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Norfolk Southern's strong merchandise volume helps it to beat its quarterly profit target
In its first earnings report following the announcement of the merger between Union Pacific and Norfolk Southern, the U.S. railroad company beat Wall Street's expectations for the third quarter profit. Mark George, CEO of Osiris Group, said in an earnings call that while the impact was not significant in the third-quarter, the reaction from competitors to the merger announcement had begun to affect revenue. Surface Transportation Board approval is required for the deal that drew positive feedback from U.S. president Donald Trump. Norfolk reported lower quarterly volumes for its coal and intermodal segments. Trump's tariffs are causing a decline in the freight market and consumer markets. This is affecting railroads. In the earnings call, company executives noted that coal prices are still under pressure due to uncertainty surrounding export trade. They also stated that they expect that utility demand will continue to be supported by growing electricity consumption as well as lower coal stockpiles. The volume of coal shipped by railroad operators has fallen due to a weakening demand, as consumers switch to natural gas which is cheaper. According to data compiled and analyzed by LSEG, Atlanta-based Norfolk posted an adjusted profit per share of $3.30 for the third quarter. This compares to analyst estimates of $3.19, which were based on LSEG's data. The company's total operating revenues for the third quarter increased by 2%, to $3.1 billion. This was in line with analyst expectations. The company's adjusted operating ratio, which is a key indicator of efficiency, was 63.3% during the third quarter. This represents a 10-basis point improvement over the same period in the previous year. Union Pacific's strong coal volume helped it to surpass Wall Street profit estimates earlier on Thursday. Last week, CSX, a peer, beat estimates for the quarter on improved intermodal volumes, higher prices in its merchandise segment and lower coal prices.
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Norfolk Southern's profit increases by a quarter
In its first earnings report following the announcement of an $85 billion agreement to create the nation's only coast-to-coast rail freight operator, Norfolk Southern reported a higher third-quarter profit. Surface Transportation Board approval is required for the deal that drew positive feedback from U.S. president Donald Trump. Union Pacific's strong coal volume helped it to surpass Wall Street profit estimates earlier on Thursday. Last week, CSX, a peer company, beat Wall Street's quarterly estimates due to improved intermodal volumes, higher pricing and increased merchandise prices, which helped offset lower coking prices. Union Pacific has said that it will file its merger application at the STB before the end of this year. The review may take between 12 and 18 months. Norfolk, an Atlanta-based company in Georgia, reported a profit adjusted of $3.30 for the quarter reported, compared to $3.25 per share a year ago. The total operating revenue of the company for the third quarter increased by 2%, to $3.1 billion compared to last year. The company's adjusted operating ratio, which is a key indicator of efficiency, was 63.3% during the third quarter. This represents a 10-basis point improvement over the same period in the previous year.
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Mexican President says US players are involved in fuel smuggling
Mexico's president Claudia Sheinbaum stated on Thursday that U.S. citizens are involved in the smuggling of fuel into the country. This follows an investigation into the illegal trade which revealed how the narcos had penetrated the North American Energy Sector. Sheinbaum responded to a question regarding the report by saying, "Yes, U.S. businesses are involved in the cases being investigated." Sheinbaum's regular morning press conference was in response. "One cannot understand how fuel from the U.S. enters Mexico illegally," Sheinbaum said during her morning press conference. The investigation published on Wednesday revealed that a Houston-based company, Ikon Midstream delivered diesel to Mexico, declaring it as lubricants, which are exempted from the high import duties levied against gasoline and diesel. Ikon Midstream's executive director Rhett Kenagy declined to comment on the story via their lawyer. Sheinbaum stated that she was unaware if Ikon Midstream had been involved in Mexican investigations relating to fuel smuggling. Two Mexican security sources said that Ikon Midstream's March tanker delivery of diesel to Mexico was part of an investigation into illicit trade. The White House didn't immediately answer questions regarding Sheinbaum’s remarks. Fuel smuggling is largely a tax avoidance scheme. Mexico levies an IEPS tax on many goods including gasoline and diesel imported from abroad. The tax is charged per liter, and can cost up to 50% of the value of the cargo. Crooks avoid the tax by claiming that the fuel imported from abroad is another type of petroleum product exempted from duty. According to Mexican and U.S. sources, the Jalisco Cartel is one of Mexico's strongest and most violent cartels. It is also the leader in crude oil and fuel smuggling. MEXICAN CRACKDOWN Sheinbaum has made fighting the illicit trade an important part of her security strategy. She said that Thursday, illegal imports had dropped due to her government's crackdown. She added that this was reflected in a higher sale of legal fuel. Sheinbaum has been in office since October 2024. Authorities claim they have seized around 500 barrels of crude oil and fuel that is allegedly illegal. This is more than what the previous government confiscated during its six-year tenure. Five current and former Mexican Government sources said that illegal imports accounted for up to one-third of the diesel and gasoline markets in Mexico. Sheinbaum stated that U.S. authorities were investigating the matter, but did not provide any details. Since September 2024 the U.S. Department of the Treasury’s Office of Foreign Assets Control issued two rounds of sanction against a dozen Mexican citizens and nearly thirty Mexican companies that are allegedly connected to CJNG, its fuel theft and smuggling activities. James Lael Jensen, father of Maxwell Sterling Jensen, and his son Maxwell Sterling Jensen were both charged in May with conspiracy to launder money and to provide material support to an designated foreign terrorist group. Authorities claim that the Jensens conspired with CJNG in order to smuggle crude into the United States. James Jensen's lawyers did not reply to an inquiry for comments regarding the investigation. Robert Guerra, an attorney representing Maxwell Jensen declined to comment. Three industry sources and an official from the United States said that U.S. officials met with refiners and other fuel producers in Houston this year to discuss the Mexican organized crime's involvement in the fuel industry and to emphasize the importance of knowing your suppliers and customers. This official said that anyone who violates U.S. sanctions anywhere in the supply chain may face criminal and civil penalties.
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ESA to study the impact of satellite merger
The European Space Agency announced on Thursday that it would examine a newly-announced satellite combination between the three aerospace groups in order to preserve a competitive environment. Director General Josef Aschbacher said at a press conference that ESA supports a strong industry, and that "mergers do happen". He added that when making future procurement decisions the agency will take into account the impact of this deal. When asked about the preliminary agreement announced on Thursday, he replied: "This is a good thing because it could make the industry stronger and more competitive on the global market." He added, "It'll change the landscape for competition. We will take that into consideration in our industrial policies and in the purchases we make." Airbus, a Thales-led venture and Leonardo's joint venture compete against Germany's OHB and Spain's Indra as well as startups such Finland's ICEYE. However, when combined they would dominate the European satellite market. The ESA will balance the interests of taxpayers and the strength of industry through competitions. Aschbacher stated that the ESA will work to ensure Europe has a "very-competitive industry ...(and (that) the European space sector would be strengthened by this move". (Reporting and editing by Kirby Donovan; Tim Hepher)
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Pakistan bans violent Islamist group for the second time in 4 years
The government of Pakistan announced that it had banned a violent Islamist group under its anti-terrorism laws on Thursday. This comes days after five people died in a clash between the group and police during an anti-Israel protest. The government of Pakistan said that the cabinet had approved the ban. Many Pakistani governments have been troubled by the violent and large-scale street protests of Tehreek-eLabbaik Pakistan, a far-right group. The radical Sunni Muslim movement founded in 2015 has been focusing on actions that it considers to be blasphemous. In 2016, it became a political movement that used blasphemy as a rallying call. After violent protests, the Imran Khan government banned the party in 2021. The government issued a statement by the Shehbaz Shairif office that said the ban would be lifted in six months if the group stopped using violence.
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US warns that flight disruptions could increase as the shutdown drags on
Transportation Secretary Sean Duffy, along with Republican leaders in Congress, warned on Thursday that flight delays could increase as the government shutdown enters its third day and controllers are not paid for their first paycheck. The government shutdown will force 13,000 air traffic control officers and 50,000 Transportation Security Administration agents to work without pay. The first full pay for controllers is not due until Tuesday. I can't promise that your flight will arrive on time. I can't promise that your flight won't be cancelled. Duffy told a Capitol Hill Press Conference that it would depend on the air traffic controllers showing up to work every day. He said that last week, the absence of air traffic controllers was responsible for 53% flight delays, compared to 5% in normal times. House Speaker Mike Johnson stated that the Federal Aviation Administration did not have the resources to pay air-traffic controllers. He called on Democrats pass legislation to reopen government. On Thursday, the Senate will consider a bill to pay essential employees during the shutdown. Democrats are demanding that Republicans approve new healthcare subsidies to help people purchase insurance under the Affordable Care Act. The debate about the shutdown has shifted to the air traffic control system, with both sides blaming each other. Both unions and airlines are calling for a swift end to the shutdown. Johnson: "Football lovers, if you're stuck in an airport this weekend as your team is about kickoff you can blame Democrats." In 2019, the number of controllers and TSA agents absent increased during a 35 day shutdown as workers missed their paychecks. This resulted in longer wait times at checkpoints. The authorities were forced to slow down air traffic in New York City and Washington. This put pressure on legislators to end the standoff. Even before the shutdown, many air traffic controllers were working six-day weekends and mandatory overtime to meet their staffing targets.
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Air Canada is betting on new U.S. routes out of Toronto despite the trade tensions
Air Canada will rely on the corporate market to expand service at Toronto's central airport. This includes new routes to the United States. The move is intended to boost cross-border travel, despite the trade tensions between Canada and the United States. Mark Galardo, the Chief Commercial Officer of Canada's biggest carrier, told reporters at Billy Bishop Toronto City Airport that new service would be offered from Canada's economic capital and largest city to New York City, Boston, Washington, and Chicago. Canadians are cancelling their travel plans to the United States due to President Donald Trump's trade war. Airlines like Air Canada, United Airlines and others have cut capacity on some U.S. bound leisure flights. Statistics Canada's latest September data shows that the number of Canadian residents returning to Canada and the number of non-residents who returned to Canada has declined by 16% compared to the same month last year, the eighth consecutive decrease.
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Central Europe's refining companies are watching the impact of US sanctions against Russian oil giants
Slovnaft - a Slovak refiner that processes a large amount of Russian crude oil and belongs to Hungary's MOL Group - said Thursday it would be analyzing the impact of U.S. sanctions against Russian oil companies on its operations. Donald Trump, the U.S. president, imposed sanctions against Russia on Wednesday for the first times in his second term. He targeted Lukoil, and Rosneft in an effort to press Moscow into a ceasefire agreement in Ukraine. This move has pushed up the price of oil and raised questions for Hungary, Slovakia and other EU countries that are the largest buyers of Russian crude oil. Potential HEADACHE for Refineries and Banks Last year, the MOL group of Hungary's oil and gas industry had problems obtaining supplies when Ukraine, through which the Druzhba pipe carrying supplies ran, sanctioned Lukoil. MOL has signed agreements to purchase the crude oil volumes affected at the Belarus-Ukraine borders to ensure that the flow of crude oil continues. MOL didn't immediately comment Thursday on the U.S. Sanctions, which are expected to come into effect in late November. Slovnaft, MOL's Slovak subsidiary, said: "As it is a brand new situation we need to first familiarise ourselves with the exact language of the new U.S. Sanctions and analyse their potential impact on our operations." Slovnaft will process 4.8 million tons of oil by 2024. Of this, 662,000 tons are non-Russian. MOL refines around 8,000,000 tons of oil in its Danube Refinery in Hungary. Slovak, Hungarian and other government offices did not respond to any questions. Vaclav Bartuska said that compliance departments in certain banks would have a headache for weeks to come. He was the former energy envoy of the Czech government and ambassador to Britain. Expect delays/cuts to deliveries of Russian oil. Iwona Wiesniewska of the Center for Eastern Studies in Warsaw estimates that around 80% (or more) of Russian production faces sanctions today, which makes it harder to find alternatives. Already, refineries are making changes in order to process more non-Russian crude oil. Wisniewska stated that "losing access to Russian oil does not mean the end of the business for the Hungarian refining plant -- but it definitely means a change in operating conditions." (Reporting from Jason Hovet in Prague, Marek Stezycki and Kuba Stzycki at Warsaw and Krisztina And Anita Komuves at Budapest. Mark Potter is the editor.
Oil tanker sabotage team were poised to cut more cable televisions when captured, Finland says
Team on board an oil tanker accused of undermining undersea power and communications cable televisions in the Baltic Sea were poised to cut other cables and pipelines when Finnish authorities boarded the vessel last month, the head of the Finnish examination stated.
Baltic Sea countries are on high alert after a string of power cable, telecom link and gas pipeline blackouts because Russia got into Ukraine in 2022. Leaders of the NATO member states around the Baltic Sea are set to meet in Helsinki on Tuesday to go over the alliance's response to the threat.
On Dec. 26, Finnish authorities took oil tanker Eagle S. bring Russian oil. They said they believed the vessel had. damaged the Finnish-Estonian Estlink 2 power line and 4. telecoms cable televisions by dragging its anchor across the seabed for. more than 100 km (60 miles).
The head of the examination, Risto Lohi of the National. Bureau of Investigation, told Reuters the vessel was threatening. to cut a second power cable, Estlink1, and the BalticConnector. gas pipeline between Finland and Estonia at the time it was seized.
There would have been a nearly instant threat that other. cable televisions or pipelines connected to our vital underwater. infrastructure could have been damaged, he stated.
Lohi said a ninth team member from the ship had been added. to a list of those being treated as suspects and barred from. taking a trip. Finland announced previously this month that 8 of. the 24 team members were being barred from travel. The captain. of the ship is Georgian and the team are residents of India and. Georgia.
We have heard and questioned the crew, and at the moment. we have nine team members as suspects. They are under travel. restrictions related to this to secure the investigation, Lohi stated.
Naturally, our priority are the people whose tasks or. responsibilities consist of the navigation of the ship and the. operations related to the anchors.
In another occurrence, Finland and other Baltic Sea countries. presume a Chinese bulk carrier, Yi Peng 3, of dragging its. anchor to breach two undersea fibre-optic interactions cable televisions. in November.
Sweden's Civil Defence Minister Carl-Oskar Bohlin said on. Sunday said that authorities had actually figured out the Chinese ship had. likewise threatened to cut a power cable television linking the Baltic. states and the Nordic countries.
We can today report that it has been identified that there. are traces of an anchor, probably from Yi Peng 3, likewise in. connection with NordBalt-cable, that is, the connection between. Sweden and Lithuania. This clearly illustrates the severity. of the situation we find ourselves in, he told press reporters.
(source: Reuters)