Abu Dhabi to Sell 4% of Natural-Gas Business in IPO -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is 2.4% lower at $83.011 a barrel.

--European benchmark gas falls 4.4% to EUR 49.71 a megawatt-hour.

--Gold futures are down 1.1% at $1,831.30 a troy ounce.

--Three Month copper is 1.9% lower at $8,881 a metric ton.

--Wheat futures are 0.5% lower at $7.73 a bushel.

TOP STORY:

Abu Dhabi to Sell 4% of Natural-Gas Business in IPO

The United Arab Emirates' national energy company plans to sell a stake of about 4% of its natural-gas business in an initial public offering that it hopes will raise $2 billion, as Middle East petrostates increase plans to supply Europe.

The Abu Dhabi National Oil Co., or Adnoc, will sell more than 3 billion shares in Adnoc Gas, one of the world's largest gas-processing entities, on the Abu Dhabi Securities Exchange on Feb 23. Shares are expected to begin trading on March 13.

Adnoc Gas was formed earlier this year after Adnoc combined its liquefied-natural gas and gas-processing arms as part of a push to boost output and trading of liquefied natural gas. Abu Dhabi recently delivered its first shipment of LNG to Germany, as Europe increasingly turns to the Middle East after shunning its main supplier of gas, Russia, over the invasion of Ukraine.

Over the long term, Abu Dhabi sees natural gas as an important part of the future energy mix with renewables and nuclear.

OTHER STORIES:

France's EDF Lost $19 Billion After Nuclear Outages

EDF SA lost around $19 billion last year after outages at its nuclear reactors left the state-controlled power company--and much of Western Europe--more exposed to the energy crisis sparked by the war in Ukraine.

Pipe corrosion found at around 10 of EDF's 56 nuclear reactors led it to shut down more than half of them over the summer. As a result, EDF was forced to buy electricity on Europe's wholesale power market, where prices had soared because of Russia's decision to cut shipments of natural gas to the continent.

EDF said the nuclear outages cost it 29.1 billion euros, equivalent to around $31 billion, in pretax earnings. The French government's decision to cap power prices lowered earnings by another EUR8.5 billion. Unusually low hydropower generation caused by drought conditions over the summer cost the company another EUR2.5 billion.

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Sibanye-Stillwater Reports 2022 Maiden Lithium Mineral Reserve of 193,600 Metric Tons of LCE

Sibanye-Stillwater Ltd. said it recorded a 2022 maiden lithium mineral reserve of 193,600 metric tons of lithium carbonate equivalent, or LCE, and that its lithium mineral resources rose to 452,900 metric tons of LCE.

The precious-metals mining company said 2E platinum group metals--which include platinum and palladium--mineral reserves as at Dec. 31 were 26.3 million ounces and mineral resources of 84.2 million ounces after the reposition of its U.S. platinum group metals operations.

The company said the mineral reserves supported a 42-year life-of-mine, and that this in turn built up to 700,000 ounces of annual production by 2026. It added that the estimates reflected minor year-on-year decreases of 3.6% and 6.1% respectively, due to enhanced estimation methodologies "with considerable Mineral Reserve upside potential remaining, based on the very large Inferred Resource base of 44.8 million ounces."

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Uniper 2022 Loss Widened; Sees Earnings Improve in 2023

Uniper SE reported a widened loss for 2022 as a result of high replacement procurement costs due to the curtailment of Russian gas volumes, but said it expects adjusted earnings to improve in the current year.

The German gas importer on Friday confirmed that it booked a net loss of 19.1 billion euros ($20.4 billion) in the full year compared with a loss of EUR4.2 billion in the prior year, as announced during preliminary results.

MARKET TALKS:

Gold Price Expectations Fall as US Rate Hikes Loom

1102 GMT - Expectations for gold prices have fallen this week, with the likelihood of more rate hikes from the U.S. Federal Reserve rising amid a more hawkish rhetoric from the central bank. In a note, analysts at Commerzbank said that the bank was lowering its mid-year gold price forecast to $1,800 a troy ounce from $1,850 an ounce, as a result of the metal's recent weakness, noting that gold prices have fallen $130 from the start of the month with prices now at $1,833 an ounce. The analysts now expect the Fed's terminal rate to peak at 5.5% and add that Indian demand for gold remains low, while the Chinese inventories which were built up last year mean that a spurt of post-lockdown buying remains unlikely. ([e-mail])

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Crude Palm Oil Prices Rise Amid Supply Woes

1006 GMT - Crude palm oil prices rose amid tight supply caused by seasonally low production and a temporary export ban from top producer Indonesia, MIDF Research analysts say in a note. The analysts think prices could remain elevated and will only decline after Indonesia lifts its export ban after the Eid holidays. The benchmark Bursa Malaysia Derivatives contract for May delivery closed MYR67 higher at MYR4,136 a metric ton. ([e-mail])

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Oil Declines on US Economic Fears

0904 GMT - Oil slips as U.S. economic data add to fears about interest rates and a recession. Brent crude oil falls 1.8% to $83.59 a barrel while WTI drops 2% to $76.93 a barrel. Data Thursday showed U.S. producer prices rose 0.7% in January, reversing a decline in the previous month, suggesting inflation is remaining resistant to higher interest rates. U.S. weekly jobless claims also remained largely steady at their historically low levels. Investors are worried the data could push the Federal Reserve to keep raising interest rates to cool the economy and inflation. "Oil prices are trading lower because Fed hike fears keep the U.S. economy in a recession's shadow," Stephen Innes, managing partner at SPI Asset Management, says in a note. ([e-mail])

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Indonesia Bauxite Ban Has Limited Impact on Aluminum Prices

0855 GMT - Indonesia's bauxite ban, outlined in December of last year, has had a limited impact on aluminum prices, according to Fitch Solutions. The ban on the preliminary material for aluminum by Indonesia's President Joko Widodo, which is expected to go into effect from June 2023, initially pushed up prices. However, given that Indonesia only produces 5% of total bauxite, the ban's effect is likely to be limited and prices should mainly hinge on Chinese demand following re-open from lockdown, Fitch says in a note. Furthermore, high supply and cheap prices from Malaysia and Australia means the ban should have less of a significant impact, Fitch adds. ([e-mail])

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Metal Prices Slip as Fed Rhetoric Remains Hawkish

0825 GMT - Metal prices are falling in early trading, with a hawkish outlook from the U.S. Federal Reserve supporting the dollar and pressuring risk assets like commodities. Three-month copper is down 1.1% to $8,957.50 a metric ton while aluminum is down 1% to $2,395 a ton. Gold futures are also down 1% at $1,833.80 a troy ounce, an 11-week low. "Markets took a knock over the last 24 hours, with rates rising and equities selling off thanks to strong inflation data and hawkish central bank rhetoric, as some Fed officials even floated the prospect they might resume 50-basis-point hikes," Deutsche Bank analysts said in a note. The analysts added that it now seems possible that the Fed will keep hiking for some time yet. ([e-mail])

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Chinese Iron Ore Gains Amid Higher Demand

0323 GMT - Chinese iron-ore futures are higher, rising for a fourth consecutive session as hot-metal production has recovered while inventories at steel mills remain low. However, negative factors are mounting given steel mills' lower profits and an estimated higher iron-ore supply in the coming two months, Liu Huifeng, an analyst at Donghai futures, says in a note. The most-traded May iron-ore contract on the Dalian Commodity Exchange rises 1.5% to CNY885.0 a ton. ([e-mail])

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(END) Dow Jones Newswires

02-17-23 0651ET