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Earnings season brings Wall street to a flat start

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NEW YORK – Today, Stocks were little changed, in the wake of a three-session selloff, as investors look to the start of corporate earnings season.

The benchmark S&P index was holding above its 50-day moving average around 1,840, a support level which could trigger more declines if convincingly broken. The index has managed to stay above the 1,840 level several times over the past month.

On Monday, the S&P 500 suffered its biggest three-day drop in two months and the Nasdaq posted its worst three-day decline since November 2011 as investors bid down Internet stocks and rotated into defensive names.

Biotech stocks, among the momentum names that have slumped in recent weeks, fell again on Tuesday, with Gilead Sciences Inc

(GILD.O), down 2.4 percent to $70.49 and Biogen Idec Inc (BIIB.O), down 1.8 percent to $288.81 among the biggest drags on the S&P 500. The Nasdaq biotech index .NBI lost 1.2 percent.

“What happened over the past couple of the days is we had this rotation out of the darling stocks into more conservative issues, which is a good sign. It’s a healthy move seeing this rotation into more defensive and conservative issues,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

“Up until now we saw the rotation process take us down and as earnings come out we could enter into more of a corrective stage, but nothing too serious.”

Earnings season gets under way this week, with results due from companies including Alcoa Inc (AA.N) after the close, retailer Bed, Bath & Beyond (BBBY.O) on Wednesday, while financials JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N) close out the week with results on Friday.

S&P 500 companies’ first-quarter earnings are projected to have increased just 1 percent from a year ago, Thomson Reuters data showed. The forecast is down sharply from the start of the year, when profit growth was estimated at 6.5 percent.

A lackluster first-quarter earnings season hurt by a harsh winter could spark a pullback, some analysts said, with investors expressing optimism for the second quarter as weather improves.

The Dow Jones industrial average .DJI fell 13.39 points or 0.08 percent, to 16,232.48, the S&P 500 .SPX gained 0.82 points or 0.04 percent, to 1,845.86 and the Nasdaq Composite .IXIC added 13.108 points or 0.32 percent, to 4,092.861.

The recent slump has pushed the Dow .DJI, Nasdaq .IXIC and S&P 500 .SPX into negative territory for the year.

A U.S. jury ordered Takeda Pharmaceutical Co Ltd (4502.T) to pay $6 billion in punitive damages and Eli Lilly and Co (LLY.N) to pay $3 billion in a case claiming that cancer risks associated with the Actos diabetes drug were concealed. Eli Lily shares inched up 0.3 percent to $58.77.

Gigamon Inc (GIMO.N) slumped 31.5 percent to $17.95. The maker of network traffic management software, estimated lower-than-expected first-quarter revenue.

Alkermes Plc (ALKS.O) was a bright spot among biotechs, up 4.5 percent to $42.93 after the company said its experimental drug to treat the symptoms of schizophrenia met the main goal in a late-stage study.

– REUTERS

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Adoption of AI Feature as NIPetGE Pays Courtesy Call at NNPC Ltd

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Enhanced adoption of artificial intelligence and other digital technologies to improve operations in Nigeria’s oil and gas industry is taking the centre stage in relevant circles.

The issue came up strongly when the President-elect of the Nigerian Institute of Petroleum and Gas Engineers NIPetGE, Prisca Kanebi, paid a courtesy call at the Nigerian National Petroleum Company Limited (NNPC Ltd), Abuja.

Biztellers reports that the Kanebi led delegation was received by the Group Chief Executive Officer of the NNPC Ltd, Bayo Ojulari, represented by the Executive Vice President, Gas, Power and New Energy, Olalekan Ogunleye.

According to a statement made available on Sunday, discussions at the meeting focused on the future of Nigeria’s hydrocarbon industry amid global energy transition concerns, technological changes and sustainability targets.

ALSO READ: NNPC Ltd, IOCs Raise Crude Supply to Local Refineries by 103% in 4 Months

The statement indicated that the NNPC Ltd acknowledged the role of NIPetGE in policy advocacy, technical development and innovation within the sector.

Speaking during the meeting, Kanebi highlighted recommendations from the institute’s recent conference, including the proposed establishment of a national centre for intelligent energy systems to support the deployment of artificial intelligence, the Internet of Things and robotics across the petroleum value chain.

She also commended the Federal Government’s decarbonisation efforts and reiterated the institute’s support for policies aimed at improving sustainability in the industry.

The institute also recommended the creation of a hydrocarbon-linked emissions trading system to allow Nigeria to take part in global carbon markets.

The institute also proposed fiscal incentives to support local manufacturing and service delivery in the oil and gas sector, as well as the expansion of the Energy Transition Plan to include measurable upstream decarbonisation targets backed by tax credits.

Other proposals included increased public-private partnerships in emission control infrastructure, carbon capture projects and hybrid renewable energy initiatives.

Both organisations also stressed the need for stronger collaboration between industry and academic institutions to improve professional capacity and align petroleum engineering practice in Nigeria with international standards.

The institute further disclosed that its bill seeking chartered status had passed second reading and was progressing towards a third hearing at the National Assembly.

It added that NNPC Ltd pledged support for future collaborations with the institute on initiatives aimed at improving efficiency and innovation in the energy sector.

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FHC Orders NUPRC to Comply with PIA

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Local Firms Lead Revival of Idle Oil Wells – SPE

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Nigeria’s indigenous oil and gas companies are reopening dormant wells and ramping up production from assets acquired from international oil companies (IOCs) to boost crude oil output.

The Society of Petroleum Engineers (SPE), Nigeria Council, made the assertion through its Chairman, Francis Nwaochie, on the sideline of the Offshore Technology Conference (OTC) which ended at the weekend in Houston, Texas.
Nwaochie said indigenous operators were already taking advantage of opportunities created by disruptions in the global energy market to increase production from existing assets.

According to him, local firms that recently acquired onshore and shallow water assets from IOCs were aggressively reviving inactive wells and maximizing available infrastructure to raise output levels.

“What we are seeing now is that indigenous companies are reopening wells from the assets they acquired from the IOCs. Some of them have almost doubled production from those existing assets,”.

He explained that the renewed focus on dormant wells and existing facilities had become critical at a time the global oil market was facing supply shortages triggered by geopolitical tensions in the Middle East.

The SPE Nigeria Council Chairman noted that Africa, particularly Nigeria, was well positioned to benefit from the supply gap because of the continent’s relative stability compared to some other oil-producing regions.

“There is a huge opportunity for Africa right now. The focus is gradually shifting to Africa because of the volatile environment in many other producing regions.”

He stated that indigenous operators were leveraging digital technologies, financing opportunities and local expertise to improve production efficiency and optimise existing fields.

He added that stronger implementation of local content policies was also helping to create a more stable operating environment for oil and gas investments.

“Local content is very critical. Once communities and local companies clearly understand their roles and benefits, then you create peace across the industry. Business only thrives in peaceful environments.”

ALSO READ: Nigerian Navy Recovers Large Cache of Illegal Refined Petroleum Products

Nwaochie also stressed the need for Nigeria to move beyond crude oil production and begin developing indigenous technologies for the energy industry.

According to him, SPE Nigeria Council was actively supporting innovation and technology development among young Nigerian engineers and researchers.

He disclosed that the association was engaging the National Universities Commission(NUC) on reforms to engineering curricula in universities to better prepare graduates for the future of the energy industry.

“One of our major focuses in SPE is technology development. We should not only import machines and equipment, we must begin to develop our own technologies locally.”

Nwaochie revealed that SPE was already supporting local innovators working on technologies such as remotely operated underwater vehicles (ROVs), noting that indigenous technology development will strengthen Nigeria’s economy and deepen local participation in the oil and gas sector.

“We may not get everything right immediately but we must start somewhere. That is how countries that dominate the global energy industry built their capacities.”

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