Latest News
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WestJet begins parking Boeing 737 aircraft ahead of a looming strike
WestJet Canada announced 'on Friday that it has begun to park Boeing 737 planes as negotiations with flight attendants have failed to result in an agreement. This could lead a labor disruption. Cabin crew could go on strike as early as 12:01 am August 2 for the Calgary-based Onex Corp. The Canadian Union of Public Employees, who represents WestJet flight attendants, said that if negotiations fail to result in a'resolution' over the dispute regarding unpaid work, they will strike at 6:01 AM Mountain Time (6:01 GMT) on August 2. The union wants cabin crew paid from when they check-in to when they clock out. This is not currently the case. WestJet stated in a statement on Friday that it would "remain active" at the bargaining tables to reach a deal as soon as possible. Parking the aircraft also allows WestJet to maintain operational control. WestJet Encore flights ?operated? Codeshare flights and Bombardier Q400 flights operated by partners are not affected, it said. The Canadian Union of Public Employees did not immediately respond to an inquiry for comment. Reporting by Juby?Babu in Mexico City, Editing by Shilpi?Majumdar
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Energy Minister: Serbia has obtained a waiver from US sanctions for its Russian-owned NIS Oil firm
Serbia has received another waiver from the United States to allow its Russian-owned oil firm NIS to continue importing crude until August 28, said energy minister Dubravka Djedovic Handanovic on Friday. The U.S. Office of Foreign Assets Control has granted a waiver to NIS which operates Serbia's sole oil refinery. This will give NIS more time as Hungary's MOL oil and gas firm negotiates with the Russian majority share in the company. "Thirty-days is good news. NIS will have enough time to buy and bring in enough crude oil," Djedovic handanovic said during a live broadcast by state television RTS. Aleksandar Vucic, the president of Serbia, said on Friday that he hoped MOL will complete the purchase in the coming days. Vucic, during a visit to southern Serbia, told reporters that he expected the deal to be finalized in the next few days. He said he would likely speak with both (Russian President Vladimir) Putin (and (Hungary’s Prime Minister Peter Magyar). In October, the United States sanctioned NIS as part of wider measures targeting Russia's energy sector due to its involvement in the conflict in Ukraine. They also demanded that Gazprom Neft, which is NIS's Russian majority owner, be divested. NIS's Pancevo?refinery, located just outside of Belgrade's capital, supplies around 80%?of Serbia?s?demand. It imports crude via the Janaf oil pipe in Croatia. The Balkan country's other fuel imports fell to 25% of its monthly target in July due to?record low water levels on the Danube River forcing barges and tanks to operate at only a quarter?of their cargo capacity. MOL signed a provisional contract in January to buy a combined 56% of NIS from Gazprom and Neft. Serbian government holds 29.9%, while the rest is held by employees and small shareholders. (Aleksandar Vasovic; Editing by Sanjeev Miglani)
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Spain announces migrants returning to Ceuta following 57 deaths in border rush
Spain announced on Friday that it had stopped a massive influx of migrants to a Spanish?enclave located in North Africa. The majority of the over 50,000 people, who crossed the border via land and water, had already returned voluntarily. According to the representative of the Spanish government in Ceuta, 57 bodies have been found on the Spanish side of the border. There could be more casualties on Moroccan side. Some drowned, and others were crushed as they tried to climb up the breakwater holding the border fence. Spain's Interior Ministry reported that around 50,000 people have crossed the border from Thursday morning. It estimated that 48.300 people returned to Spain by Friday evening at 6 pm (1600 GMT). Juan Jesus Vivas of Ceuta’s local government said that as many as 60 000 people have crossed the border over the last two days. Moroccan forces used tear gas and batons to disperse crowds at the Ceuta gates, in an attempt to stop more people from entering this tiny Spanish territory. Ceuta is a small Spanish territory located on a sandy spit that extends into the Mediterranean. Spain was asked to contain the incident by leaders from other EU countries. Italy announced that it would suspend the European Union's Schengen border-free arrangements with Spain. This measure will affect those travelling by boat or plane between the two countries. Madrid claimed that the move was in violation of?EU Treaties. I'M GOING TO BE BACK Moroccan police wearing riot gear used tear gas on some people gathered near the fences. The water cannon truck was deployed, and charred remains from a bus and 7 cars were visible during clashes. The other side saw Spanish military vehicles lining up along the border while dozens of Moroccan migrants, who were unable to cross, watched from a mountaintop in Morocco. Some people claimed they couldn't find food or shelter at Ceuta, while others said that border posts and holes were the only way to return. A young Moroccan man who claimed to be from Tangier said, "I don't know why I came and now I'm returning." "I haven’t eaten since yesterday’s lunch, even though I had brought some money with me. What we are doing is neither enjoyable nor good." Ayman, the 20-year old hairdresser who gave only one name from Larache, said he crossed on Wednesday, after a five hour swim. He said, "There was no food in Ceuta. We were thrown out by the Spanish army." Unprecedented Scale of Crossings The Spanish Prime Minister Pedro Sanchez visited Ceuta, Spain on Friday. He was insulted by protesters. He described the mass crossing as a "violation of Spain's sovereignty". The Moroccan authorities also cooperated in the speedy repatriation. Ceuta and Melilla are autonomous Spanish cities located in northern Morocco. They have the only land border between Europe and Africa. The two cities experience surges of migrants trying to cross the border into Europe. But Thursday's rush was unprecedented. Right-wing parties on the continent blamed Spain's lax immigration policies, which included an amnesty given to hundreds of thousands unauthorised migrants in this year. Spain summoned its ambassador to Italy in protest of comments made by Antonio Tajani, the Italian foreign minister who said that Spain's amnesty policies had "encouraged" human trafficking. Donald Trump, the U.S. president and a critic of Spain's Socialist government, said at a cabinet meeting that the Ceuta crossings looked like an invasion. He added: "The same thing will happen to us, only worse, if the Republicans do not get elected." French Interior Minister Laurent Nunez said that the police presence at the Spanish border will be quadrupled before Saturday. He also announced an increase in aerial surveillance and train patrols. EU countries are generally prohibited from conducting border checks within the Schengen area, but temporary checks can be implemented in exceptional circumstances. In a posting on X, Spain’s?Guardia Civil Police association AUGC stated that there were too few officers on hand to monitor the fence on Thursday. This meant they could not stop the rush. Angel Victor Torres, Minister of Territorial Policy, said that a recent ruling by the Supreme Court of Spain that migrants intercepted in the sea as they attempted to reach Ceuta and Melilla could not be rejected summarily at the border may have contributed to the surge. Experts claim that this still doesn't prevent their expulsion. Thousands of migrants poured into Fnideq, a town in Morocco, over night despite an increased security presence that thwarted?most of their attempts to cross. Later on Friday, some began to leave again. Despite the fact that the border crossing was blocked, groups of people moved along the coast to find a way around the fence. Brahim, 32 years old, gave only his first name. He claimed he arrived from Tangier, hoping to pass through the gate. However, he found it closed.
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Chevron CEO: CPC pipeline operational, ships loading.
On a Friday earnings call, Chevron's?CEO said that the Caspian Pipeline Consortium is flowing and ships are loading. CPC, as cited by Russian news agency Interfax, announced on Thursday that it had suspended oil loads following a drone strike on a tanker. On Thursday, vessels that were expected to load crude oil at the CPC terminal retreated from the port after CPC announced another tanker was attacked as it loaded?at port. CPC, which exports 2% of the world's?oil is the main route used by Kazakhstan to export oil. It starts at the Tengiz oil field and ends at the Russian Black Sea terminal of Yuzhnaya Ozereyevka, near Novorossiysk. Chevron is 50% owner of Tengizchevroil, the company that operates Tengiz as well as the main exporter through the CPC pipeline. On Friday, two industry sources stated that CPC oil loadings may resume later in the day. One source said that single point mooring number 3 (SPM-3), at the CPC Terminal, will be 'loading a vessel on Friday. CPC refused to comment on the matter. According to the?second source, two more tankers will be loaded on Saturday at the CPC terminal. CPC announced earlier this week that loadings were restored after an one-week suspension. They also said the tankers fixed by Chevron arrived for a?loading. Kazakhstan's daily oil production has been reduced by more than half since the CPC terminal, its main oil export route, was closed.
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Chevron beats analyst expectations to record highest quarterly profit in six-years
Chevron exceeded analyst expectations for second-quarter earnings?on Friday. It reported its highest quarterly profit for at least six-years as the U.S./Israeli war against Iran disrupted world energy markets and boosted?profits?for the largest oil companies. LSEG data shows that adjusted earnings of $12 billion or $6.06 a share beats the average analyst forecast of $5.56 a share. Chevron's shares rose about 2% during premarket trading. The results were similar to those of European oil giants TotalEnergies, Shell and others who also reported record profits in the second quarter. Higher oil prices were a major factor. ExxonMobil's quarterly profit missed analyst expectations despite earnings reaching a four-year record. Eimear Bonner, Chevron's Chief Financial Officer, said in an interview that despite the market volatility and geopolitical unrest that still exists the company continues to provide the reliable energy the world needs. Chevron, the second largest U.S. oil company, has a lower Middle East output than its competitors. This allows it to benefit from higher oil prices and avoid the production disruptions that have riled ExxonMobil or TotalEnergies. Chevron CEO Mike Wirth has warned that the ongoing conflict will continue to stress global energy supplies. "Everyday, the situation becomes more challenging," he said to CNBC. Upstream earnings were $8.2billion, which is 200% higher than the previous year. Benchmark Brent crude prices rose 23% during the second quarter compared to the first three months of the year, due to limited shipping through the Strait of Hormuz. The production totaled four million barrels equivalent to oil per day in the second quarter. This is up from 3.85 million boepd during the first quarter. The U.S. production, centered on the Permian basin and offshore Gulf area, reached a record of 2,08 million boepd. Due to efficiency, Chevron expects to spend 25 percent less per barrel on U.S. Shale production in this year than it will in 2025. The U.S. refinery's throughput record also helped boost earnings to $4.9 billion. Refining margins reached record levels due to low fuel stocks globally and the conflict in the Middle East. RBC Capital Markets' Biraj Borkhataria said in a Friday note that Chevron’s higher-than expected earnings were primarily due to the higher-than anticipated downstream earnings. He added that the quarterly report demonstrated "robust performance on the operational front and strategic consistency." Trump could be more critical of the oil companies' profits, after accusing them last month of "price gouging". He also urged that they do more to reduce gasoline prices. CHEVRON KEEPS BUYBACKS, DIVIDENDS STEADY Chevron paid $3.5 billion in dividends and repurchased shares worth $3 billion during the second quarter. Bonner stated that the company will maintain its target for repurchasing shares of between $10 billion to $20 billion over the course of the year and will focus on strengthening the balance sheet in the long-term. Our business must be able to operate in all cycles, because energy is cyclical. She said that we wouldn't change?our plans based on a quarter. Bonner stated that Chevron joint ventures in Venezuela are currently producing 280,000 barrels of oil per day. This is where the Trump Administration is attempting to increase U.S. investment. She said, "We are confident that we can increase production by 15% in the next 18-24 months." She added that Chevron would evaluate incremental production opportunities if it received favorable terms from the Venezuelan government. Wirth told analysts during an earnings call that the CPC pipeline in Kazakhstan is currently running and that ships were loading at the terminal last week. The company has a joint-venture that is developing a "massive" oilfield in Kazakhstan. Drone attacks on tankers loading oil at the Black Sea Terminal have caused the suspension of loadings several times this month. This poses a risk to shipowners. Chevron said Friday that it had achieved $1.5 billion in deal synergies from the acquisition of Hess last year, six months earlier than planned and exceeding the $1 billion target originally set at the time of the closing of the deal. Sheila Dang reported from Houston, and Nathan Crooks edited the story.
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Enbridge Canada has postponed plans for the second phase of Mainline's oil pipeline expansion
Canadian pipeline ?operator Enbridge said on Friday it was ?postponing the 250,000-barrel-per-day second phase of its Mainline crude pipeline ?network, partly due ?to Canadian oil ?producers ?not committing to significant output increases. The project would have led to an increase in the export of Canadian crude oil to U.S. refining plants. Enbridge CEO Greg Ebel stated that the company would focus on the 100,000 bpd Flanagan South Expansion and its 50,000bpd Southern Access Extension. These will increase capacity to two secondary pipelines which connect to the Mainline and transport crude to several U.S. refineries centers and the Gulf Coast. Ebel stated that Canada has a "generational opportunity" to increase its oil production, due to recent federal government policy changes and the rollbacks of certain environmental regulations. He said that while the recent agreement between Alberta and the federal government aimed at speeding up oil sands development could have a significant impact, the majority of the proposed amendments remain "non-binding" and have not yet been enshrined in law. Enbridge's liquids pipelines president, Colin Gruending, stated that the company does not expect Canadian companies producing oil sands to?increase production meaningfully until there is greater policy and regulatory certainty. "We do not expect producers to make?binding FID -able commitments for new pipelines before then," said?Gruending, referring final investment decisions. The spokesperson for Enbridge confirmed that the decision to "prioritize secondary pipeline projects" means a delay in the "Mainline Phase Two Project", which Enbridge previously stated could be completed by the end 2028.
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Europe's shrinking river systems reduce power production, transport and company profits
The record low water levels of Europe's rivers have hampered the transportation of goods and reduced electricity production. This has led to fears of the impact of the searing heat and unpredictable rainfall on the economy. Europe is experiencing the fastest warming of any continent, and heatwaves that have broken records. The drought has highlighted a need to reconsider how business practices are conducted. Waterways are becoming less reliable for transporting goods like grains and oil or producing electricity, which is needed by millions of people to cool their homes. Alessandro Armenia is a power analyst with commodities data and analysis firm Kpler. The current dynamic means that either we will see blackouts, or we must invest more. HYDROPOWER OUTPUT AND NUCLEAR POWER CUT Production of hydropower and nuclear power has fallen in Serbia and Hungary due to record low water levels along the Danube. The Danube passes through major cities such as Vienna, Budapest, and Belgrade, on its route from Germany towards the Black Sea. Paks, the nuclear power plant that generates almost half of Hungary's electricty, is expected to be shut down Monday and possibly for several weeks, because the water level in the river which provides cooling water for the facility will remain too low to allow it to function safely. Davor Maljokovic, production director at Djerdap 1, Serbia’s largest hydropower plant, said that output had fallen to just 20% of its capacity. The once wide shipping channel next to it has now shrunk, exposing sandbanks, gravel bars, and other debris. Serbia's EPS state power utility reported that the lack of water also affected cooling systems at Serbia's coal-fired Kostolac power plants. This forced them to reduce output. Both Serbia and Hungary claim they will compensate for their losses by importing electricity. This is a costly solution when the demand on the local?markets is high. The state-owned nuclear power company Nuclearelectrica in Romania also shut down one of its reactors this week due to the same reasons. A second reactor is expected to follow soon, depriving Romania of up to a fifth its electricity requirements. France also reduced nuclear power production due to low water levels and rising river temperatures. TRANSPORTATION IS ALSO DRUNK BY HIGH WATER LEVELS The energy industry is not the sole loser. Cezar Gheorghe, consultant AGRIColumn in Romanian grain markets, told farmers on the Danube that they were having difficulty shipping their crops due to low water levels. Only the ports that are closest to the Black Sea remain operational. Gheorghe stated that barges cannot pass through other ports. "Crops purchasers could offer lower prices to farmers and load them into trucks. However, there may also be a lack of trucks." A port spokesperson said that the amount of cargo being transported from and to Rotterdam, Europe's biggest sea port, to the Rhine is about 10% less than usual. This has been happening every?week, since the start of July. The draught of chemical and oil product tankers, and dry bulk carriers is usually greater than that of container barges. This means they are positioned deeper in the water. The drought has reduced company earnings. Apart from the devastation caused by wildfires, and the temperatures that have led to thousands of deaths in excess, the balance sheets of companies have suffered due to the changing climate. Austrian utility Verbund said that drought conditions reduced earnings in the first half of this year by EUR370 million compared to a year with normal hydrological conditions. French utility EDF announced on Friday that earnings for the full year before interest, taxes, depreciation, and amortisation in 2026 would be down 10% due to low market prices, and heatwaves reducing power output. The Po River basin in Italy has reached a high level of water scarcity. This is threatening the rice crops and water supply for drinking throughout the north. Renato Mazzoncini is the Chief Executive Officer of A2A regional utility. He expects hydropower production to be 3.9 TWh this year, compared with a historical average. He said that "some of our reservoirs were under pressure." "We need to do a rain dance," he said. (Additional reporting by Inti landauro, Brussels; Giancarlo Navach, Milan; Danny Callaghan, Gdansk; Marleen Kasselbier, Zurich; Rene Wagner, Berlin; Writing and editing by Edward McAllister)
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Sources: Brookfield Infrastructure is interested in a $5 billion purchase of Canadian pipeline operator NorthRiver.
People familiar with the matter say that Brookfield Infrastructure Corp. is looking at a possible sale of NorthRiver Midstream, a Canadian natural gas pipeline operator. The deal could be worth around C$7 Billion ($5 Billion) to Brookfield Infrastructure Corp. Sources who requested anonymity in order to discuss private discussions said that the investment firm had been working with banks in recent weeks to solicit interest from potential buyers in NorthRiver. The rising?demand from strategic and financial buyers for energy infrastructure assets has driven up valuations, and encouraged some business owners to explore selling businesses they've held for years. Sources cautioned that there is no guarantee that Brookfield Infrastructure will be able to retain NorthRiver. Brookfield Infrastructure and NorthRiver have declined to comment. According to its website, NorthRiver Midstream is the owner of?pipelines? and processing infrastructure? that transport natural gas from fields in the Montney shale formation in British Columbia and Alberta to larger pipes?that transport it to clients in Canada and United States. Brookfield Infrastructure has agreed to purchase gathering and processing assets of Enbridge for C$4.3billion in 2018. These assets were consolidated later under the NorthRiver Midstream name. Sam Pollock, Brookfield Infrastructure's Chief Executive Officer, said on an earnings call held April 29, that the company was considering whether to pursue growth opportunities with NorthRiver and/or take advantage of a market he called "pretty positive" for midstream companies. NorthRiver was not discussed or asked for by Brookfield Infrastructure when it announced its earnings on Thursday. Companies don't normally share?information during earnings calls about active sales efforts, except in rare cases such as updating previously announced moves. Private equity firms, infrastructure investors and pension funds seeking stable cash flow have shown a strong interest in energy infrastructure assets, while publicly traded midstream companies also sought to expand their network. Canada's cautious approach in approving large-scale long-distance oil and gas pipelines has, in recent years,?limited supply of new infrastructure?and supported valuations on existing midstream assets. The environment may have changed under Mark Carney's administration, but large-scale pipelines remain hard to duplicate.
IndiGo, India's widebody carrier, will cease operations and terminate the Norse Atlantic Lease
IndiGo, India’s largest airline, announced 'on Friday' that it will discontinue its wide-body operations on October 25, and end its damp 'lease' agreement with Norway’s 'Norse Atlantic Airways' 'on October 31. This is a scaled-back version of a program launched last year in support of its long-haul goals.
It said that a worsening operating climate, driven by geopolitical conflicts, had increased costs and affected the economics. IndiGo is responsible for the cabin crew in a "damp lease", while the lessor provides the jets and pilots.
The airline stated that "Airspace constraints and increased fuel costs have impacted schedule integrity, connectivity, and overall competitiveness." It added that these?factors have prompted an evaluation of the project, and potential alternatives.
IndiGo will begin operating its Mumbai-Amsterdam flight with Airbus A321XLR jets on October 25. Flights to and from Heathrow Airport in London will be suspended until IndiGo receives its Airbus A350 900 jets.
IndiGo announced that it has entered into an agreement with Norse Atlantic to lease six Boeing 787-9 aircraft in early 2025. This will allow?it? to launch services between Europe and Britain, and to gain 'operational experience before?its own widebody fleet arrives?.
Norse Atlantic released a statement saying that IndiGo would redeliver the six aircraft.
IndiGo said it was committed to its international growth strategy over the long term and that it would continue to expand?its European network using A321XLR aircraft while preparing?for the introduction of A350 services.
The airline stated that affected passengers will be offered refunds or alternative travel arrangements, where applicable. (Bipasha Dey, Bengaluru; Shilpa Majumdar, editing)
(source: Reuters)