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ADNOC sells 3% of its logistics and services unit through a bookbuild offer
ADNOC, the state-owned oil company of the United Arab Emirates, announced on Thursday that it would sell an approximately 3% stake in its Logistics and Services unit via a bookbuild offer. ADNOC announced that it would offer up to 222,000,000 shares of ADNOC L&S to institutional and professional investors in the UAE. The deal will increase ADNOC L&S’s free float from 22% to 22%, and “enhance trading liquidity” of the shares. ADNOC L&S was created in 2016 and exports crude oil from Abu Dhabi, as well as refined products, dry bulk, liquefied gas, and other natural gases to over 100 customers in more than 50 countries. ADNOC, who owns 81% of the company, raised $769 millions in its initial public offering (IPO) in 2023. This deal follows other secondary share offers in ADNOC units, including its gas business, which raised $2.84billion in February, in one of the largest share sales in recent Middle East history. ADNOC didn't disclose the offer price of ADNOC L&S shares. They closed Thursday up 2.3%, at 5.43 dirhams each ($1.48). According to LSEG, the stock has risen by around 1.5% over the past year. ADNOC stated that the final number of shares offered and the price will be determined after the closing of the bookbuilding. The settlement is expected to occur on or about September 3. First Abu Dhabi Bank was one of the banks that were appointed as joint global coordinaters and joint bookrunners.
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The competition and bottlenecks are to blame for the decline in profits of TAP, a Portuguese airline
The net profit of the Portuguese flag carrier TAP in its second quarter fell by 42.5% compared to a year earlier, as costs increased much faster than revenues due to fierce competition on its main markets, and airport congestion at home. TAP, which has been partially privatised, posted a profit of 43.9 million dollars between April and June. This period included this year's busy Easter Week. TAP suffered a first-half loss of 70.7 millions euros, which is almost three times higher than the same period in last year. The airline's quarterly revenues grew 1.7%, to 1.13 billion Euros. Passengers carried increased 4.5%, to 4.3 millions. The increase in operating costs was 5.6%, to approximately 1 billion Euros. This is due to an increase of 18.3% in employee costs and a 9.2% rise in traffic costs. TAP reported that foreign exchange losses offset a decrease in interest costs. In a recent statement, TAP's Chief Executive Luis Rodrigues stated that the airline was operating "in a highly-competitive environment" with "one of most challenging operational summers for many years". This is due to severe border controls at Portugal airports affecting operations. Portugal, like many other European nations, has tightened border controls in response to a backlash from the public against immigration. This has led to long queues, and even flight delays. TAP expects that the competitive pressures on key markets will continue in the months to come. Portugal has relaunched its long-delayed TAP privatisation in July. It aims to sell a stake of 44.9%, with 5% more to be offered to TAP staff. Lufthansa and British Airways' owner IAG, as well as Air France-KLM, have expressed interest in the project.
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China's major airline companies remain in the red for first half due to low fares and oversupply
The earnings reports of China's largest airlines released on Thursday revealed that the two carriers had narrowed first-half losses, but were still in the red, as a surplus capacity kept fares down. This underscored the fragility and post-pandemic recovery of the industry. Air China, the country's flagship carrier, reported a net profit of 1.8 billion Yuan ($252million) for the six-month period ending June. This is 35% less than the 2.78 billion Yuan loss a year ago. China Southern Airlines, based in Guangzhou, recorded a loss 1.5 billion yuan. This is 64% less than a 4.21 billion loss during the same period of 2024. Carriers have blamed their losses on an imbalance in supply and demand, price-conscious travellers and the competition of China's expanding high-speed rail system. Geopolitical uncertainties and a slow recovery in premium international traffic also hurt revenue. The summer is usually a time of relief for airlines. Early July marks the start of school holidays, which kicks off a two-month peak sales period. As of August 24, according to Flight Master, the average price for domestic tickets departing in July or August was 788 yuan (about $110), down 3.7% compared to last year, and 10.6% lower than 2019 levels. Analysts say that yields are still low, despite the fact that international capacity is 93% higher than it was pre-COVID. Li Hanming is an independent aviation analyst based in the United States. He said that the second half of this year will be challenging for China's major airlines. Li stated that "the underlying issues are still unresolved." Due to the lack of long-haul flights to North America and Asia, China faces a significant oversupply, and fierce competition, on its domestic and intra-APAC short-haul international flights. China's three largest carriers are still losing money, and have been for some time. They are the last to benefit from the COVID recovery. China Eastern Airlines will report its results on Friday. Last month, the Shanghai-based airline issued a profit warning. It forecast a deficit in the first half of between 1.2 and 1.6 billion Yuan as opposed to a loss last year of 2.77 billion Yuan. In June, the Communist Party anti-corruption watchdog announced that Liu Shaoyong, former chairman of China Eastern, was being investigated for "serious violation". The report did not give any further details. China Eastern has yet to comment on these allegations. Liu was the leader of the airline between 2009 and 2022. He was also in charge when the flight MU5735 crashed in March 2022. 132 people were killed. China's aviation regulator is yet to release a final report on the cause of the crash. This has re-opened scrutiny over corporate governance in the sector.
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Europe gas markets escape hectic LNG summer storage race: Bousso
Gas traders in Europe have been racing against time to fill up depleted storage facilities before winter. As demand on Asian markets is waning, Europe will see a spike in liquefied gas imports. This will give traders and governments more breathing space. It was a niche concern to ensure that European gas supplies are at maximum levels before the cold weather arrives. But it has become a political necessity after Russia's invasion of Ukraine 2022, which led to a sharp reduction in pipeline gas imports. The EU implemented rules in that year that have since been relaxed, requiring that storage reach 90% capacity each November. These measures created price distortions and disrupted the supply, leading to a frantic scramble to get supplies. This year, there is no rush to buy. Gas Infrastructure Europe's (GIE) data shows that European storage capacity is at only 76%, or approximately 85 billion cubic meters, as of 25 August. This is down from 92% one year ago, and the 10-year-average of 80.5%. According to Kpler data, the region's LNG imports dropped from an annual peak of 11 million metric tonnes in March to an estimated 7.4 million tones in August due to a weaker regional market and stronger purchases from Asia. This is similar to the spike in Asian LNG imports in August, when they reached 26 million tons. In February, this had dropped to 21 million tons. The Asian market is expected to be significantly slower during the remainder of 2025, due to large inventories in China and other import nations. This will free up LNG volumes to Europe. The increase in LNG imports will help to offset the decrease in regional supplies due to seasonal maintenance being completed on several Norwegian gas fields until late September. Storage is set to reach 90% easily by the start the heating season, in October. No scrambling needed. SUPPLY BOOM The summer LNG storage filling frenzy will not return to Europe for at least five years. According to LSEG, the global LNG capacity will increase from 550 bcm last year to 649 bcm by 2026 and 890 bcm by 2030. According to LSEG, the growth was primarily driven by the United States. Exports to the United States in the first seven month of 2025 were up 22% compared to a year ago, to 83 bcm. This is due to the start-up of several large Gulf Coast LNG liquefaction plants, including Venture Global’s Plaquemines. According to current projections, while the supply and demand are expected to be roughly equal this year, there will be a glut in 2026 of up to 200 bcm. A large disparity between supply and demand will inevitably lead to a reduction in LNG production. The United States is likely to be the first to cut back, as its producers are more price sensitive than those in other regions. CONSUMER IMPACT The weather will have a significant impact on gas prices in Europe during the winter months. Last winter, for example, was much colder than previous ones, causing a huge draw in inventories that pushed up prices. The oversupply on the market is good news for the consumers. They will benefit from the relatively low LNG price that has been in place for several years. This could stimulate the industrial activity in Africa. This market dynamic may allow European leaders to also breathe a sigh if relief. They could achieve their dual goal of reducing their reliance on Russian supplies of gas while also lowering the energy bills of their citizens. You like this column? Check out Open Interest, 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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Kremlin satisfied with arrest of Ukrainian in Italy for Nord Stream attack
After Italy arrested a suspect sought in Germany, the Kremlin announced on Thursday it was satisfied with progress made by a German investigation of attacks on Nord Stream pipelines in 2022 in the Baltic Sea. A court of appeal in Italy confirmed earlier this month the arrest of a 49-year old Ukrainian man who was suspected by Germany of orchestrating the attacks that largely cut off Russian gas supplies into Europe. The suspect, who is identified as Serhii k. according to German privacy laws, could now be extradited back to Germany, where prosecutors claim he was a member of a group that planted devices near the Danish Island of Bornholm, in the Baltic Sea. Dmitry Peskov, Kremlin spokesperson, told reporters: "Ofcourse, it's satisfying that this investigation has begun. We want to believe it will continue to the end and that the perpetrators, as well as those who ordered terrorist acts, will be named." Reporting by Gleb Stallyarov, Writing by Andrew Osborn.
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COSCO faces 'challenges with international investments' amid US trade pressures
COSCO Shipping Ports' managing director, who spoke in Hong Kong Thursday, said that the U.S. Trade War is putting pressure on its international investments. Wu Yu said at an earnings conference, that despite the challenges posed by the United States, his state-owned conglomerate of global ports and shipping was "very focused" on developing opportunities in regional and emerging markets as well as some key hubs. The company stated that although China's exports have decreased to the U.S., those to emerging market countries have increased. It is therefore looking for acquisition opportunities in Southeast Asia and South America as well as Africa and the Middle East. COSCO cited a volatile geopolitical climate as one of its challenges, and when it expanded abroad, the tightening regulatory environments against foreign investments in many countries. Another headwind was the high bidding prices of other port competitors. Wu, however, declined to comment when asked if COSCO would become an investor in CK Hutchison’s sale of global ports assets. Beijing has strongly criticized CK Hutchison's initial plan to sell its ports business worth $22.8 billion to a group headed by BlackRock, a U.S.-based investment firm. The other two groups are Gianluigi Aponte’s family-run MSC and the Italian Gianluigi Aponte’s shipping company MSC. CK Hutchison said that it was in talks with a Chinese'major strategic investor', without naming the company. The consortium is expected to be formed by this "major strategic Chinese investor". The investor, according to sources, is COSCO. COSCO is one of the largest vertically integrated marine transport firms in the world. The plan included 43 ports in 23 different countries, two of which were near the Panama Canal where U.S. president Donald Trump had called for a decrease in Chinese influence. Reporting by James Pomfret in Hong Kong and Clare Jim. Toby Chopra, Mark Potter and Toby Chopra edited the report.
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France's Iliad drops Italian tie-up plan; Telecom Italia shares fall
The CEO of French telecommunications company Iliad said that the group will look at domestic consolidation options but won't pursue any further discussions with Telecom Italia. TIM shares fell by nearly 8% after his announcement. Iliad, which is not listed on the stock exchange, wants to consolidate mainly its domestic market. A possible split of SFR's parent company Altice from rival SFR would reduce France's mobile network operators from four to three. Orange CEO, who is a rival to SFR, confirmed in July that preliminary talks between operators about SFR had already taken place. Thomas Reynaud, the chief executive of the company, told reporters that "very preliminary talks" were held in June with rivals. He added that "if one of our competitors was for sale, then it would be our responsibility to investigate this matter." Reynaud's position on Italy was clearer: "There has been no discussion with Telecom Italia in early April and they won't resume. The consolidation prospects for Italia have now passed and the central hypothesis of a four-operator marketplace is the prevailing hypothesis." Iliad was unable to reach a deal to purchase the Italian operations of Vodafone in 2024. By 1010 GMT, shares of Telecom Italia, a Milan-listed company, were down 7.7% at 0.42 euros. Including today's drop, the stock has gained almost 70% in this year. Investors in Italy have lowered their stakes on a TIM/Iliad merger after the state-backed Poste Italiane has become TIM's largest investor. "The CEO of Iliad made some remarks today that seemed quite simple and they triggered a sale after TIM's rally in the stock this year". To overcome the intense price competition in Italy, telecommunications providers have been pushing consolidation. They want to reduce the number of mobile network operators to three from four. Iliad announced earlier on Thursday that its half-year revenue had increased by 3.8% to 5,09 billion euros ($5,96 billion), largely due to a stable performance from France and the continued growth of customers in Italy. The number of Free subscribers in France remained constant at 23,1 million. Poland added 100,000 subscribers to reach 15.5 million. Italy saw a net increase of 505,000 to reach 12.5 million. (Reporting and editing by Matt Scuffham, Elvira Contemori and Laura Contemori, Additional reporting by Gianluca Nostro and Leo Marchandon; Editing and Reporting by Gianluca lo Nostro)
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Tracking data reveals that a tanker in China is using berths sanctioned by the Russian Arctic LNG 2 cargo docks.
Data from Kpler and LSEG showed that a tanker loaded with liquefied gas from Russia’s Arctic LNG 2 plant, sanctioned by the United Nations, moored on a southern Chinese import terminal Thursday after having been laden at a Russian facility in June. The first cargo to arrive from the Arctic LNG 2 Project would be if the LNG tanker discharges at the terminal. Western sanctions are targeting the project because of Russia's conflict with Ukraine. According to LSEG data and Kpler, the Arctic Mulan LNG Tanker sat idle off the coasts of Egypt between February and April, before traveling through the Suez Canal and Red Sea, and Bab al-Mandab Strait, in early May. The ship then headed north, through Southeast Asia, before turning back east to reach the Koryak floating-storage unit (FSU) on Russia's Kamchatka Peninsula by June 3. Kpler data indicates that Arctic LNG 2 has been the only cargo to reach the Koryak floating storage unit (FSU) in Russia's Kamchatka Peninsula on June 3. Arctic Mulan, after loading at Koryak FSU in southern Guangxi Province on August 28, sailed to China's Beihai LNG Terminal. The operator of the Beihai LNG Terminal, PipeChina, did not respond immediately to a comment request. Go Katayama, Kpler analyst, said: "While discharge has not yet been confirmed this appears to the be the first Arctic LNG 2 shipment since loading began in August 2024." The timing could coincide with President Putin's visit to China in the near future, but the buyer is still unknown. Next week, the Russian President Vladimir Putin is among many foreign heads of government and state who will attend a military display in Beijing to commemorate Japan's formal surrender during World War Two. In an effort to target Russia's oil revenues, the U.S. has also imposed sanctions on owners and managers registered with several LNG vessels. Equasis, a shipping database, lists Skyhart Management Services with an address registered in India as the ship or commercial manager of Arctic Mulan. Ownership of the tanker is registered by Zinnia International Co, with the same address listed as Skyhart. I was unable find a contact number for Skyhart or Zinnia. Rystad Energy analyst Jan Eric Fahnrich stated that the tanker's visit to China was primarily a test for Washington's stance regarding sanctions, due to China's almost non-existent spot demand for LNG. He said that the reaction of U.S. President Donald Trump will determine whether or not this transaction is a one-off, or if it opens up the Northern Sea Route to a number vessels heading east. Arctic LNG 2, owned by Novatek, a Russian company, is set to be one of the largest LNG plants in the country, with a target production of 19,8 million tons per annum. Sanctions have clouded its prospects, despite the fact that it has loaded several cargoes on sanctioned tanks in the last year. According to Kpler, eight cargoes from Arctic LNG 2 were loaded onto sanctioned LNG ships last year. Four of these were discharged in the Koryak FSU. Five cargoes from the project have already been loaded this year. The sanctioned tankers are now travelling east along Northern Sea Route. Two of them are north of Russia and the other three near the Koryak FSU.
El Al Airlines' second-quarter profit plunges due to Israel/Iran war
El Al Israel Airlines reported that its second-quarter profits dropped by 55%, citing Israel’s two-week conflict with Iran in early June during which the airspace of the country was mostly closed.
Israel's flag-carrier said Thursday that it had earned $66m in April-June, down from $147m a year ago. Revenue dropped 7% to $777 millions.
On June 13, Israel began striking Iranian military and nuclear targets. This was met with waves of Iranian missile attacks on Israel. Israel's airspace was closed for over two weeks due to the conflict, except for a few so-called "rescue flights".
Yancale Shahar, Chief Financial Officer of El Al, said: "We estimate that the damage to profitability is approximately $100 million."
El Al has said that if the conflict with Iran had not occurred, it would have achieved similar results to the same quarter of 2024.
El Al shares fell 1.2% Thursday. The shares are up 66% in 2025, after a 130% increase in 2024.
El Al is one of the few airlines that fly into and out of Israel. Since October 7, 2023 when Hamas militants attacked Israel, many other carriers have stopped flights to Tel Aviv. El Al's net profit in 2024 increased five-fold. Some customers complained that the airline took advantage of the war by raising airfares. It reported a 19% increase in its first quarter profit.
El Al reported that it had increased its capacity by 14% in the second quarter. El Al reported that it had maintained a 93% loading factor in the second half of last year, despite some foreign carriers resuming flights to Israel as early as April or May.
El Al's Chief Executive Dina Ben Tal Ganancia stated that the airline was advancing with its fleet-renewal programme. The company added a 17th Boeing 787 Dreamliner and returned another older Boeing 787 into service.
Ben Tal Ganancia said that he expects to return two 737 aircraft back to service in 2026 and the final 777 grounded since the COVID-19 Crisis to service. He plans to leave his position as CEO at the end 2025, after serving for more than three year. (Reporting and editing by Susan Fenton; Steven Scheer)
(source: Reuters)