2025-08-25 10:59

U.S tariffs could impact $80 million in chemical exports Sasol swings back to profit Aug 25 (Reuters) - South African petrochemical firm Sasol (SOLJ.J) , opens new tab is working to contain the impact of higher tariffs on its chemical exports to the U.S., Chief Financial Officer Walt Bruns said on Monday, saying they could affect $80 million worth of sales. A 30% tariff imposed by President Donald Trump on South Africa came into effect this month, threatening the viability of billions of exports from Africa's most advanced economy into the U.S. Sign up here. Sasol, which operates a chemicals business in the U.S., also exports about 10% of its South African chemicals production into the world's biggest economy. "We estimate the impact on our business to be around $80 million, of which we believe we can mitigate at least $20 to $30 million," Bruns told Reuters in an interview. "Some of our customers are willing to allow us to pass on the higher cost to them. If not, then we can re-allocate some of the product to Asia, so there'll be a bit of a shift from a supply chain point of view," he added. Sasol CEO Simon Baloyi told analysts that the U.S tariffs were not a major threat to the company. "We produce what we sell in the U.S. mainly in the U.S.," Baloyi said. Earlier on Monday, Sasol posted basic earnings per share of 10.60 rand ($0.6070) for the year ended June 30 compared to a 69.94 rand loss per share the previous year, on the back of higher chemicals prices, tighter cost controls and lower asset writedowns. Sasol also benefited from a 4.3 billion rand payout from Transnet, after it claimed in a legal suit the state-owned logistics firm had overcharged for oil transportation over several years. The company also recorded significantly lower impairments of 20.7 billion rand, compared with 74.9 billion rand in the previous year. The asset writedowns were related to its Secunda and Sasolburg liquid fuels refinery operations, Mozambique gas production sharing agreement and exploration project, and Italian chemicals business. Sasol once again skipped dividend payments as its $3.7 billion net debt remained above the $3 billion debt cap in terms of its dividend policy. ($1 = 17.4620 rand) https://www.reuters.com/business/energy/sasol-seeks-soften-us-tariff-blow-south-african-exports-2025-08-25/

2025-08-25 10:57

Orsted shares drop 17% after US halts wind farm project Orsted's project was 80% complete Orsted plans $9.4 billion rights issue despite setback Denmark's strained US relations may hinder diplomatic efforts Governors criticize suspension, pledge to reverse order COPENHAGEN, Aug 25 (Reuters) - Shares in Orsted (ORSTED.CO) , opens new tab slid 17% on Monday after the U.S. halted the Danish company's Revolution Wind project off Rhode Island, adding to concerns about the future of the U.S. offshore wind market as President Donald Trump curbs investment in renewable energy. Orsted, the world's biggest offshore wind farm developer, had already been struggling with project delays and cancellations in the United States and elsewhere due to rising costs, higher interest rates, and supply chain problems. It has lost 87% of its market value since its peak in January 2021. Sign up here. The U.S. Bureau of Ocean Energy Management (BOEM) issued a work-stop order late on Friday on Orsted's $1.5 billion project, which is 80% complete with 45 out of 65 turbines installed. The wind farm was expected to supply electricity to 350,000 homes in Rhode Island and Connecticut starting next year. It was the second major suspension this year by BOEM, which halted Norwegian energy company Equinor's (EQNR.OL) , opens new tab Empire Wind 1 project off the coast of New York in April. President Trump has repeatedly criticised wind energy as ugly, unreliable and expensive and has suspended new offshore wind leasing pending environmental and economic review of projects. Despite the setback, Orsted, which is 50.1% owned by the Danish state, reiterated on Monday plans for a $9.4 billion emergency announced earlier this month, signalling it remains committed to its U.S. projects. The rights issue is intended to strengthen the company's capital structure amid "material adverse developments in the U.S. offshore wind market", which also led to the cancellation this month of a partial divestment of its other U.S. project, Sunrise Wind off New York. Orsted's shares, already down 30% since the rights issue was announced on August 11, hit a record low of 173.4 Danish crowns ($27.15) and were trading 16.3% lower at 179.9 crowns at 1036 GMT on Monday. Analysts said the suspension of the Revolution Wind project could be reversed, as was the case with Equinor's Empire Wind 1 project following diplomatic efforts by Norway's government. "The most likely scenario is that this will be solved in Orsted's favour, either with political help or in courtrooms," Sydbank analyst Jacob Pedersen said. However, Denmark's strained relations with the U.S., including Trump's controversial comments about Greenland, could complicate diplomatic efforts. On Friday, Denmark's Foreign Minister Lars Lokke Rasmussen signed an agreement in California to strengthen ties with Governor Gavin Newsom, who has recently criticized Trump publicly. Bernstein analysts expect Orsted and the Danish government to engage with the U.S. administration and pursue legal channels, while Citi analysts anticipate a resolution similar to Equinor's case. Equinor, which holds a 10% stake in Orsted, declined to comment but previously said it would carefully assess the rights issue. AlphaValue analyst Pierre-Alexandre Ramondenc warned the U.S. administration's move could undermine Orsted's rights issue, calling the decision "political hostage-taking" given the project's advanced stage. Governors Ned Lamont of Connecticut and Dan McKee of Rhode Island criticized the suspension in a joint statement, pledging to explore "every avenue" to reverse the order. "This political move by the Trump administration will drive up the cost of electricity bills and contradicts everything the administration has told us," they said. ($1 = 6.3869 Danish crowns) https://www.reuters.com/sustainability/climate-energy/orsted-shares-sink-record-lows-after-us-halts-near-complete-offshore-wind-farm-2025-08-25/

2025-08-25 10:39

Railroads seek to use tech to cut human track inspections by 75% US unions, lawmakers say cutting human inspections would risk more accidents Unions say technology only sees about a quarter of track inspection items Railroads say plan will increase safety and efficiency LOS ANGELES, Aug 25 (Reuters) - A U.S. railroad industry plan to rely more heavily on technology instead of humans to conduct routine track safety inspections has drawn a backlash from labor groups and lawmakers who voiced worry that automated inspections will result in more accidents. The dispute reflects simmering tensions in the global transport industry over the rise of automation. Also, U.S. President Donald Trump wants to slash regulations he says are holding back economic growth. Sign up here. The Association of American Railroads (AAR) in April requested a waiver from the Federal Railroad Administration (FRA) that would allow freight railroads that use automation to slash the frequency of human-conducted track inspections by 75%. If approved, the waiver would allow operators employing a so-called "track geometry measurement system" (TGMS), which can be attached to rail cars and spot derailment risks like tracks that are warped or too far apart, to cut human inspections to twice per month from twice per week. The waiver would also provide railroads up to 72 hours to address defects, while human inspectors can immediately make repairs or choose to slow or stop trains. The association, along with manufacturing and agriculture trade groups that back the proposal, say the change would result in earlier detection and remediation of track defects. Tony Cardwell, president of the Brotherhood of Maintenance of Way Employees Division (BMWED) union that represents track inspectors and other rail workers, called AAR's analysis flawed. The technology only checks about a quarter of the items in track defect inspections, he said. Human inspectors also see foundation issues like broken rail ties or water damage earlier, allowing problems to be fixed before they get serious enough for the technology to flag them. "Track geometry is the end result of a defect, not the cause of a defect," Cardwell said. Opponents of the plan have noted that after three train passengers died following a 2021 Amtrak derailment, a government report concluded that automated track inspections do not find as many types of track hazards as human inspectors. A dozen Democratic U.S. Senators and the Democratic ranking members of the House Committee on Transportation and Infrastructure also called on FRA to deny the waiver in recent public comments on the proposal. Kansas Governor Laura Kelly, who has more than 4,000 miles of railroads in her state, said automated track inspections "should not cut human track inspection at the expense of putting public safety at risk." Republican lawmakers did not submit public comments. The AAR said the waiver would actually improve railroad safety and operational efficiency. "Layering technology on top of redundant and unnecessary, old ways of conducting inspections is not a way to make an industry competitive," said Michael Rush, AAR's senior vice president for safety and operations. AAR member railroads, including megamerger hopefuls Union Pacific (UNP.N) , opens new tab and Norfolk Southern (NSC.N) , opens new tab as well as Berkshire Hathaway-owned BNSF (BRKa.N) , opens new tab, back the request. The National Association of Manufacturers and the National Grain and Feed Association, both representing major U.S. freight rail customers, also support the proposal. The decision is now in the hands of FRA, which does not face a deadline. Train derailment rates are down over the last two decades, though there are still roughly three per day in the country, according to AAR and federal safety data. Some have been major. The village of East Palestine, Ohio is undertaking a billion-dollar environmental cleanup after a Norfolk Southern derailment in 2023. Two years earlier in 2021, an Amtrak derailment on a freight rail track in Montana killed three passengers. After the Amtrak derailment, a National Transportation Safety Board (NTSB) report spelled out some of the limitations of TGMS technology. The report said the technology can provide detailed information on specific track parameters, but does "not capture the diverse array of unique track hazards detectable to human inspectors." NTSB and FRA did not immediately comment. https://www.reuters.com/sustainability/us-lawmakers-unions-oppose-railroad-plan-automate-track-safety-inspections-2025-08-25/

2025-08-25 10:35

Qicheng to buy Zhenghe; Qirun to acquire Huaxing - sources Minimum transfer price for Zhenghe at 2.6 bln yuan, Huaxing at 3.2 bln yuan - auction documents Refineries to receive 26 mln barrels of crude import quota for rest of 2025 - sources SINGAPORE, Aug 25 (Reuters) - China's state-run Sinochem Group will sell another two bankrupt refineries in eastern Shandong province to local refiners for much less than they are valued via auctions that closed on Friday, according to seven trade sources and auction documents. The acquisitions, which come during a consolidation of the world's largest refining base, would see the new owners step up crude imports and resume operations at the troubled plants, lifting oil purchases at the world's top importer. Sign up here. The refineries, Zhenghe Group, which operates a 100,000-barrels-per-day refinery, and Huaxing Petrochemical, which has a 140,000-bpd plant, were listed for sale on last Monday, according to the Shandong Property Right Exchange Centre. Shandong Qicheng Petrochemical is expected to acquire Zhenghe while Shandong Qirun Petrochemical will take over Huaxing, the sources with knowledge of the matter said. They are all located in the city of Dongying. Contacted by Reuters, Sinochem said the company does not comment on market speculation. Qicheng and Qirun did not respond to requests for comments. The sales will mark Sinochem's exit from Shandong, home to most Chinese independent refiners, also known as teapots, which account for a fifth of China's crude imports. Sinochem took over the Shandong-based refineries via a state-orchestrated merger with ChemChina. The plants were declared bankrupt by local courts last year on debts and taxes owed. The minimum transfer price for Zhenghe was at 2.62 billion yuan ($365.12 million), versus its valuation at 6.3 billion yuan, documents on the Shandong Property Right Exchange Centre's website showed. For Huaxing, the minimum transfer price came in at 3.24 billion yuan, versus its valuation at 8.7 billion yuan, according to the documents. The website did not reveal names of bidders and it was not immediately clear if the deals will be concluded at these prices. Shandong Property Right Exchange Centre declined to comment. In March, Sinochem sold Changyi Petrochemical to Shandong Hongrun Petrochemical. After the acquisition, Qicheng and Qirun's refining capacities in Dongying will increase to about 170,000 bpd and 184,000 bpd, respectively, improving their economies of scale. The two Shandong refiners are also expected to receive a government quota to import crude oil of about 3.56 million metric tons (26 million barrels) for the rest of 2025, after acquiring Sinochem's plants, three of the sources added. The Ministry of Commerce, which issues quotas, did not respond to a fax seeking comment. Changyi recently resumed operations and has bought crude from Brazil and Canada using its 2025 import quota. ($1 = 7.1757 Chinese yuan renminbi) https://www.reuters.com/business/energy/chinas-sinochem-sell-two-bankrupt-refineries-local-operators-sources-say-2025-08-25/

2025-08-25 10:31

Ukraine drone attacks target Russian energy infrastructure US vice president says Russia has made 'significant concessions' Federal Reserve Chair Powell signals possible September rate cut LONDON, Aug 25 (Reuters) - Oil prices climbed on Monday as traders weighed concerns that Russian supply could be disrupted by more U.S. sanctions and Ukrainian attacks targeting energy infrastructure in Russia. Brent crude futures rose 40 cents, or 0.6%, to $68.13 by 1200 GMT, and West Texas Intermediate (WTI) crude futures gained 44 cents, or 0.7%, to $64.10. Sign up here. "The market is somewhat concerned that these peace negotiations are going nowhere," said Ole Hansen, head of commodity strategy at Saxo Bank. "The market is looking for supply to exceed demand in the autumn months, but in the short term that's being challenged by a potential geopolitical disruption." U.S. President Donald Trump warned again on Friday that he would impose sanctions on Russia if there was no progress toward a peaceful settlement in Ukraine in two weeks. He has also said he may hit India with harsh tariffs over its purchases of Russian oil. At the weekend, U.S. Vice President JD Vance said Russia had made "significant concessions" toward a negotiated settlement in the 3-1/2-year war. Ukraine, which has repeatedly targeted Russian energy infrastructure during the war, launched a drone attack on Sunday that sparked a huge blaze at the Ust-Luga fuel export terminal, Russian officials said. A fire at Russia's Novoshakhtinsk refinery, caused by a Ukrainian drone attack, was burning for the fourth day on Sunday, the region's acting governor said. The refinery sells fuel mainly for export and has an annual capacity of 5 million metric tons of oil, or about 100,000 barrels per day. Softening the worries about Russian supply disruptions was OPEC+'s reversal of a series of production cuts, which is adding millions of barrels to the market, Saxo Bank's Hansen said. Eight members of the oil exporters' group are scheduled to meet on Sept. 7, when they are set to approve another boost. Investors' risk appetite improved following Federal Reserve Chair Jerome Powell's signal on Friday of a possible interest rate cut at the U.S. central bank's meeting in September. But despite that, both benchmark oil prices appear to lack momentum, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, adding that markets seem increasingly convinced that Trump's tariffs will hit economic growth. https://www.reuters.com/business/energy/oil-prices-edge-up-traders-weigh-supply-risks-2025-08-25/

2025-08-25 10:04

MUMBAI, Aug 25 (Reuters) - The Indian rupee gave up early gains to end lower on Monday as concerns over steep tariffs on Indian goods spurred dollar demand, with importer bids adding pressure. The currency closed 0.1% lower at 87.58, against its previous close of 87.53 in the previous session. Sign up here. The local unit , which opened at 87.39, and hit day's high of 87.3450, saw selling pressure through the day amid dollar-buy orders from importers. "An additional 25% tariff is set to be enforced on August 27. This move will reduce Indian exports, widen the trade deficit, and add further stress to the rupee," said Amit Pabari, managing director at CR Forex. Indian goods face additional U.S. tariffs of up to 50% with effect from Wednesday. Washington had already levied 25% tariffs on Indian goods- steeper than those faced by many other large trade partners- and the latest slated increase comes in response to New Delhi's continued purchases of Russian crude. Signs that progress towards an Ukraine-Russia peace deal has stalled also reinforced expectations that the additional U.S. tariffs on Indian goods will be implemented, and any discussion may not bear fruit. Sentiment for the local currency impacted after Fitch kept its long-term foreign-currency issuer default rating on India at 'BBB-'. The currency gained in early part of the day after Federal Reserve Chair Jerome Powell hinted at a September rate cut, pushing U.S. yields and the dollar lower. On Friday, Powell said that risks to the job market were rising but also noting inflation remained a threat and that a decision was not set in stone. Traders are now pricing in nearly 90% odds of a quarter-point rate cut at the September 16-17 policy meeting, and a cumulative 48 basis points of reductions in 2025, according to LSEG data. https://www.reuters.com/world/india/india-rupee-slips-fourth-session-tariff-anxiety-importer-bids-2025-08-25/