Latest News
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Report: US suspends ship protection plan as US oil tanker is hit near Hormuz
Caixin, the Chinese media outlet, reported that a Chinese-owned oil product tanker was attacked on Monday near the 'Strait of Hormuz. President Donald Trump launched a U.S. Plan to assist stranded ships, but then suspended it one day later. Caixin reported on Thursday that this was the first attack on a Chinese oil-tanker. Since the Iran conflict began, traffic through this vital strait has virtually stopped. It is through which 20 percent of the world’s oil and gas supplies pass. Caixin reported that the deck of a?unnamed ship caught fire. The ship's marking was "CHINA OWNER & CREW". The crew of the ship was not injured. China is still a major buyer of Iranian crude oil. Blockade of the Gulf of Oman China's Foreign Ministry did not reply to an out-of-hours comment request. Trump announced that the U.S. will begin assistance efforts for ships stuck in Hormuz on Monday. He suspended the effort a day after Iran launched drones and missiles against several ships, as well as its neighbours including the UAE. A COASTAL INCIDENT HAPPENED OFF UAE Sources in maritime security said that the damaged vessel was the Marshall Islands-flagged oil product and chemical tanker JV Innovation. It had reported an fire on its deck on Monday to nearby vessels. Reports say that the incident occurred near Mina Saqr in the Gulf, off the coast of the United Arab Emirates. Hormuz traffic has been paralysed by renewed attacks this week on ships due to the ongoing conflict between Iran and the U.S. China's Foreign Minister Wang Yi met with his Iranian counterpart Abbas Araghchi a day before in Beijing and the two discussed reopening of the strait. Sources and officials say that the U.S. is edging closer to a temporary, limited agreement with Iran, which would end the war but leave unresolved the most controversial issues. Reporting by Beijing Bureau, Jonathan Saul and Renee Maltezou from Athens and London; Editing and Toby Chopra by Bernadette and Toby Baum
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Meta challenges UK Media Regulator over Online Safety Fees
The owner of Facebook and Instagram, Meta, is challenging 'Britain's Media Regulator Ofcom's' calculation of fees 'and 'penalties' under the Online Safety Act. This was heard at London's High Court on Thursday. A spokesperson for Ofcom said that the fees and penalties under this law are based upon a provider's worldwide qualifying revenue. Ofcom stated that Meta was "disappointed" that they objected to the payment of fees and penalties that may be imposed on companies in the future that are calculated based on this basis. In a statement, a Meta spokesperson stated that "we believe (Ofcom)'s decisions on the method?to calculate fines and fees are disproportionate". They added: "We think fees and penalties should depend on the services that are being regulated by the country in which they're regulated." This would still allow Ofcom?to impose the largest fines ever imposed on UK corporations." The 2023 Online Safety Act in Britain sets higher standards for social media platforms like Facebook. Ofcom can fine companies up to 10% of their global revenue. Ofcom is also required by law to recover the costs associated with running this regime via fees charged to service providers. Javan Herberg, Ofcom's attorney, told the High court that Ofcom "intends to issue invoices for?fees" in Q3 this year. Most likely it will be September. Ofcom could also have to refund Meta if Meta wins her case. Sam Tobin reported the story. (Editing by Paul Sandle, Mark Potter and Paul Sandle)
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Avolta's CFO says that the Middle East airport closures have hurt Avolta but that April has brought some stability.
Avolta, a duty-free retailer, said that it felt the impact of the Iran War in the first quarter as major hubs for air traffic in the Middle East were closed and flights cancelled. The U.S. and Israeli war against Iran has sent the global markets into a tailspin. Investors are worried that this conflict will 'create an oil shock, increasing inflation. European airlines have also prepared 'for a difficult spring and summer. Jet fuel prices are now well above $100 per barrel and there is growing concern that flight cancellations could be caused by shortages. Gerster said, "We've seen a slowdown. Some airports have been closed for a time and traffic has dropped significantly in Dubai as well as in other operations." He said Avolta has seen a positive trend since April. Gerster stated that "Kuwait Airport opened up again, and news is coming in from Emirates Airlines who said they had reinstituted 95% of their traffic within the next few weeks and months." There has been positive news since the start of April. Gerster responded that fuel shortages could be a real problem that would affect the entire sector. "That could impact the industry." "Everything else is manageable, in one way or another," he said. (Reporting and editing by Milla Nissi-Prussak in Gdansk)
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EU: Iran crisis doesn't yet warrant emergency measures in tourism sector
Draft EU guidelines, seen by ' showed. European airlines have largely ridden the 'crisis out so far. Hedges have cushioned costs, even though jet 'fuel prices are up nearly 84% in the past month since the U.S. and Israel war against Iran began on February 28. Carriers warned that supply shortages could occur within weeks. The draft guidelines for industry and passengers stated that "the current situation does NOT indicate the need for specific measures for tourism, as it did during the COVID-19 Crisis." The report added that "at this stage, the available data indicates that overall impacts on tourism remains?limited with demand remaining broadly resilient." In the European Union, there have been no reports of a shortage of?jet fuel. About 75% of Europe's?jet fuel is imported, mostly from the Middle East. The spokesperson for the European Commission declined to comment on the document. It could still be changed before it is published on Friday. Kate Abnett is the reporter. Toby Chopra, Mark Potter and Toby Chopra edited the report.
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Tsingshan wants to list Indonesian aluminum on the LME
A notice published by the London Metal Exchange on Thursday showed that China's Tsingshan Group has applied to have aluminium produced at its Hua Chin joint venture in Indonesia?available for delivery?on the London Metal Exchange. Hua Chin - where Tsingshan and Huafon Group are partnered by fellow Chinese company Huafon Group - would be the only Indonesian brand of high-grade primary aluminum to be accepted by LME, after state-owned Inalum. * The application is being made as Indonesia ramps up production and exports, potentially compensating shortages caused by war in the Middle East. According to a LME notice, the second phase of Hua Chin on the island of Sulawesi began production this year. The?project's annual capacity is 480,000 metric tons of aluminium ingots. Tsingshan's PT Eternal Nickel Industry, its 'Indonesian' affiliate, is able to deliver nickel cathodes against the LME nickel contract. Reporting by Tom Daly & Dylan Duan. Mark Potter (Editing)
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UAE smuggles oil tankers hidden through Strait of Hormuz in a bid to sell
According to shipping data and industry sources, the United Arab Emirates, along with buyers, have recently sailed several oil tankers through the Strait of Hormuz to transport the oil that has been bottled up by the Middle East conflict in the Gulf. These volumes are only a fraction of what the UAE used to export before the U.S./Israeli war against Iran, but they demonstrate the risk that the buyer and producer are willing to accept to increase oil sales. Saudi Arabia, Kuwait and Iraq have all stopped selling oil, or cut prices dramatically to attract buyers who are not interested. According to SynMax and Kpler, Abu Dhabi National Oil Co. managed to export 4 million barrels Upper Zakum Crude and 2 million barrels Das Crude on four tankers in April from terminals within the Gulf. According to three sources, including one who had direct knowledge and two others familiar with ADNOC operations and the SynMax and Kpler data, the shipments were either shipped directly to South Korean refineries or unloaded via ship-to-ship transfer. This is the first time that this system of exports has been reported. ADNOC refused to comment on the shipments. Tehran's response to the U.S. and Israeli attacks, which began on 28 February, was to effectively close the Strait of Hormuz for all exports except its own. This resulted in a fifth of the global oil supply being bottled up. In recent weeks, the U.S.-led blockade of Iranian exports has led to a global increase in oil prices above $100 per barrel. Kpler data shows that ADNOC had to reduce exports by over 1 million barrels a day since the beginning of the war from the 3.1 millions bpd they shipped last year. Kpler data shows that ADNOC exports mainly its Murban grade, which is transported by pipeline via onshore fields from Fujairah. RISKY - Sailing ADNOC's shipments risks attacks from Iran. The UAE claimed that Iran had used drones on Monday to attack a Barakah tanker carrying empty ADNOC fuel, which was passing through the Strait of Hormuz. Transponders of the automatic identification systems are turned off on the ships, reducing the chances that they will be detected by Iranian forces. Iran uses this tactic to avoid U.S. sanctions against its oil exports. The data on industry shipping makes it hard to determine the volume of ADNOC exports, so the amount it shipped in April from the Gulf could have been higher. Kpler data shows that the VLCC Hafeet departed the strait in April 15 after having loaded 2,000,000 barrels of Upper Zakum into the Gulf. Kpler data showed that the VLCC Hafeet loaded 2 million barrels of Upper Zakum inside the Gulf on April 7 and exited the strait on April 15. Hafeet's management is under the Logistics and Services division of ADNOC. ADNOC declined to comment. Olympic Shipping & Management in Greece, which manages Olympic Luck and Petronas, did not respond to requests for comment. The STS method allows ADNOC the opportunity to sell smaller quantities of oil and to free the VLCCs up to return quickly to the Gulf for reloading. Source with direct knowledge said that one of the "broken-up cargoes" of Upper Zakum was shipped to a refinery in Northeast Asia and sold for a record $20 per barrel more than ADNOC's price. Kpler data revealed that the VLCC Aliakmon I, which was loaded with Abu Dhabi's Das Crude on April 27, departed the strait in May 2 and discharged at Oman’s Ras Markaz Storage Terminal on May 3. Kpler data and SynMax found that two Suezmax tankers, the Zouzou N and the Odessa, were carrying Upper Zakum in each case 1 million barrels. They then headed for South Korea. Dynacom Tankers Management, based in Greece, manages all three tankers. The Dynacom tankers were not chartered and the company didn't respond to our?request for comments. ADNOC plans to continue selling oil from within the strait. It informed some customers late in April that they could load Das crude and Upper Zakum from?May through STS transfers to ports outside the Gulf, including Fujairah's Sohar and Oman’s Sohar. Sources with direct knowledge about ADNOC plans and an Indian refinery source who declined to identify themselves because they were not authorized to speak with the media said that the company was in talks with Asian refining companies to sell cargoes for May-loading Das or Upper Zakum.
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Cheniere Energy reports quarterly loss on LNG derivative contracts
Cheniere?Energy swung from a profit to a loss during the first quarter of this year, Thursday. This was due to?billions?of?dollars?in losses related to LNG-linked contracts. The company's results were hurt primarily by a $4.8 billion change in value of derivative agreements linked to long-term LNG contracts. The volatility in the global liquefied 'natural gas markets after the U.S./Israeli war against Iran affects?energy companies even though demand for U.S. 'LNG exports is still strong. According to the company, global gas price swings are a result of tight supply, shipping disruptions, and geopolitical tensions across the Middle East. These factors have widened the difference between U.S. gas prices and?global gasoline prices. Cheniere warned global LNG prices will remain volatile if?disruptions? continue. This could impact future?earnings? and cash flow? In the third quarter, the company generated $5.72 billion of LNG revenue, up from $5.31 billion one year ago. Regasification revenues were flat. The Houston-based company reported a $3.5 billion 'net loss' for the?quarter ended March 31 compared to a $353 million profit last year. (Reporting from Pooja Menon, Bengaluru. Editing by Leroy Leo.)
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Scoot, the budget airline of Singapore Airlines, has ordered 11 Airbus A320neo jets
Scoot is the low-cost division of Singapore Airlines. It has ordered five Airbus A320neo aircraft and exercised options on six more. The carrier wants to increase capacity and open new routes. Scoot announced that the new narrowbody aircraft will be powered by Pratt & Whitney geared 'engines. Scoot stated that the expansion will'support new services in a 5- to 6-hour flying radius. This will strengthen Singapore's air links with Southeast Asia and North Asia and other key??markets. It also improves connections to the SIA Group?s wider network. Scoot CEO Leslie Thng stated that they expect the travel demand to grow in the next few years, especially in the Asia-Pacific area. Since the 2022/23 fiscal year, the airline added 25 new destinations. These include non-metropolitan cities such as Chiang Rai, Thailand, and Phu Quoc, Vietnam, along with long-haul routes like Vienna. Scoot will now have a total of 20 A320neo aircraft in its order book. According to the airline, the aircraft will have a'single-class configuration,' with 186 seats on the A320neo model and 236 on the A321neo. (Reporting and editing by Mrigank dhaniwala, Vijay Kishore and Rajasik Mukherjee)
CEO: TIM is entitled to receive up to 75% FiberCop profits from commercial partnerships involving Open Fiber
Telecom Italia's Chief Executive said that a commercial tie-up would entitle Telecom Italia to a?additional?payment?of?upto 75% % of the benefits FiberCop receives from the deal. Last month, it was reported that the owners of FiberCop & Open Fiber were discussing?the details of a potential commercial deal in order to complete the country's rollout of high-speed broadband.
Telecom 'Italia' sold FiberCop in 2024 to a KKR-led group for 19 billion euros ($22.36 'billion), in order to 'cut down the debt of the phone group.
Telecom Italia could receive an additional payment up to 2,5 billion euros under the terms of the agreement if the tie-up was completed before the end of 2026.
Pietro 'Labriola, Telecom Italia's Chief Executive Officer, told analysts on a call after earnings that it was "quite difficult" to think that they would be able to complete the merger by December 31.
Labriola said that TIM would receive a share of the synergies FiberCop creates if they signed a commercial 'agreement.
(source: Reuters)