2025-08-23 00:25
Company says it is evaluating options to resolve the matter Revolution Wind was scheduled for completion next year Bureau cites national security, interference with use of seas Aug 22 (Reuters) - The Trump administration on Friday ordered Denmark's Orsted (ORSTED.CO) , opens new tab to stop far-advanced construction on an offshore wind project near Rhode Island, in a move that threatens to exacerbate the company's financial troubles. With construction now frozen at 80% completion, Orsted has no immediate path to revenue generation, heightening pressure on the company as it seeks to shore up finances through a $9.4 billion emergency rights issue. Sign up here. The stop-work order, issued by the Bureau of Ocean Energy Management (BOEM), is the administration's latest effort to hinder U.S. renewable energy development and is the second time this year the Interior Department, which oversees BOEM, has halted work on a major offshore wind project. "Orsted is evaluating all options to resolve the matter expeditiously," the company said in a statement, adding that it was reviewing the financial implications of the order and was considering legal action. The company said it would "in due course" advise the market on the potential impact on its plans to conduct the rights issue. A spokesperson for the company, owned 50.1% by the Danish state, declined to comment further. On his first day in office in January, President Donald Trump suspended new offshore wind leasing pending an environmental and economic review of projects. He has repeatedly criticized wind energy as ugly, unreliable and expensive. The $1.5 billion project that Orsted was constructing, Revolution Wind, was scheduled to be completed next year and expected to produce enough electricity to power 350,000 homes in Rhode Island and Connecticut. All offshore foundations had been installed and 45 out of 65 wind turbines were already in place, Orsted said. The National Ocean Energy Industries Association, an industry trade group, said halting work on a project that is almost finished would jeopardize jobs and investment. “These projects are not only about energy," NOIA President Erik Milito said. The stop-work order is driven by unspecified national security concerns arising from the administration's review of offshore wind projects in federal waters, according to the letter, signed by BOEM acting Director Matthew Giacona. The bureau is seeking to protect U.S. national security and prevent "interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas," Giacona said. Orsted is among the biggest global offshore wind companies, but its U.S. business has suffered setbacks in addition to the broader challenges facing the global offshore wind industry, which is struggling to meet ambitious government targets amid soaring costs and project delays. Earlier this month, Orsted sought the $9.4 billion of financing from shareholders to help fund its Sunrise Wind project off the New York coast after potential partners pulled out due to Trump's hostility to wind power. Potential co-investors for the Sunrise Wind project pulled out after Trump's administration in April ordered Equinor EQNR.OL , opens new tab to halt the development of a fully-permitted wind farm. The order, which sent shockwaves through the industry, was reversed the following month, however. https://www.reuters.com/legal/litigation/us-orders-orsted-halt-offshore-wind-project-deepening-industry-woes-2025-08-22/
2025-08-22 23:16
Aug 22 (Reuters) - The Trump administration on Friday ordered Denmark's Orsted (ORSTED.CO) , opens new tab to halt all activities related to its Revolution Wind project off the coast of Rhode Island, according to a letter posted on the website of the Bureau of Ocean Energy Management. The stop work order is related to unspecified national security concerns arising from the administration's review of offshore wind projects in federal waters, the letter, signed by BOEM acting Director Matthew Giacona, said. Sign up here. "In particular, BOEM is seeking to address concerns related to the protection of national security interests of the United States and prevention of interference with reasonable uses of the exclusive economic zone, the high seas, and the territorial seas," Giacona said. The letter was addressed to Rob Keiser, head of asset management for Orsted's North American business. Orsted was not immediately available for comment. The move is the administration's latest in a string of efforts to hinder offshore wind and clean energy development. On his first day in office earlier this year, President Donald Trump suspended new offshore wind leasing pending an environmental and economic review of projects. He has repeatedly criticized wind energy as ugly, unreliable and expensive. Earlier this month, Orsted asked shareholders for $9.4 billion to help fund another U.S. project because potential partners were put off by Trump's hostility to wind power. https://www.reuters.com/legal/litigation/us-halts-work-orsted-offshore-wind-project-off-rhode-island-2025-08-22/
2025-08-22 22:59
Investigation is latest in series of national security probes into imports Probe aims to address concerns about imported furniture and could lead to higher tariffs Trade group opposes national security tariffs on furniture imports Trump says new tariffs could revitalize struggling US furniture manufacturing sector WASHINGTON, Aug 22 (Reuters) - President Donald Trump said on Friday his administration will conduct a "major" tariff investigation on furniture entering the United States, a step toward imposing higher duties on a sector already seeing tariff-fueled price increases. "Furniture coming from other Countries into the United States will be Tariffed at a Rate yet to be determined," Trump said in a post on Truth Social. Sign up here. Furniture retailer RH -- previously known as Restoration Hardware -- (RH.N) , opens new tab shares fell 7.5% in after-hours trading on Trump's announcement. Trump said the investigation will be completed within the next 50 days but other national security probes have taken significantly longer than that. A White House official confirmed that it would be conducted under the Section 232 national security statute. The probe could serve as a backstop legal basis for existing tariffs if a federal appeals court strikes down "reciprocal" duties that Trump imposed on a broad range of U.S. trading partners in April, as well as import taxes imposed in February against China, Canada and Mexico. read more "This will bring the Furniture Business back to North Carolina, South Carolina, Michigan, and States all across the Union," Trump said. Furniture and wood products manufacturing -- which employed 1.2 million people in 1979 -- has fallen from 681,000 in 2000 to 340,000 today, according to government statistics. The United States imported about $25.5 billion in furniture in 2024, up 7% over 2023, with about 60% of those imports coming from Vietnam and China, according to Furniture Today, a trade publication. New tariffs on imports from furniture-producing countries helped push up consumer prices for home furnishings by a steep 0.7% in July, according to Commerce Department data, though overall consumer price inflation was restrained by lower gasoline prices. INDUSTRY OPPOSITION The American Home Furnishings Alliance, a trade group representing domestic furniture manufacturers and importers, including many companies that do both, had no immediate comment on Trump's announcement. But the High Point, North Carolina-based AHFA in April led an industry coalition in opposing new tariffs under Trump's ongoing Section 232 investigation into lumber and wood products imports. "As a strictly legal matter, there is no rational relationship between imports of wood products or furniture and the national security of the United States," the group said in written comments to the Commerce Department. "Second, no amount of tariffs will bring back American furniture manufacturing back to its prior levels. Tariffs will harm manufacturing still being done in the United States." Furniture would be the latest imported products targeted for a national security investigation by the Trump administration. On Thursday, it announced a national security probe into imported wind turbines and has previously targeted copper and other metals. The department has opened numerous probes into the national security ramifications of imports of airplanes, semiconductors, pharmaceuticals, heavy trucks, timber and lumber, critical minerals and drones. The European Union won some relief from these potential new Section 232 tariffs as part of a joint statement on Thursday fleshing out their trade deal. The two sides agreed to limit any new U.S. tariffs on EU pharmaceuticals, lumber and semiconductors to the general 15% rate applied to most products from the bloc and will shield EU aircraft and parts, generic pharmaceuticals and drug chemical precursors from all new tariffs. https://www.reuters.com/world/us/trump-says-us-is-conducting-tariff-investigation-into-furniture-imports-2025-08-22/
2025-08-22 21:48
Aug 22 (Reuters) - Starbucks (SBUX.O) , opens new tab is set to reduce weekly production at its five U.S. coffee roasting and packaging facilities by two days starting in January, Bloomberg News reported on Friday, citing people familiar with the matter. The coffee chain, which is undergoing an overhaul under CEO Brian Niccol to cut costs and reinvest in its stores, has been struggling with weak demand in the United States for its pricey beverages. Sign up here. Last week, Starbucks also capped raises for all North America salaried employees at a fixed 2% as part of its cost-cutting measures. The company did not immediately respond to a Reuters request for comment. The five plants will adopt a five-day schedule, and the reduction will help pay for upgrades elsewhere after the company found it no longer needs to operate the facilities seven days a week to meet current demand, Bloomberg reported, citing one of the people. The plants are located in Georgia, South Carolina, Pennsylvania, Nevada and Washington state and produce coffee for Starbucks' stores as well as packaged coffee the company sells at retailers and grocery stores. https://www.reuters.com/business/starbucks-cut-production-five-day-schedule-us-coffee-plants-bloomberg-news-2025-08-22/
2025-08-22 21:39
NEW YORK, Aug 22 (Reuters) - Crescent Energy (CRGY.N) , opens new tab is in advanced talks to acquire smaller peer Vital Energy (VTLE.N) , opens new tab, people familiar with the matter said on Friday, in a deal that would give the energy producer an extensive position in the Permian Basin. Terms of the combination could not be learned, but a transaction could be announced as soon as next week, said the sources, who cautioned a deal could still fall apart at the last minute and spoke on condition of anonymity to discuss private deliberations. Sign up here. Crescent Energy has a market value of around $2.5 billion, while Vital Energy is worth around $600 million. Vital also carries around $2.3 billion of long-term debt. Vital did not immediately respond to a request for comment. Crescent declined to comment. Vital Energy's shares rose over 7% to $16.92 per share in extended trading after the Reuters report. Crescent Energy fell about 1% to $9.85 per share. Crescent Energy is focused on exploration and production from older wells, which do not have the growth potential of traditional new shale wells but which provide consistent levels of oil and gas output and steady returns. Its existing footprint primarily consists of the Eagle Ford basin in south Texas and the Uinta basin in Utah. In January, the company completed a near $1 billion acquisition of privately-held Ridgemar Energy's assets in the Eagle Ford. Vital Energy has around 267,000 net acres in the Permian Basin, with net production of 137,900 barrels of oil equivalent per day, according to its website. Mergers and acquisitions activity in the U.S. shale space tailed off in the second quarter of the year as volatility across energy and equity markets spooked sentiment. However, economies of scale still help to make the argument for consolidation. https://www.reuters.com/business/energy/crescent-energy-nears-deal-us-shale-peer-vital-energy-sources-say-2025-08-22/
2025-08-22 21:10
Gold Reserve's Dalinar Energy has offered $7.4 billion Elliott's Amber Energy August offer includes $5.86 billion to creditors, $2.86 billion to bondholders HOUSTON, Aug 22 (Reuters) - A U.S. court officer is preparing to recommend a winner in an auction for shares of Citgo Petroleum's parent company, with affiliates of hedge fund Elliott Investment Management and miner Gold Reserve (GRZ.V) , opens new tab leading the competition for the U.S. refiner. U.S. court officer Robert Pincus faces a Monday deadline to determine whether a $7.4 billion bid from Gold Reserve's subsidiary Dalinar Energy, which he previously recommended, remains the frontrunner or a rival offer is superior. Sign up here. Elliott's affiliate Amber Energy, a unit of commodities firm Vitol and a consortium led by private equity firm Black Lion Capital Advisors submitted offers in the final stages of the bidding. That prompted the court to extend the bidding deadline to Friday and delay a final sale hearing to September. Amber and Gold are now neck-to-neck in the competition, with other bidders falling behind, according to court filings and sources close to the offers' preparations. But their offers differ substantially. Among the main differences are the amount of cash offered versus non-cash considerations, and a key negotiation to pay holders of a Venezuelan defaulted bond collateralized with Citgo equity. Amber told the Delaware court this week it reached a pact with more than two-thirds of the holders. The Gold Reserve group, whose bid does not include a payment provision to the bondholders, is betting its offer will be deemed superior due to its coverage of 11 of the 15 claimants lining up to cash proceeds. Judge Leonard Stark earlier this year instructed Pincus and court advisors in the auction to prioritize price over "certainty of closure," a term defining a proposal's chances of becoming a real takeover. Amber, whose bid offers $5.86 billion to creditors and $2.86 billion to the bondholders, is required to show proof to the court of its agreements. The Gold Reserve group has the option of objecting to any competing bid due to procedural issues. It can also boost its own offer if it loses. Amber and Dalinar did not immediately reply to requests for comment. Under a new calendar approved by the court on Friday, Gold Reserve's Dalinar will only have three days to match any superior proposal. Gold Reserve said on Friday it engaged investment bank Cantor Fitzgerald & Co as financial advisor in connection with its bid. A potential strategy by Dalinar to raise its bid could involve adding more creditors to its proposal, something that is in negotiation, the sources said. Amber also has been in talks with at least two creditors in the auction willing to turn their claims into credit bids, according to one of the sources. Credit bids are accepted in some auctions to allow creditors lining up for the proceeds to acquire the assets or shares up for auction in exchange for the debt owed. In this case, credit bids must be combined with cash offers, the court has said. The auction aims to pay up to $19 billion to 15 creditors as compensation for debt defaults and expropriations in Venezuela. The court, which has been handling the case since 2017, found Citgo's parent PDV Holding liable for Venezuela's debts. https://www.reuters.com/legal/government/elliott-gold-reserve-affiliates-work-offers-citgo-parent-bidding-end-looms-2025-08-22/
