In today’s briefing:
- [Earnings Preview] BP’s Woes Continue: Weak Refining Margins to Squeeze Earnings
- Steel Dynamics Inc.: A Dive Into Market Dynamics and Policy Tailwinds & Other Major Drivers
- Kinder Morgan: How Are They Executing The Strategic Asset Optimization in the Permian Basin? – Major Drivers
- Alcoa Corporation: What Is The Impact Of Increasing Alumina and Aluminum Prices? – Major Drivers
- STOXX 600: First September Forecasts for Europe and Eurozone
- Halliburton Company: Is Its International Market Growth Enough To Warrant A ‘Buy’ Rating? – Major Drivers
- Japan Pure Chemical (4973 JP): Q1 FY03/25 flash update
- PPG Industries: How Are Their Portfolio Changes Impacting Profitability and Growth? – Major Drivers
[Earnings Preview] BP’s Woes Continue: Weak Refining Margins to Squeeze Earnings
- BP expects lower realised refining margins and weak oil trading to hurt earnings, with a refining margin contraction to reduce earnings by USD 500-700 million.
- The company anticipates impairments ranging from USD 1-2 billion in Q2, including charges related to the ongoing review of its Gelsenkirchen refinery in Germany.
- BP projects its upstream production to remain broadly flat sequentially, with stable oil output and a slight decrease in gas and low-carbon energy production.
Steel Dynamics Inc.: A Dive Into Market Dynamics and Policy Tailwinds & Other Major Drivers
- Steel Dynamics achieved notable results in the second quarter of 2024, with some mixed performances across different operational aspects.
- The company saw total revenues of $4.6 billion, a slight decline from the previous quarter, primarily attributed to a fall in steel prices which more than offset the stable shipment volumes.
- Correspondingly, there was a contraction in the steel metal spread which resulted in a 26% reduction in operating income, totaling $559 million, compared to the previous quarter.
Kinder Morgan: How Are They Executing The Strategic Asset Optimization in the Permian Basin? – Major Drivers
- Kinder Morgan Inc. recently discussed various insights and forecasts regarding its business and the broader market context in which it operates.
- The company provided a detailed analysis of trends and operational activities, revealing both positive developments and challenges.
- This summary outlines the central points that might influence investment decisions related to Kinder Morgan.
Alcoa Corporation: What Is The Impact Of Increasing Alumina and Aluminum Prices? – Major Drivers
- Alcoa’s revenue increased sequentially to $2.9 billion, driven by higher alumina and aluminum prices.
- In the Alumina segment, third-party revenue saw a 5% rise due to increased average realized prices, despite lower shipments.
- The Aluminum segment reported a 16% increase in third-party revenue, attributed to higher prices and increased shipments.
STOXX 600: First September Forecasts for Europe and Eurozone
- Koninklijke Vopak Nv (VPK NA) & Shaftesbury PLC (SHB LN) are currently passing the entry rank of SXXP. Forecasted passive fund demands are $22m-$34m and 3-5 ADV.
- Indivior PLC (INDV LN) is currently the only one below the exit rank of SXXP. Forecasted passive fund supply is $11.5m and 1.4 ADV.
- ‘Most liquid stock’ criterion can cause a ‘switch‘ of share lines in the index as it happened with Lindt (LISP SW) and Lindt (LISN SW) in September 2022.
Halliburton Company: Is Its International Market Growth Enough To Warrant A ‘Buy’ Rating? – Major Drivers
- Halliburton Company reported a total revenue of $5.8 billion for the second quarter, maintaining flat sequential growth.
- The company’s operating margin stood at 18%, representing a sequential increase of 69 basis points.
- International revenue reached $3.4 billion, marking an 8% year-over-year growth, primarily driven by a strong performance in Latin America, which saw a 10% increase.
Japan Pure Chemical (4973 JP): Q1 FY03/25 flash update
- Revenue increased to JPY3.1bn (+8.3% YoY), with operating profit at JPY149mn (+173.2% YoY) and net income at JPY271mn (+127.3% YoY).
- Revenue from plating chemicals for PCBs and semiconductor substrates was JPY1.5bn (+75.1% YoY), with stable sales for generative AI.
- Revenue from plating chemicals for connectors was JPY444mn (-27.7% YoY), while revenue for lead frames was JPY1.1bn (-12.7% YoY).
PPG Industries: How Are Their Portfolio Changes Impacting Profitability and Growth? – Major Drivers
- PPG Industries, a global supplier of paints, coatings, and specialty materials, reported their second quarter 2024 financial results highlighting an all-time record earning per share (EPS) of $2.50 that signified an 11% year-over-year growth.
- Despite increasingly challenging macroeconomic conditions, the company posted sales of $4.8 billion, marking the seventh consecutive quarter of year-over-year segment margin improvement.
- However, their aggregate volumes in the quarter remained flat year-over-year, falling below their initial expectations due to weak demand in Europe and global automobile manufacturing.
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