Latest news with #profitmargins
Reuters
19 hours ago
- Business
- Reuters
China ramps up exports of refined fuels as margins rise
LAUNCESTON, Australia, July 29 (Reuters) - China's exports of key refined fuels are on track to jump to the highest in 16 months as refiners take advantage of rising profit margins. Shipments in July of middle and light distillates, which include diesel and gasoline, are forecast to reach 26.63 million barrels, or 859,000 barrels per day, data compiled by commodity analysts Kpler shows. This figure is up from 796,000 bpd in June and the highest since the 1.06 million bpd in March 2024, the data shows. China's refiners have substantial spare capacity to ramp up output while their unused export quotas will allow them to take advantage of rising profit margins for refined fuels, especially gasoil, the building block for diesel and jet kerosene. The crack spread, or profit margin, for producing a barrel of 10 ppm gasoil in Singapore ended at $20.43 a barrel on Monday, up from the prior close of $21.00. The margin is down from the 16-month high of $22.85 a barrel from July 18, but is 56% higher than the low so far this year of $13.05 on March 25. China's gasoil exports are forecast at 6.22 million barrels in July by Kpler, the highest since June 2024 and up from just 3.56 million last month. Data from LSEG Oil Research is slightly more bullish, with gasoil exports pegged at 6.55 million barrels for July, more than double the 3.13 million recorded for June. China's exports of other middle distillates, such as jet kerosene, also rose in July, with Kpler estimating shipments of 9.59 million barrels, up from 8.65 million in June and the most since January. There is also scope for China to increase shipments in coming months, as refiners still have unused export quotas. Total export quotas granted by Beijing to refiners amount to 45 million metric tons and official customs data shows total refined product exports of 27.19 million in the first half of 2025, a decline of 9.7% from the corresponding period in 2024. China's refiners have been increasing output, with throughput rising 8.5% in June to 15.15 million bpd, official data showed on July 15. That was the highest daily processing rate since September 2023 and it is likely that refiners are seeking to take advantage of rising prices for refined fuels while processing crude secured when oil prices were trending lower at the start of the second quarter. China is also shipping more gasoline, with LSEG estimating July exports of 6.7 million barrels, up from 5.7 million in June and the most since March. The profit margin for gasoline in Singapore has not been as strong as that for diesel, ending at $7.43 a barrel on Monday, up from $7.41 at the previous close. The margin is down from the year's high so far, of $11.83 a barrel on May 9, but is still double the low of $3.68 hit on January 21. The current pricing for refined fuels is enough to encourage further Chinese exports in coming months. The case may be further supported if new European Union sanctions targeting Russian fuel exports do result in a shifting of flows around the globe. The EU is banning imports of refined products made from Russian crude, which will mainly impact refiners in India, who have been buying discounted Russian oil and exporting fuels to both Europe and Asia. While Chinese refiners also buy Russian crude it will be easier for them to show which individual plants do not use Russian oil, and therefore can still export to Europe. Currently hardly any Chinese refined products end up in Europe, but it becomes a possibility if Indian refiners are forced to look for new markets outside Europe, and European buyers are forced to look for new suppliers. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab. The views expressed here are those of the author, a columnist for Reuters.
Yahoo
4 days ago
- Business
- Yahoo
Centene raises Wall Street optimism that Medicaid insurers can improve profits
By Amina Niasse NEW YORK (Reuters) -Wall Street regained confidence in Medicaid insurers after Centene said on Friday it expects to be able to raise rates charged to states for 2026 health plans for low-income Americans and strengthen profit margins. Insurer shares rose across the board. Centene shares were up 5% in early afternoon trading after falling 16% on the company's announcement of a second-quarter loss and forecast cut. Rivals UnitedHealth, CVS Health and Humana rose 1.61%, 2.69% and 3.45%, respectively. All three report earnings next week. Centene in an earnings call reassured investors it would work with states to ensure their payments for Medicaid plans match the company's increased medical costs for 2026. 'Our goal is to reprice 100%' of plans, said company CEO Sarah London. Insurers are paid a set amount by states for Medicaid plans, which are jointly funded with the federal government. Centene, UnitedHealth and Elevance have said this year that state reimbursements for these plans have lagged behind actual costs of care. Cautious investors have been looking for Medicaid health plan design changes and strategic geographic changes by the companies to reduce use of healthcare services. New work requirements for Medicaid recipients in President Donald Trump's signature tax-cut and spending bill have made some investors worry that healthy people could disenroll in coming years. The bill requires states to verify certain members are working or volunteering a minimum of 80 hours per month to qualify for Medicaid coverage starting in 2027. After a COVID-19 era requirement to keep people enrolled expired in 2023, Medicaid plans redetermined each person's eligibility. This pushed members off, changing the mix of sick and healthy participants, and some Medicaid insurers struggled. 'The Medicaid redeterminations have proven to be far more disruptive than anyone thought," said Jeff Jonas, a portfolio manager at Gabelli Funds. "The entire industry is focused on restoring margin over winning new contracts and membership." More detailed data could justify midyear price increases, said Kevin Gade, chief operating officer at Bahl & Gaynor, and correct mismatched rates set by states after the pandemic. More data over the next year will also enable insurers to improve cost management techniques and raise rates paid by states, Gade said. "With enough data you can take care of the problem.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
4 days ago
- Business
- Reuters
Centene raises Wall Street optimism that Medicaid insurers can improve profits
NEW YORK, July 25 (Reuters) - Wall Street regained confidence in Medicaid insurers after Centene (CNC.N), opens new tab said on Friday it expects to be able to raise rates charged to states for 2026 health plans for low-income Americans and strengthen profit margins. Insurer shares rose across the board. Centene shares were up 5% in early afternoon trading after falling 16% on the company's announcement of a second-quarter loss and forecast cut. Rivals UnitedHealth (UNH.N), opens new tab, CVS Health (CVS.N), opens new tab and Humana (HUM.N), opens new tab rose 1.61%, 2.69% and 3.45%, respectively. All three report earnings next week. Centene in an earnings call reassured investors it would work with states to ensure their payments for Medicaid plans match the company's increased medical costs for 2026. 'Our goal is to reprice 100%' of plans, said company CEO Sarah London. Insurers are paid a set amount by states for Medicaid plans, which are jointly funded with the federal government. Centene, UnitedHealth and Elevance have said this year that state reimbursements for these plans have lagged behind actual costs of care. Cautious investors have been looking for Medicaid health plan design changes and strategic geographic changes by the companies to reduce use of healthcare services. New work requirements for Medicaid recipients in President Donald Trump's signature tax-cut and spending bill have made some investors worry that healthy people could disenroll in coming years. The bill requires states to verify certain members are working or volunteering a minimum of 80 hours per month to qualify for Medicaid coverage starting in 2027. After a COVID-19 era requirement to keep people enrolled expired in 2023, Medicaid plans redetermined each person's eligibility. This pushed members off, changing the mix of sick and healthy participants, and some Medicaid insurers struggled. 'The Medicaid redeterminations have proven to be far more disruptive than anyone thought," said Jeff Jonas, a portfolio manager at Gabelli Funds. "The entire industry is focused on restoring margin over winning new contracts and membership." More detailed data could justify midyear price increases, said Kevin Gade, chief operating officer at Bahl & Gaynor, and correct mismatched rates set by states after the pandemic. More data over the next year will also enable insurers to improve cost management techniques and raise rates paid by states, Gade said. "With enough data you can take care of the problem.'
Yahoo
4 days ago
- Business
- Yahoo
Centene raises Wall Street optimism that Medicaid insurers can improve profits
By Amina Niasse NEW YORK (Reuters) -Wall Street regained confidence in Medicaid insurers after Centene said on Friday it expects to be able to raise rates charged to states for 2026 health plans for low-income Americans and strengthen profit margins. Insurer shares rose across the board. Centene shares were up 5% in early afternoon trading after falling 16% on the company's announcement of a second-quarter loss and forecast cut. Rivals UnitedHealth, CVS Health and Humana rose 1.61%, 2.69% and 3.45%, respectively. All three report earnings next week. Centene in an earnings call reassured investors it would work with states to ensure their payments for Medicaid plans match the company's increased medical costs for 2026. 'Our goal is to reprice 100%' of plans, said company CEO Sarah London. Insurers are paid a set amount by states for Medicaid plans, which are jointly funded with the federal government. Centene, UnitedHealth and Elevance have said this year that state reimbursements for these plans have lagged behind actual costs of care. Cautious investors have been looking for Medicaid health plan design changes and strategic geographic changes by the companies to reduce use of healthcare services. New work requirements for Medicaid recipients in President Donald Trump's signature tax-cut and spending bill have made some investors worry that healthy people could disenroll in coming years. The bill requires states to verify certain members are working or volunteering a minimum of 80 hours per month to qualify for Medicaid coverage starting in 2027. After a COVID-19 era requirement to keep people enrolled expired in 2023, Medicaid plans redetermined each person's eligibility. This pushed members off, changing the mix of sick and healthy participants, and some Medicaid insurers struggled. 'The Medicaid redeterminations have proven to be far more disruptive than anyone thought," said Jeff Jonas, a portfolio manager at Gabelli Funds. "The entire industry is focused on restoring margin over winning new contracts and membership." More detailed data could justify midyear price increases, said Kevin Gade, chief operating officer at Bahl & Gaynor, and correct mismatched rates set by states after the pandemic. More data over the next year will also enable insurers to improve cost management techniques and raise rates paid by states, Gade said. "With enough data you can take care of the problem.'
Bloomberg
21-07-2025
- Business
- Bloomberg
Is Wall Street Still Too Bearish on the Impact of Tariffs?
'Liberation Day' feels like a long time ago. Since President Donald Trump shocked markets with sky-high new tariff rates and a hasty U-turn, the S&P 500 Index has rebounded to all-time highs, and there's a pervasive sentiment that Wall Street is recklessly ignoring economic risks that haven't really gone away. Earnings season may, however, provide further fuel for the rally. Earnings estimates for the more trade-sensitive companies still haven't rebounded from the very serious hit they took after April 2. Maybe (just maybe) we'll start to see that happen as companies announce their quarterly results. Though tariffs are no joke for profit margins, many large companies are finding ways to mitigate the impact, and there's no clear sign that the levies will precipitate the economic downturn that many initially feared.
