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Source: India opens new military airbase near the border with China
A defence official confirmed that India's chief of air force made the first landing of a transport aircraft capable of fighting jet operations at a new base near the disputed Himalayan boundary with China. The move coincides with a warming of relations between the nuclear-armed neighbors, following an historic pact in October last year to ease tensions along their de facto borders and a trip to China this year by Prime Minister Narendra modi. The official who requested anonymity because the issue is sensitive added that Air Chief Marshall A. P. Singh landed his C-130J aircraft at Mudh-Nyoma, a station of the Ladakh air force perched at a distance of approximately 13,000 feet (4000 m). The Indian Air Force (IAF) and the Ministry of Defence did not respond immediately to a comment request. The new airbase is the third key station in the region, and it's only 30 km from the Line of Actual Control with China. "This new airfield, which is capable of fighter operations will present a new challenge to both our adversaries," wrote retired Air Marshal Sanjeev Kapoor on X. He was referring to China and Pakistan, two neighbouring countries. He added that China also has an airfield of similar height. Indian analysts and officials claim that despite the thaw in relations, there is still mistrust between China and India. The Indian Army chief pointed out this year the continued increase of both sides' troop presences and infrastructure along the border. India and China have a border of 3,800 km (2400 miles), which is poorly delineated. It has been disputed ever since the 1950s. In 1962, they fought a short but brutal war. After a border clash that resulted in death, the two countries' ties soured. Their 2024 agreement brought about a thaw, and some restrictions were eased, allowing direct flights and bi-directional visits to resume. (Reporting and editing by Clarence Fernandez in New Delhi)
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Poste Italiane exceeds profit forecast and increases interim dividend
Poste Italiane, the state-backed financial conglomerate, announced on Thursday that its operating profit for the third quarter rose by 8.5%, exceeding analyst expectations, thanks to a strong performance from its financial services division. Poste has a number of divisions, including insurance, financial, and digital payments, in addition to its traditional mail-and-parcels business. Its adjusted earnings before tax and interest (EBIT), which is the profit earned before taxes and interest, rose from 856 million euro ($998 millions) during the period July through September. This was well above the 827 million euro analyst consensus that was compiled by a company. Poste has increased its interim dividend from 40 cents to 31% since it was listed on the bourse in 2015. Payment is due on November 26. The total revenues for the third quarter increased 3.9%, to 3.2 billion Euros. This is in line with analyst consensus. Poste Italiane has become the biggest single investor in Telecom Italia, the phone group. The two companies have partnered in a retail offer of energy and a cloud services partnership. Matteo Del Fante, CEO of Poste Italian, said that any future partnerships with TIM will be announced once they are finalised. Poste has tripled its market value in the last decade. Its shares are trading at record levels and have risen 58% this year. Italy owns still 65% of Poste. The government of Prime Minister Giorgia Melons considered, and then abandoned plans to sell an additional stake in the company. $1 = 0.8575 Euros (Reporting and Editing by Elvira pollina)
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Wizz Air predicts a fall in revenue despite a H1 operating profit beating
Wizz Air forecasted a single-digit drop in revenue for the full year and stated that winter capacity is a "short term challenge" even though its operating profit for the first half of 2018 jumped by almost 26%, to 439.2 millions euros ($512.20). The operating profit was substantially higher than analysts expected. Analysts surveyed by LSEG had predicted an operating profit 367 million Euros. In a recent statement, Chief Executive Jozsef Varradi stated that they are looking to manage their capacity for the winter season due to the anticipated drop in unit revenue. Wizz Air announced last week it would delay the delivery of 88 Airbus aircraft from 2030 to 2033 in order to reduce costs and improve profits. Varadi stated in a press release that "we will see the biggest changes in our delivery profile within 12 months". In recent years, the airline has struggled to recover its profits after a series of disappointing quarters. The airline has blamed external factors for its problems, such as an issue with Pratt and Whitney engine, a long repair schedule and geopolitical issues in the Middle East and Eastern Europe.
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SBM Offshore raises its profit forecast for 2025 for the second time
SBM Offshore, a Dutch oil and gas service company, increased its earnings forecast for the second time in a row on Thursday as its operating performance improved. The Amsterdam-listed firm reported a 26% rise in its directional revenues to $3.6 billion during the third quarter. This was aided by a 90% increase in turnkey business, which builds and sells vessels for oil and gas companies. It said that its core earnings (EBITDA), which are based on a directional basis, would be around $1.65bn this year. The company had raised It was over $1.6 billion in August. The company has not changed its revenue forecast for 2025, which is expected to exceed $5.0 billion. SBM reported that its fleet uptime had improved to 99.4%, and three new floating storage, production and offloading (FPSO) vessels were brought on stream, including Tamandare which broke the Brazil oil output record. This helped support the improvement in outlook. SBM Offshore uses directional reporting to record revenue before the leases start. (Reporting and editing by Anna Pruchnicka, Hugo Lhomedet)
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Hapag-Lloyd's half-year profit falls by 50% due to the continued volatility in the shipping market
Hapag-Lloyd, the German container shipping company, reported a 50% decline in its nine-month net profits to 846 millions euros ($986.61million) on Thursday. It also lowered its top-end earnings forecast for the full-year due to market volatility and increasing costs. The company has lowered its forecast for full-year profit before interest and tax (EBIT) to between 0.5 and 1.0 billion euro, down from the previous range of 0.2 to 1.1 billion euro announced in August's earnings. In a press release, Rolf Habben Jansen, Chief Executive Officer of the company said that "(We will) respond quickly to changes in global commerce and maintain strict discipline on costs." He added that despite previous investments, the company is seeing first cost savings from the new Gemini collaboration with rival Maersk. The Red Sea security concerns and the frequent changes in U.S. Trade Policy have led to an unstable demand, fluctuating freight rates and a lowering of profitability in the shipping industry, which is a key indicator for global economic activity. Hapag-Lloyd's EBIT for the nine months of 2009 fell 55% on an annual basis to 809 millions euros. This was due to rising costs that were not offset by a 10% increase in transport volume to 10,2 million twenty-foot-equivalent units (TEU). The average freight rate has dropped by 4.8% to $1,397 per container. Maersk reported on November 6, a better-than expected third-quarter. Results But warned of falling freight prices in the fourth quarter. Reporting by Vera Eckert and editing by FriederikeHeine and Louis Heavens.
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Can Peru restart its Amazon oil industry? Pollution and local opposition are a concern
Wilmer Macusi, a Peruvian living in northern Amazon, sat atop an old rusty pipe that cut through the jungle and tossed a branch into the stagnant pool of water around it. Macusi, an Indigenous Urarina leader of 25 years, pointed to the place where an oil spill took place in early 2023. "But even if you change the water, the oil will still come out." As plastic barriers intended to contain the spill dropped into the water, black droplets bubbled up to the surface. The pipeline connects a nearby oilfield (Block 8) to the North Peruvian Pipeline, which is owned by the government. Santa Rosa, Macusi's locality, is just a few minutes away. According to data from the government, Peru's northern Amazon contains hundreds of millions barrels of crude oil. However, indigenous groups claim that oil extraction in the last half century has brought pollution and not progress. They are against a new wave of development. In the 1980s, this region produced more than half of Peru’s oil. However, environmental liabilities and local opposition lowered production to 40,000 barrels per day. In 2020, key blocks became dormant. Petroperu, the state-owned oil company, is once again focusing on the modest reserves of this region. The company spent $6.5 billion to upgrade its Talara refinery, which now produces 95,000 bpd of high-grade fuels. Petroperu, heavily indebted and with a CCC+ junk rating from the ratings agency Fitch wants to revive Amazon oil production to supply Talara. Petroperu, the state-owned firm, estimated that last month proven and probable reserves were valued at $20.9 billion. This could generate $3.1 billion of tax revenue for local governments. The amount of oil involved is small but the plans have caused tensions due to past spills. This has fueled Indigenous opposition as Brazil, Ecuador, and Guyana try to expand their Amazon oil frontiers. The frustration about forest protection and climate action boiled over during the Climate summit COP30 This week, dozens of Indigenous demonstrators forced their way in and clashed violently with security guards. Petroperu also plans to import oil into the refinery through a 1,100 km ONP link to Ecuador. Ecuador is aiming to increase production in the Amazon region of its country as part a $47 Billion oil expansion plan. The ONP was hailed as a marvel of engineering when it opened in the 1970s. However, since then, it has become a lightning-rod for leaks, protests, and sabotage. Both indigenous groups are fighting the pipeline connection. The government is considering options to best run the pipeline. These include a joint venture and outsourcing its management. OBSTACLES TO REVIVAL Petroperu has failed to find an international partner for its largest oilfield Block 192. This field produced over 100,000 bpd during its peak, but was recently the subject of Indigenous protests calling for remediation due to damage caused to the soil, forest and waterways. Petroperu’s former chairman Alejandro Narvaez was dismissed last month. He estimated Block 192 production at least 20,000 bpd and that Amazon's overall production could reach 100,000 bpd. Upland Oil & Gas, a domestic company, was selected by the state oil firm to operate the block. However, Peru's state regulator of oil disqualified Upland in the last month because it had not demonstrated financial capability. Upland has requested a review of the decision. Petroperu partnered up with Upland in order to restart production at Block 8, a smaller block that produced 5,000 barrels per day last month. Upland CEO Jorge Rivera is the son of Peru's first oil prospector. He said that Upland had offered Indigenous communities funding, training and jobs. He said, "We have dedicated ourselves to understand the complexities of operating these fields." Rivera made a visit to Santa Rosa, California in March. He gave a Starlink terminal as a gift and requested a report about the needs of the community. Although the community was primarily concerned with the cleanup of a nearby spill, questions still remain about who is responsible. Although Upland is responsible for the 108 km of pipeline that connects Block 8 to the ONP and runs through it, its contract exempts them from liability for pollution in the past. Pluspetrol Norte was the previous operator. It is an Argentinean subsidiary that was fined a number of times before filing for liquidation in late 2020 and leaving the area. Eight Indigenous federations, as well as non-governmental organisations, filed a complaint with the Dutch National Contact Point of the OECD, a mechanism for implementing OECD guidelines to businesses. The Dutch National Contact Point concluded in September, that Pluspetrol violated Indigenous community rights in Peru's Amazon, and urged Pluspetrol to remedy the damage to the environment. Pluspetrol responded by saying that it had already complied with the environmental and human right regulations. It also said the NCP statement lacked merit because it did not reflect the "breadth, complexity and extent of evidence presented and actions taken by the Company." Onp Spills Scientists have been studying the effects of oil fields on wildlife and Indigenous populations for decades. They've found that there are high levels of mercury, lead, and arsenic. Block 192 cleanup costs are estimated at $1.5 billion. OEFA recorded over 560 environmental violations including oil spills or other incidents from the ONP and other oil infrastructure blocks in Blocks 192 & 8 between 2011 and September 2025. Petroperu said that any damage was "temporary" and "reversible". It blamed the local communities for "economic, rural and domestic activities" which were not specified. The Peruvian prosecutor's office announced in late 2023 that they had dismantled a network consisting of local Indigenous leaders, businessmen and an employee from Petroperu who, according to the prosecutor, were orchestrating oil spills for lucrative cleanup contracts. Narvaez stated in an interview before his dismissal that Petroperu prioritized the cleanup of spills under regulator supervision. Fidel Moreno, Petroperu Board Vice President, was appointed to replace Narvaez by the government of Peru's interim president Jose Jeri who assumed power last month. The government also announced that it would soon replace Petroperu’s entire board. Moreno declined to respond to an interview request. Macusi stated that communities have not yet received the fund Upland promised to provide 2.5% from oil sales. Meetings with Perupetro to discuss funding community projects were delayed. In 2022, after an oil spillage from the Block 8 Connector pipeline, Urarina Communities held a strike. They took over oil fields, oil facilities and blocked a river in order to demand better state response. Macusi says that communities are prepared to act again after Macusi hauled buckets of oil spilled as a teenager. He said that if the benefits promised did not arrive soon, he would take action.
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Sources say that GE Vernova and Siemens Energy are in discussions to provide gas turbines to Syria for reconstruction.
Three people with knowledge of the situation said that U.S. company GE Vernova is in talks with Germany's Siemens Energy to supply gas-turbines for a $7 billion project aimed at rebuilding Syria's war damaged power sector. In May, Syria signed an agreement with a subsidiary company of Qatar's Power International Holding to build four combined cycle gas turbine power stations with a capacity totaling 4,000 megawatts. The agreement includes a solar component of 1,000 MW. One person said that Siemens Energy and GE Vernova might both win contracts for the project. However, it is too early to predict when agreements may be finalized. The amount allocated for the turbines in the project was not disclosed. None of the sources could estimate the value of the turbine contracts. Another source said that the talks could lead to other agreements, such as the supply of critical infrastructure for the power grid, in addition to turbines. WESTERN COMPANIES SEEK TO BENEFIT from RECONSTRUCTION After President Donald Trump's lifting of most of the sanctions against Damascus in early 2018, Siemens Energy and GE Vernova would be among the first Western firms to benefit from the reconstruction Syria's energy sector. Siemens Energy said that "a local delegatio met with Syrian officials to discuss how power supply in the country could be improved on a short-term basis." A spokesperson for the company stated that "while no specific agreements or contract have been made, our technical expertise is ready to be contributed if this can help stabilise and establish a reliable supply of energy and support the populace." GE Vernova, and PIH have not responded to requests for comments. Syria's Information Ministry did not respond immediately to a comment request. REVIVING AN ENERGY INDUSTRY RIPPLED BY THE WAR After the ouster by rebels of President Bashar al-Assad, Syria's new leader, President Ahmed al-Sharaa met with Trump this week in Washington. Baker Hughes, Hunt Energy, and Argent LNG are U.S. companies that announced in July their plans to support post-war reconstruction by creating a masterplan for exploring and extracting oil and gas as well as producing power. Syria produces only a fraction (of the electricity needed) of what it requires today due to the destruction caused by its 14-year civil conflict. However, the power supply has significantly improved in recent months, thanks to gas imported from Azerbaijan, and Qatar. Dana Gas of the UAE announced on Wednesday that it had reached a preliminary agreement with Syria's oil company for a study to evaluate the redevelopment of natural gas fields damaged during war. The war is believed to be the reason for the decline in Syria's natural gas production to 3 billion cubic meters in 2023, from 8.7 bcm back in 2011.
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Boeing ordered to pay $28 million more to the family of a 737 MAX crash victims
A federal court jury in Chicago on Wednesday ordered Boeing to pay over $28 million to a family of a United Nations environment worker who died in the crash of a 737 MAX in Ethiopia in 2019. The verdict given to the Garg family is the first of dozens of lawsuits that were filed following the crash in India and the one in Indonesia in 2018 which killed 346 people. According to the attorneys representing the family, a deal was reached between the parties on Wednesday morning. Garg's parents will receive 35.85 million dollars - the total verdict plus 26% in interest - while Boeing will not be appealing. Boeing did not respond immediately to a comment request. In a joint statement, Shanin Specter, Elizabeth Crawford and the family's attorneys said that the verdict "provides accountability to the public for Boeing's wrongdoing." Her lawyers claim that Garg was only 32 years old when Ethiopian Airlines Flight 302 crashed shortly after takeoff from Addis Ababa in Ethiopia to Nairobi in Kenya. The lawsuit alleged that the 737 MAX was defectively engineered and that Boeing did not warn the public and passengers about its dangers. Ethiopian Airlines Flight 610 crashed in the Java Sea, Indonesia, five months after Lion Air Flight 610. Both crashes were caused by an automated flight control system. According to the company, more than 90% civil lawsuits relating to the two accidents have been settled. This includes lawsuits, deferred prosecution agreements and other payments. According to their lawyer, Boeing settled three lawsuits filed by families of victims who also died in the Ethiopian Airlines crash. Terms of the settlements have not been released. Reporting by Diana Novak Jones, Editing by Jamie Freed
Chevron is confident about its energy future and oversupply: Bousso
One would not expect a CEO of a large oil company to brag that he is more confident than ever when warnings are abounding about an impending collapse in oil prices.
Mike Wirth, CEO of Chevron, announced the updated strategy on Wednesday. He dismissed concerns about an oversupply of oil in the short term, and expressed confidence in the long-term outlook for the sector.
Chevron, like its Big Oil counterparts, has benefited from the "energy dominance agenda" of U.S. president Donald Trump.
Wirth said to investors, "Never before in my career have i seen a more confident outlook." "The best of the future is yet to arrive."
The U.S. Energy Information Administration predicts that oil prices will average $55 per barrel in 2019, down from $69 last year.
NEAR-TERM RETRENCEMENT
But what a company claims is only one part of the story. What the company does is more important.
The spending plans of oil and gas companies are a good indicator of their risk appetite, both near and long term. Many energy projects like offshore oilfields and liquefied gas (LNG), for example, require billions in funding and years to build.
Chevron has therefore reduced its capital spending by $1 billion compared to previous guidance, resulting in a range between $18 billion and $21 billion annually until 2030.
In the face of the uncertainty surrounding the global oil supply-demand balance, the U.S. second largest oil company is also retrenching.
The International Energy Agency has forecast a massive oversupply of 4 million barrels of oil per day next year, or around 4%, of the global supply. If accurate, this could lead to oil prices crashing.
Chevron’s slight retreat suggests that its thinking is more in line with OPEC analysts who are expecting supply to roughly equal demand next year or other who believe there will be a modest oversupply.
LONG-TERM BOOM
Chevron’s actions appear to be more in line with its messaging. The company is clearly betting that oil demand will continue to grow and it's a race against time to compensate for dwindling supplies.
Chevron has plans to increase oil and gas production between 2% and 3% annually until 2030. It produces approximately 4 million barrels equivalent to oil per day.
Wirth stated that the amount of investment needed to close the oil gap is equivalent to five Saudi Arabias over the next decade.
Chevron has stated that it will keep the production of the Permian shale in America at 1 million bpd until 2040, while reducing its investment from $4.5 billion per annum to $5 billion.
Chevron claims that it can maintain production with improved drilling methods without drilling new wells. This is a bold prediction, given the standard practices of shale drilling or fracking.
Chevron's not the only major shale producer that has indicated it can sustain and grow shale oil production profitably for many years. ExxonMobil, ConocoPhillips and others have also indicated that they are confident of doing the same.
EXPLORATION BET
Chevron’s increasing investment in oil and natural gas exploration is perhaps the best way to demonstrate its long-term optimism. This high-risk and high-reward industry requires heavy investments, which can take a decade or longer to go from the first drilling to production.
Chevron has expanded its exploration activities in recent months to include Namibia, Egypt, and South America. In the coming years, Chevron plans to double its annual budget for exploration. Kevin McLachlan was hired by the company in October as its new exploration chief.
This means we can expect to see a similar situation as at the beginning of this century when massive, unrestrained investments in new gas and oil resources led us into massive overspending with poor returns.
Most likely not. Big Oil companies have become hyper-focused on profit and have implemented cost-saving measures that allow them to make money even if the oil price drops below $50. Chevron wants to cut structural costs between $3 and $4 billion dollars by 2026. This includes laying off 15% of the global workforce.
Chevron, and its peers, should be able to invest with more confidence in the future despite the peaks and valleys of the market. This, in turn indicates that the market will remain well-supplied for the foreseeable.
All of this does not take into account the energy transition. The timing of Chevron’s strategy update coincided with the IEA’s new long-term outlook, which suggests that oil demand could continue to rise into 2050. Previously, it was thought that the demand would plateau by 2030.
It may sound good to Big Oil, but the reality could be harsh for Chevron and other companies in the oil industry if energy transition gains momentum again as many predict.
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(source: Reuters)