Latest news with #VallariSrivastava
Yahoo
22-05-2025
- Business
- Yahoo
Solar stocks plummet after Trump's tax bill advances in US House
By Vallari Srivastava (Reuters) -Shares of U.S. solar companies fell sharply in premarket trade on Thursday after the House of Representatives advanced President Donald Trump's sweeping tax and spending bill, which may end numerous green-energy subsidies that have supported the renewable energy sector. Sunrun led the market rout, with shares falling as much as 33%, Complete Solaria fell nearly 22% while Enphase Energy, Maxeon Solar and SolarEdge Technologies dipped between 10% and 15.6%. Shares of JinkoSolar fell 2.3%, while First Solar and Canadian Solar dropped 6.5% and 10%, respectively. Trump's budget package - which he calls "one big beautiful bill" - would eliminate funding established under the Biden Administration's Inflation Reduction Act and repeal grants intended to reduce air pollution, greenhouse gas emissions or purchase electric heavy-duty vehicles. The bill would remove the 30% federal tax credit for taxpayers who install solar rooftop systems, posing a significant challenge to the industry. While the industry anticipated the gradual phase-out of wind and solar tax credits, the new version of the bill accelerates this timeline, Raymond James analyst Pavel Molchanov told Reuters. As per the new proposed timeline, solar or wind projects must begin construction within 60 days of the bill's enactment and finish construction by year-end 2028. Otherwise, they will no longer be eligible for tax credits. Clean energy stakeholders now turn their attention to the Senate, where the bill is headed next before it is sent to the president, hoping it will reverse many of the proposed revisions to the IRA. "While the bill is in the Senate, the solar and wind industries will actively lobby to reverse the new changes made by the House," Molchanov added. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Corteva beats first-quarter profit estimates
(Reuters) - U.S. agrichemicals firm Corteva beat Wall Street expectations for first-quarter profit on Wednesday, helped by higher prices for its seeds. The Indianapolis-based company posted an adjusted operating profit of $1.13 per share for the three months ended March 31, compared with the analysts' estimate of 88 cents per share, according to data compiled by LSEG. (Reporting by Vallari Srivastava in Bengaluru; Editing by Alan Barona)
Yahoo
17-04-2025
- Business
- Yahoo
US oilfield services firms brace for earnings as tariffs cloud outlook
By Vallari Srivastava (Reuters) - Results next week will likely provide a peek into how the world's top three oilfield services companies are navigating the uncertainty fueled by the on-again, off-again U.S. tariffs, as well as a recent slide in oil prices. President Donald Trump promised to increase U.S. oil and gas production, campaigning on the motto of "drill baby drill," but his expansive levies have fueled a global trade war and stoked concerns of demand destruction. Brent crude, which was trading at $80.15 a barrel when Trump assumed office on January 20, is currently hovering at $66.65 a barrel, rebounding from as low as $58.40 on April 9. Higher crude output promised by the OPEC+ has also compressed the prices. This has weighed on upstream spending, particularly in U.S. shale, where producers are prioritizing shareholder returns and debt reduction over output growth. Further weakness in oil prices, particularly a sustained drop below $60 per barrel, and continued tariffs-related uncertainty could lead to a 20% contraction in domestic oilfield activity from current levels, analysts warn. "At those depressed (activity) levels, E&P spending would be reduced, and E&P spending is the primary driver of demand for service companies," said Stephen Gengaro, analyst at Stifel. Morningstar analysts estimate that for every $5 decline in crude prices, U.S. shale spending falls by about 5%, compared to just a 1% dip in international markets. Meanwhile, U.S. tariffs on steel and aluminum imports are poised to escalate costs for the oilfield service companies. Halliburton and Baker Hughes will kick off earnings for the sector on April 22 with SLB wrapping up on Friday. Since January, earnings per share expectations for the Big Three oilfield services have been revised multiple times, according to LSEG data. Analysts on average now expect earnings per share of 60 cents for Halliburton vs 76 cents a year earlier, 48 cents for Baker Hughes vs 43 cents, and 74 cents for SLB vs 75 cents in the same quarter of 2024. Adding to the bearish sentiment, Baker Hughes reported that the U.S. oil and gas rig count fell by seven to 583 in the week ended April 11 - the biggest weekly drop since June 2023. Investors will be closely watching executives' comments for clarity in an environment with very little near-term visibility. "The first quarter is going to matter a lot less," said Scott Gruber, energy analyst at Citi Research. "All eyes are really turning to the future to assess where the oil service markets go from here." Sign in to access your portfolio
Yahoo
13-03-2025
- Business
- Yahoo
Trump's tariffs on steel, aluminum to raise costs for US energy firms, experts say
By Vallari Srivastava (Reuters) -U.S. tariffs on steel and aluminum imports are poised to escalate costs for the oilfield service companies behind North America's vast energy industry, as their operations rely heavily on these metals. Steel is essential for everything from the drilling rigs and pipelines to refineries and storage tanks provided by companies such as ChampionX and Patterson-UTI that supply the equipment and services necessary for oil-and-gas producers. Any tariff hike is a potential hit to the operational and production costs of these businesses, half a dozen industry experts told Reuters. U.S. President Donald Trump's increased tariffs on all steel and aluminum imports took effect earlier on Wednesday "with no exceptions or exemptions", escalating the global trade war. "About 14% of what we buy, it comes from countries that will be impacted by tariffs," said Patterson-UTI CEO Andy Hendricks. "If you layer on tariffs, it could affect us in the low single digits in terms of our costs going up for what we do," Peer ChampionX has also warned of equipment costs going up due to tariffs. A particular variety of steel, hot-rolled coil steel (HRC), is used to fashion oil country tubular goods (OCTG) - specialized pipes and tubes designed to endure high pressures, temperatures and corrosive environments. In 2024, the U.S. imported nearly 40% of its OCTG, according to Wood Mackenzie analyst Nathan Nemeth. By January 2025, Canada and Mexico accounted for 16% of OCTG imports, hinting at buyers stockpiling ahead of potential tariffs. Broadly, U.S. imports of steel products from Canada and Mexico in January rose more than 32% from the previous month to 1,017,644 metric tons, U.S. Census Bureau data showed. Rystad Energy expects tariffs to spike OCTG costs by 15% year-on-year. U.S. prices of HRC are estimated to ascend to $890 per short ton in 2025, marking a 15% increase from the previous year's average price, according to S&P Global Commodity Insights analyst Ali Oktay. "It's probably going to be harder for service companies in 2025 to maintain their activity levels and their pricing," said Mark Chapman, principal analyst for OFS Intelligence at Enverus. Shares of Patterson-UTI and ChampionX have dropped about 16% and 3.3%, respectively, since Trump on February 11 announced plans to hike duties on steel and metal imports. Chapman sees costs rising for Halliburton as well as firms like NOV and Tenaris, key providers of steel pipes to the petroleum industry. While Halliburton and NOV did not respond to requests for comment, Tenaris said it was monitoring the potential impact of tariffs. This price surge will likely be passed on to customers who operate in the exploration and production segment, particularly smaller-scale producers who are more exposed to spot market pricing. "OCTGs represent about 8.5% of drilling and completion costs for onshore wells in the Lower 48 states. So if prices rose by 25%, about 2.1% would be added to well costs," Wood Mackenzie's Nemeth said. Average well costs for producers in the U.S. typically range from $8 million to $9 million. "They're (small-cap producers) at the mercy of the service providers," Chapman said. Large-scale producers such as Exxon Mobil, ConocoPhillips, EOG Resources and Diamondback, with their robust balance sheets and diversified supply chains, are better equipped to absorb these costs. The tariffs come amid plummeting oil prices, the lowest since Russia's invasion of Ukraine disrupted supply chains. Trump's wish to achieve cheaper oil prices and increased production might not align with the profitability of producers. Further, Venture Global, Energy Transfer and Williams Companies all warned in regulatory filings that tariffs could raise project costs, particularly construction costs related to foreign-sourced materials such as steel and aluminum.
