Commodity trader Gunvor Group posted a 42% drop in profit in 2024, as the energy-market volatility that drove mega earnings in previous years declined. Net profit fell to $729 million last year, while revenues grew due to higher volumes of physically traded crude and refined oil products, the trading house said in a statement on Tuesday. Though full-year earnings were the fourth best in Gunvor’s history, second-half profit was the lowest since 2020. After banking billions of dollars in windfall profits as markets whipsawed following Russia’s full scale invasion of Ukraine, commodity trading giants are adapting to a new normal. Prices for gas and coal have declined from multi-year highs, while crude oil futures are trading in a tight range. In an interview with Bloomberg last week, Gunvor’s co-founder and Chief Executive Officer Torbjörn Törnqvist acknowledged that the firm had lost money on some oil trades. The CEO has overhauled Gunvor’s top leadership team in recent months. “Some areas have really performed well; some areas did not perform well. I’m open with that,” he said. On Tuesday, the trading house said it was also impacted by impairments last year, including one for its oil refinery in Rotterdam. Like its trading peers, Gunvor has been investing in assets to help stabilize long-term profits. That includes buying into a gas power station in Spain, a fuel distribution network in Pakistan and upstream natural gas production in the US. Gunvor said its equity was $6.5 billion at the end of the year. Billionaire Törnqvist owns 84.79% of the company, with the remaining shares held by employees. WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed. MORE FROM THIS AUTHOR

Oil crept higher as traders braced for impending US tariff announcements and equity markets rose. West Texas Intermediate rose 0.7% to settle below $72 a barrel, while global benchmark Brent ended the session just below $75. US President Donald Trump is set to announce tariffs later Wednesday and the sweeping duties are set to take immediate effect. Several proposals are said to be under consideration, including a tiered system with a set of flat rates for different countries, as well as a more customized “reciprocal” plan. Equity markets also gained. The tariffs add to a deluge of conflicting drivers since Trump came into office. Sanctions threaten to curb supplies from Russia and Iran, while a production boost by OPEC and its allies starting this month is exacerbating concerns that a glut is looming. The US is threatening to further tighten the screws on Russia. A group of 50 Republican and Democratic senators introduced a sanctions package that would hit the third-largest oil producer and countries that buy its fuel if President Vladimir Putin refuses to engage in good-faith ceasefire negotiations with Ukraine or if he breaches any eventual agreement. “Supply risks are still top of mind,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. “But with equities rallying on the prospect of a less-than-horrible tariff outcome, crude is along for the ride.” Oil Prices: WTI for May delivery rose 0.7% to settle at $71.71 a barrel in New York. Brent for June settlement climbed 0.6% to settle at $74.95 a barrel. What do you think? We’d love to hear from you, join the conversation on the Rigzone Energy Network. The Rigzone Energy Network is a new social experience created for you and all energy professionals to Speak Up about our industry, share knowledge, connect with peers

CenterPoint Energy has completed the sale of its natural gas distribution systems in Louisiana and Mississippi to Delta Utilities for $1.2 billion, the companies announced Tuesday. Sale proceeds will “support the efficient funding of what we believe is one of the most tangible long-term growth plans in the industry,” CenterPoint President and CEO Jason Wells said in a statement. “We will continue to optimize the funding of our capital investments to support safety, reliability and resiliency for the benefit of our customers and communities.” CenterPoint now has electric transmission and distribution, power generation and natural gas distribution operations that serve approximately 7 million customers in Indiana, Minnesota, Ohio and Texas. Assets sold to Delta include approximately 12,000 miles of main pipeline serving approximately 380,000 metered customers. “Completing this acquisition furthers our vision to establish modern, multi-state natural gas utilities that build stronger, more resilient communities,” Delta CEO Tim Poché said in a statement. Delta is an affiliate of private equity firm Bernhard Capital Partners. Delta is also in the final stages of acquiring Entergy’s two regulated natural gas local distribution companies in New Orleans and Baton Rouge, with the sale expected to close this summer, the company said. Entergy Louisiana’s gas business serves approximately 95,000 homes and businesses in the Baton Rouge area, and Entergy New Orleans’ gas business serves approximately 109,000 homes and businesses in New Orleans, the utility said in a February announcement of the deal. While private equity firms have been known to squeeze profit from companies before reselling, Poché told the Shreveport-Bossier City Advocate that the gas system acquisition “is not a short-term investment at all.” “We’re very attracted to natural gas, in the resiliency that it has as a very significant transition fuel within our country,” he said. For CenterPoint, the utility said in 2024 that the

Dive Brief: PacifiCorp expects to procure through requests for proposals about 2,400 MW of solar, 2,270 MW of wind, 1,680 MW of four-hour storage and 510 MW of 100-hour iron air battery storage by the end of 2030, according to the utility company’s integrated resource plan, filed with state regulators on Monday. By the end of this year, PacifiCorp also plans to finalize a 500-MW agreement to buy electricity from TerraPower’s Natrium advanced nuclear project in Wyoming, which is set to be operating by the end of 2031, the utility company said. The cost of the project is confidential. Also, if, as expected, the Biden administration’s greenhouse gas emissions rule for power plants doesn’t take effect, PacifiCorp plans to continue operating some coal-fired generation it had previously expected to retire. The plan calls for converting 562 MW of coal-fired generation to gas, exiting 386 MW of minority-owned coal-fired capacity, and adding carbon capture equipment to two coal-fired units at the Jim Bridger power plant in Wyoming that total 700 MW. Dive Insight: PacifiCorp utilities serve about 2 million customers in California, Idaho, Oregon, Utah, Washington and Wyoming. The IRP, filed every two years with stakeholder input, provides a roadmap for supplying power to those customers over the next 20 years. The utility owns or contracts for about 5,150 MW of wind, 4,530 MW of coal, 3,850 MW of gas, 3,620 MW of solar coupled with 550 MW of storage, 1,200 MW of hydroelectric capacity and 525 MW of stand-alone storage, according to the IRP. Under its resource plan, PacifiCorp expects that coal- and gas-fired generation will account for 16% and 10% of its energy mix in 2031, down from 35% and 19% this year, respectively. Wind and solar will make up 32% and 25%, up from 24% and 10%, respectively, in

Dive Brief: Pacific Gas & Electric intends to award up to $43 million in grants for community microgrid projects in Northern California, the gas and electric utility said on March 26. Issued under California’s Microgrid Incentive Program, a $200 million statewide competitive grant program, the funds will support projects serving nearly 9,000 customers in Humboldt, Lake and Marin counties. Four of the projects are in tribal communities, PG&E said. Also this week, distributed energy provider Sunrun announced a “first-of-its-kind program” with PG&E to harness approximately 600 home solar-and-storage systems to provide “targeted load relief to neighborhoods identified with highly constrained electric grids,” potentially avoiding or deferring distribution grid investments. Dive Insight: In 2023, the California Public Utilities Commission approved $200 million in funding for the Microgrid Incentive Program, including $79.2 million for PG&E, $83.3 million for Southern California Edison and $17.5 million for San Diego Gas & Electric. The nine awards announced March 26 represent the first tranche of PG&E’s MIP grants, selected from a pool of 22 applicants. Applications for the second tranche open on April 3 and run through May 30, PG&E said. First-tranche projects will receive a combined $34 million for front-of-the-meter generating resources and other project costs, plus $1 million each to cover grid interconnection costs, the utility said. Eligible microgrid projects must be able to provide at least 24 consecutive hours of energy in “island mode,” interconnect on distribution lines at or below 50 kV, and have “island mode” emissions no greater than the surrounding grid, according to a PG&E fact sheet. Projects must also be located in areas vulnerable to outages due to high wildfire or earthquake risk or lower historical reliability, and serve “disadvantaged or vulnerable communities” in rural, tribal or low-income areas. The awardees will join several active microgrids in Northern and

Energy profits have hit half a trillion pounds since the energy crisis despite rising consumer bills, according to an independent analysis of company reports. Researchers at the End Fuel Poverty Coalition counted the profits declared by UK energy producers such as Shell and Equinor, as well as suppliers including British Gas and grid operators such as National Grid. Nearly half of the £500 billion of profits generated by the industry since 2020, or £207bn, were made by companies involved in the gas industry. According to Scottish Renewables chief executive Claire Mack, bill payers are ‘paying the price’ for exposure to global gas markets, with renewable power likely to provide the best value for consumers. © Supplied by Scottish RenewablesScottish Renewables chief executive Claire Mack. The ceiling on energy prices, designed to protect consumers from price spikes, and enforced by energy regulator Ofgem, known as the energy price cap, rose by 6.4% this week. Trade union Unite protested against high energy prices on Tuesday, arguing that nobody should have to choose between ‘heating or eating’. Union members will campaign across 40 locations in the UK, with further protests planned in the coming two weeks. Prime minister Keir Starmer has meanwhile promised that clean power will lower energy bills, something Kemi Badenoch, leader of the Conservatives, wants to abolish – while right-wing party Reform is also trying to leverage high bills in its political campaign. Politicians have begun to engage energy companies as they seek to invest in clean technologies and lower prices. Energy secretary Ed Miliband broached talks with Centrica this month to extend the Rough gas storage facility in the North Sea beyond 2030. A spokesperson for the Department for Energy Security and Net Zero (DESNZ) said: “We’re open to discussing proposals, just as long as it provides value for