Latest News
-
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.
-
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.
-
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.
-
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.
-
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."
-
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.
-
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.
-
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 outlook for US natural gas in the US is largely dependent on three key shale formations: Maguire
Natural gas is used to fuel power plants, homes and factories in the U.S., as well as the booming LNG export industry. The supply of natural gas needed to fuel all these uses comes from a small, ever-narrower portion of America's shales patch.
The mismatch between an?increasing number of consumers and a shrinking base of supplies could lead to a structural crunch in the U.S. gas market, which would trigger periods of price volatility and supply stress.
Gas prices that are too high would hurt the U.S. economy, and could derail the efforts to make the U.S. a leader in AI and data-driven applications. Gas producers in the United States are therefore under intense pressure to ensure that supply matches demand.
SCRUTINY SHALE
According to the U.S. Energy Information Administration, shale deposits are responsible for 75% of U.S. natural gas supplies.
The growth of the biggest shale deposits slowed dramatically in the last few years, as the basins matured. This was due to reduced pressure on the deposit and increased interference with wells from congested drilling spacing.
Gas prices that continue to rise would encourage producers to increase their efforts. After more than a decade, the best gas wells are likely to have been tapped.
This means that the majority of production efforts are likely to remain concentrated on the basins which have provided the lion's portion of new U.S. gas supplies in the last decade, even if the extraction rates continue their decline.
THE BIG 3.
In terms of production, the top three shale formations are the Marcellus in Pennsylvania and Appalachia, the Haynesville in Louisiana and Texas and the Permian, in west Texas.
According to the EIA these plays will account for 74% or 22.2 trillion cubic foot of shale-gas production in the United States by 2025.
In 2016, the combined production of these same deposits amounted to around 8.5 trillion cubic foot, which means that output has increased 161% in that decade.
This?growth rate is compared to a 17% increase in other notable shale deposits and a 48.8% increase in the total U.S. Gas Supplies over that time period. It clearly shows the enormous influence these seminal deposits had on the U.S. Gas Sector.
As the old saying goes, "what goes up, must come down", and the combined growth of the 'Big 3' has dropped rapidly from its previous peaks.
Since 2022, the average annual increase in gas production has slowed down to 6%.
The annual growth rate for?total gas production in the U.S. has been around 3% since then.
Different Strokes
The Big 3 are often lumped into one group when discussing shale. However, there are important differences between them in terms of their deposit characteristics and growth limitations.
Marcellus Shale, a massive deposit in Pennsylvania, produced nearly one-third of the shale gas supplied to the United States last year. It has also consistently provided the lowest cost gas for the past decade.
Marcellus's relatively shallow shale depths and thick, consistent formations are ideal for modern gas extraction, while its proximity with large East Coast populations centers makes it profitable to distribute its gas.
Even after a decade-long continuous depletion of reserves, exploration firm Kingdom Exploration estimates that between 50 and 70% of technically recoverable natural gas is still left.
The Marcellus region is still facing major challenges to its growth. These include a lack of pipeline connections with new markets, the difficult permitting process to build new pipelines and long distances from major LNG export hubs.
Haynesville, the deposit that produced 16% of U.S. Shale Gas last year, has much closer ties to LNG exporters who are Haynesville's main customers.
Haynesville producers, however, are sensitive to market price fluctuations and reduce their activity when prices fall for long periods.
Haynesville's reserves are also estimated to be huge, but they will cost more to extract, as the easy pockets are tapped.
Permian Basin is different from Haynesville and Marcellus in that it's predominantly an oil?reserve with natural gas on the side.
Permian oil is the most important product. In 2025, the basin will produce around 6.5 millions barrels of crude oil per day. This represents around half the total U.S. crude production.
Gas is a by-product of the oil industry, so it is priced accordingly by producers in order to get buyers to buy their gas.
Permian Gas is among the most affordable available. However, limited pipeline connectivity can cause supplies to accumulate in the basin. This will further lower prices.
The tightening of rules on flaring, the burning off of excess gas, means that Permian Gas producers will need to be more disciplined with their future storage and offtake flows.
The high crude oil price also means that more oil and gas production will be expected in the Permian basin by 2026. This could have a greater and more consistent impact on the national gas markets.
Gas market watchers will be able to tell how the Big 3 basins interact with each other by the way the market develops in the future.
Increasing production in the U.S. will increase power and LNG supplies.
The idea of U.S. dominance in energy may have to be rethought if gas production from the Big 3 continues to fall.
These are the opinions of a columnist who writes for.
You like this column? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X and 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.
(source: Reuters)