2024-09-02 11:58

MADRID, Sept 2 (Reuters) - Zara founder Amancio Ortega's investment firm Pontegadea almost tripled its investments in renewable energy projects last year, building on its push to diversify the Spanish billionaire's fortune beyond his fashion empire and real estate. According to 2023 financial statements filed with the Mercantile Register and seen by Reuters, the family office of the main owner of Zara mother company Inditex (ITX.MC) , opens new tab poured 693 million euros ($766.87 million) into wind, solar and other energy assets in Spain and France, up from 273 million in 2022. The bet on renewable energy comes at a time when Inditex itself has set new targets to reduce its environmental impact by 2030 and respond to regulatory pressures. Pontegadea said it will not provide additional information about its annual reports. For years, Ortega's family firm has favoured real estate to invest the hefty returns of its core fashion business, buying logistics centres used by large global companies, such as Fedex and Amazon, luxury buildings in the United States and Europe, as well as offices and stores. Ortega controls 59.29% of Inditex capital trough Pontegadea Inversiones and Partler Participaciones, and his family office received 2.2 billion euros worth of Inditex dividends in 2023. Ortega's investment vehicle bought logistics centres and buildings in Ireland, the Netherlands and Luxembourg in 2023, continuing to build a property portfolio that exceeded 13 billion euros, according to the filings. Pontegadea also invests in real estate assets worldwide through other firms and received at least 548 million euros from rents in 2023, 17% more than a year earlier. It reported a list of minority stakes in 13 energy assets at the end of 2023, most of them in Spain after signing several deals with energy firm Repsol (REP.MC) , opens new tab to buy stakes in wind and solar farms. It also has minority holdings in three French wind energy parks in the Montagne d'Ardéche, Taillades Sud and Champagne Picarde areas. In 2022, Pontegadea bought a 5% stake in Spanish gas grid operator Enagas (ENAG.MC) , opens new tab and its hydrogen and renewables unit Enagas Renovable. ($1 = 0.9037 euros) Sign up here. https://www.reuters.com/business/energy/zara-founder-ortega-triples-investment-energy-assets-2024-09-02/

2024-09-02 11:53

Refinery promises to ease Nigeria's reliance on costly imports Sole fuel importer NNPC Ltd owes billions to traders Gasoline launch follows naphtha, other products LAGOS, Sept 2 (Reuters) - Nigeria's Dangote Oil Refinery has begun processing gasoline after delays caused by recent crude shortages, an executive said on Monday. The $20 billion refinery on the outskirts of Lagos, built by Nigerian billionaire Aliko Dangote, began operations in January with output of products including naphtha and jet fuel. With a capacity of 650,000 barrels per day, Africa's largest refinery promises to ease oil producer Nigeria's costly reliance on imported oil products. "We are testing the product (gasoline) and subsequently it will start flowing into the product tanks," said Devakumar Edwin, a vice president at Dangote Industries Limited. He did not say exactly when the gasoline would hit the local market. Edwin said state-oil firm NNPC Ltd, Nigeria's sole importer of gasoline, would buy its gasoline exclusively. "If no one is buying it, we will export it as we have been exporting our aviation jet fuel and diesel," Edwin said. The delivery of gasoline into the Nigerian market will ease NNPC's struggle to supply the local market. The company is reeling with debts of $6 billion to oil traders for supply since January. This has affected its ability to supply the local market where fuel queues have persisted since July. Prices have jumped by 45% from the official price of 617 naira ($0.3942) announced after subsidies were removed last year. “The news that Dangote is processing gasoline couldn’t come at a more crucial time given NNPC’s statement about its difficulties securing imported supply due to financial strain," said Clementine Wallop, director, sub-Saharan Africa at political risk consultancy Horizon Engage. She said this "prompts the question of how NNPC will manage purchasing from Dangote, and impresses the need for greater transparency in its finances". Nigeria is Africa's top oil producer yet it imports almost all its fuel due to years of neglect of its national refineries. ($1 = 1,565.0000 naira) Sign up here. https://www.reuters.com/business/energy/dangote-oil-refinery-begins-processing-gasoline-nnpc-be-sole-buyer-2024-09-02/

2024-09-02 11:40

Oil exports halted amid political standoff Libya production down more than half from usual levels Some output being increased to feed local power demand BENGHAZI, Sept 2 (Reuters) - Oil exports at major Libyan ports were halted on Monday and production curtailed across the country, six engineers told Reuters, amid a standoff between rival political factions over control of the central bank and oil revenue. Some output was being increased to feed local power generation, they said. Libya's oil production has plummeted by more than half from typical levels since the standoff began last month, when western factions moved to oust veteran Central Bank of Libya (CBL) Governor Sadiq al-Kabir and replace him with a rival board. In response, eastern factions called for a shut down to all oil production. The crisis threatens to end a four-year period of relative peace in the OPEC member that for a decade has been split between eastern and western factions that have drawn backing from Russia and Turkey respectively. Exports remained halted at the ports of Es Sidra, Ras Lanouf, Hariga, Zueitina, Brega and Sirte, engineers there said. Arabian Gulf Oil Company (AGOCO), a subsidiary of the state-owned National Oil Corporation (NOC), ordered production to be boosted at its fields to feed a power plant at Hariga port, engineers have told Reuters. AGOCO, which controls the Sarir, Nafoura and Messla fields, was producing 139,000 barrels per day (bpd) on Aug. 28, down from 290,000 bpd on July 20, NOC said last week. Reuters was not immediately able to ascertain its current production. NOC did not immediately respond to a request for comment. NOC said on Thursday that total production had plunged to just over 591,000 bpd by Aug. 28 from nearly 959,000 bpd on Aug. 26, amounting to losses of over $120 million over the three days. Production was at about 1.28 million bpd on July 20, NOC said. Libya's average production in July was 1.18 million bpd, according to OPEC, citing secondary sources. Sign up here. https://www.reuters.com/world/africa/oil-exports-remain-halted-major-libyan-ports-say-engineers-2024-09-02/

2024-09-02 11:20

OSLO, Sept 2 (Reuters) - Vattenfall said on Monday it had paused development of Sweden's Kriegers Flak offshore wind power project due to a lack of clarity on how it will connect to the national grid. Sweden gave state-owned Vattenfall permission to develop the massive Baltic Sea wind farm in 2022, with a planned production start in 2028. It is designed to produce 2.7 terawatt hours (TWh) of power per year, enough for around 500,000 homes. Vattenfall reiterated that getting a reasonable offshore connection point to the national power grid was a key condition for investing in the project, but that this remains unresolved. "The investment prerequisites for offshore wind in Sweden are currently not viable and Vattenfall has therefore decided to pause all further development of the project," it said. The decision is the latest sign of the offshore wind sector's struggles under pressure from factors such as rising costs, supply chain disruptions and regulatory setbacks. Vattenfall, which has not yet begun construction, said in a statement it could revive the project if conditions change. Sweden's energy ministry did not immediately respond to a request for comment. Denmark and Germany already have offshore wind farms on their sides of the Baltic Sea Kriegers Flak reef. Sign up here. https://www.reuters.com/business/energy/vattenfall-halts-swedish-offshore-wind-project-over-grid-concerns-2024-09-02/

2024-09-02 11:08

Price rise needs Cabinet approval Ghana also increased prices in April Price increase in Ivory Coast could follow ACCRA, Sept 2 (Reuters) - Ghana will increase the state-guaranteed price paid to its cocoa farmers by nearly 45% for the 2024/25 crop season, two sources with knowledge of the price review told Reuters, to help boost their incomes and deter bean smuggling out of the country. The world's number two cocoa producer raised the farmgate price by more than 58% to 33,120 cedi ($2,123.08) per metric ton, or 2,070 cedi per 64 kilogram (kg), in April for the rest of the 2023/24 season. The mid-season price hike came after top cocoa producer, neighbouring Ivory Coast, raised its farmgate price to 1,500 CFA francs (US$2.55), or around 40 cedis, per kg for the April-to-September mid crop of the 2023/24 season, up from 1,000 CFA francs last season. One source said Ghana's cocoa producer price review committee had pegged the price at 48,000 cedi per ton, translating to 3,000 cedi per 64 kg of cocoa, for the 2024/25 season due to begin later in September, an increase just shy of 45%. The source said the decision would be sent to the cabinet pending an announcement. Both sources asked for anonymity because the decision is not yet public. The second source said it was unlikely that the cabinet would change the committee's decision, saying also the price could not be increased beyond 48,000 cedis per ton without pushing Cocobod, Ghana's cocoa marketing board, into a deficit. Ghana's price will also have to align with Ivory Coast's 2024/25 farmgate price, which has yet to be announced, the person added. The two biggest cocoa growing countries set up an initiative to coordinate farmgate prices and cocoa supplies to help sustain the sector and boost their farmers' incomes. Cocoa prices have been buoyant this year as disease and adverse weather in Ghana and Ivory Coast, which together supply more than 60% of the world's cocoa, pushed the market to a third successive deficit. The International Cocoa Organization on Thursday raised its global cocoa deficit forecast for the 2023/24 season (October-September) to 462,000 tons from 439,000 tons, saying the market was headed for a 45-year low stocks-to-grindings ratio. Cocobod previously planned to launch the 2024/25 season on Sept. 1, earlier than usual, with a reduced production target of 650,000 tons, but both sources said the opening will be later. Opening the season earlier was aimed at helping reduce bean smuggling, which has been incentivised by low prices and delayed payments to farmers. Some of Ghana's cocoa farmers and licensed buyers accused both sides of hoarding beans to benefit from the proposed price hike in the new season. ($1 = 15.6000 Ghanian cedi) ($1 = 587.4800 CFA francs) Sign up here. https://www.reuters.com/markets/commodities/ghana-set-raise-cocoa-farmgate-price-by-nearly-45-sources-say-2024-09-02/

2024-09-02 11:02

LONDON, Sept 2 (Reuters) - The dollar fell more than 2% against other major currencies in August, marking its biggest monthly drop this year and providing some relief to economies that have suffered under the weight of dollar strength. The dollar's downtrend, which has long been anticipated, is driven by expectations that the U.S. Federal Reserve will cut interest rates as the economy weakens. "The dollar has been under pressure and it will remain under pressure over the remainder of this year," said Guy Miller, chief market strategist, Zurich Insurance Group. Here's where the relief is being felt the most. 1/ YEN INTERVENTION WATCH, CANCELLED In July, traders braced for Japanese intervention to prop-up a yen that hit 38-year lows against the dollar, a headache for politicians and the Bank of Japan. But the yen's dramatic rebound has put an end to such intervention speculation. One dollar is worth 146 yen, down more than 15 yen or around 10% from its mid-July levels, thanks to a BOJ rate hike, looming Fed cuts and a sharp reversal of popular carry trades. "We're not going to get a rebound in U.S. rates like we've had in previous corrections in the past two years. This is a fundamental turn and dollar/yen is heading lower," said Derek Halpenny, MUFG's head of research global markets EMEA. It's too late for Japanese Prime Minister Fumio Kishida however. He soon steps down, and the weak yen, which drove up prices, contributed to his undoing. 2/ NEVER HAPPY? Earlier this year, China tried to stop its currency from weakening too much against the dollar, partly in fear this would drive capital outflows. But with the yuan at its strongest since June 2023, authorities now fear further strength could cause disruption. Its rise is largely due to the dollar weakening - China's domestic economy is fragile - but it could continue, especially if exporters sell the hoard of dollars they have accumulated. "We generally expect that external developments will continue to outweigh domestic drags, and the yuan should gradually move stronger," said ING chief economist for Greater China Lynn Song, forecasting the dollar at 7 yuan by year-end with a fall of around 1% from current levels. 3/ BREATHING SPACE The weaker dollar has lifted emerging market currencies elsewhere too, especially in Asia. The Philippine peso chalked up its best monthly gains in August in some 18-years and the Indonesian rupiah in more than four years. That momentum did not spread to Latin America, where Mexico's peso and much of the region suffered hefty losses on domestic woes and wobbly commodity prices. Nonetheless, a softer dollar coupled with U.S. soft landing hopes provide welcome breathing space for some emerging markets, allowing them more room to cut rates and become more sensitive to domestic growth issues. "Through the remainder of the year we expect central banks in Philippines, Singapore, South Africa, South Korea, Taiwan and Turkey to join their early-cutter peers in LatAm and (central and Eastern Europe)," said MUFG's head of emerging market research Ehsan Khoman. 4/ FROM FOE TO FRIEND Two years ago, sterling fell to record lows, partly on political turmoil, while the euro hit parity versus the dollar - moves that exacerbated central banks' inflation battle. That's now changed and currency strength will likely comfort Bank of England and European Central Bank rate-setters looking to ease policy but mindful of sticky inflation in some parts of the economy. Sterling and the euro are the top performing major currencies this year. Sterling is above $1.30, up over 25% since its record lows and the euro is above $1.10, supported by markets pricing fewer ECB and BoE rate cuts than for the Fed. 5/ CROWNING MOMENT Sweden's rate-setters are also likely cheering a weaker dollar. The Swedish crown has rallied 4% in August, making it the best performing major currency . It also appreciated versus the euro, helping Sweden to cut rates. Last year Riksbank Governor Eric Thedeen said crown weakness made the inflation fight harder. It is difficult for Sweden's crown to strengthen further from here, analysts say, but the Norwegian crown could hold up better. Norway will likely be among the last developed market economies to cut rates, boosting its currency and its sensitivity to global growth. "In an environment where U.S. interest rates are coming down, U.S. growth slows, but global growth remains stable, high beta (growth sensitive) currencies such as the NOK (Norwegian crown) tend to perform well," NatWest analysts said. Sign up here. https://www.reuters.com/markets/currencies/dollar-defensive-brings-relief-policymakers-globally-2024-09-02/