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Lufthansa will announce thousands of job reductions on Monday
According to sources familiar with the matter, Lufthansa will announce several thousand cuts in its first capital markets day for the company since six years on Monday, to demonstrate its commitment to efficiency. In 2024, the group issued two profit warnings as it battled rising costs and labour challenges. Investors were promised that an ambitious turnaround program would be implemented in the next few years. Two sources have confirmed that the airline group plans to cut its administrative staff by 20 percent in the next few years. However, the exact number is still being determined. Sources spoke under condition of anonymity due to the sensitive nature of the subject. Lufthansa has declined to comment. A third source familiar with the discussions said that any redundancies would affect the entire group and not just the core carrier. (Writing and editing by Barbara Lewis; Joanna Plucinska)
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Abra ends talks with Gol-Azul, ending the major Brazilian airline merger
A filing late Thursday showed that the airline group Abra had decided to end talks about a possible merger between Brazilian carrier Gol and Azul. This move puts an end to the possibility of creating a dominant airline for Latin America's biggest economy. The new carrier would have had roughly 60% of the domestic markets, surpassing LATAM Airlines, based in Chile. Abra Group, the majority shareholder in Gol and Colombia’s Avianca, and Azul signed the first memorandum in January to combine the two airlines. This followed months of discussions and speculation in the market. Azul filed for Chapter 11 protection in May. Analysts warned that this move would likely stop the merger between Gol and Azul, who emerged from their own bankruptcy proceedings in June. STRIKES IN THE INDUSTRY According to Gol, Abra informed Azul that "the parties have not meaningfully talked or progressed on a possible transaction since several months due to Azul's attention towards its Chapter 11 proceeding." Both companies filed for bankruptcy as the airline industry struggled to deal with debt, a sharp decline in traffic due to the COVID-19 epidemic, and delays in aircraft deliveries. Abra pointed out that the memorandum from January came "in a different scenario and at a different moment for the companies." Gol and Azul terminated also their codeshare agreement for 2024, which was being closely scrutinized by antitrust watchdog CADE. Concerns about competition Abra left the door wide open for future discussions. Abra said, "We still believe in the merits a business merger between Azul and Gol, and as such, Abra stands ready, willing, and available to engage the relevant stakeholders." Azul confirmed in a separate filing that the talks were over and reiterated its "commitment" to strengthening its capital. Azul anticipates that it will emerge from bankruptcy by the beginning of 2026. LATAM criticised the potential merger, but some experts called it "necessary" to maintain a financially sound sector in Brazil where air travel is restricted and costs are high. Brazil's government welcomed the end to the negotiations. Initially, it supported the merger in order to avoid either company failing, but then changed its mind due concerns about competition. The Minister of Ports and Airports, Silvio Costa Filho, wrote in X that "the outcome is a result of the strengthening and growth of Brazilian aviation." Reporting by Gabriel Araujo, Luciana Magnhaes and Kirsten Donovan; editing Jacqueline Wong.
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Poste Italiane is considering a digital identity fee. Analysts see a potential 100 million euro profit boost.
Analysts wrote Friday in their daily reports that Poste Italiane may introduce an annual fee for its users of the digital identity service. This follows a meeting with management. Intermonte analysts and Akros wrote in their report that the move, which involves around 20 million digital identity accounts active, could result in an additional operating profit of up to 100 millions euros (116.75) for the state-backed conglomerate. Poste has declined to comment. It is important because it marks a change for Poste. Until now, these services were provided free. Other providers are now charging for digital identification services. CONTEXT The Italian public digital identity system (SPID), which is used to access a variety of online government and private services, is called the Sistema Pubblico Di Identita Digitale. Poste is Italy's largest SPID provider. Reporting by Elvira pollina. Editing by Jane Merriman
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Orlen accepts that Poczta Poland will take a stake in the courier unit
Polish state-controlled refiner Orlen signed an agreement on Friday that will allow state-owned Poczta Polska postal service to invest in and possibly take over its courier unit. According to the preliminary agreement with Orlen Paczka, Poczta Polska initially will acquire a minor stake and has the option of eventually purchasing all the shares. Orlen didn't disclose the size of the stake or its value. Orlen stated that the deal would create a strong domestic logistics operator. Ipopema Securities analyst Robert Maj said it allowed the refiners to get rid of non-core assets. Orlen believes that its chances of establishing itself in this market are limited. Allegro, an e-commerce company, has also been increasing its competition as it expands its network of lockers. Orlen Paczka has over 14,000 points of pick-up, including 7,000 automated parcel lockers. Poczta Polska, on the other hand, has a network with more than 20,000 points including post offices and retail partners.
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Russian oil exports to Turkey drop as Trump seeks a cut in Moscow's earnings
The decline in imports of Russian fuel to Turkey has been due to sanctions and competition from other grades of oil, as well as the fact that President Donald Trump is urging allies not to buy Russian oil, to hinder its war effort. Trump, frustrated by Russia's refusal of to stop fighting in Ukraine and a major source of revenue for Moscow, has asked Europe to cease Russian oil and gas sales. After two hours of discussions with Turkish President Tayyip Erdoan, Trump stated that he thought Ankara might agree to his demand to stop purchasing Russian oil, and he could lift U.S. Sanctions against Turkey. TURKEY & RUSSIA FORMED CLOSE RELATIONSHIPS Erdogan and Russian President Vladimir Putin, who have developed close relations over the past few years, may not guarantee a change in Turkey's position. Dmitry Peskov, the Kremlin's spokesperson, said that on Friday, it was up Turkey to decide with whom it does business. "It's a sovereign country that decides on its own in which fields to cooperate with us. "If certain goods and certain trade types are seen as beneficial to the Turkish side then they will continue doing so," he added. Two traders and LSEG data show that imports of Russian crude oil into Turkey fell in September to their lowest level since April. According to LSEG, Turkey is the second largest importer of Russian Urals crude oil by sea after India. It has not imposed sanctions on Russia, but it complies with all international laws and regulations. LSEG data shows that Turkey purchased 1.6 million tonnes of Urals during June, the highest since May 2024. According to LSEG's data, imports will fall by around 1.2 millions tons this month. The energy ministers of Turkey and Russia did not immediately respond to comments. Turkey reduced Russian oil imports in the beginning of the year after refiner Tupras stopped purchases when the price of Urals surpassed the Western-imposed $60 per barrel price cap. Tupras began buying Urals again in April after it dropped below the price cap. The European Union and UK reduced the price of Urals in July to around $47.60 a barrel, complicating purchases. (Reporting from in MOSCOW. Can Sezer contributed additional reporting from ISTANBUL. Mark Potter (editing)
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French LNG supply is disrupted after a weeks-long strike
Two representatives of the CGT union stated on Friday that workers at French LNG terminals would continue to block ships until they receive their salaries. This week, the blockade of three of four terminals in the country has led to a reduction of gas exports and a rise in prices. Elengy, the LNG terminal operator in France, has declared force majeure on its three sites due to the strike that lasted a month and says no ships will be discharged until October 2. Analysts said that reduced deliveries from French LNG facilities contributed to a rise of 1.3% in the price for the Dutch TTF benchmark European gas contract front-month on Thursday. However, the impact on Friday was lessened due to an increase in flows from Norway where a maintenance phase is ending. The union representatives stated that if the conditions aren't met, then they could continue to blockade beyond October 2, potentially causing prices to rise even more. France is Europe's 4th largest gas importer. Most of its supply goes to neighboring countries. Since 2022, when Russian gas pipelines to the European Union were shut down following the invasion in Ukraine, its exports have increased. France is the biggest importer of Russian Liquefied Natural Gas in Europe. It bought around 4 million tonnes in the first eight month of the year, with a large portion of it going through Elengy’s Montoir Terminal on the westcoast. A spokesperson for Elengy said that both of its Fos terminals are currently blocked, and Montoir is experiencing reduced gas outflows. LSEG data shows that the last ship to dock in Fos and discharge was on 12 September, while the last ship to discharge in Montoir on 21 September. LSEG data shows that three LNG carriers are anchored in the port area, waiting to be discharged. Reporting by Forrest Crellin in Paris, America Hernandez in Oslo and Nora Buli at the LSEG office in Oslo. Editing by David Goodman and Kirby Donovan.
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Sources say that crude oil exports to Iraqi Kurdistan will resume early Saturday morning.
Three sources with knowledge of the plans said on Friday that crude oil exports to Turkey from Iraq's semiautonomous Kurdistan Region were set to resume at 0600 local (0300 GMT) Saturday. On Wednesday, eight oil companies that represent over 90% of the production in Iraqi Kurdistan reached an agreement in principle with both the Kurdistan Regional Government and Iraq's Federal Government. The state oil company of Iraq, SOMO, that will transport crude oil by pipeline to Ceyhan Port in Turkey was not available for immediate comment. According to one source, the Kurdistan Ministry for Natural Resources notified oil companies in Kurdistan of the planned launch. Kurdistan Regional Government or the Federal Oil Ministry of Iraq did not respond immediately to emails seeking comment. The Kirkuk-Ceyhan Pipeline has been closed since March 2023 when the International Chamber of Commerce (ICC) ordered Turkey to pay Iraq damages of $1.5 billion for exports that were not authorised by regional Kurdish authorities. Reporting by Nerijus Adomiaitis in Oslo and Maha El Dahan, Dubai. Anna Hirtenstein, London. Jane Merriman is the editor.
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China Oil Port to Ban Shadow Fleet
According to an official notice, terminal operators at a major oil-port in the east China province of Shandong are planning to implement measures to prohibit shadow fleet vessels as well as to limit visits from other old tankers. The measures will take effect on November 1. They would prohibit vessels with fake International Maritime Organization (IMO) numbers, and older ships. Traders said that the measure would be aimed at what they called the "shadow fleet" which transports oil in violation of Western sanctions. The notice was issued by four terminal operators in Huangdao Port, last week, after the United States had designated an oil terminal at Dongjiakou Port, near Huangdao, as receiving Iranian oil transported by vessels subject to sanctions. Huangdao, as well as Dongjiakou, are both located in the larger Qingdao Port area. This is the main Chinese entry point for Iranian Oil. China, Iran's largest oil client, has repeatedly defended oil transactions with Iran, and opposed unilateral Western sanction. NO IMMEDIATE REACTION Qingdao Shihua has not commented on the incident yet, nor have any of the three other companies been contacted. The new risk-rating regulations for tankers appear to be a preventative step, driven by rising U.S. pressure on sanctions, even though this isn't explicitly stated in the notice, said Emma Li. She works as a China analyst at tanker tracking company Vortexa Analytics. Li said that the impact of this is likely to be minimal, as Huangdao plays a relatively minor role when it comes to handling high-risk tanks compared to other Shandong port. According to the document we reviewed, vessels with invalid or expired certificates issued by various international agencies and those who have a history of pollution or accidents in the past three years are also barred from calling. Terminal operators will also introduce a scoring system to rate the level of risk on vessels: the older the ship, the lower its score. A vessel rated at 55 or less will not be allowed to anchor if the terminal operator gives it a 100-point score. Document shows that the scoring system takes into consideration a ship’s classification society as well as its pollution liability coverage. Terminal operators include Qingdao Haiye Oil Terminal Co., Qingdao Shihua Crude Oil Terminal Co., Qingdao Gangxin Oil Products Co. and Qingdao Lixing Logistics Co.
Canadian natgas manufacturers cut production amid record low prices
Companies and analysts have reported that some natural gas producers are cutting production aggressively to reduce a glut of fuel, which this week sent prices into negative territory. The daily spot price at the Alberta Energy Company's (AECO) storage facility averaged minus five cents per million British Thermal Units on Thursday after trading at record-low levels of minus eighteen cents earlier this week. According to LSEG data, the benchmark has averaged $1.03/mmBtu in 2025.
Analysts expect the prices to continue to decline as pipelines are congested, in part due to increased production from producers in Alberta and British Columbia. This has not yet been absorbed by new terminals for liquefied gas exports.
This means that producers have to choose between shutting down wells temporarily or drilling and paying for the transport of the excess gas.
Negative prices force temporary shut-downs of wellheads. Martin King, RBN Energy analyst, said that we are currently seeing some gas supply reductions. This may continue until the end the month.
Advantage Energy CEO Mike Belenkie refused to reveal exactly how much production has been curtailed by his company in response to current market conditions. However, he said that the shutdowns were more than his company had ever done before.
The Calgary-based producer
Due to low gas prices, the dry gas production was strategically reduced in late 2024 through early 25.
Belenkie, in an interview with The Daily Telegraph on Thursday, said: "These are the lowest sustained prices that we've ever seen. Therefore our shut-ins would be the most aggressive."
We're trying our best to ensure that we close in every penny we can, to avoid paying for the market to take our otherwise valuable product.
Not Easy to Do
According to Jefferies, the U.S. investment bank, Western Canada's gas storage is still at last year's record highs. This is due in part to an increase in production by producers anticipating increased demand from the start-up of LNG Canada this summer. According to Jefferies U.S. Investment Bank, gas storage in Western Canada is still at record levels, largely due to the increased production from producers anticipating an increase in demand following the start-up of the LNG Canada plant this summer in British Columbia. Despite the slow ramp-up, this facility has not been able to reduce the glut of supply. RBN's King said that both planned and unplanned maintenance of TC Energy's NGTL and Great Lakes Gas Transmission systems have caused bottlenecks and trapped supply in Alberta.
TC Energy stated in an email that it would not comment on the market dynamics.
Requests for comments from other prominent Western Canadian gas producers were not immediately responded to.
Belenkie, from Advantage Energy, said that shutting down wells carries contractual, marketing and operational risks. This is why the market has not yet been balanced by reducing production enough.
He said that there should be no dry gas wells in operation today anywhere in the country. It is not easy to close down. Reporting by Amanda Stephenson, Calgary; Scott DiSavino, New York. Editing by Marguerita Chy.
(source: Reuters)