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Adani Ports in India beats its quarterly profit forecast on the back of higher cargo growth
Adani Ports and Special Economic Zone in India reported a profit for the fourth quarter that was above expectations on Thursday. The growth of cargo volumes increased during a strong construction season. According to data compiled by LSEG, the country's largest private port operator posted a consolidated profit of 30,14 billion rupees (US$356 million) in the third quarter that ended on March 31. This was higher than analysts' estimates of 25,71 billion rupees. Adani Ports, a private port operator, and its smaller rival JSW Infrastructure, have benefited from the steady movement of cargo across Indian borders. This is especially true during the fourth quarter when construction activity increases due to favorable weather conditions. Adani Ports cargo volumes increased 8%, to 118 millions metric tons in the quarter reported. The revenue grew by nearly 24% to 84.88 trillion rupees. This was higher than analysts' estimates of a 16.5% increase. The erratic policies of U.S. president Trump have the potential to disrupt trade, and add additional risks to India's already slowing economy. ($1 = 84.6740 Indian Rupees) (Reporting and editing by Sonia Cheema in Bengaluru)
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Cargill and LDC among the winners of Brazil's port auction
Cargill and BTG Pactual Commodities, as well as a consortium consisting of Louis Dreyfus, Brazilian grain trader Amaggi and the Louis Dreyfus Group have been awarded rights to operate 3 terminals in Paranagua Port on Wednesday. The competitive auction that involved multiple bidders highlights the importance to improve Brazilian logistics within the context of the global trader's war. The companies bid a total of 855 million reais (about 151 million dollars) at an auction held by the Sao Paulo Stock Exchange for the right to operate three different Paranagua zones for 35 years. Global grain traders are preparing to meet the increased demand for Brazilian agricultural products from countries such as China, which is in a war of trade with the United States. The Port's Press Office said that after the auction the company is expected to increase its volume of vegetable bulk shipments from Paranagua by 4.8 millions tons per year, which represents a 47% growth. Cargill won the auction with a bid for the PAR 15 Terminal of 411,000,000 reais, the highest bid at the time. Paulo Sousa said that Cargill's president in Brazil is happy to have been awarded the rights to operate this terminal for 35 more years. Paranagua's strategic location allows it to receive soymeal produced by Cargill in its first soy processing plant in Brazil. This unit is located in Ponta Grossa, just 214 km (133 miles) from the port. The ALDC consortium consisting of Louis Dreyfus Company, Amaggi and Amaggi won the PAR25 Port Area. Amaggi and Dreyfus stated in a joint statement that they were committed to boosting shipments via Paranagua. This is one of Brazil's main grain export hubs, along with Santos Port. According to the Brazilian federal government, the total investment in the three terminals is expected to be 2.4 billion Brazilian reais (423 million dollars). (1 dollar = 5.6781 reals) (Reporting and editing by Marguerita choy)
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Google funds electrician training as AI power crunch increases
Google announced on Wednesday that it would fund the training of up to tens-of-thousands of new U.S. electrical workers as Big Tech continues its push into the power industry in the United States, searching for the huge amounts of electricity required for its AI expansion. Lack of power supply is the main problem facing giant technology companies that are racing to develop artificial Intelligence in energy-intensive Data Centers, which is driving up U.S. Electricity Demand after nearly 20 years stagnation. Donald Trump declared a national emergency to speed up the approval process for transmission and generation projects. Google's funding includes a grant of $10 million for electrical worker non-profits. This is the latest move by technology giants to reduce the backlog in power projects and the electricity shortages in the United States. Microsoft, for example, announced last year it would partner up with Constellation in order to restart the reactor at the Three Mile Island Nuclear Power Plant in Pennsylvania. This plant was the site of the worst nuclear incident to ever occur on American soil. The reactor will be used to power its data centers. According to a study backed by the Department of Energy, data centers in the U.S. could triple their electricity use over the next three year to account for 12% of all the country's consumption. In order to meet demand, the nation will need additional power plants, transmission systems, and workforces. According to the Bureau of Labor Statistics, the market for electricians will grow by 6% per year in the next seven. The Google grant is being used to fund electrician apprenticeship programs, and training of current workforce, through organizations such as the Electrical Training Alliance International Brotherhood of Electrical Workers, and the National Electrical Contractors Association. The company claimed that it could increase the pipeline for electrical workers by 70 percent by the end decade. Kenneth Cooper (international president of IBEW) said, "This initiative will bring in more than 100,000 electricians to the trade who are desperately needed for the AI-driven surge of data centers and power production." Google announced earlier this month that it would be partnering with PJM Interconnection, the largest regional U.S. electric grid, to use artificial intelligence technology in order to connect new power lines and electricity supplies faster. It has signed the first corporate agreement to buy energy from small nuclear reactors as well as advanced geothermal power for its data centres. On Wednesday, the company will release a paper on how to accelerate the expansion of grid. This white paper is the first report to include policy recommendations for supporting new energy technologies such as small modular reactors or advanced geothermal. Among the proposals are cost-overruns protections for advanced reactors via the Department of Energy Loan Program Office; accelerating permits at the Nuclear Regulatory Commission; and bolstering a nuclear fuel supply in the United States. The paper recommends that Congress also take action in order to speed up certain permits for carbon capture and the building of transmission lines, as well as to support technologies which increase the efficiency of the existing grid.
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Indian port operator JSW Infra is looking inwards to ease tariff-hit trade woes
India's JSW Infrastructure stated on Wednesday that it expects cargo volumes to grow in fiscal year 2026 due to the resilience of domestic sectors, and minimized concerns about U.S. trade uncertainty. In a call following earnings, Rinkesh Roy, the Chief Executive of the port operator, said that he expects volumes to grow by 10%, up from 9% in fiscal 2025. This is despite signs that Asia's third largest economy has slowed down. Roy stated that "we are not affected by the current trade uncertainty (caused by tariffs)... We (primarily) cater to the steel and energy sector, which is more domestic in nature." Private port operators including Adani Ports, which is a rival, benefitted from steady cargo movements in India, until U.S. Tariff policies disrupted the global markets and added risks to a slowing economic. Analysts at Jefferies noted, however, that JSW's focus, on bulk cargo, such as iron ore, coal and other domestically-oriented commodities, gives it greater protection from rising global trade risk than Adani Ports, with its container-heavy business model. JSW Infra announced a 54% increase in profit for the fourth quarter on Wednesday. The growth was boosted by a volume increase in coal. However, the decline in iron ore volumes limited any gains. Roy said that the steel market can expect to "do very well" with the recent introduction of safeguard duties. JSW Infra increased its overall cargo volume by 5% on an annual basis, while increasing revenue in the fourth quarter by 17%. Elara Securities had predicted a growth of 8%, but this was lower than last year. $1 = 84.5580 Indian Rupees (Reporting and editing by Eileen Soreng, Vijay Kishore).
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Russian ESPO Blend oil shipping rates are at their lowest level since January, traders report
Three traders reported that the freight rates for ESPO blend crude shipped from Russia's port of Kozmino into China in April fell to their lowest level since mid-January due to increased availability of tankers. The lower rates will mean that Russian exporters spend less money on freight and get more oil for their money. The freight rates for the route are now around $2-3 million per cargo for April loadings, down from $4-5 million in February and March. This is because more non-sanctioned tanks have entered the ESPO marketplace. Calculations based on data from three trading sources revealed that the price of Russia's ESPO blend oil fell below $60 per barrel for the first ever time in early April, as Brent crude benchmark dropped to its lowest levels in many years. Traders said that the price of oil has fluctuated since then but is still around $60 per barrel. "ESPO blend hovers around 60 (per barrel). The combination of higher oil prices and lower shipping rates could push the price of ESPO Blend back over the cap, complicating the search for a vessel. After U.S. sanctions on vessels involved with Russian oil shipments were placed on January 10 as many vessels working in Kozmino Port were targeted, the cost of transporting ESPO blend to China jumped from $6 million to $7 million. The U.S. sanctions against Russia's oil sector targeted the major oil companies Surgutneftegaz, and Gazprom Nepta as well as over 180 vessels. Shipping oil from Kozmino, Russia to northern Chinese ports used to be less than $1.5M. The traders said that if there are no new restrictions on Russian oil transport, those levels could be reached again this year. Reporting by journalists in Moscow and Aizhu chen in Singapore, with editing by Jan Harvey
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South Korea's FLC purchases about 60,000 metric tonnes of feed wheat, traders claim
The Feed Leaders Committee of South Korea (FLC) purchased around 60,000 tons of animal feed grain from anywhere in the world, without holding an international tender. The wheat was bought at a price of $253.99 per ton, c&f. Plus a surcharge of $1.50 per ton for port unloading. The seller was thought to be ADM, a trading house. The arrival of wheat in South Korea around October 10 was the target. If the Black Sea region is as traders suspect, then shipment will be between August 5 and 9. The reports reflect the opinions of traders, and it is still possible to estimate prices and volume later. South Korean importers purchased corn and feed wheat in a number of deals on Wednesday. Traders said that low prices generated interest among buyers. FLC bought corn as part of a private deal Wednesday. Michael Hogan reports.
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JSW Infra, India's JSW Infra, posts 54% increase in quarterly profit due to higher coal volume
India's JSW Infrastructure announced a 54% increase in its fourth-quarter profits on Wednesday. This was boosted by a volume increase in coal, one of their key cargoes. The company's net profit, which was 3.30 billion rupees in January-March, grew to 5.09 billion rupees (60,2 million dollars) from last year. Private port operators such as JSW Infra, and its larger rival Adani Ports, have enjoyed steady cargo movements across Indian borders until U.S. president Trump's erratic policy on tariffs threatened to disrupt the trade and add additional risks to a slowing economic. Analysts at Jefferies, however, said that JSW is relatively protected from global trade risks due to its higher exposure to bulk commodities like iron ore, coal and other domestically-oriented cargo. The cargo volume increased by 5% on the year, while revenue rose 17% to 12,83 billion rupees. The company stated that the increase in volume was due to the robust performance of the coal terminals at Mangalore Ennore and Paradip...partially off-set by lower cargo volumes at Paradip's Iron Ore Terminal. The cargo volume increase was below the growth of 9% that occurred in the same time period last year. It was, however, unchanged from the prior quarter and in line with the 5% estimate by brokerage Elara Securities. Shares of the company closed 2.3% lower than before earnings. Adani Ports will report its results on Thursday. $1 = 84.5050 Indian Rupees (Reporting and editing by Eileen Soreng in Bengaluru)
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Grid says solar is not responsible for the blackout in Spain, but Sanchez was pressed by Sanchez to explain it.
On Wednesday, Spain's grid operator denied that solar power was the cause of Spain's worst blackout in history. Prime Minister Pedro Sanchez is under increasing pressure to explain why it happened. After a blackout which halted trains and airports, and trapped Spanish in lifts, life has returned to normal. Sanchez's critics blamed low investment for a system heavily reliant on intermittent solar power and wind. Sanchez announced an investigation by the government and stated that he wanted answers from private companies who feed electricity into the grid. He said that he had not ruled out the possibility of a cyber-attack, although private companies and REE, a part-state owned grid operator, have dismissed this. REE (headed by former Socialist Minister Beatriz Corredor) has pinpointed the cause of the outage as two separate incidents at substations located in southwest Spain. However, it's still too early to determine what caused the events. Corredor, in an interview with Cadena SER radio on Wednesday, said that it was incorrect to blame the outage of Spain's high renewable energy share. She said, "These technologies are stable and have systems which allow them to function as conventional generation systems without any safety concerns." She added that she was not contemplating resigning. In an interview with a different reporter, she stated that the government had given a deadline for power companies to submit data by Wednesday afternoon which would help explain why things went wrong. MALFUNCTIONING REE Political opponents claimed that Sanchez took too long to explain a blackout and that he was trying to cover up the failures of REE. In an interview with RTVE, Miguel Tellado said that since REE had ruled out a cyberattack and the company has a state investment, its leaders were appointed by the government. Sanchez's announcement of a government investigation was rejected by Sanchez, who called for a separate independent investigation to take place. The Spanish government has said that it asked for the "maximum transparency and collaboration" from private energy companies to identify the cause of this outage. Ignacio Sanchez Galan said that REE should explain the cause of the blackout. Antonio Turiel, a Spanish National Research Council (CSIC) energy expert, told Onda Vasca Radio on Tuesday that grid instability was the main problem. He said that "a lot of renewable energy was integrated without the responsive stabilisation system that should have existed", adding that vulnerabilities were caused by "the unplanned, haphazard integration" of a variety of renewable systems. Through 2030, the government anticipates that private and public investments of 52 billion euro will be made to upgrade the electricity grid in order to handle the demand surge from data centres and electrical vehicles. Aelec, a utility lobby, says that's not enough. (Reporting and writing by David Latona in Madrid, Pietro Lombardi)
Panama's comptroller will sue over the renewal of CK Hutchison's contract
The Panama Comptroller's General Office will sue officials who approved the renewal of a port concession for 25 years to a company headed by CK Hutchison. This is because a major audit of the contract should be finished soon.
Panama Ports Company, a company owned by Hong Kong's CK Hutchison, has renewed its contract with the Balboa & Cristobal Ports near the Panama Canal until 2021.
Panamanian officials began the audit process in January. In March, a group led U.S. investment company BlackRock announced a deal worth $22.8 billion to purchase the majority of CK Hutchison’s global ports business, including the two Panama ports.
Anel Flores, Comptroller-General of Panama's Office of the Comptroller, told reporters at a press briefing that the audit had so far revealed that Panama "left $1.33 billion on the table" in terms tax incentives and government benefits.
Panama's Attorney-General released an opinion in February that found the port contract unconstitutional. The Supreme Court has the final say on this.
Flores stated that the results of the audit will be sent to the Panama Maritime Authority which supervises the ports once they are completed.
China has criticized BlackRock's bid for CK Hutchison port business. The audit could be a roadblock. Lawyers and experts say that if Panama's Comptroller general confirms irregularities with the renewal of the concession or if the Supreme Court declares it unconstitutional the concession may be revoked.
BlackRock, which announced a deal to buy CK Hutchison ports, was praised by Donald Trump, the U.S. president, who had threatened to seize control of the Panama Canal because of the presence of Chinese firms and Hong Kong firms within the maritime sector of Central American countries. The deal has not yet been finalized. The transaction has not been completed.
(source: Reuters)