Latest news with #biofuel
Reuters
36 minutes ago
- Business
- Reuters
Bunge Q2 profit beats estimates after soy crush margin rebound
July 30 (Reuters) - U.S. grain trader and processor Bunge Global (BG.N), opens new tab reported a smaller-than-expected drop in second-quarter profit on Wednesday after soy crush margins jumped late in the quarter. The world's largest oilseed processor benefited as soybean prices dropped and soyoil prices rallied on favorable biofuel policy moves in the United States and Brazil. Better results in Bunge's grains and oils merchandising business also blunted the negative impact from ongoing global trade uncertainty as U.S. President Donald Trump's tariff threats upended global commodity flows. Bunge shares were up 2.85% at $78.56 in early trading. "We successfully navigated a highly complex period, both internally and externally, and delivered better-than-expected results for the quarter, especially given the market conditions," CEO Greg Heckman said. The earnings beat came as Bunge secured final regulatory approvals for its long-delayed deal to acquire grain handler Viterra, a transaction that officially closed at the start of the third quarter on July 2. It also completed the sale of its U.S. corn milling business. Bunge maintained its 2025 earnings guidance of $7.75 per share, which would be its lowest in six years, but said it would update it to include the Viterra merger prior to reporting third-quarter results. Bunge and agribusiness peers including Archer-Daniels-Midland (ADM.N), opens new tab and Cargill have seen profits erode in recent quarters due to ample global crop supplies and thinning margins. Trade tensions stoked by Trump's tariffs have further disrupted trade flows as importing nations bought hand to mouth amid the U.S. president's shifting deadlines for imposing duties. Meanwhile, biofuel policy uncertainty dented demand for green energy feedstocks like soybean oil, although proposed increases for biofuel blending in the U.S. and Brazil was supportive in the longer term for Bunge. "We expect challenging conditions to persist," said CFRA analyst Arun Sundaram, citing tariffs and inflation. "We anticipate more clarity on biofuel policy in coming quarters, which could provide some relief to the current soft macro environment." Bunge posted an adjusted profit of $1.31 per share for the three months ended June 30, compared with analysts' average estimate of $1.14, according to data compiled by LSEG.
Bloomberg
5 hours ago
- Business
- Bloomberg
Bunge Second-Quarter Profits Shrink to Lowest Since 2018
Bunge Global SA's second-quarter profits fell to the lowest in seven years as lingering uncertainty over tariffs and US biofuel policy continued to pressure crop traders and processors. The Chicago-based company reported adjusted earnings of $1.31 per share in the three-month period ended in June, the lowest since 2018 for the period. That exceeded the $1.11 average of analyst estimates compiled by Bloomberg.
Japan Times
a day ago
- Business
- Japan Times
Delayed pricing policy for cleaner ethanol keeps India burning food for fuel
India's push for ethanol, mixing crop-based biofuel with petrol to run vehicles, is being stalled by slow progress in making an environmentally cleaner version of the fuel, producers and experts say. Standing in the way is the government's failure to pay more for cleaner ethanol, which is made from waste but costs more to produce, they say. Second-generation (2G) ethanol, which uses crop waste instead of valuable food crops, offers a way to cut planet-heating emissions, reduce oil imports and avoid making fuel from food needed for human consumption. But producers say the government must pay a separate, appropriate price for the more costly 2G ethanol. "Without a separate pricing policy for 2G ethanol, the economics do not work," said Monish Ahuja, managing director of Punjab Renewable Energy Systems (PRESPL), which supplies farm waste to 2G plants. Investors will not join in unless they see returns that reflect the higher cost of making the biofuel, Ahuja said. "That's the bottleneck," he said. The Indian government wants all petrol sold in the country to contain 20% ethanol by October 2025, and has ramped up ethanol production by diverting food crops like sugarcane, maize and surplus rice to make fuel known as first-generation (1G) ethanol. The 1G production reduces the availability of grains for people and cattle and shifts land away from food production. India allocated a record 5.2 million metric tons of rice for 1G ethanol, nearly 9% of global rice shipments, in the course of a year spanning 2024 and 2025. The 2G ethanol can be made by breaking down tough plant waste like straw or husk into fermentable sugars using newer technology. It also could help curb stubble burning, a key cause of air pollution in India, in which crop remnants are set ablaze post-harvest. So far, 2G ethanol makes up very little — some say less than 1% — of India's annual biofuel production, which the government said topped 7 billion liters in October 2024. The lack of 2G ethanol production is mostly due to a lack of differentiated procurement pricing by the government and higher production costs, experts say. The Indian government does not make specific figures available on its 2G ethanol production. The government has considered a separate rate for 2G ethanol, according to minutes of a high-level committee meeting from July 2023. The price was expected in April 2025, according to reports in Indian media, but no announcement has been made. To promote the newer fuel, the Indian government launched a national program in 2019, with a budget of 1.97 billion Indian rupees ($227.76 million) to provide financial assistance for setting up commercial and demonstration-scale 2G ethanol plants. However, of the 12 plants it set out to establish across India, only one demonstration plant is operational. The Indian ministry responsible for biofuel production did not respond to requests for comment. Among the challenges in scaling up 2G ethanol production are the costly enzymes, pre-treatment of waste and logistics required by the process, said Y.B. Ramakrishna, senior vice-president of the Indian Federation of Green Energy (IFGE). India generates hundreds of millions of metric tons of agricultural waste annually, which could fuel hundreds of 2G biofuel plants, experts say. But the waste needs to be collected, dried, stored and transported from small farms scattered across wide areas, said Ramya Natarajan, a research scientist at the Center for Study of Science, Technology and Policy (CSTEP). The costs can add up, making financial support and pricing clarity for 2G ethanol critical, experts said. "At least for the initial three to four years, a higher price is essential," Ramakrishna said. Without a separate price for 2G and a target for its procurement, even financially ready firms are unable to raise funds from banks or commit to long-term plans, Ahuja said. Unlike 1G ethanol, which has a guaranteed market through oil marketing companies' procurement, the lack of a separate 2G ethanol blending target leaves the greener alternative to compete for customers with the cheaper 1G ethanol. Contained in India's ethanol blending policy of 20% ethanol in petrol by the end of 2025, there is no subtarget for 2G ethanol blending to help guarantee production.
Irish Times
a day ago
- Business
- Irish Times
Renewable fuel source faces curbs on back of fraud fears
Suppliers argue that Minister for Transport Darragh O'Brien risks overstepping the mark if he curbs imports of some green transport fuel on the back of fears over fraud. Mr O'Brien recently ended an extra incentive for the use of processed palm oil mill effluent (pome) as biofuel after the National Oil Reserves Agency conceded that production in some Far Eastern countries was high enough to spark concerns about fraud. Biofuel producers here and in Europe have been warning that exporters in the Far East are labelling actual palm oil, which the European Union does not classify as a renewable fuel, as pome. This allows them sell huge quantities of fraudulently labelled palm oil cheaply, undercutting European producers who play by the rules. Pome is the waste produced from manufacturing palm oil. The EU allows its use as biofuel, which means it benefits from incentives to encourage green road transport fuel in member states. READ MORE The Republic obliges suppliers to ensure that up to 25 per cent of the petrol and diesel they sell is renewable. However, up to this month, this obligation fell by a third if they used pome, making it a cheaper option for oil companies. Mr O'Brien ended this incentive at the beginning of the month and has not ruled out imposing a limit on pome imports. That is a step that industry body, Fuels for Ireland, says would go too far. Kevin McPartland, the organisation's chief executive, argues that the problem lies not with pome, but with enforcement at both European Union and national level. The Government should wait for a new EU biofuel database, due shortly, that will allow greater scrutiny of companies producing pome and other green fuels manufactured from waste, he argues. However, while European producers say the database is a step in the right direction, they maintain that the risk of fraud is now so high that curbs may ultimately be the only way of tackling the problem. Whether or not Mr O'Brien curbs imports, it looks like he will face a row with one or other element of the State's fuel industry.
Yahoo
2 days ago
- Business
- Yahoo
Jefferies Raises PT on Darling Ingredients (DAR) Stock
Darling Ingredients Inc. (NYSE:DAR) is one of the Best Mid Cap FMCG Stocks to Buy Now. Jefferies lifted the price target on the company's stock to $46 from $45, while keeping a 'Buy' rating, as reported by The Fly. As per the firm, Street estimates for Q2 2025 are high, and it anticipates them to trend lower. However, it also sees upside to the estimates for H2 and remains constructive, with macro conditions beginning to improve, opines the firm analyst. Amidst the broader challenges witnessed by the biofuel industry during H1 2025, Darling Ingredients Inc. (NYSE:DAR)'s core business performed well, leading to the overall positive cash flow and showcasing stability in a volatile business environment. A selection of pet food ingredients being prepared in a kitchen for quality and safety testing. Darling Ingredients Inc. (NYSE:DAR) highlighted that the positive narrative related to renewable fuels public policy appears to be encouraging, which has been fueling strong market demand for domestic fats. The company expects its core business to continue to perform well, generating cash and allowing it to continue to de-lever the balance sheet and opportunistically repurchase shares. The net cash provided by operating activities amounted to $248.9 million. Darling Ingredients Inc. (NYSE:DAR) has announced that it has signed a non-binding term sheet with Tessenderlo Group to combine the collagen and gelatin segments of their companies in a new company named Nextida™. The partnership focuses on creating a top-tier, collagen-based health, wellness, and nutrition products company positioned to capitalize on global collagen growth. Riverwater Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said: 'Darling Ingredients Inc. (NYSE:DAR) is a global leader in the production of sustainable ingredients derived from animal by-products, food waste, and other organic residuals. The company operates in three segments: Feed, Food, and Fuel. It has significant exposure to renewable energy through its Diamond Green Diesel JV with Valero Energy Corporation (VLO), which produces renewable diesel and sustainable aviation fuel. This business should start to see a significant ramp in 2025. Darling's vertically integrated operations support the circular economy, focusing on reducing waste and creating value-added products like biofuels, collagen, and specialty food ingredients. Darling trades for 11x Wall Street's 2025 earnings estimate.' Darling Ingredients Inc. (NYSE:DAR) supports the FMCG industries as it supplies critical raw materials utilised in food, cosmetics, and household products. While we acknowledge the potential of DAR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now Disclosure: None. This article is originally published at Insider Monkey. 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
