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Ireland's DCC Energy will go private with KKR Energy Capital in a $7.7 billion deal
Irish energy distributor DCC Energy agreed on Monday to a PS5,75 billion ($7.68billion) sale to a U.S. consortium of private equity firms KKR & Energy Capital Partners. This is the second foreign takeover this year of a UK listed company. DCC shareholders can expect to receive PS65.25 in cash per share, a final dividend of 147.22?pence and up to PS1.25 per share if the company sells its Nexora Technology unit for more than $800?million. When asked to explain the reasoning behind the agreement, CEO Donal Murphry said: "We have simplified the group and spent a lot of time on investor relations. But that hasn't translated in?the value private capital will put on our company." The third bid, which was made by the consortium, represents a more than 26% premium to the closing price of the group on April 28, a day before the consortium's initial offer. Investors, including Fidelity shareholder, had been opposed to a takeover. Murphy stated that one of the opposition shareholders, whom he did not name, "sold a very large percentage of their stake for a price lower than what the consortium is offering" and that the board felt confident that investors would support the deal. Alex Wright, portfolio director of Fidelity Special Situations Fund and Fidelity Special Values Fund, stated that the fund continues to oppose this deal and believes DCC remains an attractive long-term investment proposition. By 1403 GMT, shares of DCC had risen 1.2% to PS63.60. LONDON EXODUS CONTINUES Private equity has increased its interest in UK listed companies that trade at low valuations. EasyJet has been in discussions with two firms about a possible sale. Intertek, meanwhile, agreed to be taken private by EQT in June. Angeline Ong is a senior investment analyst with trading platform IG. She said that the UK excels at fostering successful companies but has difficulty in retaining them as domestically-located and owned global firms once they grow or want to grow. LSEG data shows that UK M&A will be largely driven by foreign bids in 2026, with a total of more than $197 'billion. This is the highest figure for a year since records began in 1980. U.S. buyers account for over half of foreign takeovers this year.
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Houthis claim they have targeted Saudi oil exports from the east to west
Yemen's Houthis, who are aligned with Iran, said that they had targeted a number of sensitive sites for supplying and transporting crude oil between eastern Saudi Arabia and the important Red Sea oil export hub Yanbu. Aramco, the Saudi state oil company, did not immediately respond to an inquiry for comment. Yahya?Saree, the Houthi military spokesperson, said that the operation was a response to what he called Saudi drone incursions in Yemeni airspace. Saudi Arabia has rerouted its crude production?to Yanbu through?its east-west pipe to avoid Iranian attacks on shipping along the Strait of Hormuz. These attacks began after the U.S. launched a military campaign against Iran in February. Last week, Iran’s Houthi allies announced a 'blockade' of Saudi Arabia’s oil industry on the Red Sea. This pushed oil prices higher. Saudi Arabia has responded by airstriking what it says are Houthi military facilities in Yemen's Hodeidah Port, saying that it would protect shipping. (Reporting and editing by Michael Georgy and Tomaszjanowski, Sharon Singleton and Eman Abouhassira)
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Brookfield raises 2 billion dollars for Middle East Fund from investors, including Saudi Arabia's PIF
Brookfield, a global investment firm, announced on Monday that it had raised $2 billion in private equity funds from strategic anchor investors including Saudi Arabia’s sovereign wealth fund. The fund will invest in Saudi Arabian companies and other Middle East firms. The Brookfield Middle East Partners fund (BMEP) aims to allocate half of its investments in Saudi Arabia. Brookfield, with a portfolio of?more than 1 trillion dollars, will contribute $500 million. Private equity firms from around the world have increased their investments in the Gulf region in recent years. They are attracted to the proximity of some of the largest sovereign wealth funds in the world and the growing pipeline of regional deals, such as in infrastructure. Bruce Flatt, CEO of Brookfield, said: "We see an opportunity to partner and position businesses in the region for long-term success." He cited "global trust and a strong demand for private equity opportunities in Saudi Arabia". Brookfield is a member of a global consortium of investors that announced a $16 Billion deal on Saturday with Kuwait Petroleum Corporation (KPC). This deal was made to counter concerns about the?impact the Iran War. Our partnership with Brookfield is intended to anchor international private equity in Saudi Arabia and the region. The partnership will accelerate deal 'flow and continue to 'bring world class expertise to the local market ecosystem," said Yazeed Al-Humied. He is deputy governor of PIF and head MENA Investments.
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Italy prepares measures to keep fuel costs below EUR2 amid fiscal worries
Italian officials and a leading lawmaker announced on Monday that the cabinet would 'adopt new...measures to curb the soaring fuel?prices.' Concerns about fiscal impacts of such measures are growing. The increase in energy prices and consumer costs due to the Middle East war has caused major problems for the Italian Government, which is attempting to balance state finances and protect the purchasing power of households and energy-intensive industries. The government sources said that the cabinet will meet on Monday evening to discuss new measures, focusing on diesel prices. Further action is expected on August 4th. Massimo Garavaglia of the Finance Committee of the Upper House of Parliament, without specifying a timeframe, told journalists in Milan that the "government" would take action to ensure that diesel and gasoline prices remain below EUR2 threshold. "We are now going to make some adjustments to excise duty to ensure that all Italians have a smooth holiday start. "We will then, as always monitor the situation," said he. In March, Italy implemented a temporary reduction in?acquisition duties on diesel and petrol as a response to the energy crisis triggered by Israel-Iran Conflict. The measure was repeatedly extended and then progressively'scaled back' until it ended on July 3 at a cost of nearly EUR2 billion ($2.28 billion) to the taxpayers. The European Commission and IMF both criticised the reduction in excise duties, saying that Italy should have taken more targeted measures, to protect the most vulnerable households. This would have had a less impact on Italy's already stretched budget. In a Monday statement, the industry ministry stated that "the average price for fuel at self-service stations on Italy's road system is EUR1.982 per litre of petrol and EUR2.185 per litre of diesel. This has increased from EUR1.803 on July 3 and EUR1.882 on July 3, respectively." The industry ministry said in a statement on Monday that?the average price of fuel at?self-service stations across Italy's road network is EUR1.982?per litre for petrol and EUR2.185 for diesel, up from EUR1.803 and EUR1.882 respectively on July 3.
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Expand Energy boosts gas marketing with $1.25 billion Twin Eagle Deal
Expand Energy announced on Monday that it would purchase privately-held natural gas'marketer Twin Eagle Holdings' from Five Point Infrastructure for $1.25 billion in order to expand its marketing business across North America. As the demand for natural gas in the United States is expected to increase, producers are expanding their marketing and logistics operations to gain better margins and greater control over where gas ends up. Twin Eagle, founded in 2010, is an independent natural-gas and power marketer. Its operations include wholesale marketing, asset and logistics management, and analytics. The companies stated that after the completion of the deal, it will operate as a fully owned subsidiary of Expand. Key members of the?Twin Eagle management team, such as Chief Executive Jeremy Davis, will remain with the company. Expand expects to generate an additional $750 million in free cash flow per year from its marketing strategy and commercial activities, which is a 50% increase from its prior target. Twin Eagle sells more than 5 billion cubic feet per day of natural gas and manages 44 billion cubic foot of storage space. Together, the two companies would be able to sell about 14 billion cubic feet of gas each day. According to the companies, the combined company will be able to access 90% of the U.S. natural gas market and that of Canada by gaining access?to key demand centres. The deal will close in the third quarter of 2026. Expand intends to finance?the purchase through a combination of cash on-hand and borrowings from its revolving loan facility. (Reporting by Sumit Saha in Bengaluru; Editing by Shinjini Ganguli)
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EU is urged to take action against unexpected duties on parcels of e-commerce
The European Consumer Federation and a prominent EU legislator are urging the European Commission to make sure that online shoppers do not have to pay?unexpected fees to cover a newly introduced customs duty. The EU introduced a EUR3 fee ($3.41) on low-value ecommerce imports which had previously entered the EU duty-free. BEUC, a group of consumer organizations from 31 European nations, believes that consumers should know the price including taxes. The group found that sometimes duties are only displayed late in the checkout or not at all. This can lead to an unanticipated charge. PostNL and La Poste are two European postal providers who say that the recipient may be asked to pay before delivery. Dirk Gotink (the Dutch lawmaker in charge of the customs files in the European Parliament) complained to EU Trade Commissioner Maros Sefcovic via a letter on July 7th, saying that platforms should be responsible for payments. Gotink stated that consumers should not be charged unexpected fees upon delivery, or as a condition for delivery. BEUC said that in some cases, postal operators charge substantial administrative fees. The BEUC plans to survey consumers over the next few months to gather a complete picture. According to a spokesperson for the European Commission, businesses are legally responsible for customs duties and they should not be collected by consumers. The European Commission said it was closely monitoring the situation. AliExpress and Temu?, two Chinese ecommerce platforms, include customs duty at the checkout. In AliExpress' case it is called an estimate. Shein doesn't, but says it pays all applicable duties. Prices are adjusted accordingly. Some Shein deliveries come from EU warehouses which are not subject to duty. The duty was imposed to limit what the EU called unfair competition by online retailers and a rise in e-commerce parcels up to 5,8 billion in 2025. Rotate, a Dutch aviation consulting firm, says that direct China to Europe cargoer capacity dropped 18% within 48 hours of the duty taking effect. This then moderated to 14% in the first week. Belgium and Hungary, two major entry points for imports via e-commerce, saw steeper drops, while the capacity at London Stansted Airport in non-EU Britain increased by 25%.
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Maguire: The ROI-US Energy Cushion faces a new stress test when Middle East risks are rising again
Since years, the US has become less vulnerable to the turmoil in the Middle East. The United States, as 'the world's leading producer of natural gas and oil, is better protected from supply shocks overseas than it was during previous Gulf crises. The latest escalation between Iran and the Houthis comes at a sensitive time. Energy infrastructure in the U.S. is already being strained by record electricity consumption, summer fuel peak, and growing data center?load. The 'country is still a 'energy-rich country, but the question now is not whether it has an abundance of supplies, but if production can expand fast enough to keep up with demand. This helps to explain why traders and policymakers pay unusually close attention a few key indicators. Together, these indicators provide a measure of resilience in the U.S. Energy System as geopolitical risk in the Middle East is once again at the forefront of energy markets. METRICS KEY Metrics that are closely monitored include crude oil production, natural-gas output, electricity production, refinery throughput, gasoline supply and storage levels of natural gas. Each provides a unique window on the strains across the entire energy system. Crude oil production is a good indicator of whether the domestic supply continues to grow fast enough to offset global disruptions. Natural gas production will reveal whether the fuel that powers much of the U.S. electricity sector can keep up with the rising demand for electricity. The data shows how utilities are working hard to meet the peak summer load from homes, businesses, and data centers. The refinery's throughput and the gasoline production are used to determine if enough fuel is produced for transportation during the busiest driving period of the year. Natural gas storage levels are the ultimate balancing metrics, showing if the system is still able to balance supply and demand comfortably or if the cushion of the system has begun to shrink. These indicators, when taken together, show whether the United States has added spare capacity or resilience to existing infrastructure, or is simply operating it closer to its limit. CRUDE OIL According to U.S. Energy Information Administration data, U.S. crude production is close to a record of 13.8 million barrels a day (bpd). This helps offset external'supply shocks. Baker Hughes reports that only 450 drilling rigs are currently active, compared to a peak of 1,600 in 2014. This means there is still some drilling capacity available if drilling costs improve. This potential for a supply response could help to temper concerns about prolonged oil price spikes resulting from geopolitical disruptions, or tighter global inventory. NATURAL GAS According to the EIA U.S. dry-gas production is close to a record of 111 billion cubic foot per day (Bcf/d), supporting a power industry increasingly dependent on gas-fired generators. The rig count suggests that there is room for growth in the short term, but mature basins and increasing extraction costs may limit long-term supply. The U.S. Gas Markets are well-positioned to meet the rising demand. However, longer-term growth may be more limited than previous cycles. REFINED PRODUCTS Refineries operate at near-record rates, processing over 17 million barrels per day of crude oil. Gasoline inventories are about 9% lower than a year ago, which indicates that fuel supplies are tighter than what refinery activity would suggest. The fact that U.S. refining facilities are heavily geared towards exports is a major factor in limiting the growth of domestic fuel supplies. Fuel costs on several international markets are significantly higher than those in the U.S. The strong demand for exports has therefore limited the amount of inventory that can be accumulated at home as a result of increased refinery activity. GAS STORAGE Storage is a reflection of the balance between demand and supply. Gas inventories in the U.S. are similar to last year's, which indicates adequate reserves. However, near-record LNG imports indicate that underlying conditions may be tighter than data on storage suggests. In the short term, LNG exporters will be able to purchase large quantities of gas due to strong demand in Asia and Europe. This could lead them into a competition with power generators for gas supply. ELECTRICITY GENERATION According to LSEG data, U.S. -power generation has increased by around 2% compared to a year earlier, mainly due the widespread heatwaves and the steadily increasing electricity demand of homes, businesses, and data centers. The increasing power consumption makes it more important to have a reliable fuel supply and adequate generating capacity at peak demand periods. The U.S. energy system continues to grow, but periods of low wind generation, extreme temperature or other operational disruptions may quickly cause a tightening in supply-demand and lead to a greater reliance on gas-fired power plants. In the United States, the amount of spare capacity in our energy system is a key indicator. The Big Picture These indicators together provide a measure of energy resilience in the United States. The overall balance is reflected in the oil and gas production, power generation, refined products, fuel availability, and gas storage. The data indicates that the energy system is well-supplied. As tensions in the Middle East rise and domestic demand continues to climb, these metrics can reveal whether or not the United States has built new resilience - or is simply relying upon ever-thinner margins for spare capacity. These are the opinions of the columnist, who is also an author. This column is great! Check out Open Interest, your new essential source for global financial commentary. Follow ROI on LinkedIn, X and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets 7 days a weeks.
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What has been attacked by Ukraine in its attacks on Russian energy sites?
Ukraine's forces have struck Russia's energy infrastructure, which Kyiv claims is an attempt to deny Russia resources for funding its military. Here is a list of recent attacks and their impact. TYUMEN On July 25, local Russian authorities reported that a?Ukrainian 'drone strike' sparked an fire at the Tyumen Refinery in western Siberia. The fire was later extinguished. The refinery's nominal capacity is around 8 million tons per annum. According to industry estimates, it processes approximately 6 million tons per year, producing 0.5 million tons gasoline and 2.5 millions tons diesel. YAROSLAVL According to President Volodymyr Zelenskiy, Ukrainian forces attacked Russian oil installations in Yaroslavl on July 27. This is about 250 km (160 mi) northeast of Moscow. The refinery at Yaroslavl can process 15 million metric tonnes per year or about 300,000 barrels of oil per day. SALAVAT Industry sources reported that the Salavat Petrochemical Complex, located in Bashkortostan's Urals region, stopped operations on 14 July following an attack by a Ukrainian drone. AFIPSKY A fire has broken out at the Afipsky refinery, located in southern Krasnodar Region of Russia. The cause was drone debris that fell from the sky. The refinery is capable of processing over 9 million tons of oil each year. SYZRAN According to industry sources, the Russian oil refinery Syzran on the Volga River in the Samara Region halted its operations on July 12 after an attack by a Ukrainian drone damaged a primary unit. Ukrainian drones attacked the Rosneft owned refinery on May 21. After the attack, the refinery had to stop operations due to damage caused to a primary processing unit. The refinery had suspended oil refining following attacks on 18 April. The refinery's processing capacity is 8.5 million tonnes per year. According to industry sources, in 2024 it will have processed 4.3 millions tons of crude oil into 800,000 tonnes of gasoline, 1,5 million tons diesel, and 700,000 tonnes of fuel oil. SARATOV Two sources claim that the Saratov oil refinery in Russia stopped processing oil on 9 July after a drone attacked caused damage. The plant will process 5.8 million tonnes of oil in 2024. This is 2.2% of Russia’s total refining production. It will produce 1.2 millions tons of gasoline, as well as 1.9 million tones of diesel, and?1.0million tons of fuel oil. ILSKY On July 10, local officials reported that a drone had attacked the Ilsky oil refinery, located in southern Krasnodar. The design capacity of the refinery is more than 6 million metric tonnes of oil per annum. OMSK On July 6, Ukrainian drones attacked the Omsk refinery, causing a large fire. Governor Vitaly Khodsenko stated that Russian air defences destroyed the majority of drones used in the attack. The extent of the damage to the refinery was not immediately known. The design capacity of Omsk's oil refinery is about 22 million metric tonnes of oil per annum. NORSI According to sources, Ukrainian drones struck NORSI, Russia’s fourth largest oil refinery owned by Lukoil for the second time on July 2. Crude processing was then suspended. The attack damaged CDU-6 which can process 25700 metric tonnes per day. This is 53% of refinery capacity. NORSI is the second largest producer of gasoline in Russia. It can process up to 16 million metric tonnes of oil each year or about 320,000 barrels a day. Local authorities reported that on June 28, Ukrainian drones attacked Russian targets, including the Slavyansk Oil Refinery in southern Krasnodar Region. Slavyansk Refinery is a privately owned plant with a capacity of around 100,000 barrels / day. UFA Ukraine forces attacked an oil refinery a second-time on 1 July in Ufa near the southern Ural Mountains. The refinery is capable of processing more than 7,000,000 tons of oil annually. ORENBURG On June 24, the Ukrainian military announced that it had hit Orenburg's gas processing plant. The plant has a production capacity of 45 billion cubic metres?of gas per annum. MOSCOW According to sources, the operations of an oil refinery in Moscow were halted after a drone attack by Ukraine on June 16. On June 18, a second attack caused damage to processing units and multiple fires. The Kapotnya district in the south-east of the capital has a capacity of 11 million tons per year. TANECO Tatneft Russian's TANECO refinery halted its operations on June 12 after a drone strike. The refinery is equipped with hydrocracking units, catalytic and delayed coking. According to data from the industry, TANECO will process 17 million tons crude oil by 2024. It will produce 2.7 millions tons of gasoline, 8.5 millions tons of diesel fuel, and 1.3?million tonnes of petroleum coke. KUIBYSHEV Rosneft’s oil refinery in Kuibyshev halted production on June 10, following a drone strike. According to industry sources, the refinery will process 4.7 million tonnes of crude oil in 2024. TUAPSE Ukraine attacked a refinery at the Black Sea port Tuapse, Ukraine's military reported on May 27. Officials said that a drone attack on April 28 caused a major fire to break out at the refinery, which forced the facility to cease operations. The plant has an annual capacity of 12 million tonnes and produces fuel oil, naphtha and vacuum gasoil. Ports/Oil Facilities The Caspian Pipeline Consortium ceased receiving oil on July 20 due to the attacks on oil tanks at its Black Sea Terminal. However, it is expected to resume loading oil later on Monday. Kyiv’s security service reported on July 25, that Ukrainian drones had struck the Filanovsky platform of Russian Lukoil LKOH.MM, located in the Caspian Sea. Volodymyr Zelenskiy, the President of Ukraine, said that Ukraine had struck two "Russian oil depots" in the Tver region and Stavropol, which are both located about 500 km away from the frontline. On July 8, Ukrainian drones struck the 'Krasnodarskaya Pumping Station, which is part of the natural-gas supply chain from Turkey to Ukraine via the Blue Stream Pipeline. However, gas supplies did not suffer. Kyiv reported on July 8 that Ukrainian drones had struck an oil pumping facility in Russia's Bashkortostan Region, which is more than 1,500km from the border. Authorities said that Ukrainian drone attacks in Sevastopol (home to Russia's Black Sea Fleet) and Vysotsk, both Baltic Sea ports, caused damage on July 6. Authorities said that a drone strike caused a fire to break out in a loading complex at the Black Sea port city of Novorossiysk. (Reporting and Editing by Toby Chopra).
Source: Kazakhstan's daily crude oil production has been reduced by half after the closure of export terminals
An industry source reported on Monday that Kazakhstan, one of the 10 largest oil producers in the world, had more than halved its daily oil production after drone attacks forced the closure of the main terminal for exporting crude oil into Russia's Black Sea. Kazakhstan's production decline is likely to contribute to global concerns about oil supply due to the Strait of Hormuz being effectively closed and the risks of shipping commodities via other sea routes.
This also demonstrates the fact that Russia is the largest country in the world to be landlocked.
According to an industry source, the oil and gas condensate output in Kazakhstan dropped by more than half on Sunday compared with June's average levels, dropping from 2,16 million barrels a day to 133,200 tons or 1 million barrels a day. The Kazakhstan energy ministry announced on Monday that the Caspian Pipeline Consortium (CPC), which operates the pipeline, had resumed loading operations after a one-week suspension.
More than 80% oil is exported from Kazakhstan through the pipeline, which connects the 'giant Tengiz' oilfield in Kazakhstan to the Black Sea terminal. This country has a number international oil companies, such as ExxonMobil and Chevron.
TANKERS BERTHED FOR LOADING
According to the ministry, two oil tankers - Seamajesty Milos - were docked at CPC's terminal for loading. The ministry added that both vessels were loading volumes of Tengizchevroil, a U.S. Chevron company. The company did not make any comments on the production cuts. Last week, it said that export restrictions and CPC loadings were the reason for the reduction in output.
CPC said that two tankers were berthed on the Black Sea terminal by Monday. It also stated that its pipeline had been back online since 12 :28 pm. Moscow time (0928 GMT).
LSEG data shows that the Suezmax Asia, chartered by Chevron, was also at Black Sea Terminal at noon on Monday.
Chevron stated that it "continues" to monitor the CPC situation, adding that the safety and security for its personnel remains its highest priority. It declined to comment further.
The CPC pipeline is more than 1,500 km long (940 miles), and runs from Kazakhstan’s Tengiz Oilfield in the west of the nation via Russia to the port of Novorossiysk, on the Black Sea coast of Russia. As the four-year-old war continues, Ukraine and Russia are intensifying their counterattacks against vessels and other targets. Drones have attacked several tankers near or at the terminal. Reporting by Louise Heavens; Editing by Emelia Sithole Matarise and Louise Heavens
(source: Reuters)