MARKET MOVEMENTS:
--Brent crude oil is down 0.3% at $80.75 a barrel
--European benchmark gas is up 0.1% at 48.32 euros a megawatt-hour
--Gold futures are up 0.2% at $2,682.90 a troy ounce
--LME three-month copper futures are up 0.4% at $9,129.50 a metric ton
TOP STORY:
BP Expects to Book Up to $2 Bln in Charges, Sees Lower Upstream Production
BP said it expects to book impairments of $1.0 billion to $2.0 billion in the fourth quarter while upstream production is expected to fall.
The British oil-and-gas giant said on Tuesday that the non-cash, post-tax charges are attributable across its business divisions.
In a trading update covering the final three months of last year, BP said upstream production is expected to be lower than the 2.4 million oil-equivalent barrels a day it reported in the third quarter.
OTHER STORIES:
An Offline L.A. Water Reservoir Has Repeatedly Needed Repairs
A large reservoir in Pacific Palisades that is out of commission, potentially hampering firefighting efforts, has twice required repairs in recent years, regulatory filings show.
The Santa Ynez Reservoir in the Pacific Palisades neighborhood, which is meant to hold 117 million gallons of water, has been offline and empty since early 2024 pending repairs to a floating cover meant to keep its water free of contaminants. The cover also required repairs in 2022, filings show.
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Lindt & Spruengli Revenue Rises, Driven by Higher Prices
Chocoladefabriken Lindt & Spruengli said 2024 sales grew in line with its guidance, supported by positive sales volume and price increases that offset higher cocoa prices.
The Swiss chocolatier on Tuesday said annual sales grew 7.8% to 5.47 billion Swiss francs ($5.97 billion) on an organic basis. This is in line with the company's guidance of 6% to 8% organic growth.
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Hunting Guides for Growth on Natural-Gas Price Recovery, Restructuring of European Operations
Hunting PLC said it expects to see growth in its core earnings for 2025 as natural-gas prices recover after depressed levels in 2024 and it undertakes a restructuring of its operations to focus on key regions.
Shares in London rose around 9% at market open to 334 pence.
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B2Gold Cuts Quarterly Dividend in Half
B2Gold said its board of directors approved halving its quarterly cash dividend.
The Canadian mining company on Monday said it is declaring a quarterly dividend of 2 cents a share, down from 4 cents a share previously.
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Daimler Truck Gets E-Truck Order from Amazon
Daimler Truck on Tuesday said it received an order for more than 200 eActros 600 from Amazon.
The German truck-and-bus manufacturer said it was its largest e-truck contract to date but didn't disclose financial details.
MARKET TALKS:
OMV's 4Q Production to Soften Impact of Weak Refining Margins -- Market Talk
1126 GMT - OMV's strong upstream production in the fourth-quarter will more than offset weaker refining margins in its chemicals and marketing divisions, analysts at Barclays write. The analysts increased their fourth-quarter operating result forecasts by 5% to 1.4 billion euros for the quarter. Adjusted net income for the quarter is expected to be 487 million euros, the analysts write. Earnings in OMV's upstream division are now expected to be 1.1 billion euros, an 11% increase from the analyst's previous estimates. Earnings from chemicals and materials are now expected to be 96 million euros, 30% lower than their previous forecasts due to softening refining margins. Shares trade 0.7% down at 38.88 euros. (adam.whittaker@wsj.com)
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BP's 4Q to Be Dragged by Downstream Unit, Weak Oil Trading -- Market Talk
1043 GMT - Analysts at Barclays have revised down their fourth-quarter earnings expectations for BP following its trading update. The analysts now expect the British oil-and-gas giant's fourth-quarter replacement-cost underlying profit--the company's preferred metric and the industry's standard measure of profit--to be $3.69 billion, down 23% compared with a prior estimate. Adjusted net income is now expected to be $971 million, down 48%. BP's upstream division is expected to report resilient earnings while its downstream division and weak oil trading result will weigh on its quarterly performance, they write. Shares trade down 2.8% at 419.15 pence. (adam.whittaker@wsj.com)
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U.S. Sanctions on Russian LNG Could Pose Risks to Europe -- Market Talk
1021 GMT - U.S. sanctions against the operators of two Russian liquefied-natural-gas terminals will have a limited impact on global prices but pose supply risks for European markets, Kpler's Go Katayama says. Exports from the Portovaya and Vysotsk facilities amounted to 2.3 million tons in 2024, a 5% increase year on year, with the plants collectively representing a mere 0.6% of global LNG supply, according to the trade data provider. But Europe received 80% of the cargoes coming from the two terminals last year, for a total of 1.9 million tons. "This creates potential supply risks for the European market, especially as LNG imports are set to increase to offset reduced pipeline gas supply from Russia," the analyst says. "Spain and Belgium may be particularly affected." (giulia.petroni@wsj.com)
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Palm Oil Ends Lower, Tracking Weakness in Soybean Oil -- Market Talk
1013 GMT - Palm oil ends lower, tracking weakness in the Chicago soybean oil market. Concerns over sluggish export demand is also dragging prices lower, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. Ng sees prices well supported above MYR4,350, while facing resistance at MYR4,520. Palm oil prices saw a short-lived run-up in recent months, reaching a high of MYR5,181 before retreating to current levels, Public Investment Bank analysts write in a separate commentary. The Bursa Malaysia Derivatives contract for March delivery is MYR60 lower at MYR4,440 a ton. (tracy.qu@wsj.com)
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Copper's Outlook Pressured by Trump Policies, BMI Says -- Market Talk
1002 GMT - Copper's outlook is clouded by expectations of a stronger dollar, looming tariffs and a potential deceleration in the energy transition under President-elect Donald Trump, BMI analysts say. "While we still expect that copper will continue to thrive due to climate-driven sentiment, we note that the balance of risks to our relatively bullish outlook is tilted to the downside," they say in a note. BMI doesn't expect a significant boost to metals demand from the Chinese construction sector. However, stronger industrial activity and growth due to government stimulus could be sufficient to lift prices, they say. LME three-month copper currently trades 0.6% higher at $9,153 a metric ton. (giulia.petroni@wsj.com)
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Gold Rises Ahead of U.S. Inflation Data -- Market Talk
0917 GMT - Gold prices rise in early trade as traders await key U.S. inflation data for more cues on the path of monetary policy. Futures are up 0.2% to $2,684 a troy ounce, boosted by a softer dollar and concerns over the impact of potential U.S. trade tariffs on inflation after President-elect Donald Trump takes office. Prices fell in the previous trading session amid a stronger dollar and rising Treasury yields, but the long-term outlook for gold remains positive. Investors will now be focusing on the producer price index due later on Tuesday and consumer price index data set to be released on Wednesday, as stronger-than-expected figures could further damp the rate-cut outlook for this year. (giulia.petroni@wsj.com)
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Oil Eases as Market Weighs U.S. Sanctions on Russia -- Market Talk
0845 GMT - Oil prices ease slightly in early trade after rallying to a multi-month high as the market weighs the impact of U.S. sanctions on Russian supplies. Brent crude is down 0.4% at $80.71 a barrel, while WTI falls 0.2% to $78.61 a barrel. Still, both benchmarks remain elevated amid signs of market tightness as front futures oil contracts outperform longer-dated ones--a market condition known as backwardation. "These sanctions have the potential to take as much as 700,000 b/d of supply off the market, which would erase the surplus that we are expecting for this year," ING analysts say in a note. "However, the actual reduction in flows will likely be less, as Russia and buyers find ways around these sanctions." (giulia.petroni@wsj.com)
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Lindt Seen as Well Placed to Face Challenging Year For Sector -- Market Talk
0844 GMT - Lindt reported robust sales growth in 2024, showing its pricing power and leading to further market share gains, Vontobel analysts say in a note. The Swiss chocolatier's organic sales accelerated in 2Q, driven by price increases to offset higher cocoa prices, they say. While 2025 is expected to be a difficult year for the chocolate industry, Lindt is very well positioned to navigate through this backdrop, they say. Lindt has guided organic sales growth of 7% to 9% in 2025, against the Swiss investment bank expectations of 9.3% growth. Shares are up 3.3%. (michael.susin@wsj.com)
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Lindt's Sales Guidance Seen as Conservative, Positive Margin Target -- Market Talk
0826 GMT - Lindt's 2024 sales beat market expectations supported by a robust performance in Europe, Barclays analysts say in a note. The Swiss chocolatier said organic sales for the year rose 7.8%, against a consensus for 7.2% growth, and that it expects 2025 growth of between 7% to 9%, slightly ahead of its midterm targets of 6% to 8%, they highlight. For 2025, Barclays expects Lindt to post sales growth of 10.5%, consisting of 14% growth in prices and a 3.5% drop in sales volume. This means that the current guidance looks very conservative, they add. The operating profit margin guidance of 20-40 basis points is a positive sign that margins won't be diluted by the higher cocoa pricing issue, the analysts say.(michael.susin@wsj.com)
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Equinor Update Points to Weaker Marketing, Midstream & Processing Earnings -- Market Talk
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01-14-25 0753ET