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Statnett, a Norwegian company, will invest up to 20 billion dollars in the power grid by 2030
Statnett, Norway's transmission systems operator (TSO), announced on Monday that it will invest more than twice as much in the next 10 years to meet the growing demand for electricity and protect the grid from climate and security threats. Statnett plans to invest 150-200 billion Norwegian crowns (15-20 billion dollars) over the next 10 years. This is more than twice the amount it spent in the previous 10 year period. Elisabeth Vardheim, CEO of the company, said that investments are driven by a need to upgrade current lines, as well as plans for electrification and business development, as well as new industries driving applications for grid connection. She added, "We'll build more than ever before, but we can't do everything at once." NEED TO PROTECT AGAINST EXTREME WEATHER, MILITARY THREATS Vardheim stated that the cost inflation, lack of resources to complete planned works, and a strained supplier market all require strict prioritisation. Statnett has published its ten-year plan for system development twice since 2023. The latest version gives greater attention to security and preparedness, according to the company. Statnett stated that extreme weather conditions, digitalisation, and an older grid have all contributed to a more fragile power system. Statnett said that it was also considering measures to ensure supply in the event of a more serious scenario, such as a war on Norwegian soil. The Norwegian Crown is worth $1. (Reporting and editing by Terje Solsvik).
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BP will sell US onshore pipeline assets worth $1.5 billion
Sixth Street, an investment firm, has agreed to buy a minority stake in BP's U.S. Onshore Pipeline Assets in the Permian Basin and Eagle Ford Basins for $1.5 billion. The sale was part of a divestment program worth $20 billion that BP is running until the end of 2027 to reduce its debt. It comes at a time when BP is reviewing its oil and natural gas portfolio, and cutting costs. UBS analyst Josh Stone described the announcement as a "small-positive" that is expected to reduce BP's leverage rate by about 1% with a net profit impact of between $100 million and $200 million. BP is under pressure from investors, and activist investor Elliott became its target after a disastrous foray into the renewables sector hit profitability. After the sale, BP’s U.S. Onshore Oil and Gas business, bpx, will own 51% of the Permian assets, and 25% of the Eagle Ford assets. BP will report its third-quarter results in November. Reporting by Shashwat awasthi from Bengaluru, additional reporting by Shadia nasralla and editing by Subhranshu sahu and Jan Harvey
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Athens International Airport's nine-month net profits fall 4.8% due to higher costs
Athens International Airport's (AIA) net profit for the nine months ended on Monday fell by 4.8% despite an increase in passenger traffic. Rising operating costs, as well as a higher variable concession fee, offset modest revenue increases. The main gateway operator in Greece reported that the net profit for nine months ended September 30 was 185.8 millions euros (216.7 million dollars), down from 195.1million euros a year ago. AIA reported that operating expenses increased 14.1% on an annual basis to 180.1 millions euros. This was due to a higher Grant of Rights fee and increased staffing to meet the demand. Minimum wage increases, higher electricity costs and higher maintenance provisions were also factors. The total revenue and other income increased by 3.5%, to 526.9 millions euros. This was supported by a 6.7% increase in passenger traffic to 26.2 million and adjustments to airport charges. AIA reported that revenue from air activities increased by 2.5%, to 397.5 millions euros. Non-air revenues grew 6.7%, to 129.5, thanks to retail growth, despite disruptions to car parking. The tourism industry is the main economic driver in Greece, accounting for over a quarter. $1 = 0.8575 Euros (Reporting and Editing by David Goodman, Conor Humphries and Antonis Pothitos)
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PostNL's losses increase amid dispute over Dutch mail delivery obligations
Dutch postal group PostNL announced a larger than expected operating loss for the third quarter on Monday. It cited growing pressures on its domestic mail operations, as volumes are declining and revenues are concentrated on a few large customers. The company and the Dutch government are at odds over the costs of letter delivery across the country, as the number or letters and parcels sent is declining. The company's request for temporary assistance from the Dutch government, and its subsequent appeal, were both rejected. PostNL's normalised losses before interest and tax grew to 24.5 million euros in the third quarter from 18 million euros one year ago. The company polled analysts who expected a loss in the region of 17 million euro on average. Vincent Karremans, Minister of Economic Affairs, announced in October that PostNL will be permitted to extend the personal mail delivery time in the Netherlands from 2027 to three days. This plan was originally scheduled for 2028 or 2030. The two-day delivery plan announced in June will begin in July 2026. PostNL CEO Pim Berendsen, however, said that the proposal was not sufficient to cover the costs for fulfilling the EU mandated universal postal service in the Netherlands, and repeated his call for a urgent change in Dutch postal regulations. Early September, the company asked to be relieved of its obligation to provide nationwide delivery after its last bid for state assistance was rejected. Berendsen stated in the earnings report that PostNL is expecting a decision soon on its funding request for 2025 and 2020 and Karremans response to its withdrawal. The group said that its normalised annual operating result will be similar to last year's, when it reported profit of 53 millions euros.
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Minister says that the counter-terrorism police are unaware of the identity of a suspect in a UK train stabbing.
Transport Minister Heidi Alexander revealed on Monday that a 32-year old British man suspected of stabbing several passengers in a train on the east coast of England had not been known by security or counterterrorism services. Alexander stated that the attack, which was described by police as not being terrorism, left 11 people wounded, including one member of the crew, who is still in critical but stable condition in hospital. By late Sunday, five of the injured were discharged from the hospital. Alexander, speaking to Times Radio Monday, said that authorities had not flagged the suspect who was arrested for attempted murder before the attack. Alexander stated that the man was unknown to both security services and counter-terrorism police. She could not comment if he had been known by mental health services. British Transport Police reported that officers responded within 8 minutes of receiving the first call for help. The scene was a knife and CCTV footage, reviewed by detectives, showed that a member of the train crew intervened to stop the attacker. Alexander stated that "he literally put himself into danger." There are people alive today who will thank him for his actions. The suspect was apprehended after the emergency stop of the train at Huntingdon (about 80 miles north-east of London). Authorities have said that they are not looking for anyone else involved in the incident.
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AviLease, owned by the Saudi Public Investment Fund, plans to issue a 5-year USD bond
AviLease is a jet leasing firm that has been mandated by the Saudi Arabian Public Investment Fund, which manages a $1 trillion fund, to issue a bond in U.S. dollars for five years, according to IFR, a fixed income news service. In September, it was reported that the company had begun discussions with banks about a debut bond. It could also tap into global debt markets by the end of the calendar year. AviLease has appointed Citigroup, MUFG and Abu Dhabi Commercial Bank as global coordinators. They are also active bookrunners and leading managers, along with BNP Paribas First Abu Dhabi Bank HSBC, Mizuho and BNP Paribas. IFR reported that Al Ahli Bank of Kuwait and BSF Capital as well as Credit Agricole and Emirates NBD Capital were joint passive bookrunners, and Riyad Capital, Natixis and SNB Capital were joint lead managers. It said that investor calls will be held on Monday and Tuesday. AviLease was established in 2022 to help PIF build a domestic leasing giant. In 2023, AviLease bought Standard Chartered Aviation Finance for $3.6 billion. (Reporting and editing by Ros Russell; Rachna uppal)
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Bousso: The escalating war against Russia has a big impact on the oil industry in ROI.
Western oil companies have seen their profits soar as a result of the increasing attacks on Russia's energy industry, both in terms of economics and literally. This has helped to alleviate concerns about a possible supply glut and boosted profit margins for global refiners. Since July, waves of Ukrainian drone attacks on Russia's vast refinery and export terminal network have severely impacted the country's refined fuel exports such as fuel oil and diesel. According to Kpler, Russia's seaborne refinery product exports dropped by 500,000 barrels a day in September from their highs of 2025 to 2 million bpd. This is the lowest level for over five years. The reduced Russian exports has boosted global refinery margins. This is good news for energy giants such as Shell, Exxon Mobil, Chevron, and France's TotalEnergies. They operate together nearly 11 million barrels per day, or over 10% of the global refining capability. The fourth quarter saw a combined 61% increase in profits from refinery operations compared to the previous quarter. This contributed largely to the 20% increase in their overall profits. Exxon, America's largest oil company, reported that its earnings in the energy products division rose more than 30% quarterly to $1.84 Billion, mainly due to strong refining margins, "due supply disruptions", the company stated on Friday. BP is expected to report its results on Tuesday and will also benefit from the positive trends in global refining. Refining margins, which are a measure of BP's global operations, increased by 33% in just three months, from July to September. This figure has risen to $15.1 per barrel in the current fourth quarter. The increase in refining earnings is expected to offset the decline in oil prices, as it appears that the market has entered a period of oversupply. The oil majors have also benefited from the volatility created on the energy markets by Western sanctions, and other geopolitical conflict. These trading desks are able to generate large profits by quickly responding to changes in demand and supply dynamics. Shell, the largest oil trader in the world, does not reveal the profits of its division. Shell reported that higher trading and refining profits boosted adjusted earnings by $706m in its Chemicals and Products division in the third quarter, compared to the previous three month. BENEFICIAL BANKS Refining margins will likely remain high in the short term due to recent efforts by Western governments to press Moscow to end its war in Ukraine. In July, the European Union announced that it would ban imports from January 2026 of fuels made with Russian crude oil. The EU wants to close a loophole that existed in previous sanctions packages, which allowed refiners to use Russian crude oil at discounted prices to make diesel and jet fuel and then sell it to Europe. The EU's ban on Russian crude, approved informally earlier this month by the European Union, puts Western oil majors at an advantage, as non-Russian products, including refined products made from non-sanctioned Russian crude, will be in greater demand. Western energy giants received another pleasant surprise when U.S. president Donald Trump sanctioned Russia’s two largest oil companies on October 22, which account for 5% global crude supply, and 3.3 millions bpd in crude and refined products exports. This is roughly half the total of Russia’s crude and refined products. As buyers of Russian crude oil and products, especially in India and Turkey scrambled for alternative supplies, the sanctions increased oil prices and margins. The combination of Western sanctions and drone strikes in Ukraine could lead to a price surge similar to the one that occurred in the aftermath of Russia's invasion of 2022. This would result in record profits for oil majors. Most likely not. Today's oil market is better supplied and equipped to adapt to sanctions. This is especially true given the growth of the "shadow fleet" tankers, which have been able circumvent Western sanctions in order to sell Russian crude oil. The targeting of Russia's gas and oil industry will continue to benefit Western oil majors who enjoy large-scale upstream production, as well as extensive refining and trade operations. Want my weekly column, plus energy insights and links trending stories delivered to your inbox each Monday and Thursday? Subscribe to my Power Up Newsletter here. You like this column? Open Interest (ROI) is your essential source for global commentary on financial markets. 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.
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Tariff turmoil subsides, allowing industrial giants to regain their footing
This year, industrial companies have experienced a rollercoaster ride as they have tried to adjust their trade policies to those of U.S. president Donald Trump. But this quarter, executives have suggested that confusion is receding, as the corporations have now had more time to adjust higher tariffs on U.S. imported foreign goods. In contrast to the first half, heavy machinery, engine manufacturers and construction firms, which reflect the "real" economy, have been able to navigate the current environment by reducing costs and increasing prices in order offset the tariffs imposed by the Trump administration. Executives say that while there are many concerns for the coming quarters, they no longer feel as unpredictable. Michael Larsen said, "Certainly from a cost perspective and perhaps from a supply standpoint, tariffs are not the kind of main event here" on an analyst call following the results last week. According to an analysis of companies that reported between October 16th and October 31st, the estimated total hit to the global company's bottom line is about $7 billion. However, the markets are only halfway through the earnings season. This figure was between $16.2 billion and $17.9billion in the second quarter. SOLID REVENUES GROWTH LSEG data shows that U.S. Industrial companies are currently reporting the best revenue growth year-over-year since the first quarter 2023, at 6.3%. Caterpillar, a manufacturer of heavy equipment, estimated that tariffs could cost it between $1.5 and $1.8 billion by 2025. After reporting a good quarter and a 12% rise in its shares, Caterpillar's results on October 29 narrowed this range to $1.6 to $1.75 Billion. Joshua Schachter is the chief investment officer of Easterly Asset Management. He said that industrial companies, in general, are managing the uncertainty and changes to the tariff landscape pretty well. UPS and FedEx, two of the world's largest logistics companies, have cut costs in order to compensate for the loss of duty-free status on low-value ecommerce shipments. UPS, however, has also drastically cut its payroll, dumping 48,000 jobs due to the continued pressures on its business in this year. Analysts are concerned that the poor outlook for lower- and mid-income earners, which has affected consumer companies such as Newell, will spread to other sectors of the economy. The Trump administration also reached agreements with many nations to set import taxes between 15% and 20 % for some, after an earlier pause that left them at 10 %. This effect is not yet fully felt. Angela Santos is a partner at ArentFox Schiff and the leader of the customs practice group. "We are only in October, and the reciprocal tariff increases started in August. So it hasn't taken that long." EUROPEAN COMPANIES STILL FEELING THE HEAT The high tariffs have made it harder for some European companies who rely on U.S. exports. Importers in the U.S. are less likely than ever to purchase their products. SKF, a Swedish manufacturer of bearings considered a barometer for global manufacturing, anticipates a weak demand in the short term as customers are still hesitant because of tariffs and uncertainties. "If we get a little more calm and stable, I think that we will see the demand return," SKF's CEO Rickard Gstafson said on Wednesday. HIAB, a Swedish manufacturer of construction equipment, said that since mid-February orders had been slowing due to trade tensions. VDMA (German Engineering Federation), which represents 3,600 companies in the machinery and plant engineering sector, warned that new tariffs could affect more than half of German exports and European machinery if Washington adds more products to its list of steel and aluminum levies. Volkswagen and other European car manufacturers have been particularly hard hit, with Volkswagen reporting a $5.8 Billion tariff in its latest results. Yale's Budget Lab has been tracking U.S. trade policy and says that the effective tariff rate was 18% at mid-October. This is the highest it has ever been in over 90 years. On November 1, the Trump Administration will begin imposing new tariffs of 25% on imports of medium and heavy duty trucks, including 18-wheelers and dump trucks. A 10% tariff is also being imposed on buses imported from abroad. Don Marleau said that the full impact of tariffs will not be felt until industrial companies go through their inventory. In many cases, we haven't yet seen higher tariff costs. "We have higher estimates of tariff costs."
Portugal's TAP profit falls on foreign exchange losses
Portuguese airline TAP said on Thursday its secondquarter net earnings fell 10% to 72.2 million euros ($ 80.3 million), as foreign exchange losses from the decline of the Brazilian real offset an operating earnings increase.
The state-owned flag provider's operating earnings increased 3.4% to 1.1 billion euros throughout the duration, with passenger incomes up 0.8% to 986.4 million euros.
TAP stated net profit was affected by forex losses following the devaluation of the Brazilian real.
Chief Executive Luis Rodrigues stated in a declaration that TAP stayed on the essential course of structural transformation.
We continue the path we set out to follow, with the commitment of our people and the assistance of our stakeholders, to develop TAP as a sustainably lucrative company and one of the most appealing business in the industry, he stated.
The airline company's operating expense fell 0.8% to 938.6 million euros, in spite of an 18% dive in wage costs as it reversed pay cuts enforced under a hard restructuring plan.
Passenger numbers rose 2.2% to around 4.2 million.
TAP's repeating revenues before interest, taxes, depreciation and amortisation (EBITDA) rose 19.6% to 289 million euros and its EBITDA margin - a procedure of profitability - rose to 26.1% from 22.6% a year back.
In July, Infrastructure Minister Miguel Pinto Luz said that the centre-right federal government wanted to privatise TAP earlier rather than later on to make the most of market interest in the airline and was moving on with preparatory work.
TAP has actually up until now attracted interest from Lufthansa, Air France-KLM and British Airways owner IAG.
(source: Reuters)