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White House official: Boeing's Air Force One project could be delayed to 2029 or later
A senior administration official has said that the Air Force One project may be further pushed back until 2029, or even years later. He cited supply chain problems and changing requirements after the White House announced the project had failed to deliver a replacement plane by the deadline over the weekend. Officials told that Boeing had problems obtaining parts because some manufacturers were no longer in business. Officials said that some requirements for aircraft have also changed due to evolving threats. Boeing referred any questions regarding the schedule for the program known as VC-25B to the U.S. Air Force, which was not available for immediate comment. Boeing CEO Kelly Ortberg said in January that the president wanted the plane earlier. Boeing has delayed the delivery of its first aircraft until 2027 or 2028, which is towards the end Trump's second tenure in office. Breaking Defense, a digital magazine published in December, reported that new delays could be added to the Presidential aircraft program that would push the delivery date of the first jet until 2029. When asked about the report, an official from the administration acknowledged that the new delays could extend "years beyond 2029". Since his presidential campaign in 2016, Donald Trump has been heavily involved with the program. He extracted a commitment from Dennis Muilenburg, then CEO of Boeing, to cap the cost at $4 billion. Boeing has spent over $2 billion on these fixed-price contracts, which were questioned at the time by analysts and finally finalized in 2018. Analysts said that Trump's renewed commitment could indicate further problems for Boeing. The company's current Ortberg stated the company would be meeting with Trump's billionaire cost cutting ally Elon Musk to update the plane faster. Ortberg, speaking to CNBC on January 28, said: "The President wants the planes sooner. We're working with Elon in order to bring up the schedule for those programs." Boeing's leaders said that the production was slowed down by issues with the supply chain, high costs and complexity of the planes intended to be a flying White House. Trump returned to the topic on Saturday, when he visited a 12-year old 747-8 aircraft near his Florida vacation house at Palm Beach International Airport to better understand the configuration of two new presidential transport planes, according to White House. The 747-8 Trump toured used to be owned by Qatar, but it has been rebuilt since then and is now operated as a charter. "He saw everything configured." The official added that the Air Force One aircraft was relatively small. Officials said that the new aircraft would be able to accommodate more people including media. (Reporting and editing by Nick Zieminski, Aurora Ellis and Nick Zieminski; Additional reporting by Allison Lampert; David Shepardson and Allison Lampert)
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Senior official: Boeing's Air Force One project could be delayed to 2029 or later.
A senior administration official has said that the Air Force One project may be further delayed, possibly until 2029, or even years later. He cited supply chain issues and changes in requirements after the White House highlighted the delays of the project at the weekend. Official said that while the delays were frustrating, there was not much that could be done to accelerate delivery. Boeing had problems getting parts because some manufacturers went out of business. The official stated that some requirements for the aircraft have also changed due to evolving threats. Boeing did not immediately comment on the VC-25B program. Boeing delayed the delivery of the first aircraft, originally scheduled for December 2024. The delivery date has now been pushed back to 2027-2028. This is towards Trump's end-of-term. Breaking Defense reported in December that the Presidential aircraft program was facing new delays, which could push the delivery of the first plane to 2029 or even later. When asked about the report, an official from the administration acknowledged that there were new delays. The delay could extend "years" beyond 2029. Since his presidential campaign in 2016, Donald Trump has been heavily involved with the program. He induced then-Boeing CEO Dennis Muilenburg, to promise a $4 billion cap on the program. Boeing has spent over $2 billion on these fixed-price contracts, which were questioned at the time by analysts and finally finalized in 2018. Analysts said that Trump's renewed commitment could indicate further problems for Boeing. The company's current CEO Kelly Ortberg stated the company would be meeting with Trump's billionaire cost cutting ally Elon Mota to update the plane faster. Ortberg, speaking to CNBC on January 28, said: "The President wants the planes sooner. We're working with Elon in order to bring up the schedule for those programs." Boeing's leaders said that the production was slowed down by issues with the supply chain, high costs, and the complexity of planes intended to be a White House in the air. Trump returned to the topic on Saturday, when he visited the Palm Beach International Airport near his Florida vacation house, and toured an old 747-8 aircraft that was 12 years old. He wanted to better understand the configuration of two new presidential transport planes. The 747-8 Trump toured used to be owned by Qatar, but it has been rebuilt since then and is now operated as a charter. "He saw everything configured." The official added that the Air Force One aircraft was relatively small. Officials said that the new aircraft would be able to accommodate more people including media. (Reporting and editing by Nick Zieminski; Additional reporting by Allison Lampert, with additional reporting by Andrea Shalal)
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Black Sea CPC blend oil loading plan for Febuary unchanged despite Monday's drone attack, say sources
Two sources familiar with the plan said that after Monday's drone attack, the Black Sea CPC blend oil loading plan will not change for February. The drone attack hit a pumping facility on an oil pipeline that runs through Russia. This reduced the flow of oil from Kazakhstan into world markets, which is pumped by western firms such as Exxon Mobil and Chevron. Two sources familiar with the situation said that the plan to ship crude oil via CPC remained the same on Monday, at 1.4-1.5 million barrels a day or 5.1 million tons. The Caspian Pipeline Consortium, which controls the pipeline system that ships CPC Blend oil and controls the schedule for this month, has declined to comment. Sources in the industry claim that CPC has not restricted its intake as of Monday. The CPC announced earlier today that drones struck Kropotkinskaya Station in southern Krasnodar Region, where the work was stopped to investigate the damages. The CPC is Kazakhstan's main oil export route, and it supplies around 1% of world oil. Shell, Eni of Italy and the Russian government are all shareholders. Reporting by
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Sources say that oil exports from Russia’s Novorossiisk were revised up by 12 percent for February.
Two people familiar with this matter reported that oil exports from Russia’s Black Sea port, Novorossiisk, were revised upwards by 0.24 million metric tonnes for February. This amounts to approximately 590,000. barrels per day. Calculations showed that the daily oil loadings at the Black Sea port will increase by 12% compared to the previous plan. Sources said that the revision was made after the addition of two additional cargoes, each of 100,000 and 144,000 tons, for loading on February 14-15, 25-26 and respectively. Novorossiisk is the port from which three oil grades are loaded: Russian Urals, Siberian Light, and Kazakhstan's KEBCO. Calculations showed that the overall oil loading plan for western Russian ports will now rise to 1,98 million barrels per day (bpd) in February, after revising the Novorossiisk loads from 1,88 millions bpd under the previous version. Calculations showed that the overall oil loading plan from Russian western ports is now set to rise to nearly 1,98 million bpd in February after the revision of Novorossiisk loadings, which were previously at 1,88 million bpd.
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Eni signss deal to bring Cypriot gas to Europe via Egypt
Italian energy group Eni has signed an agreement to export offshore gas from Cyprus via Egypt. It hails it as "milestone" in creating a gas hub for the eastern Mediterranean. Eni announced that the deal, which includes TotalEnergies, will see gas from Cronos Block 6 processed in Egypt's Zohr facility before it is liquefied and shipped to Europe at the Damietta plant for liquefied gas. Eni and TotalEnergies both own 50% of Cronos Block 6. Cronos gas is estimated to be more than 3 trillion cubic foot (TCF) and was discovered in 2022. It will then be appraised in the year 2024. Eni also said that Block 6 contains additional potential resources currently under exploration and appraisal. Claudio Descalzi, CEO of Eni, said: "This agreement will help bring Cyprus gas to market quickly and contribute to energy security as well as competitiveness in the energy supply." He added that "this project leverages Egypt’s existing infrastructure including export facilities which are key enablers for development in the region." Egypt was planning to become a major exporter of gas after Eni found the Zohr offshore gas field in 2015. However, Egypt's production of gas has fallen since 2021 and reached a six-year minimum in 2024. Eni now wants to increase production. Eni owns 50% of Damietta LNG Plant. (Reporting and editing by Alvise Armellini, Susan Fenton and Cristina Carlevaro)
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Minister: Greece will build an escape port on Santorini if the earthquakes continue.
A Greek minister announced on Monday that Greece would soon establish an evacuation port in Santorini, to allow people to safely escape if a larger earthquake were ever felt at the popular tourist destination. Santorini is a volcanic island located in the Aegean sea. Since late January, it has experienced tens and thousands of minor tremors, which have forced thousands to flee and led authorities to shut down schools, close nearby islands, and ban construction activities. Scientists haven't ruled out larger tremors, but they have stated that the seismic activity is unprecedented in a country prone to earthquakes like Greece. The main ferry port, located at the bottom of a steep slope in Santorini, and other locations on the island have been identified as weak points. However, they haven't said that they can't be used during an emergency. Vassilis Klikilias, the Civil Protection Minister of Greece, said that Greece would build an emergency port to dock passenger ferries safely until new port infrastructure was in place. In an interview with Greek ANT1 TV, he explained that a new port is being built in Santorini and a port of escape was also decided to be set up on a part of the island for passenger ferries to dock in case of an emergency. The tremors have decreased over the weekend. However, the local authorities on Sunday extended the emergency measures to a third consecutive week and urged people to avoid coastal areas and steep hillsides that are prone to land slides. Costas Papazachos is a professor of seismology and a spokesperson on the Santorini quakes. He told ERT that "this story isn't over." Both authorities and residents should be prepared to live with a somewhat unpleasant situation for a while, this could take another two or three months. Santorini's current form was formed by one of the biggest volcanic eruptions ever recorded, which took place around 1600 BC. According to seismologists, recent seismic activity caused by moving tectonic plate and magma has moved subsurface layers upwards on the island. (Reporting and editing by Ed Osmond, Angeliki Koutantou)
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Iron ore prices fall as supply concerns eased in Australia due to cyclones
Iron ore futures fell on Monday, as fears over supply disruptions due to cyclones in Australia eased following the reopening local ports. However, positive data from top consumer China helped limit losses. The May contract for iron ore on China's Dalian Commodity Exchange matched some losses earlier to finish daytime trading 0.92% lower, at 806.5 Yuan ($111.26). Earlier in the session, the contract reached its lowest level since 16 January at 790 Yuan per ton. By 0710 GMT the benchmark March iron ore traded on the Singapore Exchange had fallen 0.19% to $105.95 per ton, after having hit its lowest level since February 6, at $104.2. Port Hedland in Western Australia, which is the world's biggest iron ore hub and has ore-rich Pilbara, was reopened late Saturday after Tropical Cyclone Zelia struck the region. The Port of Dampier reopened on Friday evening. It is the port that ships iron ore to Rio Tinto. First Futures analysts stated in a report that "near-term deliveries and shipments will be unavoidably postponed" due to the Cyclone. As a result of the tropical cyclones that ravaged Australia and adverse weather conditions, analysts predict a drop in iron ore exports to China during the first two months in 2025. Mysteel, a consultancy, conducted a survey that indicated downstream steel demand has not recovered as anticipated. This puts further pressure on prices for the steelmaking ingredient. Analysts at Jinrui Futures stated that "the ferrous market is likely to be under pressure until solid steel demand starts to improve." In January, however, the number of new bank loans increased more than anticipated to a record-high as China's central bank stepped in to boost a patchy recovery in the economy. Coking coal and coke, which are used to make steel, have both gained ground. The Shanghai Futures Exchange steel benchmarks were mixed. Rebar gained 0.67%; hot-rolled coil advanced 0.59%, while wire rod lost 0.2% and stainless metal shed 0.15%.
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Libya's first oil company to be owned by a private firm is growing in the shadow of eastern commander
According to U.N. experts and shipping records, a Libyan company that is linked to a powerful faction in eastern Libya has exported at least $600,000,000 worth of oil since May. This marks the end of the National Oil Corporation’s monopoly over exports. The little-known Arkenu Oil Company was established in 2023 and is the first private Libyan oil company to ship. This means that some of the oil revenue of Libya will likely be diverted away from the Central Bank of Libya. Since the fall of Muammar Gaddafi, Libya has been divided by armed groups. It is now largely split between an internationally recognized government in Tripoli, located in the west, and a rival administration, controlled by Khalifa Hastar's forces, in the east. The central bank of Tripoli has been at the center of many disputes, mainly over the distribution and use by that institution of the oil revenues. Haftar's troops, who control the majority of Libya's fields, have shut down production and exports periodically, most recently last August, to make sure money flows east. Arkenu's ownership could not be determined. In a report submitted to the Security Council on Dec. 13, a U.N. expert panel said that Arkenu is indirectly controlled by Saddam Haftar. He is one of Khalifa Haftar’s sons. Charles Cater is the director of investigations for The Sentry, a global investigative and policy organization. For this article, we also interviewed Libyan experts, diplomats, traders, and reviewed over two dozen documents including letters from oil companies, government decisions, and bills of lading. Arkenu's website and LinkedIn profile indicate that the company is headquartered in Benghazi. This city, located in eastern Libya, has a Mediterranean port with a terminal of oil under Haftar’s control. Two sources claim that the company was founded in early 2023, by former employees of state-owned National Oil Corporation. Arkenu website, but never received a response. A spokesman of the Libyan National Army (which Haftar commands) was also contacted without a response. OPEC MEMBER According to a U.N. Report, Saddam Haftar became chief of staff for the army's ground force in May of last year. This gave him control over the country's relations with its neighbouring countries, as well as its economic interests. Arkenu's first connection to oil exports was when the Arabian Gulf Oil Company, a subsidiary of NOC awarded it ownership of a cargo in May. A letter dated 11 July seen by was the proof. Arkenu exported seven more oil cargoes since then. Its total exports from May to December 2024 will be 7.6 million barrels based on shipping records and worth approximately $600 million if Brent crude average monthly prices are used. Exxon Mobil, the U.S. oil giant, bought one of the cargoes destined to Italy on October 28, according documents and data reviewed by LSEG and Kpler. According to a person with knowledge of the situation, Exxon purchased the cargo not directly from Arkenu but from another trader. Unipec is the trading arm for China's Sinopec - the largest refiner in the world. At least two of these were destined for Britain or Italy. Sinopec didn't respond to a comment request. It wasn't immediately clear whether Sinopec purchased the cargoes from Arkenu or another trader. Requests for comments from the NOC, AGOCO, and central bank were not answered. The oil ministry refused to comment. Libya, Africa's second largest oil producer, and a member of the Organization of the Petroleum Exporting Countries, has been in chaos since Gaddafi was overthrown, but oil exports remained under the control of the central government. The NOC still accounts for a large part of Libyan exports. It has operated independently in this volatile country and maintained political neutrality. Based on Kpler's data and calculations, it shipped 264 million barrels worth $21 billion in the same time period for Arkenu’s eight shipments. SARIR AND MESSLA FIELD Payments are made for NOC crude cargoes in dollars at the Libyan Foreign Bank, New York. Then they are transferred to the Tripoli Government's central bank account. Shipping documents indicated that payments for Arkenu cargoes were to be made into accounts at the Dubai-linked state bank Emirates NBD, and Banque de Commerce et de Placements SA, both in Geneva. The documents did not indicate whether payments had been made to these accounts or where the money might have been deposited. Emirates NBD stated that it could not confirm or deny client relationships because of internal policies and regulatory requirements. Banque de Placement confirmed or denied any client relationships in accordance with its policy. U.N. experts say Haftar has the support of Egypt, Russia and United Arab Emirates. He spent 20 years in the U.S. before returning to help rebels overthrow Gaddafi. He launched the Battle of Benghazi in 2014 and it has been his stronghold since then. His forces have a tight hold on the east of Libya where the majority of the main oilfields of the country are located. Arkenu, in addition to being allowed to export crude oil, was also made a part-owner of the Sarir and Messla major oilfields. This is according to a letter from the NOC dated 10 July, during the tenure then NOC chairman Farhat Bengdara who resigned last week. The letter didn't give any details about the partnership. AGOCO, a subsidiary of NOC, runs the two fields. They account for around 300,000. barrels of high-quality crude per day - same grade that Arkenu exports. Cater, of The Sentry, said that there was no evidence to suggest that Arkenu had performed any development or services at the Mesla oil fields. Arkenu’s claims of hundreds of millions in NOC payments, made as oil export cargoes to Arkenu, raise serious suspicions of corruption. Arkenu became a partner in the development of three smaller oilfields, Sultan and Latif (in Libya's east) and Tahara (in the west), according to an November 2023 cabinet resolution. According to the U.N. Report, members of armed groups were appointed to different posts at the NOC as part of a reshuffle. This included setting up a separate office responsible for service contracts with private companies. The U.N. report stated that "among them was an arrangement with the first privately owned oil company in Libya, Arkenu Oil Company."
Delta forecasts greatest earnings in its 100-year history
Delta Air Lines stated on Friday it expects 2025 to be the most lucrative year in the business's 100year history, thanks to robust demand for premium travel along with the market's improved prices power.
The U.S. provider likewise reported a higher-than-expected 4th quarter revenue and projection more powerful incomes in the current quarter. Shares of the airline company were up nearly 4% in premarket trading.
Delta stated it expects revenues in excess of $7.35 a share this year compared to experts' expectation of $7.22 per share, according to LSEG information. The company reported an adjusted revenue of $6.16 a share in 2024.
As we move into 2025, we anticipate strong demand for travel to continue, with consumers increasingly looking for the premium items and experiences that Delta provides, CEO Ed Bastian said.
Need for high-end travel has been growing given that the pandemic, with tourists more going to pay additional dollars for more comfortable and fancy seats. Delta, which has positioned itself as the country's premium airline, has been among the greatest recipients.
Delta's premium ticket earnings has been growing much faster than main-cabin ticket earnings and is predicted to surpass it by 2027. In the December quarter, premium revenue development outperformed primary cabin by 6 portion points.
The company's general profits grew at a faster-than-expected pace in the fourth quarter from a year back, driven by both leisure and corporate travel demand.
Delta stated the pattern is sustaining in the brand-new year and is anticipated to lead to income growth of 7% -9% in the March quarter from a year earlier.
FEWER SEATS, HIGHER COSTS A sharp reduction in airline company seats in the domestic market, which plagued carriers last summertime, has increased ticket rates and boosted the industry's earnings outlook.
The trend helped Delta post higher system profits, a proxy for pricing power, in the December quarter regardless of a downturn in travel spending around the U.S. presidential election in November. The Atlanta-based carrier pointed out an significantly. useful market background as a contributing factor in its. efficiency this year.
Delta is not alone. Market analysts are sanguine about. U.S. airline companies, crediting their capacity discipline. J.P.Morgan. experts have actually called it a brand-new golden era for the industry.
Delta anticipated an adjusted profit in the series of 70 cents. to $1 a share for the quarter through March, compared with. experts' expectation of 77 cents per share, according to LSEG. data.
It reported an adjusted profit of $1.85 per share in the. December quarter, topping the $1.75 approximated by experts.
(source: Reuters)