Connect with us

Business

U.S. stock futures rise after Alcoa results

Published

on

NEW YORK – U.S. stock-index futures were little changed, following yesterday’s gain by the Standard & Poor’s 500 Index, as Alcoa Inc. (AA) started the quarterly earnings season by posting profit that exceeded estimates.

Alcoa advanced 3.1 percent in early New York trading after forecasting that global demand for aluminum will exceed production this year. Intuitive Surgical Inc. slumped 9.1 percent after predicting that first-quarter revenue will decline by more than a fifth.

Futures on the S&P 500 expiring in June gained less than 0.1 percent to 1,846 at 7:23 a.m. in New York, while contracts on the Dow Jones Industrial Average added 24 points, or 0.2 percent, to 16,204 today.

“Alcoa has kicked off the reporting season with its first quarter numbers,” Richard Hunter, head of equities at Hargreaves Lansdown Plc in London, wrote in an e-mail. “The market’s recent lackluster performance offers the potential of something of a recovery. This will largely depend on improving U.S. economic data and, in particular, the strength of the corporate updates in the next few weeks.”

The S&P 500 rose 0.4 percent yesterday as technology shares dragged the index higher. The benchmark had retreated 2.4 percent in the previous three-day period.

The Federal Reserve releases the minutes of its March 18-19 meeting at 2 p.m. today. Officials dropped the link between interest rates and a specific level of employment at that gathering. The Federal Open Market Committee said it would look at indicators including labor-market conditions, inflation expectations and financial markets.

Leverage Ratios

The Fed yesterday increased the capital requirements of the largest U.S. lenders. The central bank increased the leverage ratio — equity held as a proportion of total assets — to 5 percent from 3 percent. America’s banks will need to find as much as $68 billion in loss-absorbing capital under the new rule, which goes beyond the minimum set by the Basel Committee on Banking Supervision.

Alcoa climbed 3.1 percent to $12.92 as it marked the unofficial start of the earnings season. The largest U.S. aluminum producer posted profit excluding restructuring costs and other one-off items of 9 cents a share, more than the 5-cent average estimate of analysts surveyed by Bloomberg. The company also forecast a global supply deficit of 730,000 metric tons. In January, it had predicted a 106,000-ton surplus.

JPMorgan Chase & Co. and Wells Fargo & Co. are among the S&P 500 companies that report their earnings on Friday. The benchmark’s companies increased their profit per share by 1 percent in the first quarter, according to estimates compiled by Bloomberg. Their sales climbed 2.9 percent, the data show.

Intuitive Surgical plunged 9.1 percent to $445.02. The maker of surgical robots said it probably generated sales of $465 million for the first three months of 2014, a 24 percent decline from a year earlier. Intuitive shipped 87 of its robots in the quarter compared with 164 in the year-earlier period. The company releases its results for the quarter on April 22.

– BLOOMBERG

Click to comment
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Business

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

Published

on

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.

Continue Reading

Business

FHC Orders NUPRC to Comply with PIA

Published

on

Continue Reading

Business

Local Firms Lead Revival of Idle Oil Wells – SPE

Published

on

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.”

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.

0
Would love your thoughts, please comment.x
()
x