Connect with us

Business

Iberdrola net profit falls on high energy costs, taxes

Published

on

October 27, 2021

By Isla Binnie

MADRID (Reuters) -Global wind power leader Iberdrola reported a 10% fall in net profit on Wednesday but beat market expectations for a turbulent nine months on energy markets which saw its home government in Spain swoop on utilities’ earnings.

Power and gas prices have soared to record highs around the world as economies fired up after the coronavirus pandemic, but companies like Iberdrola say they have not benefited from this as they lock in prices with customers in advance.

Advertisement

Net profit of 2.41 billion euros ($2.8 billion) nevertheless came in just above a consensus forecast of 2.36 billion euros drawn from a poll of 10 analysts provided by the company.

Government targets to reduce planet-warming carbon emissions and strong investor appetite for environmentally sustainable businesses have buoyed Iberdrola’s plans to spend 150 billion euros on tripling its global renewable capacity by 2030 in spite of the market volatility.

The company stuck to its financial guidance for the full year and said it was speeding up the expansion of its offshore wind business, a new and fast-growing sector that is key to the decarbonisation plans of some of the world’s biggest economies.

It now has huge turbines with a combined capacity of 1.5 gigawatts spinning offshore and is building a further 2.6 GW in France, the United States and Germany.

The biggest one-off tax charge in the period came from Britain, where Iberdrola operates through Scottish Power.

Advertisement

It said it also took an 85 million euro hit from a controversial move by Spain’s government to claw back profits from firms seen to have made excessive profits from high gas prices, which has since been softened.

Net profit adjusted for the impact of the one-off factors which also include the pandemic rose 5.2% year-on-year to 2.69 billion euros.

($1 = 0.8593 euros)

(Reporting by Isla Binnie; Editing by Stephen Coates)

Advertisement
Continue Reading
Advertisement

Business

Alibaba overhauls e-commerce businesses, appoints new CFO

Published

on

December 6, 2021

(Reuters) -Alibaba Group Holding Ltd said on Monday it was reorganising its international and domestic e-commerce businesses and would appoint a new chief financial officer.

The changes come as Alibaba faces headwinds on multiple fronts, including increased competition, a slowing economy and a regulatory crackdown.

The e-commerce giant’s Hong Kong-listed shares slid 8% in early morning trade.

Advertisement

Alibaba said it would form two new units to house its main e-commerce businesses – international digital commerce and China digital commerce, in a bid to become more agile and accelerate growth.

The international digital commerce unit will house Alibaba’s overseas consumer-facing and wholesale businesses, and include AliExpress, Alibaba.com and Lazada. The unit will be headed by Jiang Fan, whose past roles include president of the Taobao and Tmall marketplaces.

Alibaba will house its domestic commerce businesses in the China digital commerce unit which be led by Trudy Dai, a founding member of Alibaba, it said.

The company’s deputy chief financial officer, Toby Xu, will succeed Maggie Wu as the company’s chief financial officer from April, it said, describing his appointment as part of the company’s leadership succession plan.

Xu joined Alibaba from PWC three years ago and was appointed deputy CFO in July 2019.

Advertisement

Wu, who helped lead three Alibaba-related company public listings as CFO, will continue to serve as an executive director on Alibaba’s board.

Last month the company slashed its forecast for annual revenue growth to its slowest pace since its 2014 stock market debut and saw sales at its banner event, online shopping festival Singles Day, grow at their slowest rate ever.

(Reporting by Akriti Sharma in Bengaluru and Brenda Goh in Shanghai; Editing by Edwina Gibbs)

Advertisement
Continue Reading

Business

China Evergrande shares hit 11-year low after firm says no guarantee it can meet repayments

Published

on

December 6, 2021

By Clare Jim

HONG KONG (Reuters) – Shares of China Evergrande Group tumbled 12% to an 11-year low on Monday after the firm said there was no guarantee it would have enough funds to meet debt repayments, prompting Chinese authorities to summon its chairman.

The shares fell as a 30-day grace period on a coupon payment of $82.5 million due on Nov. 6 comes to an end on Monday.

Advertisement

Evergrande, once China’s top-selling developer, is grappling with more than $300 billion in liabilities. A collapse could send shockwaves through the country’s property sector and beyond.

In a filing late on Friday, Evergrande, the world’s most indebted developer, also said it had received a demand from creditors to pay about $260 million.

That prompted the government of Guangdong province, where the company is based, to summon Evergrande Chairman Hui Ka Yan, and it later said in a statement it would send a working group to the developer at Evergrande’s request to oversee risk management, strengthen internal controls and maintain normal operations.

In a series of apparently coordinated statements late in the evening, China’s central bank, banking and insurance regulator and its securities regulator sought to reassure the market that any risks to the broader property sector could be contained.

Short-term risks caused by a single real estate firm will not undermine market fundraising in the medium and long term, the People’s Bank of China said, adding that housing sales, land purchases and financing “have already returned to normal in China”.

Advertisement

Evergraned’s stock fell more than 12% to HK$1.98, its lowest since May 2010.

(Reporting by Clare Jim; Editing by Anne Marie Roantree and Christopher Cushing)

Continue Reading

Business

Oil gains more than $1/bbl after Saudi price hike

Published

on

December 6, 2021

By Florence Tan

SINGAPORE (Reuters) – Oil prices rose by more than $1 a barrel on Monday after top exporter Saudi Arabia raised prices for its crude sold to Asia and the United States, and as indirect U.S.-Iran talks on reviving a nuclear deal appeared to hit an impasse.

Brent crude futures for February gained $1.69, or 2.4%, to $71.57 a barrel by 0033 GMT while U.S. West Texas Intermediate crude for January were at $67.92 a barrel, up $1.66, or 2.5%.

Advertisement

On Sunday, Saudi Arabia raised January official selling prices for all crude grades sold to Asia and the United States by up to 80 cents from the previous month.

The price hikes were implemented despite a decision last week by the Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, to continue increasing supplies by 400,000 barrels per day in January.

Prices were also buoyed by diminishing prospects of a rise in Iranian oil exports after indirect U.S.-Iranian talks on saving the 2015 Iran nuclear deal broke off last week. European officials voiced dismay on Friday at sweeping demands by Iran’s new, hardline government. The talks are expected to resume middle of this week.

Both benchmarks rebounded after falling last week for their sixth week in a row for the first time since November 2018 on concerns that the new coronavirus variant Omicron could impact global economic growth and fuel demand.

In another sign of the turmoil unleashed by the ever-changing pandemic, the head of International Monetary Fund said the global lender is likely to lower its global economic growth estimates because of the new variant.

Advertisement

Omicron has spread to about one-third of U.S. states as of Sunday.

(Reporting by Florence Tan; Editing by Stephen Coates)

Continue Reading
Advertisement

Trending