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Sources say that TK Elevator owners are weighing up the US dollar for a potential multi-billion euro IPO.
Three people familiar with the matter said that TK Elevator owners are considering the United States for a possible initial public offering (IPO) next year, despite the market turmoil caused by U.S. Tariffs, which has slowed the pace of dealmaking. The people, who spoke on condition of anonymity as the matter was private, said that the discussions are still at an early stage, and the preparations will be formalised by the end of 2025 with a view of conducting a company sale or listing next year. People said that the business would likely be valued at over 20 billion euros in a transaction. However, there is no certainty about a deal, and the timing may change based on the market's developments. One person said that the United States is TK Elevator’s largest market. It is also home to the sector leader Otis which commands the highest multiplier among its peers. This is one of many reasons it is being considered for an IPO. Thyssenkrupp sold its elevator business in 2020 - renamed TK Elevator subsequently - to a consortium led by private equity firms Advent and Cinven, as well as Germany's RAG Foundation - for 17,2 billion euros. Advent, Cinven, and RAG declined to comment. TK Elevator did not respond to a request for comment immediately. The recent actions of Titan Cement International and Holcim, both Swiss companies, have highlighted the hotly debated issue. Fourth largest The London Stock Exchange is trying to discourage companies from going to the U.S. LSEG data shows that TK Elevator ranks fourth in the world for elevator sales, behind U.S.-based Otis and Schindler, as well as Finland's Kone. These companies trade at an average EV/EBITDA multiplier of 14.8, according to LSEG. This ratio, based on an adjusted EBITDA (Earned Before Interest and Taxes) of 1.5 billion euro in fiscal year 2023/24, would give TK Elevator a value of over 22 billion euros. Since the fiscal year 2020/2021, TK Elevator's sales have increased by over 16%. Its adjusted EBITDA has also increased by over a third. This has resulted in an operating margin around 16%. The strong global demand, and stable service business, are to thank for this. Alat, a Saudi tech company, bought a 15% share in TK Elevator in February. It also launched a 160-million euro joint venture for elevator and escalator systems in Saudi Arabia. Thyssenkrupp said last year that a minority share it still held in the elevator business had a book valuation of 1 billion euro. It added it was flexible about its options, which depended largely on what TK Elevator’s majority owners did.
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Sources say that Brazil's Petrobras is considering outsourcing the operation of its fertilizer plants.
Three sources with knowledge of the talks said that Brazil's state oil company Petrobras was considering holding a tender for a company to run its nitrogen fertilizer facilities in Bahia State and Sergipe State. The move is intended to restart production at these facilities. On condition of anonymity, sources stated that the board of the company is expected to meet Thursday to evaluate this proposal. This would involve Petrobras taking back management of the two units currently leased by Unigel. Petrobras didn't immediately respond to an inquiry for comment. Petrobras leased the two units to Unigel for 10 years in 2019, but since 2023, they've been paralyzed as Unigel claimed that Brazil's high natural gas prices made it uneconomical. A source said that the board meeting to find a solution on how to resume the units was rescheduled multiple times over the past few weeks due to the lack of consensus between board members. Brazil is heavily dependent on imported fertilizers. Prior to the current proposal was the possibility that Petrobras could directly engage Unigel for the operation and maintenance of the units, a measure which would have already had Unigel's consent. Another source said that board members rejected this option, arguing that the state-owned firm cannot do this without a proper tender. Petrobras, Unigel and other parties are in dispute over the lease contract. It wasn't immediately clear whether the current proposal included a negotiated resolution between the parties. Reporting by Marta Nogueira, Rodrigo Viga Gaier and Isabel Teles. Editing by Ana Mano & Alison Williams.
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Shortsellers target a wider range of companies before Trump's "Liberation Day"
Hazeltree, a data and technology firm, said that shortsellers had targeted a broader range of equity sectors before President Donald Trump announced his "Liberation Day", or April 2, tariff announcement. They also raised negative bets against a group of large tech stocks. Super Micro Computer was the most popular security. It knocked oil and gas producer Chevron from the top spot it held for two months. Prior to this, tech stocks dominated the top 10 list of most-shorted U.S. Large Caps. Hazeltree reported that only five of the top 10 stocks most shorted in March were tech shares, compared to eight in February. Tim Smith, Hazeltree's managing director for data insights, said: "We saw signs that tariffs were being signaled to markets in March." Our analysis of shorting activities in the Americas suggests short sellers started reducing their exposure to tech in anticipation of full tariff implementation -- a possible sign of an early repositioning. Hazeltree’s list of the top 10 most-shorted shares includes IBM, MicroStrategy and ON Semiconductor. Capital One Financial, sportswear maker Lululemon, and other non-tech stocks. A stock is shorted when shares are borrowed to be sold at a certain price, then repurchased for a lower price. Hazeltree's report stated that the more funds short a bet, then the greater the percentage. Super Micro Computer shares, which are one of many stocks that have been exposed to artificial-intelligence, surged by 45% to reach six-month highs in February, before falling in March. Hazeltree gives a score out of 100 based on how many investors have sold short a particular company's stock. Super Micro Computer's rating in March was 99, up 91 points from February. IBM had a score of 93, compared to 85 in February. MicroStrategy also scored 93 versus 85 in March. Hazeltree reported that Gucci's owner Kering was Europe's top shorted stock for the third consecutive month in March, followed by H&M, a fast-fashion retailer. Hazeltree said that H&M's institutional supply usage rate was the highest at 99%. Hazeltree explained that this metric is the percentage of institutional investor's supply of a particular security being lent. The higher the percentage the greater the demand among investors for borrowing that stock, and the harder it will be to open new short positions. Disco, a Japanese company that makes chipmaking devices, was Asia's most-shorted large cap stock for the third consecutive month. (Reporting and editing by Dhara Ranasinghe, Elaine Hardcastle and Amanda Cooper)
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Japan's crude imports for FY2024 down 7.1%; second consecutive year of decline
The Ministry of Finance (MOF), on Thursday, reported that Japan's crude oil imports cleared by customs in 2024 fell 7.1% from the previous year, and the value of the imported crude oil dropped 5.7%, to 10.65 trillion Japanese yen ($74.7billion), due to the lower oil price. The preliminary data show that Japan, which is the fourth largest crude buyer in the world, imported 2,32 million barrels of crude oil per day (134,67 million kilolitres), for the period ending March 31. The MOF reported that this was the second consecutive decline in value and volume year-over-year. The volume of Japan's LNG imports rose by 1.5% in the past financial year to 65.87 millions metric tons, while the value increased 2% to $6.17 trillion yen. The data revealed that imports of thermal coal used for power generation rose by 7.4%, to 105.46 millions tons. However, the value of the thermal coal imported fell by 11.9%. The MOF reported that crude oil imports for March fell by 13.6%, to 2,19 million bpd (or 10,78 million kilograms). Japan's LNG imports totaled 5,15 million tons in the last month. This is down 7.2% compared to a year ago. The data shows that imports of thermal coal used in power generation rose by 8.8% to 8,31 million tonnes in March. The following is a breakdown of the energy imports in Japan for last month. Volumes of crude oil, petroleum products, gasoline/naphtha, LNG, LPG, and coal are in millions of kilolitres, and values are in millions of yen. FY2024 figures Fuel Volume Yr/Yr (%) Value Yr/Yr (%) Mineral Fuels n/a 25074,903 -3.6% Crude Oil 134.671 10,650,207 -75.7 Oil Products n/a 2 970 054 11.0 (Mogas/Naphtha) 27.988 -0.5 2,141,629 8.1 LNG 65.874 1,5 6,171,814 2. LPG 9.98 0.2 952,291 11. Coal 165.3 1 0 4,282,331 (- 15.8) (Thermal Coal) 105.458 7.4 2,428,864 -11.9 March figures Fuel Volume Yr/Yr (%) Value Yr/Yr (%) Mineral Fuels 1,917 329 -12.5 Crude Oil 10,777 -13.6 805,831 -17.2 Oil Products n/a (Mogas/Naphtha) 2.294 6.2 164,411 0.9 LNG 5.151 -7.468.500 -11.6 LPG 1,192 40,618 44,9 Coal 12.29 -6.4 265,283-31.2
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Copper trades at a low volume as the dollar edge up
The copper price fell in London Thursday, under the pressure of a stronger dollar. However, it remained within a narrow range, despite lower trading volumes before a four-day break for Easter. There was also no sign that the trade war between China and the U.S. had de-escalated. By 1019 GMT, the benchmark three-month price of copper on London Metal Exchange was down by 0.9% to $9,120.50 per metric tonne. Metals that are important for growth have lost 6% this month due to an escalating global trade war. The two biggest economies in the world have imposed triple-digit import duties on each other. This is threatening global demand and growth. In a recent research note, Citi analysts said that "Tariffs may have peaked but de-escalation has not yet been seen." China's Commerce Ministry on Thursday called on the U.S. not to put "extreme pressure" against Beijing, and demanded that any trade negotiations be conducted with respect. However, both sides are still unable to agree on who will initiate these talks. China is the top metals consumer in the world. Citi forecasts that global growth will slow to just 2.1% in 2018, down from a little under 3% the previous year. In 2026, growth is projected to only rebound slightly, to 2.3%. This is because of the continuing effects of U.S. wide tariffs. Since the U.S. announced their tariffs early in April, copper prices have fallen below its major moving averages. These are now at resistance level. The 100-day moving is $9,284. The dollar's rise on Thursday pushed up the price of metals for buyers who use other currencies. LME aluminum fell by 0.3%, to $2.375 per ton. It is already subject to a 25 percent U.S. tariff on imports, and it has fallen 7% this year. Alcoa, a major U.S. producer, said that the U.S. still faces a shortage of 3.6 millions tons of aluminum even if the entire idle smelting capability in the country was restarted. The company expects U.S. Tariffs on Aluminium Imports from Canada will cost it $90 million in the third quarter. Nickel fell 0.6% at $15,595. LME zinc dropped 0.8%, to $2,561 per ton. Lead lost 0.2% to $1,904. Tin rose, however, by 0.6%, to $30,880. The LME will be closed for Easter on Friday and Monday. Reporting by Polina Devlin in London, Editing by Rachna uppal
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Hyundai will suspend EV production due to US tariffs and slow demand in South Korea - Yonhap
Hyundai Motor will temporarily stop production of some electric vehicles in South Korea, Yonhap reported on Thursday. The news agency cited unnamed sources. Yonhap reported that the South Korean automaker will stop production on certain lines at its Ulsan facility, where it produces electric vehicles Ioniq 5 & Kona, from April 24-30. Yonhap said that the suspension is due to the fact that EV orders have dropped sharply from major markets in April after the removal of government EV subsides and U.S. Tariffs on imported cars. Hyundai Motor is not available to comment immediately outside of regular business hours. The Trump administration in the United States announced this month a 25% import tariff on cars and light trucks. Hyundai Motors has announced that it will keep the sticker price of its current model line at the same level for the next two month to allay customer fears that tariffs would impact dealer lots. The program runs until June 2 and follows the South Korean Auto Group's $21 Billion investment in the U.S. announced back in March. Heekyong Ya, Ed Osmond (reporting)
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Indonesian nickel smelter asks for a delay in royalty increases until prices increase
The chairman of the Indonesian Nickel Smelters Association requested that the government delay the new mineral royalties until the nickel price on the London Metal Exchange has risen to $17,000 a metric ton. The LME 3-month nickel contract is currently trading at around $15,600. According to a copy the regulation, Indonesia will begin charging higher royalties of between 14% and 19% depending on the price level on nickel ore production, up from 10%. According to the regulation, nickel matte and nickel pig iron, both semi-refined products, will be subject to a royalty of 5% to 7.5%, whereas nickel pigiron will only have a royalty of 3.5% to 5.5%. The regulation said that nickel matte would be charged a 3.5% to 5.5% royalty, compared to the current nickel pig iron single tariff of 5% and nickel pigiron's current single tariff of 2%. Alexander Barus (FINI), chairman of the smelters' group Indonesia Nickel Industry Forum, told officials from the mining ministry that "we support" the government's plan for royalty payments. He said that the group has asked the Energy and Mineral Resources Ministry for consideration to wait until the nickel price on the LME reaches at least $17,000 per tonne, which would allow the companies to cover their costs of the royalty increase. BMI researchers said that earlier this month they had reduced their nickel price forecast for this year, from an average annual of $17,000 per ton to $15,000 due to conditions of oversupply. Meanwhile, President Trump's policies on trade have added to the risks. The prices of our products, like stainless steel, nickel pig-iron and ferronickel are also falling now. Barus said that the royalties would be a burden. Indonesia Nickel Miner Association has stated that nickel miners have already been hit by higher fuel costs after the government eliminated subsidies for biodiesel in early this year. APNI also asked for a delay in the implementation of new fees. The Energy and Mineral Resources Ministry's senior official in charge of mining did not respond immediately to a comment request. Other products, such as refined tin, copper concentrate and copper ore will also see a rise in royalties. The government had previously stated that the new royalty policy aimed to improve industry governance. The government's deficit is growing due to the drop in tax revenues and increased spending on President Prabowo's flagship programs. (Reporting and editing by David Evans; Fransiska nangoy)
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Officials say that three people were killed in an attack by Russia on the south of Ukraine
Local authorities reported that Russian missiles and drones killed three people and injured ten more in Ukraine's southern region on Thursday after an overnight barrage. The regional governor announced on Telegram that two men aged 56 and 60 were killed and five others were injured in an artillery attack on Nikopol. He said that the attack caused a fire, damaged a civilian infrastructure and a store. The mayor of Kherson said that one person died during an airstrike by the Russians on Kherson. A teenager and four adults were also injured. Moscow's forces frequently attack both cities by their positions on the other side of the Dnipro River. The Ukrainian air force claimed that Russia launched five missiles, and 75 drones in an overnight attack. Meanwhile, Russia claimed to have destroyed or intercepted seventy-one Ukrainian drones across six Russian regions. The violence continues despite President Donald Trump’s attempts to arrange a truce in the three-year old war that was sparked by Russia’s total invasion of Ukraine. On Thursday, top Ukrainian officials visited Paris in an unannounced trip. They were there to attend talks between European and U.S. officials on Ukraine.
US oil and gas production program indications of flattening: Kemp
U.S. oil and gas production are finally revealing signs of flattening out as drilling rigs and well completion crews have actually been idled in response to the retreat in prices because the middle of 2022.
Across the country crude and condensates production was running at almost 13.2 million barrels per day (b/d) in March 2024 according to the most recent data from the U.S. Energy Information Administration (EIA).
However, there had actually been no net development because October 2023, indicating the rise in production after completion of the coronavirus pandemic and Russia's invasion of Ukraine had ended.
Production from the Lower 48 states leaving out federal waters in the Gulf of Mexico was up by less than 0.5 million b/d in March compared with the very same month a year earlier.
Growth had slowed from 0.9 million or 1.0 million b/d in the second half of 2023 as the incentive from the previous high rates in 2022 faded.
Chartbook: U.S. oil and gas production
Inflation-adjusted front-month U.S. futures rates pulled back to around $81 per barrel by December 2022 (50th percentile for all months considering that the start of the century) from a high of $124. in June 2022 (83rd percentile).
Production began to stabilise or pull back about 10-12. months later, in line with the historical relationship between. cost and output modifications.
Clear proof that U.S. oil production was turning over was. masked by unusual weather condition in December 2023 and January 2024. misshaping year on year contrasts.
But with the return of more typical weather in March 2024 the. lack of net growth over the last 6 months has become apparent.
OIL STABILISATION?
U.S. futures prices have actually balanced $73-78 per barrel in May. and June 2024, putting them in the 45-50th percentiles in genuine. terms for all months considering that 2000.
At these prices, there is no strong signal to increase or. decline production.
The number of rigs drilling for oil was up to approximately. just 497 in May 2024 from a cyclical peak of 623 in December. 2022.
If futures costs stay around present levels, U.S. production is most likely to remain generally flat for the rest of. 2024 through a minimum of the middle of 2025.
Lower rates and limited growth in U.S. output would produce. area for Saudi Arabia and its OPEC? allies to reverse some of. their own production cuts later this year and into 2025.
U.S. GAS PRODUCTION
The decline in gas costs given that the middle of 2022 has actually been. a lot more serious and has actually brought all development in production to a. stop.
Dry gas production balanced 102.6 billion cubic feet each day. ( bcf/d) in March 2024 compared to 102.9 bcf/d in March 2023.
Dry gas production appears to have actually peaked at the end of 2023. and has considering that been trending gently but steadily lower.
Inflation-adjusted futures prices collapsed to an average of. $ 1.75 per million British thermal units in March 2024, the. least expensive for more than 3 decades, plunging from more than $9. in August 2022.
In repercussion, the variety of rigs drilling for gas had. been up to approximately just 115 in March 2024 from a cyclical. high of 162 in September 2022, according to oilfield services. business Baker Hughes.
The variety of active rigs has because fallen even further to. approximately just 101 in May 2024 as major manufacturers have. scaled back drilling programs in response to ultra-low prices.
Unless there is an unanticipated rebound in prices, production. is likely to remain broadly flat throughout the rest of 2024 and. 2025, helping rebalance the marketplace.
Flat or falling output, integrated with strong gas combustion. by generators this summer season, chillier weather condition next winter, and an. increase in LNG exports, ought to get rid of surplus inventories. before completion of winter season 2024/25.
Related columns:
- U.S. gas surplus will be gotten rid of before end of winter. 2024/25 (May 8, 2024)
- U.S. oil and gas production rebounds after winter. storm( May 1, 2024)
- U.S. oil and gas output was severely struck by winter season storm. ( April 3, 2024)
- Record U.S. oil and gas production keeps prices under. pressure( March 1, 2024)
John Kemp is a market expert. The views revealed. are his own. Follow his commentary on X https://twitter.com/JKempEnergy.
(source: Reuters)