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United Airlines says pricier fuel, war in Middle East will weigh on profits

Published

1 year ago

October 17, 2023

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A Boeing 787-10 Dreamliner, from United Airlines, taking off from Barcelona airport in Barcelona on March 28, 2023.

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United Airlines said more expensive jet fuel and a halt to the carrier’s Tel Aviv flights during the Israel-Hamas war will eat into its profits in the last three months of the year.

For the current quarter, the Chicago-based carrier estimated adjusted earnings of between $1.50 and $1.80 a share, below analysts’ forecasts of $2.06.

United would then earn between $9.55 and $9.85 a share, on an adjusted basis, down from its forecast in July of between $11 and $12 a share, based on its projection for the fourth quarter. Jet fuel prices in major U.S. airports are up nearly 25% since the start of summer.

Its shares dropped around 4% in after-hours trading.

United and other U.S. and international carriers halted their flights to Israel earlier this month. United had more service to Israel than any of the U.S.-based airlines with service from Washington, D.C.; Newark, New Jersey; and San Francisco.

United said its fourth-quarter revenue will rise year over year between 9%, if Israel flights remain suspended through the end of the year, and 10.5% if the suspension lasts only through October. Its costs, excluding fuel, will likely rise between 3.5% and 5% in the fourth quarter from 2022, United said.

The service suspension comes after a robust summer for air travel with revenue growth for international destinations outpacing sales of domestic tickets. That has put big, global carriers such as United and Delta on better footing than some discount airlines such as Spirit, which focus more on U.S. cities and expect losses.

Here’s what United reported for the third quarter compared with what Wall Street expected, based on average estimates compiled by LSEG, formerly known as Refinitiv:

Adjusted earnings per share: $3.65 vs. an expected $3.35
Total revenue: $14.48 billion vs. an expected $14.44 billion

United posted third-quarter net income of $1.14 billion, or $3.42 a share, versus $942 million, or $2.86 a share, a year earlier. Adjusting for one-time items, United posted earnings per share of $3.65.

Revenue rose to $14.48 billion from $12.88 billion.

The carrier will hold a call with analysts and media on Wednesday at 10:30 a.m. ET, when it will face questions on fourth-quarter demand and how the carrier plans to tamp down rising costs.

Environment

Oil major BP to slash renewable spending and double down on fossil fuels in strategy reset

Published

4 hours ago

February 26, 2025

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Oil major BP to slash renewable spending and double down on fossil fuels in strategy reset

The BP logo is displayed outside a petrol station on January 30, 2025 in Warrington, United Kingdom.

Nathan Stirk | Getty Images News | Getty Images

British oil major BP on Wednesday announced plans to increase annual oil and gas investment to $10 billion through 2027 as part of a fundamental strategic reset.

The beleaguered energy giant also said it planned to lower its annual capital expenditure to sit within a range of $13 and $15 billion over the same time horizon, while targeting $20 billion in divestments by the end of 2027.

The oil major said investment in transition businesses would be “significantly lower” over the coming years. The firm said spending is now likely to come in at $1.5 billion to $2 billion per year — more than $5 billion per year below the previous guidance.

“Today we have fundamentally reset bp’s strategy,” BP CEO Murray Auchincloss said in a statement.

“We are reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency. This is all in service of sustainably growing cash flow and returns,” he added.

BP is poised to outline further details of its new direction at its Capital Markets Update on Wednesday afternoon.

An investor day presentation, which will be hosted by Auchnicloss and other members of the firm’s leadership team, is scheduled to take place from 1 p.m. London time.

Analysts have described BP’s investor day as a pivotal moment for the firm, particularly after it emerged that activist investor Elliot Management had built a stake in the oil major.

BP’s Auchnicloss, who took the helm on a permanent basis in January last year, is under significant pressure to reassure investors that the company is on the right track to improve in its financial performance.

The London-listed firm has lagged its industry rivals in recent years, as investors have continued to question the firm’s strategic direction.

Shares of BP fell 1% on Wednesday morning.

‘Shocking but not surprising’

Lindsey Stewart, director of investment stewardship and policy at Morningstar Sustainalytics, said Wednesday that BP’s decision to reduce capital expenditure on renewables and double down on its fossil fuel assets “will be shocking but not surprising to investors focused on sustainability.”

He added that “having already cut back its energy transition targets in 2023, BP’s subsequent underperformance compared with peers has created pressure for BP management to focus on sustainability of a financial rather than ecological nature.”

Reuters on Monday reported that BP is poised to abandon its target to increase renewable generation 20-fold by 2030, citing two unnamed sources close to the matter. A spokesperson for the company declined to comment when contacted by CNBC.

Five years ago, BP became one of the first energy giants to announce plans to cut emissions to net zero “by 2050 or sooner.” As part of this push, BP pledged to slash emissions by up to 40% by 2030 and to ramp up investment in renewables projects.

The company scaled back this emissions target to 20% to 30% in February 2023, saying at the time that it needed to keep investing in oil and gas to meet global demand.

Environment

610 hp for just $33,085 – China raises the bar with Chery Exeed VX C-DM

Published

11 hours ago

February 26, 2025

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610 hp for just ,085 – China raises the bar with Chery Exeed VX C-DM

Chery’s Exeed VX C-DM started presales in China with 610 hp for 33,085 USD

In case you needed another reason to feel jealous of Chinese car enthusiasts, the Chery Exeed VX C-DM three-row SUV is officially available for pre-order with 610 hp, 1,300 km (over 800 miles) of EREV range, and a starting price of $33,085 US.

State-owned Chinese automaker Chery recently launched the Exeed luxury brand, with its latest model, the Exeed VX C-DM plugin, making its international debut in Saudi Arabia February 23. At the same time, Chery opened the order books on the Exeed in China under the Exeed Lanyue C-DM name. And it is, in a word: impressive.

It’s really nice, you guys

Dubbed “the land business jet” on Exeed’s website, the Exeed VX C-DM pairs a 1.5L range-extending ICE motor with a three-speed DHT gearbox that integrates with a 165 kW e-motor. A second 175 kW electric motor sits in the rear axle, giving the big, seven-passenger SUV a combined peak power output of 455 kW (about 610 hp) and 920 Nm (nearly 680 lb-ft) of torque. That’s enough to rocket the big SUV from 0-60 mph in less than 5.0 seconds.

On the EV side of the ERVE equation, the Exeed VX C-DM packs a super-safe CATL NMC battery pack good for 180 km (about 112 miles) of CLTC range in electric mode – a far cry from the twenty-or-thirty-odd miles you’d get out of a conceptually similar Mazda CX-90 PHEV or Jeep Grand Cherokee 4xe.

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It’s nice inside, too

In addition to that power and performance Exeed VX C-DM buyers also get a high-end interior with quilted leather, massaging front seats, slick infotainment screens, panoramic glass roof, a 23-speaker Lion Melody sound system, and LED mood lighting. That high-tech interior sets the stage for more high-tech baubles, like 26 ADAS functions that include self-driving features, an SDG system to reduce collisions, a 540-degree (?) camera for easy parking.

That ADA system combines with a “high-performance integrated cage body” and 10 driver and passenger airbags to deliver a 5 Star C-NCAP crash test rating.

And, yes – al that goodness starts at the equivalent of just 239,900 yuan ($33,085 US) in China.

Eat your heart out.

Electrek’s Take

We can talk about tariff this and trade war that all day long. The real message here, however, is that China is objectively, unequivocally, and obviously years ahead of the US when it comes to American EVs in terms of manufacturing efficiency, battery and charging technology, and value. And, for as long as they have a system that takes the burden of pensions and healthcare and other basics of life off the manufacturer (and we don’t) they’ll probably keep pulling ahead.

Head on down to the comments and tell me convince me otherwise.

SOURCE | IMAGES: Chery Exeed, via CarNewsChina.

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Environment

TSLA gets hammered, Mercedes set to ditch EQ, and big van news

Published

12 hours ago

February 26, 2025

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TSLA gets hammered, Mercedes set to ditch EQ, and big van news

With revenue tumbling almost as fast as market share, Tesla stock is taking a pounding – exactly like CEO Elon Musk predicted! We’ve also got FSD rolling out in China, a German automation acquisition, and more on today’s red candlestick edition of Quick Charge!

We’ve also got some clarifying news at Mercedes-Benz, which is set to ditch its confusing EQ-based model alphanumerics and (God willing) their suppository-based styling language, too. Plus, Rivian launches a new upfit service to make it easier for fleet managers to order ready-to-work EVs, Ram ProMaster EV lives up to its promises with more options and a lower price tag, and a big solar deal goes down.

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