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Transnet, South Africa's largest freight transporter, returns profit from asset sales and increased volumes
Transnet, the state-owned South?African logistics group, reported Thursday a profit of 4.6 billion rands ($286.05 millions) for the fiscal year ending March 2026. This is the first profit it has made in the last four years. In a press release, the?group of freight rail ports and pipelines said that the profits were mainly due to the sale of its 'Pier 2 terminal as well as an increase in rail and pipe volumes. Due to equipment shortages, and maintenance backlogs, the debt-ridden company has been holding back growth in Africa’s largest economy for years. The performance of the company has begun to improve, thanks in part to government guarantees that have boosted liquidity and prevented a possible debt default. Transnet's?revenues grew 7.1% in the latest financial year to 88.6 Billion Rands.
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Dealmaking in the aerospace sector accelerates as jet production increases
According to data from the industry and interviews with decision makers and suppliers, mergers and acquisitions in the aerospace industry are increasing as buyers gain more confidence in long-term demands due to clearer Boeing and Airbus schedules. Through August, the aerospace and defense investment bank Janes Capital Partners, which focuses on commercial aerospace, tracked 154 publicly-disclosed commercial aerospace transactions in this year. This is just a few short of the record of 159 that was set in 2019. Buyers target suppliers who have specialized manufacturing abilities, scarce workers and the capacity to meet an increasing jet production. The major manufacturers also seek to secure critical component supplies. GE Aerospace announced this week that it has purchased Consolidated Precision Products for $12 billion as part of its efforts to increase engine production. Parker Hannifin, a private equity firm, agreed to purchase Circor's Aerospace division in May for $2.6 billion. This division makes actuation- and landing-gear system. The majority of transactions have involved strategic buyers and private-equity firms that acquired midsized or smaller suppliers. Janes Capital data shows that the 154 deals announced between August and September (excluding the GE deal) had a combined value of $14 Billion, compared to 157 deals worth $37.5 Billion in total last year. The number of deals peaked in 2019 at 159, with a value of $21.3billion. In 2020, the pandemic caused a drop to 82 transactions worth $3.3billion. In 2015, 106 transactions totaled a value of $59.4 billion. BOEING STABILIZES PRODUCTION Boeing's jetliner delivery numbers have fluctuated dramatically over the past few years due to several crises. They fell from 806 in 2018, to 157 by 2020. The company recovered to 528 by 2023, but production quality problems caused them to drop to 348 in the following year. Boeing's 737 -MAX, its best seller, has been stabilized under a new CEO. The company also increased output to give suppliers a better view of the future demand. Boeing delivered 600 jets in 2018, the most since 2018. It is on course to exceed that number this year. Airbus' production also dropped during the pandemic, but has steadily increased since. It plans to deliver 870 aircraft this year, surpassing its previous record of 863 jets in 2019. Anita Antenucci is the founder of 3Wire Partners, an investment bank. Bankers also said that a backlog of sellers are coming to the market. Private equity firms held on to their portfolio companies for much longer than usual due to the pandemic's production swings. Stephen Perry, managing Director at Janes Capital said: "Either you or a buyer had no idea how much revenue your company would generate." Buyers are more confident in pricing future performance of a target as?build rates and their trajectory become more predictable -- even with the backdrop of Boeing's well documented struggles. This calculus was played out last year, when France's DEMGY entered Boeing's supply chains by acquiring Tool Gauge. Tool Gauge is a mid-sized family-owned supplier of interior parts for jetliners. Boeing was still trying to stabilize production, when DEMGY started looking at Tool Gauge. This company is located in Tacoma, Washington near Boeing's plant for the 737. Mike Walter, the president of DEMGY North American operations, explained that DEMGY had bet on Boeing's future and, by acting early, largely avoided any bidding wars for?Tool Gauge. Sometimes, when you see a chance, you must take it. He said, "We saw an opportunity." He refused to reveal the purchase price. DEMGY's global revenue in 2025 was EUR125 million. Dealmakers say that the competition for small suppliers has increased, in part due to an increase in interest from private equity firms. Susan Kasa, a small machine shop with a few dozen workers outside Springfield, Massachusetts, said she now receives "two to three calls a day" from prospective buyers. The owner of Boulevard Machine in Springfield, Massachusetts has a few dozen employees and receives "two to three phone calls per day" from potential buyers. Kasa explained that her highly-trained workforce, a rare commodity in an industry struggling with labor shortages, is one of the reasons her company is so attractive to potential buyers.
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Russian forces hit Kyiv petrol station, injuring four
On Thursday, the oil company Ukrnafta and Mayor Vitali Klitschko said that Russian forces had attacked a petrol pump?in Kyiv for the first time. Four people were injured. Emergency services said that the attack on a petrol station in southwest Kyiv caused a fire to break out, destroyed at least one car, and ignited a nearby building. There is no military purpose for such strikes. Bohdan Kukura, CEO of Ukrnafta, said on Facebook that the strikes were a form of terror and intimidation against civilians. Kyiv, and its suburbs have been under a constant barrage of jet-powered drones for nearly two weeks. In recent months, Russia attacked approximately 300 Ukrainian petrol station, mainly in the frontline eastern areas, in an attempt to disrupt the logistics of?Ukraine’s military. Late August, Russian forces disabled and attacked an oil depot located in the Kyiv area. Ukraine also targeted Russian fuel 'logistics' with drone strikes against petrol stations, fuel tanks and railway fuel infrastructure, in Russian-occupied regions, as well oil refineries across Russia, causing fuel supply shortages. Early in the war, Russian forces destroyed Ukraine's main oil?depots? and fuel storage facilities?. This triggered a fuel crisis that forced Ukraine to overhaul its logistics.
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Nigeria warns investors about losing their permits if they invest in flare-gas
Nigeria's oil regulator warned investors developing projects on gas-flaring site that they?risk losing their permits if stalling progress, signaling a tougher push? to halt?routine flaming by 2030. The Nigerian Upstream Petroleum Regulatory Commission has said that it will review awarded sites after a year and may revoke them if progress is not satisfactory. NUPRC's Chief Executive Oritsemeyiwa Ekpo said, "One year after a?award?has been awarded, the Commission will conduct an evaluation to determine?whether there have been significant progress." She added that "where there is not enough progress, the Commission will take the appropriate regulatory actions, including revocation of awards where necessary." Nigeria has accelerated the Nigerian Gas Flare Commercialisation Programme, an initiative that aims to capture and market gas that would have otherwise been burned at oil production sites. This will reduce emissions while creating economic value. Eyesan stated that 27 of 43 gas-flaring sites identified as part of the programme have been awarded to investors, with project development underway. Nigeria has 215 trillion cubic foot of?proven natural gas reserves. This is among the world's largest. Gas is seen as an important transition fuel to power generation and industrial growth. Eyesan stated that stronger enforcement would ensure that awarded projects?translate?into investments, jobs, and emission reductions instead of remaining dormant.
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Marine fuel supply squeeze eases as the market adjusts to prolonged Hormuz disruption
Industry sources told the APPEC industry meeting on Thursday that the market has been able to work around the earlier'supply shocks'. In a panel at the conference, Rishi Nyati said, "We do not see any problems with sourcing bunkers today and putting them on board." Nyati said that there is currently no shortage of marine fuel or bunkers in the major shipping hubs, as opposed to March and April. However, he added that refuelling prices have risen. According to data from the market, as of this week outright prices for mainstay VLSFO fuel oil, in Singapore, which is the world's biggest bunkering hub?are more than 60% higher than pre-war levels. Prices have been volatile for the last six months, after the U.S. & Israel attacked Iran late in February. Prices have risen since March, but they are now lower than the record highs. Max Tay is Asia's heavy product trading manager at Repsol. Tay, in a panel discussion on the same topic, said: "There are disruptions of supply out of the Strait of Hormuz. But there are alternative sources of supply we can obtain." Tay explained that the challenge is the inability to secure blending stocks for marine fuels which meet certain specifications?for specific buyers and markets. Tay estimates that the bunker activity in the port of Fujairah, the United Arab Emirates, which is another major ship-refuelling hub has returned to approximately 40% of its pre-war level, while bunkering at Singapore has remained steady since the start of the war. Emarat's Nyati informed the panel that despite the tensions, some oil is still being transported through the Strait of Hormuz. "Hormuz?is not closed. "There are between 10 and 15 transits both ways," said Nyati. He was referring to the daily transits by cargo vessels through the Omani Corridor on the southern side. He said, "There's oil flowing."
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Maguire, Where global LNG and gas infrastructure is growing
The fossil fuel industry is seeing its most significant growth in the LNG and natural gas sectors, as demand for coal and oil has been stifled by electrification and efficiency gains. Gas is increasingly being used by governments and utilities to meet the growing electricity demand, and provide reliable power along with expanding renewable energy sources. This has triggered a global investment wave in pipelines, LNG export and import infrastructure, and gas-fired generators. Eight key charts are shown below that illustrate the regions and countries driving this growth. Power Play Global Energy Monitor data shows that Asia dominates global gas-fired generation capacity, both in use and under construction. Asia's 950,000 megawatts of operational capacity is comparable to?about 735, 000 MW in the Americas and exceeds approximately 366,000 MW throughout Europe. Asia is building an additional 140,000 megawatts (MW) or more, which is three times as much as any other region. The U.S., with its 562,000 MW of gas-fired capacity, has the highest operating capacity, while China is the country with the most capacity in construction. THE PIPELINE PIPELINE Gas pipelines in the Americas are currently more than 490,000 km long (304,471 mi). This total is more than the 281,000 km of pipes in Asia and 262,680 km in Europe. Asia has the largest pipeline capacity currently under construction with 56,000 km. China is the country with the most pipelines, having built nearly 22,000 km, followed by India, which has built nearly 15,000 km. The Footprint for LNG Export The U.S. has the biggest LNG export capacity and is the top producer of gas in the world. However, Asia, with its extensive export infrastructure that stretches from the Middle East to Southeast Asia, ranks first. GEM data indicates that the U.S. has also built up the largest LNG export capacity, currently at around 100 million tons per year. LNG Import Growth Asia is the top LNG-importing country in the world. It dominates the landscape of the existing import infrastructure and the capacity that's under construction. Japan is the country with the most established import infrastructure. It has 242 millions tons of import capacity per year. China, with 97 millions tons of import capacity in construction, has the largest lead. Once built, energy infrastructure is likely to last. Natural gas is a dominant energy source in the world. The vast number of gas-fired power plants, pipeline networks, and LNG facilities that are already operational or under construction suggest this. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, 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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Saudi Arabia says there is no danger following the Khamis Muhait alert amid clashes between Houthis and Houthis
Saudi civil defence authorities issued a 'all-clear' on Thursday following an emergency alert that was declared in the southwestern province of Khamis Muhait for a fourth time within 24 hours as clashes erupted with Yemeni Houthis backed by Iran. Civil defence officials said shortly after the alert that the danger was over. The Saudi-led coalition said that at least 73 people were wounded in four southern Saudi towns, including Khamis Mushait in recent Houthi strikes on the world's biggest?oil exporter. The militant 'group' said that it had attacked an airbase at Khamis Mushait, and oil infrastructures in nearby cities. This was one of the largest attacks against Saudi Arabia since the U.S./Israeli war in Iran. The 'coalition' said that the Houthis had continued their 'attacks? on national assets and infrastructure Wednesday. Saudi Arabia and the Houthis have been fighting for months. This has raised fears that a wider conflict will return after years of war were largely stopped by a truce brokered by the U.N. in 2022.
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Wall Street Journal, September 10,
These are the most popular?stories from the Wall Street Journal. ? The accuracy of these stories has not been verified by the site. Jim Farley, Ford Motor's Chief Executive, strongly denied claims by Transportation Secretary Sean Duffy claiming that the automaker is becoming overly dependent on Chinese companies. This was despite its tie-ups with car manufacturers overseas and a Michigan battery plant. Philip Morris International has expanded its Zyn line of nicotine pouches and the number that it offers in a single can. Pipeline company Energy?Transfer will be the first major firm to move its primary listing to the Texas Stock Exchange from the New York Stock Exchange. Swarmer, a firm backed by Erik Prince, is buying Ratel Robotics in a deal valued up to $224m. - 'Inspire Brands' named Dunkin’ President Scott Murphy interim CEO, while longtime CEO Paul Brown is on a medical leave. The Canadian International Trade Tribunal has said that imported canned vegetables, mainly from the U.S., have caused serious financial strains for domestic food processors. It recommends the government to impose import limitations in order to assist the sector.
The conflict in the Middle East may accelerate Europe's gas separation from Russia, says Vladimirov
The Iran war's natural gas price shock could accelerate Europe's decoupling with Russian energy while pushing the continent further into U.S. arms. Last week, an Iranian attack forced QatarEnergy to stop production, forcing the second largest liquefied gas exporter in the world. European benchmark gas prices soared by almost 50%. The European benchmark gas prices soared by nearly 50% as a result of the Iranian attack that forced?QatarEnergy, the world's second-largest liquefied natural gas exporter, to halt production last week. Qatar will only supply 4% of the gas imported by the European Union in 2025 according to the European Council. However, with this volume no longer available, the U.S. is now the largest gas exporter and producer. The U.S. could then use this leverage to force Europe to decouple from Russian gas. Since the Russian invasion of Ukraine, Western leaders have been trying to achieve this through sanctions.
This trajectory should not be altered by any temporary relaxation of U.S. oil sanctions during the war. The threat by Russian President Vladimir Putin to stop Russia's gas exports to Europe last week will also provide additional impetus to reduce this dependence. Russian gas accounts for about 10% of EU imports. The EU mandates that all Russian imports end by September 2027. However, legal ambiguities or loopholes may prolong the dependence on Russian Gas beyond 2028.
RUSSIA'S LONG-LASTING GRIP IN EASTERN EUROPE
Gazprom, a state-controlled Russian company, is the largest supplier of super-chilled fuels in Central and Eastern Europe and Southeastern Europe. The TurkStream pipeline system, which connects Russia and Turkey, is the main route for the Russian gas that flows into Europe. Central and Southern Europe remain structurally vulnerable, unlike Northern Europe which has rapidly diversified its energy operations through new LNG terminals. Russian pipeline gas is more commercially attractive due to limited storage, fragmented tariffs for transmission and poorly integrated markets.
The Americans had a very clear message at the Transatlantic Gas Security Summit in Washington, held just a few days before the start of the conflict, which was to accelerate the flow U.S. LNG in Europe's most vulnerable market.
NEW ENERGY FRAMEWORK To accomplish this, senior U.S. and European officials are focused on the new flagship project, the Vertical Gas Corridor, which links Greek LNG terminals to Bulgaria, Romania Moldova and Ukraine.
The Vertical Gas Corridor would fundamentally reorient Central European and Southern European trade flows towards Atlantic supply chains. This would lock in long-term LNG supplies and make the Balkans a frontier market for exporters. In order to support this initiative, U.S. gas exporters such as Cheniere and Venture Global agreed to supply 8 billion cubic meters (bcms) of gas per year through 20-year contracts signed with traders and governments from Central and Eastern Europe. This is roughly equal to 10% of U.S. exports of LNG to the EU by 2025.
These buyers, in turn, have signed non-binding deals with European intermediaries for the purpose of supporting the flow LNG through these areas. The willingness of European leaders to sign long-term contracts for gas after over a decade of talking about the need to cut fossil fuel consumption highlights Europe’s new reality. Energy security concerns are more important than decarbonisation.
The success of a Vertical Gas Corridor in the United States is not guaranteed. Tariffs across the border between Central and Southern European nations remain prohibitively expensive. Regional operators propose a new, "super-bundled", agreement which would allow suppliers the opportunity to reserve an entire corridor under a single contract.
There are also infrastructure bottlenecks. In order to accommodate large flows, underground storage facilities in Bulgaria and Ukraine will need to be upgraded. In addition, without EU financial support to cover the additional costs required for transmission system operators upgrade the grid, Russian Gas delivered via existing pipelines would remain cheaper and undermine diversification efforts. For the Vertical Gas Corridor?to function at scale, LNG from Turkey must flow north. According to my calculations based on data from Argus and Argus, the country has a large amount of underutilised regasification capability, which totals 58 bcm per year. This is enough to increase U.S. LNG supplies to Europe by approximately 70%. Around half of this capacity could be used to ship volumes through the Corridor towards Ukraine and Central Europe. However, in 'practice, Russian gas continues to occupy a large share of Turkish transit capacities through TurkStream. In a geopolitical environment that is becoming increasingly fractured, Turkey might not want to align itself with the interests?Europe or the U.S.
The U.S. has stated that its LNG exports are essential to Europe's industrial growth, economic security and its emerging infrastructure needs. And the conflict in Iran shows that this is likely correct.
Some might question whether it is wise to deepen this dependence, given the fact that the US has decided to continue the war in Iran even though they knew the possible disruptions to the global energy systems.
Europe has few options. It may be worth it to reduce Moscow's influence on the EU economies that are most vulnerable to economic and political pressure.
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(source: Reuters)