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Air New Zealand posts smaller-than-expected drop in annual profit
Air New Zealand posted a smaller-than-expected fall in annual earnings on Thursday as global engine maintenance issues continued to weigh on the bottom line, and warned of a weak start to the 2026 financial year. New Zealand's flagship airline reported earnings of NZ$189 (US$110.96) million for the fiscal year ending June 30 compared to NZ$222 millions a year ago. This compares to the Visible Alpha consensus estimate for NZ$178.6 millions. The airline stated that the uncertainty surrounding engine maintenance issues and the sharp increase in aviation sector levies, as well as the subdued demand in domestic markets, are "expected" to negatively impact the airline's performance in the first six months. The company expects that its pretax profits for the first half 2026 will be comparable to or lower than those reported for the second half 2025 of the financial year. It announced a final dividend at 1.25 New Zealand Cents per share. This is the same as last year. $1 = 1.7033 New Zealand Dollars (Reporting and editing by Alan Barona in Bengaluru, Rajasik Mukherjee, Keshav Singh Chudawat)
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Sources: Dos Bocas refinery in Mexico is offline due to a power outage
By Shariq Khan August 27th - Mexico's 340,000-barrel-per-day Dos Bocas refinery has been offline since Monday due to a power outage at the plant, two sources familiar with the matter told . One source said that the refinery (also known as the Olmeca refinery) will try to restart its units on Thursday. Pemex, the Mexican state-owned energy company, did not respond when contacted for comment. Olmeca, Mexico's latest refinery, has increased operations in the last few months, after years of delays and spiraling startup costs. However, it is still far from reaching its full capacity. According to the latest official figures, the refinery received 156,265 barrels per day of crude oil, which is less than half of its capacity. According to the data, in July the refinery produced 57,275 barrels per day of gasoline and about 76,980 barrels per day of diesel. (Reporting from Shariq Khan, New York; Additional Reporting by Ana Isabel Martinez; editing by Leslie Adler & Mark Porter)
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Delta pays $78.75 Million to settle fuel dump lawsuit
Delta Air Lines has agreed to pay $78.75 Million to settle a class-action lawsuit regarding a 2020 fuel spill that flooded tens and thousands of properties in Los Angeles County and Orange County in California, including schools and homes. This week, a proposed preliminary settlement in Los Angeles Federal Court was filed. The judge must approve it. The case stemmed a January 14th, 2020 incident when Delta Flight 89 from Los Angeles to Shanghai, with 167 passengers, crew and cargo, lost thrust shortly after takeoff. Delta pilots ejected about 15,000 pounds (6.804 kg) jet fuel from the Boeing before returning to Los Angeles International Airport to reduce the risk of an emergency landing due to excess weight. Minor injuries were treated by several dozen people who were on the ground. The property owners claimed that the pilots dumped fuel unnecessarily at low altitudes over densely populated areas instead of over the Pacific Ocean, at high altitudes so it could dissipate or by burning fuel while flying in a hold pattern. They demanded Delta clean up the mess. Delta said that it had settled the case to avoid the uncertainty and costs of litigation. Flight 89's Atlanta-based carrier said that the pilots and crew of Flight 89 "did what their FAA-approved FAA training required them to to do in order to respond to the emergency on board and ensure the safety and security of passengers, crew and people on ground." Delta reported that a Federal Aviation Administration (FAA) investigation cleared the pilots from any wrongdoing. Court documents show that the net settlement after legal costs and fees could total $50.6 Million and will be distributed to residents or owners of approximately 38,000 properties. Filippo Marchino said in a press release that the settlement is fair and reasonable and will compensate "hardworking families who have asked for nothing more than respect and justice and deserve this outcome." The case is In re Delta Air Lines Inc., U.S. District Court for the Central District of California No. 20-00786. Reporting by Jonathan Stempel, New York Editing Bill Berkrot
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The UK's Tritax Big Box has officially ended its pursuit of Warehouse REIT
The British Warehouse REIT announced on Wednesday that a buyout proposal from Tritax Big Box REIT, a peer company, was officially terminated. Both parties decided not to pursue the proposal after a rival agreement. Warehouse REIT had recommended to shareholders in July accepting a 489 million pound offer by U.S. Private Equity Group Blackstone, over Tritax. Blackstone offered the logistics company 115 pence a share, amid a growing interest from overseas in UK assets. This is due to Britain's relatively stable market and muted valuations, which have fueled a recent wave of bids. The regulatory auction for Warehouse REIT concluded last week, after Tritax announced that its 485.2 million pound cash and stock proposal was final. It would not be raised. This marked the end of a long-running battle. Warehouse REIT announced on Wednesday that Tritax confirmed the company's decision not to use its right to make an alternative offer. Tritax will be prohibited from contacting Warehouse REIT without the regulatory approval for 12 months. This development comes also after Blackstone, its affiliates and their increased shareholding in Warehouse REIT was made a "recommended compulsory cash offer" according to British takeover regulations. Blackstone, a British company, said that as of August 26, Blackstone owned shares of Warehouse REIT representing approximately 34.33% directly or indirectly or had received commitments to support its offer.
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Andy Home: LME storage capacity drops as politics disrupt metal flows
London Metal Exchange (LME)'s global warehousing capability shrank by 4.25 percent in the first half 2025, despite opening new delivery locations at Hong Kong and Jeddah, the Saudi Arabian port. The total registered storage space is at its lowest since the Exchange began publishing quarterly updates in 2016: 3.2 million sq. m. The shrinkage can be attributed to a sliding exchange inventory. The total stocks, including the off-warranty stocks, dropped by 541,000 tons in the first half 2025. They closed June at 1.62 million tonnes, a 20-month-low. Geopolitical turmoil has distorted the signal of low stocks, which should be a positive sign for base metals prices. DIFFERENT METAL The LME has been a major player in the warehousing industry for many decades. The 65 million tonne global production base is much larger than the other LME Metals. Smelters are also slow to react to changes in demand due to the high costs associated with idle capacity. In the past, surplus metal was sold on the last-resort market. As recently as 2021, there were more than three million tons in LME storage. The combined on-warrant and off-warrant stock totals just 717,000 tonnes. Is this an indication of a market with a supply deficit? The market is left without one of its largest physical liquidity providers because of the April 2024 ban of new deliveries of Russian Metal. In response to U.S. sanctions, UK and European ones are increasing the flow of Russian metal to China. China's aluminium imports from Russia increased by 80% on an annual basis to 1.1 millions tons between January and June. The increase in U.S. tariffs on imports this year has further disrupted the global flow of light metals, leaving very little space for LME warehouses despite lucrative deals. The fact that ISTIM UK Ltd., the LME Warehouse operator in Port Klang at the heart of many big aluminium stocks plays, has reduced its presence from 22 to just 13 units in the city over the past year is telling. Port Klang's total storage capacity has declined 15% in the first half of the year despite other operators filling the gap. COPPER CLEAR OUT The LME stock raids in the second quarter were a big deal for copper bulls. However, the nearly depleted exchange inventory has nothing to do about demand but everything to do the U.S. president Donald Trump. Trump's announcement in February that he would launch an investigation on copper imports for national security reasons opened the door to an unprecedented arbitrage. The U.S. duty paid price traded on CME was different from the international price in London. LME warehouses have been stripped of inventory as it is shipped to the United States. U.S. copper imports surged from March to June to 724,000 tonnes, which is 80% of last year's demand. CME copper stock is at its highest level in 21 years, with 247,210 tonnes, while LME inventories of 155,000 tons are still 43% lower than the beginning of 2025, despite some replenishment by Chinese smelters. The threat of tariffs was unfounded, but it caused a massive redistribution in inventory without much impact on the global stock exchange picture. SINGAPORE CHURN The LME zinc stock has also been depleted in the past couple of months. The registered tonnage is down 72% from the beginning of the year, and now stands at 65 525 tons. This is the lowest since May 2023. The time spreads are still surprisingly relaxed. The benchmark cash to three-months period is still trading at a small contango. Singapore's recent history of high zinc stock turnover is reflected in the market's apparent lack concern. It is the city that has dominated LME deliveries for both zinc and for lead, and which currently represents 99% and 97% respectively of all inventories. No surprise then that LME warehouse operators opened more units in Singapore over the past 12 months than anywhere else. The number of warehouses listed in Singapore has risen from eight to 38. This is more than the eight listings in Hong Kong or the four in Jeddah, after the ports were opened to LME in January and respectively in July. According to the recent cancellations of last week, the zinc is missing, while the lead is still present. As of now, the increasing number of LME storage facilities in Singapore indicates that warehouse operators believe there is still plenty of zinc available for possible LME deliveries. WAITING FOR METAL The combination of tariffs and sanctions has led to a reduction in metal flows at the LME, with a trickle-down effect on the physical storage function. Good news for LME storage companies: disruptions can create new opportunities. Hong Kong warehouses began receiving copper almost immediately after they opened, thanks to Chinese smelters who delivered metal into a tight market following the CME Arbitrage Trade. It is less than good news that Russia, as a major producer of aluminium, zinc, and copper, is increasingly looking to the Chinese market. Even if sanctions were lifted, it is unlikely that the growing trade between these two countries would be reversed. LME storage capacity is down by more than a quarter compared to the beginning of the decade when four million tons were stored. Stocks and storage are unlikely to return to their former levels anytime soon, as politics could further fragment what was once an extremely globalised metals market. These are the opinions of a columnist who writes for.
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Sempra’s Port Arthur Phase II project will supply EQT with LNG
The companies announced on Wednesday that Sempra would supply EQT Corp with 2 million tonnes of liquefied gas per year (Mtpa), from the Port Arthur Phase 2 Development Project. The commercial activity in the U.S. liquefied gas sector has increased rapidly since President Donald Trump lifted his moratorium on new export permits for liquefied gas shortly after assuming office in January. Sempra’s Port Arthur Phase 2 Project won U.S. Approval in May for exporting LNG to markets across Europe and Asia. Sempra and ConocoPhillips signed an agreement last week to supply 4 million tonnes per year of LNG produced by the Port Arthur LNG Phase II project. Under the agreement, EQT is to buy LNG on a 20-year free-board basis and at a price indexated to Henry Hub. Sempra expects to reach a final decision about the Port Arthur LNG Phase 2 in 2025. (Reporting and editing by Devika Syamnath in Bengaluru)
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The MOL head in Hungary says that Druzhba oil flow could resume on August 27 or 28,
The executive chairman of MOL, the Hungarian oil company, told the website mandiner.hu that the Druzhba Pipeline could be operational again as early as August 27 or 28. However the Russian pipeline might not run to full capacity. Hungary and Slovakia announced on Friday that the oil supply via the Druzhba Pipeline could be suspended for a minimum of five days following Ukraine's latest attacks on Russian energy infrastructure. MOL's Zsolt Hernadi stated in an interview with mandiner.hu, that the company is able to provide its refineries using operational reserves but could have to rely on strategic reserves. Hernadi stated that even if MOL were to increase its imports through the Adriatic pipeline it would still import Russian crude oil, because Hungary and Slovakia have been exempted from sanctions. He said that he wasn't sure that MOL could import enough crude via the Adriatic Pipeline to run its two refineries at maximum capacity if Druzhba shipments were stopped completely. Hernadi stated that if Druzhba oil flow does not resume by September 1st, Slovakia will have to tap into its strategic reserves, and its refinery won't be allowed to export. This will cut Hungary's fuel purchases by 20%, while also impacting Ukraine. Hernadi stated that "one seventh of Ukraine's needs for diesel is supplied by the refinery located in Slovakia via Hungary... and this will stop immediately." (Reporting and editing by David Goodman, Anita Komuves, Krisztina than)
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Bousso: Trump tariffs cause much-needed petrochemicals reduction
The trade wars of U.S. president Donald Trump are pushing the global plastics sector toward a painful, but necessary restructuring in order to deal with the acute overcapacity which has caused the industry's profit to be in a long-term slump. In the next few decades, demand for plastics will increase dramatically as middle class populations grow, especially in Asia. This will increase oil demand. The consumption of petrochemical products - such as naphtha and propane - was responsible for 95% percent of the total growth in oil demand between 2019 and 2024. According to the International Energy Agency, it is expected that between 2024 and 30 these plastic building blocks will increase by 2.1 millions barrels per day, or 18.4 million bpd. This growth will offset the decline in demand for transportation oil. Exxon Mobil and Saudi Aramco, as well as Adnoc in the UAE, have all invested heavily in the petrochemical industry, betting on the rising demand for feedstocks to counterbalance the effect of electric vehicles. China has also increased its domestic production in order to increase petrochemical independence. The shale gas boom in the U.S. has led to a rise in petrochemical production in the U.S. GROWING PAINS Since 2022, the rapid growth of petrochemicals has led to a serious imbalance between supply-demand. This puts heavy pressure on margins. The benchmark Chinese PDH margins (also known as cracks) have been negative for the majority of the last two years. In recent months, benchmark naphtha margins in Asia and Europe have also fallen. Chemical producers have seen their earnings plummet. In 2024, the South Korean petrochemical companies LG Chem and Lotte Chemical reported losses. Dow Inc., a U.S. producer, cut its dividend in the last month following a loss for the second quarter. Dow and BASF, its German competitor, both cut their full-year forecasts citing increased pressure from global trade conflicts. Petrochemical overcapacity will likely worsen, which is bad news for the industry. According to the Institute for Energy Economics and Financial Analysis, new plants are expected to increase supply by 20-25% in 2030. Shortly, the industry needs to be tightened. Not a Crisis to Waste Trump's tariff could do that. Trump's announcement of 25% tariffs against imports of South Korean petrochemicals, one of the country's top five export industries and the foundation of its electronics and car industries on April 2 was a major blow to the industry. ING stated in a report that even though the tariffs were delayed, and then reduced to 15%, first-half revenues from South Korean petrochemicals exports to America still dropped by more than a 5th year on year. The South Korean Government, which has been urging the sector to restructure for a long time, has responded by forcing 10 companies to reduce their annual naphtha cracking capacity by 2.7-3.7 million metric tonnes, or roughly a quarter the country's capacity of 14.7 millions tons. The petrochemicals industry in Europe has suffered from high energy prices since the energy crisis of 2022, which led to the closure of plants in France, Germany, and Britain. Dow announced in July that it would close three sites in Germany, the UK and France. Trade wars have weakened demand, which puts more pressure on plants. China, as part of a "anti-involution campaign" - a catchphrase for curbing destructive, profit-eroding competition - is said to be considering reorganizing its chemical sector. This includes closing down ageing plants that are losing money. Cleaning up China's petrochemical sector will likely face opposition from local officials, and new capacity additions will dwarf it. But any reduction in the industry would be a welcome relief to the global markets. Long Path Rapid expansion of petrochemical capacities, particularly in China, have far outpaced the growth of demand, creating one the worst crises of the sector's recent history. It will take a while to shrink this over-inflated sector and boost profits. Shell CEO Wael Sawan stated last month that the "incredibly deep" trough could continue for some time in the chemicals industry. While Trump's trade policy may seem like another blow to the industry, it could be the wake-up cry the petrochemicals sector needs. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X.
The Escondida Mine Union in Chile warns against self-driving trucks
In a statement released on Wednesday, the workers' union of BHP's Escondida copper mine in Chile, which is the largest mine in the world, expressed concern over two recent accidents that involved autonomous trucks.
The union, who has been critical of BHP in the past and has held strikes during contract negotiations, stated that on August 25, an autonomous truck crashed into shovel machinery, and the previous week, another truck overturned.
No injuries were reported.
Patricio Tapia, head of the Union, said that workers do not operate vehicles but they are responsible for other tasks, such as maintaining the roads.
BHP stated that it had trained over 4,800 employees in its automation system and "totally eradicated" the risk of people being exposed to dust when moving material in an open pit.
BHP reported that an incident involving autonomous trucks occurred in March.
The statement stated that "in the other incident involving a mechanical shovel and an autonomous truck there were no people exposed, and the investigation is still ongoing."
In July, the company announced that it had completed a five-year rolling out of autonomous operations on 33 trucks and 8 drills in the mine's Escondida North unit.
The statement stated that "less than a week after the announcement, reality has revealed a huge danger to worker safety."
Escondida produced 1,28 million tons copper last year. (Reporting and writing by Fabian Andres Cambero, Paolo Laudani, Alexander Villegas and Natalia Siniawski; editing by Daina Beth Sool and Alistair Bell).
(source: Reuters)