The deep freeze that has plunged millions of Texans into darkness is spilling over into energy markets in unexpected ways, producing a financial windfall for one Australian bank and severe pain for other businesses falling victim to the disruption.
Extreme weather conditions have frozen wind turbines and oil and gas wells, shut down oil refiners and caused power plants to go offline, causing a shock in energy markets. Wholesale electricity prices have skyrocketed, as have natural gas spot prices in Texas, Oklahoma, Kansas and Arkansas.
The turmoil has led to a boon for Australia’s commodities traders Macquarie Group Ltd., whose ability to bring gas and electricity across the country has allowed them to take advantage of demand and prices in rising in states like Texas.
The bank raised its forecast for profit for the year on Monday through March to reflect the windfall. He said net profit after tax would be 5% to 10% higher than in fiscal 2020. This equates to an increase of A $ 273.1 million, or about $ 215 million. In his previous forecast, released on February 9, Macquarie said he expected profits to decline slightly by 2020.
“The extreme winter weather conditions in North America have dramatically increased short-term customer demand for Macquarie’s capabilities to maintain critical physical supply throughout the commodity complex, and in particular the gas and electricity, ”the bank said.