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Aramco Jazan facility fire extinguished, Saudi Arabia reports
The Saudi Energy Ministry reported that firefighters extinguished the fire at Saudi Aramco Jazan refinery, which broke out early Sunday morning. The fire was brought under control by Aramco's Industrial Security Teams and the authorities are completing the procedures to handle the incident. This is what the Saudi Energy Ministry said on X. The ministry did not say what started the fire. Jazan lies on the Red Sea, near the border of Yemen. Aramco closed its 400,000 barrels-per-day Jazan'refinery' on July 27, following an attack from Yemen's Houthi militants, which damaged the plant’s Integrated 'Gasification Combined Cycle' (IGCC) and tank farm 'area. The Houthis claimed to have struck Aramco facilities in Jazan and Yanbu at the time. The attacks raised concerns that the U.S./Israeli war on Iran, and Iranian attacks against shipping around the Strait of Hormuz could cause global disruptions. Amin Nasser, Aramco's chief executive officer, said that recent attacks on Aramco facilities caused production interruptions. However, he is confident that operations can be quickly restored. He claimed that the attacks had no financial or operational impact. Houthis have declared a blockade on Saudi Arabia at the Red Sea in response to what they claim is a Saudi siege against Yemen. Riyadh has denied this allegation. Reporting by Hatem Mahar; Editing and proofreading by William Mallard & Lincoln Feast.
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Wildfires are causing wildfires to spread in British Columbia’s wine region.
On Saturday, a wildfire that was rapidly spreading in the western part of Canada forced thousands of residents to leave their homes. Bald Range was out of control, and had grown to approximately 9,500 hectares (23,500 acres). This prompted evacuation orders for Summerland, Peachland, and other districts located west of Okanagan Lake. This region produces the majority of B.C. The?region produces most of B.C. Summerland declared a state-of-emergency and has a population of 12,000 people according to the census of 2021. Peachland has a population of 6,500. "A?lot of farms were affected. We do not know how many buildings have been destroyed. Summerland Mayor Doug Holmes told a reporter that firefighters were still fighting the fire. "We must prepare for the worst." Terry Fries, of Summerland?was watching a game of football on Friday night. A neighbor told him to prepare a bag as the fire was growing. He said that at the time the fire was further back and could be seen behind the hills. B.C. When B.C. Summerland District, located about 45km (28miles) away from Kelowna lost power due to a wildfire on Saturday. Residents were issued a boil-water notice. The municipality stated that untreated water entered the system because it bypassed a water treatment plant due to the wildfire. This year, wildfires have raged in several Canadian provinces including Ontario and Quebec due to hot, dry weather. Firefighters from Mexico and Australia have been helping to fight the fires. About 1,500 firefighters are on the ground in B.C. where dry and hot conditions increase the danger of fires spreading. The province has issued 39 alerts and 38 orders of evacuation in relation to more than 100 fires. According to the Canadian Interagency Forest Fire Centre, fires have consumed 4 million hectares (9.9 millions acres) of land in Canada so far this year. Paige Taylor White reported from Penticton in British Columbia, and Nivedita Bali in Toronto. Susan Fenton and Rod Nickel edited the story.
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Fijian Rugby player dies in Japan after suspected heatstroke
The Fijian side said that Saimoni 'Vunilagi', a professional rugby player, died on Saturday after suffering from a'suspected case of heatstroke? while training with his team in southern Japan. After training with his Fukuoka-based team,?Kyushu Electric Power Kyuden Voltex - also known as Kyushu KV, the back rower was admitted to hospital with symptoms of severe heatstroke on Monday. The club confirmed that he died on Friday morning. In recent weeks, Japan has experienced a heatwave with temperatures in some cities exceeding 40 degrees Celsius (104 Fahrenheit). The government has now designated this as a "brutally warm day." The club in Japan's second division said that "Saimoni has only just joined Kyushu KV but his generous spirit and powerful playing style have raised high expectations for his contribution in the coming season." The club said: "We extend our sincere condolences and pray for his soul's repose." Japan's national team?suffered a narrow defeat to Australia in an evening match on Saturday, played in humid conditions?in Osaka. Due to the extreme heat, both teams took mandatory water breaks in between each half. (Reporting and editing by Pritha Sakar in Osaka)
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British Columbia district issues evacuation orders amid wildfires
The district of Summerland in British Columbia declared a state of emergency early Saturday morning as a rapidly-moving fire swept across western Canada forcing thousands of residents to evacuate. As of early Saturday morning, the 'Bald Range' wildfire had spread to approximately 5,000 hectares and prompted evacuation orders for other districts in this region. According to BC Wildfire Service, the fire began about 15 kilometers (9 miles) west of Summerland. Summerland district, which is located about 45 km from Kelowna said that it lost power due to wildfires on Saturday. It also issued a boil-water notice to residents, saying that untreated water entered the system when the water treatment plant had been bypassed because of the threat of wildfire. According to the census of 2021, Summerland's population is approximately 12,000 people. This year, wildfires have raged in several regions of Canada including Ontario and Quebec due to hot, dry conditions. Mexico, Australia France and New Zealand have all offered assistance to Canada in the fight against these fires. Around 1,500 firefighters are on the ground in British Columbia where hot, dry conditions can increase the likelihood of new fires. Lightning could also spark old fires. The province has also issued 49 alerts and 39 orders of evacuation. Premier David Eby stated earlier this week that he was prepared with additional international?and national firefighters and aircraft. According to the Canadian Interagency Forest Fire Centre, fires have consumed 3.9 million hectares of land in Canada so far this year. (Reporting and editing by Susan Fenton in Toronto, Nivedita Balu from Toronto)
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UAE: Iran fired missiles at ADNOC vessel in Strait of Hormuz
The United Arab Emirates condemned on Saturday what they said was an Iranian attack against a carrier connected to its state oil company, as it passed through 'the Strait of Hormuz. They accused Tehran of committing "acts?of piracy". Initial reports from the state news agency WAM stated that ADNOC had said one of their vessels was targeted by a rocket early Saturday morning and that everything was under control. Later, the UAE Foreign Ministry condemned what it termed "the hostile Iranian attacks" on an ADNOC ship. No details were given about the tanker, its cargo, or any possible damage. There were no injuries reported. Before the conflict, a fifth (or more) of the world's oil and gas liquefied was transported through the narrow waterway that connects Oman to Iran. Shipping has been disrupted repeatedly since the U.S. and Israeli war against Iran began on February 28. This has led to higher freight rates and security concerns. The ministry stated that the attack was in violation of a 'U.N. The Security Council's resolution on freedom of navigation accused the Iranian Revolutionary Guards (IRG) of "piracy", accusing them of targeting commercial ships and using waterways as a means of economic pressure. The statement called on Iran stop the attacks and open the Strait unconditionally and fully. Iran's Guards had previously threatened to take action against vessels that transited the Strait of Hormuz?if they were linked to Tehran's enemies, or if failed to follow Iranian directives. ADNOC stated on Friday that they had been "significantly affected" by unprovoked attacks against their personnel and assets while continuing to meet the needs of customers in an "exceptionally difficult environment". The company reported that 15 of their vessels were 'attacked' by drones and missiles while they transited the strait, including three in the last week. One crew member was killed and 20 others injured. ADNOC's statement of Friday did not identify those responsible for the attacks. ADNOC is the state oil company of Abu Dhabi and one of the largest energy producers in the world. It exports crude oil and natural gas to customers around the globe.
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Zelenskiy: Russian drones killed a 3-year-old child and his grandparents near Kyiv
Volodymyr Zelenskiy, the president of Ukraine, said that Russian drones had killed a 3-year-old child and his grandparents, in a village?in the Kyiv Region, and another person was killed by a ballistic attack?overnight?on the capital. In recent months, Russia has intensified its attacks on Kyiv. Ukraine has also targeted Russian oil infrastructure and logistical infrastructure in an effort to reduce Moscow's war-fighting capability. Both Russia and Ukraine deny that they deliberately target civilians during their attacks. The Ukrainian air force reported that Russia had launched six ballistic rockets and 151 unmanned aerial vehicles at Ukraine over night. Ukrainian General Staff also stated on Saturday that its military attacked Russia's Ilsky?oil refineries and Syzran oil refineries overnight, causing both fires. Local authorities have also confirmed that five people were injured in the Krasnodar Region in southern Russia after a Ukrainian drone strike. UKRAINE'S SHORTAGE of Air Defence Missiles Zelenskiy said on Telegram that "Europe, America and Ukraine have wanted to stop the Russian war for a long time," "Only the Russian President Vladimir Putin does not want to do that, and he desperately clings to his ballistic missiles and robots to keep the war going. "More pressure is required." Zelenskiy, who is visiting Serbia for the first time, is seeking to join the European Union. The President has been pressing for additional help, as the country is chronically lacking air defence missiles to support U.S. Patriot Systems. Defence ministry reported that only 29 of 195 missiles were intercepted during July. The Ukrainian air defenses were able to shoot down 135 drones but not ballistic missiles. This was announced by the Ukrainian air force on Saturday. Tymur Tkachenko is the head of Kyiv's regional administration. He said that three places in the Brovarskyi District, near the capital, had been hit by Russian missiles. In the region, 10 private homes, commercial and production sites were damaged. After Russian drones killed a child and his grandparents, a private house in Puhivka village, located about 30 kilometres from?Kyiv was set blaze. Zelenskiy reported that his parents, 15-year old brother and neighbour were also injured. Officials reported that fires had been reported in Kyiv's three districts. Damage was caused to commercial?premises, warehouses, and other buildings. Witnesses heard "several powerful blasts" that rocked the city centre. The Russian Defence Ministry announced on Saturday that Russian forces had taken over the settlement of Ivanivka, in Ukraine's Kharkiv Region. The report could not be independently confirmed. Ukraine has not yet commented. Reporting by Dan Flynn, Olena Hartmash and Barbara Lewis.
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US anticipates a deal on the Strait of Hormuz soon; Sunni countries unite to form a defense pact
An official from the United States reported progress on Friday between Iran and Oman, which could lead to the reopening of the Strait of Hormuz in the near future. This would allow oil exports to resume that were disrupted during the U.S. The war with Iran is ongoing. The U.S. official who refused to be identified said Washington expected an agreement between the two countries that sit on either side of the Strait so normal oil traffic can resume. The deal between Iran, Oman and the control of the strategic watersway is seen by many as being crucial to a larger peace agreement. A U.S. official said on Friday that there was progress between Oman, Iran and the Strait of Hormuz. We expect a deal to be reached soon. The United States will lift its blockade on Iranian ports once the deal to restore commercial shipping is announced. The official stated that "as always, U.S. action will be performance-based, and tied to Iran’s implementation of its obligations." The official said that before the U.S. launched its war against Iran on February 28th,?about 1 out of 5 barrels of crude oil consumed globally transited through the Strait. Iran has now used this hostilities as a justification to charge a toll to oil tankers or fire on ships trying to cross without permission. The disruption of oil shipments caused the energy prices to rise and fuelled inflation. Iran has denied that any talks have taken place in recent weeks despite the Trump administration's repeated indications that an agreement to open the Strait was close. The latest round of talks was not clear whether they would lead to a lasting agreement. The Houthis in Yemen have intensified their attacks on Iranian ships that are passing through the Strait of Hormuz. They have also targeted vessels at another oil chokepoint between the Red Sea Gulf of Aden and the Arabian Peninsula. Abu Dhabi National Oil Company (ADNOC), one of the largest energy producers in the world, announced on Friday that 15 of their vessels have been hit by 'unprovoked attacks' while transiting through the Strait of Hormuz, since the beginning of the conflict. One crew member was killed and 20 were injured in the attacks, according to Abu Dhabi National Oil Company. Saudi Arabia, Pakistan, and Turkey have signed a new security agreement on Friday in Mecca. They were alarmed by a regional conflict that saw Iranian missiles fired at Gulf oil exporters. The agreement between three U.S. ally countries with majority Sunni Muslim population is meant to increase collective deterrence and stipulates an attack on any one of them would be considered an attack on the others, according to a joint statement. The agreement, according to Turkey, was defensive and not directed at any particular country. It comes at a moment of increased tensions between Iran and Shi'ite majority countries. The U.S. is also trying to mediate a ceasefire on another front in the war between Israel, and the Iranian-backed Shiite group Hezbollah. This conflict takes place in southern Lebanon. Lebanese officials said Friday that Israel and Lebanon had agreed to a list of countries that could send troops under an agreement mediated by the United States, in order to verify Hezbollah's disarmament. The United States will select countries from the list. IRAN PRESIDENT DEFENDS DIPLOMATISM Washington and Tehran have not held direct high-level discussions since U.S. Vice president JD Vance, who met Iranian officials in Switzerland shortly after they reached a ceasefire deal in June. The short-lived memorandum of agreement of June 17 set out terms for the resumption of Strait of Hormuz shipping, and led to a truce. Hostilities were resumed in Iran and the U.S. on 7 July, but then put on hold. The U.S. Central Command has not reported any attacks on Iran since the 29th of July. Analysts say that signs of discord between Iran's civilian President, Masoud Peezhkian and other power centers, such as Supreme Leader Ayatollah Khamenei, and the Islamic Revolutionary Guard Corps may complicate?peace attempts. Pezeshkian, in an interview broadcast by state television on Friday, defended his government's policies towards hardliners who oppose negotiations with the United States. He said that the majority of senior military commanders were in favor of talks to end the fighting. Why don't the Americans fight against China? China is growing stronger and doing its own thing. Why not use dialogue to get our rights? He said. Reporting by Steve Holland, Timour Azhari, Ariba Alashray, Samia Nakhoul, Tuvan Gumrukcu, in Ankara and Enas Alashray, in Cairo. Writing by Daniel Trotta. Editing by Don Durfee, Cynthia Osterman and Don Durfee.
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Petrobras CEO: likely to surpass 2026 oil production goal
Magda Chambriard, the CEO of Petrobras, said in a call with analysts on Friday that it is likely that the state-controlled oil company in Algeria will produce more oil by 2026 than what was forecast. She stated that the company's oil production in the second quarter exceeded its target by 200,000 barrels a day. According to a presentation by the company, Petrobras produced an average 2.6 million barrels a day so far this year. This is higher than its target of 2.5 millions barrels a day. Chambriard told journalists that 2.7m barrels a day would be an impressive result. She did not, however, provide any further details. Petrobras stated in a statement issued after the press conference that it maintains its official forecast for more than 2,500,000 barrels of oil per day. The company said it will continue to strive to achieve its goals and maximize production. It said: "At the time, CEO Magda chambriard noted at today's investor and press events that?the company consistently strives to maximize production and exceed targets." Since?Chambriard became CEO, Petrobras's focus has been on increasing output, including by slowing down production declines at older oil fields. According to the CEO, increased production has helped increase exports as well as profits. Petrobras' shares, despite a rise earlier in the day, closed Friday 3% lower. The Bovespa index, Brazil's benchmark, dropped 1.7%. Reporting by Fabio Téixeira and Marta Nogueira, Editing by Nia William
SpaceX's $1.75 Trillion price tag: An unconventional rationale
Wall Street uses some unconventional yardsticks in order to value 'Elon Musk’s SpaceX. One of SpaceX's largest institutional investors benchmarks the rocket and satellite firm not against aerospace competitors like Boeing or telecom titans like AT&T but against AI infrastructure players like GE Vernova, Vertiv and Palantir Technologies in a bid justify a $1.75 billion valuation ahead of the biggest IPO ever.
A source familiar with SpaceX's thinking described the framework to me?for the very first time. It illustrates the unusual challenge of valuing a company without obvious public competitors - and how far Wall Street will go to justify a premium valuation. SpaceX filed for a U.S. IPO in secret, according to a report last week. As previously reported, the company will hold an analyst's day on April 21. SpaceX's potential $1.75 trillion valuation is expensive by most traditional measures. This includes comparisons with the earnings and revenues multiples of firms that are often used as references for its business. Boeing and Lockheed Martin's joint venture United Launch Alliance, which competes with SpaceX for launch services, are the peers in space. AT&T, Verizon and other internet service providers would be the peers in this case.
Financial backers of SpaceX, which is on track to raise 75 billion dollars in an IPO in this year, argue that comparisons with established firms in legacy industries miss the point. They say SpaceX and Musk's other companies are positioned to benefit from long-term "secular economic shifts" at a time where few competitors have the ability to do so.
Musk's companies are known to command high multiples, in part due to?investors betting on him personally. Tesla is the most obvious example. And SpaceX investors anticipate that this dynamic will carry through into any public offering.
SpaceX CFO Bret Johnson told IPO banks on a recent conference call that it was "pretty exciting" to be able to sell into the "largest total addressable market" in human history - a $370 billion potential space business. According to the sources, Bret Johnsen estimated the market potential for Starlink's internet service as $1.6 trillion.
SpaceX has not responded to a comment request.
RETHINKING COMPARABLES
The fierce debate about the price of SpaceX's massive IPO is centered on finding the right comparables. Bankers and investors are struggling to determine the value of the company, despite the fact that there are few or no closely comparable public counterparts.
Investors and bankers often sort comparables by industry, based on the assumption that this is a good way to measure financial risk and opportunity. Many investors believe that companies need not be in the same sector to be comparable. They say it is more important for them to compare cash flow, growth and risk profiles. According to this approach, a better comparison is made with companies that are selling into AI data-center buildsout. These companies have been famously rewarded by rising share prices and high multiples.
Jay Bala said that the?calculus for smaller funds is different. AIP in Toronto manages assets of?approximately $100 million, with a significant portion concentrated in SpaceX. "I am piggybacking the biggest funds in the universe. Due diligence has been carried out in great detail. "I'm not going second-guess the world's biggest investors," he said. He admitted that it was difficult to get detailed financial information on SpaceX. "You only can get so much." Sometimes it's difficult to get numbers.
STARLINK VERSUS STAR TELECOMS
Starlink, or what SpaceX refers to as its "connectivity business", is compared with legacy telecom companies. However, some investors claim that these comparisons have been skewed due to aging infrastructure, saturated markets in the United States, and years of modest revenue growth.
I wouldn't consider AT&T or Verizon to be very relevant for the Starlink economic model, even though both companies are in the business to provide communication, said a senior executive from one of SpaceX’s largest institutional investors, who spoke on the condition of anonymity because the work was confidential.
Palantir is a better choice for SpaceX investors because of its high returns on capital invested, good margins, and asset-light structure. These qualities, say fans, justify the high multiples that the stock commands, and indicate greater opportunities in the future.
Palantir, a well-known stock in the market that trades at 43 times revenue expectations and 75 times earnings, is known for being one of the most expensive stocks. Skeptics claim that these levels are unsustainable. However, SpaceX supporters say that they are achievable if backed up by exceptional financial performance.
According to PitchBook, Palantir, with a market cap of $1.75 trillion would still be cheaper than SpaceX on these measures, as it would trade at 110x revenue estimates for 2025.
"Investors should size positions with the understanding that they are paying a platform premium today for infrastructure-monopoly economics tomorrow," PitchBook analyst Franco Granda said in a note ?last month.
ROCKET MANUFACTURING COMPARISONS
SpaceX investors argue that for the rocket manufacturing part of the business, the firm's achievements - such as the fact it built a reusable system, drove down unit costs drastically and expanded into a market where the demand for launch capability continues to grow - demand valuations much higher than those at Lockheed. Lockheed traded recently for around 20 times the expected earnings for next year. Boeing's high multiples reflect the fact that it is a?turnaround story.
They instead turn to industrial names like GE Vernova or Vertiv whose stock has soared due to AI data-center expenditure, arguing that SpaceX launch operations should be re-rated to "picks-and-shovels" in the data-center era.
These preferred comps are not very similar to SpaceX. GE Vernova traded at around 30x expected cash flow, and four times revenue last year.
Vertiv, a company that sells cooling and power equipment for data centres, was recently traded at 19 times the expected operating profit, and 6 times sales last year.
MESSY PRICES AND RATIONALIZATION
Investors and bankers say that SpaceX is difficult to price due to the unique nature of its space operations and AI businesses, which are difficult to value in an early stage.
Aswath?Damodaran, finance professor and valuation expert at New York University Stern School of Business, said: "Pricing will always be messy." "Nobody has the capacity to launch satellites at such a low price and in such large numbers as they do. That's their biggest advantage."
He says that the current price is a reflection of investors' justifications for purchasing the shares, rather than traditional metrics. They're hoping that there is enough momentum and mood behind SpaceX and, when it goes public in the future, this will drive the stock price up.
"They have already decided that SpaceX will be a good buy," Damodaran stated. "Now they are looking for a way to justify this, and the pricing is that exposed rationalization."
(source: Reuters)