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California refinery closings spark race for pipeline to West Coast
Energy companies are racing to build a major pipeline that will carry fuel to the U.S. West Coast. This could be a lucrative endeavor, as the closure of two Californian refineries is expected to drive up gasoline prices on this isolated market. West Coast motorists have been paying some of the highest fuel prices in the nation due to the limited regional production and the lack of connectivity to the Gulf Coast refinery hub. According to the Energy Information Administration, there are no pipelines that deliver fuel from the Gulf Coast to California and few that do so from across the Rocky Mountains. Phillips 66 began to wind down its Los Angeles refinery in September, and Valero Energy plans to shut their Benicia refinery in April. This will cause more price shocks but also present an opportunity for pipeline operators. Three groups have put forward different ideas to fill the void created by the closures, which is approximately 280,000 barrels per day. Three groups have put forward different proposals to fill the void created by the closures. These include refiner HF Sinclair and ONEOK's pipeline unit, as well as a partnership between Phillips 66, a refiner, and midstream-focused Kinder Morgan. The first company to make a final decision on investment could be the only one who can secure a multi-billion dollar windfall, because multiple pipelines along the West Coast will eat away at each other's margins. These margins are already restricted due to California being a waterborne importer. Skip York, Turner, Mason & Co.'s chief energy strategist, said that when multiple pipeline projects are proposed at the same moment, only one is usually completed. POLITICAL FOCUS OPENS RARE WINDOWS The planned refinery closings have placed intense pressure on California Governor Gavin Newsom, to stop fuel price increases. This has created a rare opportunity for approval of fossil fuel projects in a state which has long been critical of "Big Oil". Alec Gravelle, an East Daley analyst, said that given the reaction to refinery closings it is hard to imagine any resistance to new projects. York explained that the majority of financing for pipeline construction comes from capacity commitments. Securing at least 70% could determine which project moves forward. Scotiabank analyst Paul Cheng says that Western Gateway – the Phillips 66 Kinder Morgan project – and HF Sinclair’s proposal have an advantage because the refiners could ensure some of the supply. No one has yet made any commitments to capacity. Phillips 66 refused to comment on competing West Coast Pipeline proposals. Other proponents didn't immediately respond to comments. Debnil Chowdhury is the head of Americas & European Refining for S&P Global Commodity Insights. She said that proposals reusing existing line may also be more likely to move forward than new builds, because regulatory approval could be easier. Western Gateway and HF Sinclair plan parts that use existing lines. RIVAL REFINERS BET WATERBORNE FUELS While a new pipe could provide some stability for regional gasoline prices in the future, refinery executives have questioned if any will be built. They cited California's ability to access waterborne fuels. "In terms the pipelines which are rumored will come into the area, that is a big if", said Rick Hessling. He added that the timing and the transportation costs of waterborne barrels were more important than pipelines. Gary Simmons, Valero Energy's Chief Operating Officer, said in a call with investors last month that the company is unlikely to sign a long-term agreement for shipping services. Simmons, speaking of price arbitrage opportunities, said: "We prefer the waterborne option as it allows us to get barrels anywhere in the globe and to take advantage of the international arbs which can be available."
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Mota-Engil's Mota-Engil profits jump 20% and order book hits record
Mota-Engil is Portugal's largest building company. Its net profit for the nine-month period rose by 20%. This was due to growth at its African unit. The global order backlog also reached a new record. The builder that operates in over 20 countries across Africa, Europe, and Latin America posted a net income of 90 million euro ($104 million) for the period. This is up from 77 millions euros last year. The African unit's revenue rose 57%, to 1.6 billion Euros, despite a 1.4% decline in sales. This was "driven by the doubled activity" of industrial engineering work, which included the mining sector. After two years of growth, sales in Latin America dropped by 29% in a "transitional period", to 1.6 billion euro. Sales in Europe fell by 27%, to 334 millions euros following the sale of their Polish operations in September. The EBITDA margin increased to 17%, from 15%, a year earlier. EBITDA for the African unit increased by 62%, to 405 millions euros. The margin was 25%. Mota-Engil is owned by the Mota Family at 40% and China Communications Construction Company at 32,41%. The order backlog has reached a new record of 15,7 billion euros. This was up from 14,7 billion euros in June. The backlog does not include contracts signed in Brazil or Mexico after September. This "guarantees visibility over several years, and supports strong, profitable growth for the future."
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Amtrak, the US passenger rail company, sets a record for ridership and cuts losses
Amtrak, the U.S. passenger rail company, said Tuesday that it had set records for revenue and ridership in a single year. It also cut its losses by 15 percent to $598 millions and is aiming for profitability by 2028. Amtrak is a major effort in rehabilitating the infrastructure of the Northeast corridor between Boston, Massachusetts and Washington. It is expanding service throughout the United States by purchasing new Acela trains with higher speeds and replacing regional trains from next year. Amtrak reported that in the twelve months ending September 30, it had 34,5 million trips made by customers, an increase of 5.1%. Operating revenue was 9.1% higher, at $3.9 billion. In March, the White House forced Amtrak's CEO Stephen Gardner to resign after President Donald Trump requested changes. CAPACITY - MORE CAPACITY Amtrak hasn't named a new chief executive officer, but Amtrak president Roger Harris runs the operations. Harris stated in an interview that "the critical thing for us right now is to get capacity." He added that the new Acela train will be 27% larger and new regional trains will be coming next year. "I think better product and more capacity." Harris stated that more people are considering Amtrak because of the congestion on highways, and problems with air travel, such as volume or technical issues. In October, the White House halted reimbursements to the $17.2 billion Hudson River Tunnel project. The project received over $11 billion of federal grants. It is considered crucial for improving service between New York City and New Jersey. Amtrak received about $2.4 billion per year in government funding over the past few years. This is on top of the $22 billion that was approved for major projects in 2021, spread out over five years. Harris stated that Amtrak was prepared to "sustain the projects" during the recent government shutdown. He did not anticipate any delays. Harris did not know if Amtrak was going to name a new chief executive officer. Harris stated that Amtrak has been letting him run the company since the last eight-month period. Sean Duffy, the U.S. Transportation secretary, praised railroad growth. USDOT announced in September that it had taken back control of Washington Union Station, which is one of the nation's largest rail hubs. Duffy stated that "Faster trains and more affordable service are opening a new era in American rail." (Reporting and Editing by Bill Berkrot.)
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Pickets by Allegiant Pilots at US Airports demand pay increase and better schedules
Allegiant Air Pilots Picketed in 22 U.S. Airports on Tuesday. They demanded higher pay and improved scheduling, as labor contract negotiations with the carrier had stalled following several years of negotiation. Teamsters, the union that represents Allegiant's pilots, says they are amongst the most underpaid and overworked in the industry. They want compensation to match industry standards and better scheduling, as pilots become frustrated and leave for more lucrative competitors. We're losing highly experienced and skilled pilots. "We're losing them because they're not being fairly compensated," said a pilot, who spoke on condition of anonymity. "Why would stay here now?" Allegiant's pilots currently work under a contract ratified in 2016, which became amendable in 2020. Gregory Unterseher of the Teamsters Airline Division told us that first officers earn $50,000 per year at Allegiant in their first years, while regional pilots start at $100,000. ASSERT ALLEGIANTS' PAYMENT OFFER Allegiant, based in Las Vegas, said that it had offered an immediate average 50% increase in hourly wage. This will grow to 70% by the end of a 5-year contract. The carrier also said that it had offered an immediate 50% increase to its direct contribution for pilots' retirement and improved long-term disabilities benefits. The pilot stated that while the pay rates offered may seem good, the carrier has not agreed to the scheduling. Allegiant is able to move off days as they please, and reserve pilots in larger bases are required almost every day. Teamsters Local 218 reported that the carrier wants to declare 20% of its pilots surplus, and then force the remaining 20% to fly the maximum schedule. Allegiant denies this claim. We'll strike in an instant if we can. Unterseher stated that the airline would be shut down without hesitation. Allegiant's pilots approved a strike in November 2024 by a 97% vote. In April, the union requested that National Mediation Board remove them from mediation. Allegiant stated that the union had not met the legal requirements to call a strike. The company faces staffing problems as contract negotiations drag out. Pilots who are frustrated may seek better-paying positions with competitors, at a time that the carrier is trying to expand its market share in the wake of Spirit Airlines' second bankruptcy. Allegiant announced on Tuesday that it will be adding 30 new nonstop flights and four new markets. Allegiant is offering a retention bonus to retain pilots. The company says that since June 2023, the retention bonus has increased pay by 82% for first-year officers, and 35% for all other pilots. This will be paid in cash after a new contract has been ratified. A spokesperson stated that the retention bonus for senior captains has exceeded $200,000, and is still growing. The pilot stated, "You have to give people fair contracts if you're going to keep them." "The retention bonus really isn't a factor for me." (Reporting and editing by Nick Zieminski, Frances Kerry and Doyinsola Oladipo)
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Pickets by Allegiant Pilots at US Airports demand better pay and schedules
Allegiant Air Pilots Picketed in 22 U.S. Airports on Tuesday. They demanded higher pay and improved scheduling, as labor contract negotiations with the carrier had stalled following several years of negotiation. Teamsters, who represent nearly 1,400 Allegiant Pilots, claim that they are amongst the most underpaid and overworked in the industry. They want compensation to industry standards and better scheduling, as pilots become frustrated and leave Allegiant for a higher-paying competitor. We're losing our highly experienced and skilled pilots. "We're losing them because they're not being fairly compensated," said a pilot under condition of anonymity. Why would you still be here? Allegiant's pilots currently work under a contract ratified in 2016, which became amendable by 2021. Allegiant's first officers earn around $50,000 per year, while regional pilots start at $100,000. Allegiant, based in Las Vegas, said that it had offered an immediate average 50% increase in hourly wage. This will grow to 70% by the end of a 5-year contract. The carrier also said that it had offered an immediate 50% increase to its direct contribution for pilots' retirement and improved long-term disabilities benefits. The pilot stated that while the pay rates offered may seem good, the carrier has not agreed to the scheduling. Allegiant is able to move off days as they please, and reserve pilots in larger bases are required almost every day. Teamsters Local 218 reported that the carrier wants to declare 20% of its pilots surplus, and then force the remaining pilots to fly the maximum schedule. Allegiant denies this claim. We'll strike in an instant if we can. Gregory Unterseher is the director of Teamsters Airline Division. Allegiant's pilots approved a strike in November 2024 by a 97% vote. In April, the union requested that National Mediation Board remove them from mediation. Allegiant stated that the union had not met the legal requirements to call a strike. While contract negotiations drag on, the company faces staffing problems as pilots who are frustrated seek better paying jobs at competitors. This is happening at a moment when Spirit Airline wants to expand its market share in the wake of the second bankruptcy. (Reporting from Doyinsola Oladipo in New York, editing by Nick Zieminski).
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Police raid Portugal's TAP Airlines in a corruption probe
The prosecutor general’s office reported that Portuguese police conducted a search of the headquarters of TAP, Portugal's flag carrier, and other companies in the country on Tuesday. This was part of a continuing investigation into suspected fraud in a complicated aircraft leasing deal from 2015. The searches are a result of an investigation conducted in 2023 into TAP's lease deal for 53 Airbus planes, which was struck shortly after the company had been privatised. It then came under control of a joint-venture between American-Brazilian aviation businessman David Neeleman, and Portuguese Barraqueiro Group owned by Humberto Porsa. Both Neeleman & Pedrosa deny any wrongdoing. TAP is now fully owned by the state and has entered a new process of privatisation. In a press release, the Infrastructure Ministry stated that legal proceedings are to be considered "normal". The Infrastructure Ministry said in a statement that the legal proceedings should be viewed "as normal". The prosecutor's said that it suspects the leasing contract to be part of a scheme illegal in which Airbus assisted in financing the acquisition of TAP by Airbus in 2015, leading to losses for the airline. In a press release, it stated that "the facts in question likely constitute crimes of harmful administration in the private sector and passive corruption, as well as aggravated tax fraud and Social Security fraud." Airbus' spokesperson said that the company "doesn't comment on any situations involving their client companies". Airbus's historic business dealings were the subject of multiple investigations. This led to a $4 billion settlement for corruption with French, British, and U.S. Authorities in 2020 and a $14 million French settlement 2022. Airbus has made sweeping changes, including a new compliance system. TAP's spokesperson stated that the airline does not comment on court proceedings, and cooperates fully with all authorities. Prosecutors said that 25 locations were being searched, including law firms, auditing firms, and companies. Barraqueiro Group confirmed that it had also been searched but was confident of its innocence in relation to the privatisation of TAP. It stated that it was cooperating with the investigation and did not have any cause for concern. (Reporting and additional reporting by Inti landauro, editing by Andrei Khalip; Conor Humphries, Jan Harvey and Andrei Khalip)
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NTSB: Loose wiring led to power failure before the March 2024 Baltimore Ship Crash, NTSB states
The National Transportation Safety Board announced on Tuesday that loose wires caused a power outage on the cargo vessel Dali, which crashed into Baltimore’s Francis Scott Key Bridge on March 20, 2024. Six people were killed and the bridge was destroyed. The NTSB will hold an hearing in Washington, DC to determine the probable causes of the accident that resulted in the death of six construction workers. The staff of the board said that they recommend operators perform periodic inspections on high voltage switchboards, and propose changes to allow ships more quickly recover after a loss of power. The NTSB said that the Dali had lost power on several occasions before it crashed into the Key Bridge. This included a blackout while in port maintenance and just before the crash. The NTSB is considering new recommendations for preventing catastrophic collisions when power outages occur at sea. ASSESSING BRIDGED SAFETY In March, the board requested urgent safety assessments for 68 bridges across 19 states, including the Golden Gate Bridge (also known as the Chesapeake Bay Bridge), Brooklyn Bridge, and George Washington Bridge. The review is focused on bridges that were built before 1991, and are frequented primarily by ocean-going vessels. These bridges have not been subjected to vulnerability assessments. The May crash of a Mexican Navy Training Ship into the Brooklyn Bridge raised concerns over bridges being damaged by vessels. The NTSB reported last year that about four minutes prior to the crash, the Dali's power was cut off when the electrical breakers tripped. This caused a power outage for all shipboard equipment and lighting when the Dali was only 0.6 miles (1 km) away from the bridge. Initially, it was estimated that a replacement bridge would cost $1.7 to $1.9 billion. It should be completed by the end of 2028. State officials announced on Monday that they expect the bridge to cost between $4.3 billion and $5.2 billion, with traffic opening only in late 2030. The increased cost was attributed to a new pier-protection system and a longer, more complex design. The FBI has launched a criminal investigation into the collapse. (Reporting and editing by Lincoln Feast, Frances Kerry and David Shepardson)
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Police raid Portugal's TAP Airlines in a corruption probe
The prosecutor general’s office reported that Portuguese police conducted a search of the headquarters of TAP, Portugal's flag carrier, and other companies in the country on Tuesday. This was part of a continuing investigation into suspected fraud in a complicated aircraft leasing deal from 2015. The searches are a result of an investigation conducted in 2023 into TAP's lease deal for 53 Airbus planes, which was struck shortly after the company had been privatised. It then came under control of a joint-venture between American-Brazilian aviation businessman David Neeleman, and Portuguese Barraqueiro Group owned by Humberto Porsa. Both Neeleman & Pedrosa deny any wrongdoing. TAP is now fully owned by the state and has entered a new process of privatisation. The prosecutor's said that it suspects the leasing contract to be part of a scheme illegal in which Airbus assisted in financing the acquisition of TAP by Airbus in 2015, leading to losses for the airline. In a press release, it stated that "the facts in question likely constitute crimes of harmful administration in the private sector and passive corruption, as well as aggravated tax fraud and Social Security fraud." Airbus' spokesperson said that the company "doesn't comment on any situations involving their client companies." Airbus's historic business dealings were the subject of multiple investigations. This led to a $4 billion settlement for corruption with French, British, and U.S. Authorities in 2020 and a $14 million French settlement in 2030. Airbus has made sweeping changes, including a new compliance system. TAP's spokesperson stated that the airline "doesn't comment on legal proceedings, and fully cooperates" with all authorities. Prosecutors said that 25 locations were being searched, including law firms, auditing firms and companies. Barraqueiro Group confirmed that it had also been searched but was confident of its innocence in relation to the privatisation of TAP. It stated that it was "cooperating" and did not have any reason to be concerned about the ongoing investigations. (Reporting and additional reporting by Inti landauro, editing by Andrei Khalip & Conor Humphrey; Reporting by Sergio Goncalves)
Spain's eDreams lowers its earnings guidance due to a slowdown in prime subscriber growth
The Spanish travel booking company eDreams Odigeo cut its earnings forecasts for 2026-2027 on Tuesday due to a slower growth of its prime member base.
The Barcelona-based firm revised its guidance and now expects earnings before interest taxes, depreciation, and amortization to reach 155 millions euros ($179million) for the fiscal period ending March 31, 2026 and 115 million euro in 2027. This was down from an earlier estimate of 180 million euros in 2026.
The company attributed its lower outlook to the reduced revenue from its prime segment after adopting a monthly and quarterly payment option instead of an annual model.
Despite a slowdown in the growth of its Prime membership, eDreams has reported an 18% increase in subscribers year-on-year, reaching 7,7 million users. This is a slowdown from the 20% growth in the prior quarter. Investor confidence was affected by the slowdown of its main revenue driver
last quarter
Shares of the company fell by 16%.
The net profit grew to 17.9 millions euros ($20.7million) from 2.5 million euro a year ago.
While subscriptions in other industries such as music and television are quite common, eDreams was the first to introduce a membership-based model that allows customers to book discounted airline tickets and hotels through their website.
The subscription model, which was launched in 2017, has been a major driver of profitability for the group and an important factor in its recovery after the ravages the pandemic caused to the tourism industry.
The company plans to invest in new markets to increase its Prime membership growth. (1 dollar = 0.8639 euro) (Reporting and editing by Matt Scuffham in Gdansk)
(source: Reuters)