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Neo-Nazi leader convicted in Baltimore plot to attack power grid
The U.S. Justice Department announced on Tuesday that a neo Nazi leader who was accused of planning to attack Baltimore's electricity grid had been found guilty of conspiracy to damage an energy facility. Brandon Russell, 29 of Orlando, Florida, and an associate, were arrested by the FBI in February 2023, after a confidential informant foiled their plot. The Justice Department stated that evidence presented at the trial revealed that Russell had conspired between November 2022 until that month to attack transformers in electrical substations, "in furtherance his racially- or ethnically-motivated violent extremist views." Russell posted links on open-source maps of infrastructure and explained how a few attacks against substations can cause "cascading failures," according to the Department. The department reported that he recruited a woman from Maryland, Sarah Beth Clendaniel to carry out his attacks to disrupt and damage the power grid of Baltimore, Maryland's biggest city. Clendaniel had identified five substations that she wanted to attack, and Russell tried to get a weapon to her. The department stated that the planned attacks could have caused damages of over $75 million. According to the Southern Poverty Law Center (a civil rights group that tracks hate groups in the United States), Russell is a convicted felon, and the founder of a neo Nazi group called Atomwaffen Division. The group works towards "ushering in the fall of civilization." After pleading guilty, he was sentenced to five-years in prison for possession of a destruction device that had not been registered and improper storage of explosive material. Russell's sentencing is set for June 17. Russell could be sentenced to up to 20 years of prison. Clendaniel received a sentence of 18 years imprisonment in September 2024. (Reporting and editing by Ryan Patrick Jones)
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Keppel's profit increases as demand for data centres rises
Singapore's Keppel reported a 5% increase in its underlying profit for the full year on Wednesday. Its connectivity segment saw its earnings boosted due to strong demand for digital technology required for artificial-intelligence-based services. Keppel’s connectivity segment, where its data centres are operated, saw a net profit increase of nearly 45%. Keppel’s most profitable infrastructure segment saw its profit drop 4%, to S$673m, for the year ended December 31, due to lower gains on sponsor stakes, and lower distributions by Keppel Infrastructure Trust. Net profit for the asset manager from ongoing operations increased to S$1.06 (US$784.20) billion in 2024 from S$1.02 reported a year before. Keppel is transitioning to an asset manager and has a goal of managing S$200 billion in assets by 2030. The company declared the same final dividend as last year, 19 Singapore cents for each share. ($1 = 1.3517 Singapore dollars) (Reporting by Aaditya Govind Rao & Rajasik Mukherjee in Bengaluru; Editing by Rashmi Aich)
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The trade war with China casts a shadow over US LNG projects
Analysts, industry sources and company filings say that President Donald Trump's emerging war of trade with Beijing is a threat to the billions of dollars of planned U.S. LNG export projects. Many of these rely on China to be a major buyer. This threat is a reflection of the dual-edged nature Trump's policies. They are meant to boost U.S. businesses and force action against illegal immigration and drug trafficking, but they could also unintentionally undermine his hopes to vastly expand U.S. Energy output. The tariffs could impact long-term contracts and offtake agreements...and may make it harder for new US LNG project to progress towards Final Investment Decisions," analysts from energy consulting firm EBW Analytics said in a customer note published on Tuesday. They were referring to Beijing’s decision to impose retaliatory duties on U.S. imports of energy. Trump announced over the weekend a 10% tax on Chinese imports, as part of an overall plan to improve U.S. Trade Balance. This triggered retaliation by Beijing, which imposed a 15% duty on U.S. coal and LNG, and a ten percent tariff on U.S. Oil. According to LSEG, the U.S. was the largest LNG exporter in the world last year. China imported nearly 6% of U.S. LNG total exports, or approximately 4.3 million metric tons. According to calculations, Chinese state-owned firms have signed LNG supply contracts for more than 20 million metric tons per annum (MTPA), from existing and future U.S. Export Terminals. According to public announcements, the two largest U.S. LNG companies, Venture Global LNG (formerly Cheniere) and Cheniere, both have long-term agreements with Chinese companies for 14 million MTPA. Venture Global did not respond to comment requests, while Cheniere, and Energy Transfer (which has a long term sales and purchase agreement in China) were also unavailable for immediate comment. Freeport LNG, which is the third largest U.S. exporter of LNG, declined to comment as well. Eight LNG export terminals are currently operating in the U.S. Three more are under construction, and there are nearly 20 others at different stages of development. After the Trump administration lifted the moratorium imposed in January by the former president Joe Biden on new LNG permits due to concerns over the projects' economic and environmental impacts, companies are moving forward with plans for new or increased LNG export capacity. Charlie Riedl is the Executive Director of Center for LNG. This trade group represents many U.S. LNG developers and exporters. He said that China's decision imposes tariffs creates uncertainty in the industry, and erodes America's position on the global energy market. Riedl stated that "These tariffs directly undermine the Trump Administration's efforts to increase American energy exports, and strengthen our influence in the geopolitical arena." White House officials told that Chinese tariffs against U.S. LNG may have a limited economic impact but the risk is worth it. The official stated that "there is no dollar value to saving American lives by preventing fentanyl-related deaths", reflecting U.S. concern over China as a major supplier of the drug and the chemicals used to manufacture it. Officials said that Trump wanted to expand LNG export markets to other countries as well to reduce the risk of Chinese action. BIG CONTRACTS LNG developers use sales and purchase agreements or long-term contracts to secure funding from banks for their projects. These agreements are essential for moving projects through the development phase to a final decision on investment. According to filings by the company, Venture Global, which is the largest U.S. exporter of LNG, with two plants in Louisiana operating and three others under construction, has so far signed supply agreements with Chinese companies totaling 9.5 MTPA. According to Cheniere Energy's announcements, it has 4.5 MTPA of long-term Chinese contracts. This is the second most valuable U.S. gas company, and the current largest exporter. Venture Global warned its investors in the prospectus of its massive initial public offering (IPO) of January that it was exposed to a potential trade war between two of the largest economies of the world. Venture Global informed investors that "These factors may adversely affect our capacity to market the remaining output of our project, which could have an adverse material effect on the viability and profitability of our project." Its stock fell almost 5% during Tuesday's afternoon trading, while Cheniere dropped less than 1%. Curtis Williams reported from Houston; Scott DeSavino, Jarrett Renshaw and Nia Williams contributed additional reporting. Richard Valdmanis edited the story.
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Strait of Hormuz, the world's main oil artery
A U.S. official stated on Tuesday that U.S. president Donald Trump would restore his "maximum-pressure" campaign against Iran and bring its oil exports to zero. Iran has threatened repeatedly to close down the Strait of Hormuz as a response to Western pressure. This would lead to the closure of trade in the region and a rise in oil prices. Here are some details on the Strait of Gibraltar: The Strait is located between Oman, Iran and the Gulf of Oman. It connects the Gulf of Oman in the north with the Arabian Sea to the south. The shipping lane is only two miles wide (three kilometers) in each direction. It's narrowest point is 21 miles wide (33 km). Why does it matter? Around a fifth (or 18-19 million barrels of oil per day) or fuel, condensate, and oil are transported through the Strait. OPEC member Saudi Arabia, Iran and the UAE export the majority of their crude oil via the Strait mainly to Asia. Saudi Arabia and the United Arab Emirates have been looking for other routes to bypass this Strait. The U.S. Government says that existing UAE and Saudi pipelines with unused capacity of 2.6 million bpd could be used to bypass Hormuz. Qatar, which is the largest LNG exporter in the world, ships almost all its LNG through this Strait. This accounts for about a quarter (25%) of the global LNG usage. Iran has repeatedly threatened to close the Strait, but it never did. Fifth Fleet of the United States, based out of Bahrain, has been tasked to protect commercial shipping in this area. History of Tensions In 1973, Arab producers, led by Saudi Arabia and the United Arab Emirates (UAE), imposed an oil embargo against Western supporters of Israel during its war with Egypt. OPEC crude is now mainly purchased by Asia, not the West. In the past two decades, the United States has more than doubled the amount of oil liquids it produces. It is now one of the largest oil exporters in the world. In the Tanker War, which lasted from 1980-1988 between Iran and Iraq, both sides tried to disrupt the other's exports. A U.S. Warship shot down a Iranian airliner in July 1988. Washington claimed it was an accident, while Tehran said that the attack was deliberate. Iran had threatened to close the Strait as a retaliation against U.S. sanctions and European ones. In May 2019, four vessels, including two Saudi oil tanks, were attacked near the UAE coast outside the Strait of Hormuz.
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Venezuelan oil exports increase on Chevron's shipments, with more supplies to China
Data based on vessel movement showed that Venezuelan oil exports increased 15% in January to 867,000 barrels a day. This was due to an increase in shipments from U.S. giant Chevron Corp through its joint ventures and state firm PDVSA as well as more cargoes going to China. Last year, the administration of former U.S. president Joe Biden did not renew an authorization that allowed Venezuela, which was sanctioned, to export oil freely. However, it granted individual licenses for some PDVSA customers and partners, allowing them to export to countries such as India, Europe, and the U.S. Donald Trump said that the U.S. did not need Venezuelan oil. However, his government has made initial contact with Venezuelan President Nicolas Maduro whose reelection was not recognized by Washington. According to LSEG and PDVSA export records, Chevron's exports of Venezuelan crude oil increased to 294,000 bpd by January. This is the highest level since the U.S. manufacturer began shipments of Venezuelan crude under its license at the beginning of 2023. It also exceeds the previous record of 280,000 bpd set in October. Chevron ships all its cargoes to the U.S. to be processed at its refineries or sold to other companies. Last month, China was the top destination for Venezuelan oil with 442,000 barrels per day (bpd), 21% more than the 364,000 barrels per day that were shipped there in December. Venezuelan exports to Europe increased to 63,000 bpd compared to 30,500 bpd a month earlier. Shipments to India remained at 60,100bpd as in previous months. The fuel exports to Maduro’s political ally Cuba fell to less than 10,000 barrels per day (bpd) from 29,000 the previous month. According to an internal document, stable crude processing operations in Venezuela’s largest oil-producing region, the Orinoco Belt contributed to higher exports. The inventories of heavy crude, which is essential for exports in the country, dropped to 6.2m barrels from 7.5m barrels at end-December, and could result in lower exports. Venezuela exported 360,000 tons of oil products and petrochemicals to the world in January, a significant increase from the 209,000 tons it had shipped the month before. According to data, PDVSA, its joint ventures and PDVSA imported 111,000 bpd (billion pounds per day) of heavy naphtha, and other fuels, down from the 130,000 bpd in December.
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Enterprise Products lacks customers to export US crude oil
Jim Teague said that Enterprise Products Partners did not receive enough interest from customers to commercialize the Sea Port Oil Terminal project (SPOT), the crude export project of the pipeline operator. Teague stated in a conference call following the earnings report that "in order to build SPOT we know what we require is volumes, fees, and terms... If we can't accomplish these within a reasonable time frame, we will move forward." Enterprise's Spot in 2022 was the first project of its kind to be licensed by the U.S. maritime regulator as a deepwater terminal that can load up to two supertankers at once, each capable of carrying 2 million barrels. Teague attributed the lack of interest to regulatory delays, as well as the Russian invasion of Ukraine in 2022, which rerouted the oil flow. The company said it will continue to market SPOT. Currently, the project is one of four planned facilities for export. It has received regulatory approval. Teague stated that "a lot has changed" since the SPOT application was submitted in January 2019. Teague stated that forecasters predicted U.S. crude oil exports to reach between 7 and 8 million barrels per day by 2024. The majority of these would be shipped to Asia via supertankers. The Energy Information Administration reported that U.S. crude oil exports were around 4.1 millions barrels on average in the first eleven months of 2024. Ship tracking data from Kpler revealed that 47% of U.S. oil exports were shipped to Europe as a result of the Russian invasion of Ukraine, which led to a higher demand in Europe. The share of U.S. oil exports to Asia will decline from 43% to 38% by 2024, as a result of the Russian invasion of Ukraine. The SPOT project was able to achieve its goal by using smaller tankers to transport crude to Europe, while the increased demand for oil in Asia would have required supertankers. (Reporting and editing by Paul Simao in Houston, Arathy S. Somasekhar)
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Transnet, South Africa's railway company, has seen its rail volume fall short of the target for this year
Transnet, the South African logistics company, said that its rail freight volume could reach between 160 and 165 millions tons by March. This is ahead of last years' figures but below a target of 170 million tons set in its recovery plan. After years of underinvestment in the group, equipment shortages have caused maintenance backlogs. Cable theft and vandalism are also damaging the network. Michelle Phillips, CEO of the company, told a panel during Africa's annual Mining Indaba conference in Cape Town about the recovery of rail volumes. Phillips stated that "you'll notice that we're 9 million tons ahead of where we were last season." "So, the 170 (million-ton) target looks like it will end up somewhere between 160 and 165 (and) we are trying to move towards the 165 (target)." Transnet moved 151.7 million tonnes of freight on rails in the past financial year. This year's growth is expected to be between 5.5% and 8%. Phillips stated that the volume target of 170 million tonnes is now more achievable, despite challenges like the lack of funding for the rail network. Transnet, the South African rail company, released a statement in December outlining its terms and conditions of privatization. According to Cliffe Dekker Hoyr, this will allow the company to reduce its massive debt, increase freight volumes on the network and improve the South African Economy. At the time, the Minister of Transport stated that it would assist the country in reaching the government's goal of transporting 250 millions tons of freight annually within the next five year period. Phillips stated that "we need the funding, resources and expertise of the private sector." (Reporting and editing by Jan Harvey; Nqobile Dudla, Nqobile)
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Traders say that the February Russian oil exports to western ports have been revised up by 19%.
Due to lower refinery output, Transneft revised up its plans for crude oil imports from Russia's west ports in February, by 300,000 barrels a day (bpd), traders and calculations show. According to traders, Ukraine's drone strikes on refineries have resulted in a reduction of processing and more crude being exported. In January, the loadings of western ports Primorsk Ust-Luga, and Novorossiisk reached 1.73 million bpd. Because Russia's refineries concentrate in the west, the western oil exports of Russia are most closely related to the refinery output. Traders said that Ukraine intensified its drone attacks against Russia's energy infrastructure on Monday and targeted at least 4 plants, increasing the risk of February's load plan being revised again. Calculations showed that oil loadings in western ports would increase by 19% per day compared to the previous plan. Sources said that the February loading plans of Primorsk, Novorossiisk and Ust-Luga will remain stable at 470,000 bpd. The traders reported that the Baltic port's loadings were still under capacity due to a technical problem. In January, loadings were at their lowest level in four years. Two industry sources have confirmed that the Ryazan oil refining plant in Russia has suspended operations following an attack on late last week. Barbara Lewis (Reporting and editing)
Boeing warns of bigger-than-expected $4 billion quarterly loss; shares drop
Boeing cautioned on Thursday that it expected a fourthquarter loss of about $4. billion to close a year spoiled by a production quality crisis,. stricter regulative analysis, supply chain delays and a. crippling strike by U.S. West Coast factory employees.
The loss would be nearly triple the size anticipated by Wall. Street. Boeing, which will release its results next week,. attributed it to charges at its defense and industrial units,. lower jetliner shipments and the strike's effects. The business forecast a quarterly loss of $5.46 per share, which. relates to about $4 billion, sharply steeper than experts'. average expectation of a $1.84 per share loss, according to LSEG. data.
Boeing shares fell 3.5% in after-hours trading as the. business forecasted quarterly revenue of $15.2 billion, below. expectations of $16.27 billion.
After banking record-high revenues in the 2010s, Boeing has. bled billions of dollars because 2019 after two deadly crashes of. its very popular 737 MAX jet exposed production quality and. safety issues and that the U.S. planemaker had misinformed. regulators during the plane's accreditation process.
The COVID-19 pandemic even more squeezed the business, and. 2024 started with a mid-air panel blowout on an almost brand-new 737 MAX,. sending out Boeing into another crisis. Through the first 9 months of 2024, Boeing acquired nearly. $ 8 billion in losses, hammered by a strike by more than 33,000. workers that stopped production of its 737 MAX, 777 and 767. airplanes and by an ailing defense and area division.
Based on Thursday's quarterly outcomes anticipate, the. company's yearly loss for the year could equal 2020, when it. lost nearly $12 billion, the most in its history.
' NEAR-TERM CHALLENGES'
Boeing CEO Kelly Ortberg, who took the control August, stated. the business faced near-term obstacles but had actually taken crucial. steps to stabilize its service throughout the 4th quarter. Those consisted of reaching an agreement in November to end the. seven-week strike that allowed it to reboot production of the. 737, 767 and 777 programs and raising more than $20 billion in. capital, he stated in a statement. Boeing Commercial Airplanes expects fourth quarter revenue of. $ 4.8 billion and an operating margin loss of 43.9%, the business. stated.
That consists of an approximately $900 million pre-tax revenues charge. on its 777X program, which the business says is due to greater. labor costs from the new contract that settled the strike. Boeing reiterated its strategies to deliver the very first 777-9 in 2026,. numerous years later than expected when it introduced the brand-new. plane in 2013.
It also prepares for an approximately $200 million charge on. its 767 program. Boeing's industrial division delivered 348 jets in 2015, down. from 528 the previous year. New orders for jets in 2024 dropped. to less than half as numerous as Boeing tape-recorded one year previously,. though it had some wins such as turning Turkey's Pegasus. Airlines, a longtime Jet client, with a company order. for 100 737 MAX airplanes.
Boeing Defense, Area and Security expects $1.7 billion in. pre-tax earnings charges on its five fixed-price development. programs: the KC-46 tanker, T-7 trainer, its Starliner capsule. for NASA's Industrial Crew Program, 2 U.S. governmental. aircraft referred to as Flying force One, and the MQ-25 refueling drone.
The $800 million charge to the KC-46 tanker program, which. is based on the 767 airframe, is due in part to the strike,. according to the company. Boeing stated the T-7 Red Hawk trainer program will schedule a $500. million charge due to the U.S. Air Force's choice on Jan. 15. to delay buying the first production model of its very first new. fitness instructor in decades to fiscal year 2026.
Boeing's defense division is expected to book quarterly. revenue of $5.4 billion and an operating margin loss of almost. 42%, the business said.
(source: Reuters)