2026, said Barclays analysts in a research note. The company has followed a conservative strategy, moving out of a phase of heavy investment in new projects, and is now generating cash, said analysts from RBC Capital Markets in a note. Chevron could also announce a dividend increase of at least 5% over the previous year, Thummel added, as dividend increases have been between 6% to 8% previously. Chevron is expected to report $3.87 billion in profit, according to data compiled by LSEG, which would be a decline from $6.45 billion in the year-ago quarter. Exxon Mobil, meanwhile, is expected to report $6.85 billion in profit, down from $9.96 billion in the same quarter last year. The company signaled last month that lower oil refining profits and weakness across its business would reduce earnings by about $1.75 billion compared to the third quarter. An arbitration panel will decide in May on Exxon's challenge to Chevron's acquisition of Hess - a purchase that would give Chevron a rival stake in Guyana's rich offshore reserves. Exxon has claimed a contractual right to buy Hess' stake in the field. Producer ConocoPhillips could also grow oil and gas production in the low single-digit percentage this year to focus on returning cash to shareholders, Barclays said. The company in December completed its $22.5 billion buyout of smaller peer Marathon Oil, which had been under a Federal Trade Commission review. This could, according to Scotiabank analysts, swing its performance up. Occidental, meanwhile, is expected to report $730.9 million in adjusted profit for the fourth quarter, up from $710 million in the same quarter last year. The oil producer closed its acquisition of CrownRock in August and its capex this year is expected to total $7.44 billion, up from $6.9 billion last year, Barclays said. For Diamondback Energy, Raymond James analysts expect the company to choose free cash flow over growth after its acquisition of Endeavor. Profit is expected to come in at $977 million, up from $854 million in the same quarter last year. Production growth is expected to be flat with lesser spending in 2025, they added.
