Energy Archives - International Finance

People’s IPO: Dangote Refinery floats Africa’s largest share sale

International Finance Business Desk — Wed, 16 Sep 2026 03:00:59 +0000

Nigerian billionaire Aliko Dangote on Monday launched “Africa’s largest share sale,” taking his oil refinery public in an initial public offering (IPO) that could raise as much as USD 2.1 billion to fund the energy venture’s expansion.

The Dangote Refinery IPO offers the general public a roughly 3% stake in the refinery. Dangote, Africa’s richest man, has described the offering as a “people’s IPO,” saying the move was intended to give ordinary Nigerians an opportunity to participate in the plant’s success.

However, the refinery’s private placement in July required institutional investors to pay a lower valuation than retail investors.

Back then, the placement raised USD 2.5 billion for a 6% stake, valuing the refinery at around USD 40 billion.

If everything goes as per Dangote’s plans, the refinery’s IPO may end up valuing the company closer to USD 49 billion.

ALSO READ | Nigeria’s domestic crude swap proposal could cut refining costs

Stating that the IPO opened with a low investment threshold, CEO David Bird told Reuters that the discount offered to institutional investors reflected conditions attached to the private placement, including a lock-up period.

If fully subscribed, the IPO on Nigeria’s main stock exchange may raise 2.15 trillion naira, or about USD 1.6 billion.

The amount could rise to roughly USD 2.1 billion if the offering gets oversubscribed and the company exercises a greenshoe option to issue additional shares.

Dangote Refinery has designed its IPO to attract retail investors through a relatively low entry threshold. These investors can purchase as few as 10 shares through fintech and other digital investment platforms, requiring a minimum investment of about USD 4.

That compares with the approximately USD 8 minimum investment for retail investors in telecoms company MTN Nigeria’s 2021 share offering, based on the exchange rate at the time.

As per the investment app Bamboo, interest in the Dangote IPO has already been evident among Nigerian retail investors.

The app saw traffic to its platform growing significantly higher than usual immediately after the IPO’s launch.

Institutional investors too have kept their eyes on the IPO’s direction. UAE state oil giant ADNOC had previously expressed interest in investing in the plant, going by Dangote’s statement in the lead-up to the market listing.

The refinery came into the limelight this year by capitalising on the increased demand for its products, especially jet fuel, following Iran war-related supply disruptions.

By June, Dangote Refinery emerged as a major global and regional supplier of jet fuel (Jet A-1), operating at a high capacity of 650,000 to 700,000 barrels per day. It was a massive achievement for the refinery since it began operations in 2024.

The facility currently processes 700,000 barrels of crude oil per day and aims to increase capacity to 1.4 million barrels per day by 2029.

The IPO also forms part of Dangote’s broader plan to bring his business empire to public markets, with the African tycoon having the long-term goal of listing every company in his conglomerate, with operations spanning cement, sugar, and salt.

Dangote Refinery will be eyeing a secondary US listing within three to four years.

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Saudi’s East-West Pipeline shutdown threatens 4% of global oil supply

International Finance Business Desk — Tue, 15 Sep 2026 03:00:02 +0000

A major Saudi oil pipeline outage is threatening to remove up to 4% of global oil supply from international markets, adding fresh pressure to an already strained energy system as disruptions to the Strait of Hormuz and Red Sea shipping routes intensify.

Saudi Arabia has temporarily shut its East-West pipeline following drone attacks on the vital crude conduit, which has become a critical alternative export route amid the war-related disruption in the Strait of Hormuz. The closure threatens to deepen the global oil supply squeeze and push prices higher if repairs take longer than expected.

The 1,200-kilometer pipeline, also known as Petroline, transports crude from Saudi Arabia’s oilfields in the east to the Red Sea port of Yanbu. It has been moving between 4 million and 5 million barrels per day recently, equivalent to roughly 4-5% of global oil supply, according to ship-tracking companies and analysts cited by Reuters.

Alternative route under threat
The pipeline’s importance has grown sharply since tanker traffic through the Strait of Hormuz slowed to a trickle amid the conflict between the US and Iran. By moving crude across the Arabian Peninsula to Yanbu, Saudi Arabia has been able to bypass the congested Gulf shipping route and maintain access to markets west of the Kingdom.

The latest attack threatens that workaround. Saudi Arabia’s Energy Ministry said the pipeline had been stopped as a precaution after the strikes, which caused injuries and material damage. Satellite imagery showed smoke rising from an area along the pipeline south of Medina.

The attacks took place in Saudi Arabia’s Riyadh and Medina regions. Riyadh and Baghdad said the drones originated in Iraq, where Iran-backed militias operate. No group had immediately claimed responsibility, while Iraq launched an investigation and dismissed a military commander linked to operations in Maysan province, near the Iranian border.

Saudi Arabia has so far held back from retaliation at Baghdad’s request, giving the Iraqi government time to investigate and prevent further attacks from its territory. The episode nevertheless highlights the growing vulnerability of the kingdom’s energy infrastructure as the regional conflict widens.

Stocks offer only limited relief.
The immediate concern for oil traders is not simply the volume of crude that the pipeline can carry, but how long Saudi Arabia can sustain exports while the alternative route remains unavailable.

According to Reuters, existing stocks at Yanbu could be depleted within five to seven days if the pipeline remains offline. Egypt’s Ain Sukhna and Sidi Kerir ports provide some relief with additional supplies, but the available volumes remain limited.

The narrow stock cushion means the duration of the outage will be critical. Inventories and alternative logistics can absorb a brief interruption.

A prolonged shutdown, however, would increase the risk of actual supply losses, potentially tightening the market further at a time when buyers are already competing for fewer available barrels.

Saudi oil production has also been under pressure. Reuters reported that output had fallen from 10.9 million barrels per day in February to 6.2 million bpd in August, its lowest level in more than three decades. The International Energy Agency has forecast a global oil supply decline of 5.7 million bpd, or 6%, this year.

The Red Sea adds to energy risk
The pipeline shutdown comes as Iran-aligned Houthi forces in Yemen tighten their grip on Red Sea shipping.

The Houthis have seized Perim, also known as Mayun Island, at the mouth of the Bab el-Mandeb Strait, according to Yemeni government sources cited by Reuters. The strategic waterway connects the Red Sea with the Gulf of Aden and is an important route for oil tankers travelling between the Middle East and Europe.

The development creates a double challenge for Saudi Arabia. Its East-West pipeline had offered a way around Hormuz, but the Red Sea route itself is now becoming more dangerous. MarketWatch reported that oil shipments through Bab el-Mandeb had ceased, while Saudi Arabia was attempting to reroute exports through Egypt’s Sidi Kerir port, a more costly and time-consuming option.

The combination of a blocked or severely disrupted Hormuz route, a threatened Red Sea corridor, and damage to Saudi Arabia’s principal east-west crude pipeline leaves fewer reliable options for moving oil to international customers.

Prices and inflation in focus
Oil markets have already reacted to the worsening supply outlook. Brent crude has risen above $100 a barrel, while diesel prices in the US have reached record levels, according to Reuters and the Financial Times. The disruption is also raising concerns over inflation, particularly as higher transport and energy costs feed into consumer prices.

For the GCC, the crisis presents a difficult balance between protecting critical energy infrastructure and preventing further escalation. Saudi Arabia has asked Washington for military assistance against the Houthis, while the United States faces pressure over the economic impact of rising fuel prices.

The pipeline outage is therefore more than a temporary operational setback. It is a test of Saudi Arabia’s ability to maintain crude exports under sustained geopolitical pressure and a warning to global oil markets that the loss of a single alternative route can have consequences far beyond the Arabian Peninsula.

For traders, refiners, and governments, the next few days will hinge on the speed of repairs, the availability of alternative export routes, and whether attacks on regional energy infrastructure continue. Until those questions are answered, the threat of a supply shock remains firmly in focus.

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IPO-bound Dangote refinery eyes production capacity expansion by 2029

International Finance Business Desk — Wed, 09 Sep 2026 03:00:03 +0000

During a media outreach on Monday (September 8), Nigeria’s Dangote oil ‌refinery announced its plans of spending USD 14.3 billion to double its processing capacity, as it signed documents for its initial public offering (IPO) that is slated to be Africa’s biggest ever.

The production expansion programme, due to be completed by 2029, would increase the refinery’s capacity to 1.4 million barrels per day from 700,000 currently, according to the prospectus for its IPO on Nigeria’s main stock exchange.

The venture aims to raise about 2.15 trillion naira (USD 1.63 billion) through the IPO, primarily targeting retail investors. While the listing-related preparations will run from September 14 to October 13, the shares may start trading in late November, according to an indicative listing timetable.

The Nigerian SEC (Securities and Exchange Commission) has already registered the refinery company’s existing 120.13 billion ordinary shares, implying a valuation of around USD 47 billion.

The refinery, which began operations in 2024, is part of the growing business empire of Aliko Dangote, Africa’s richest man. The conglomerate also includes cement and sugar assets.

Built at a cost of about USD 20 billion on the outskirts of Lagos, the refinery has reshaped Nigeria’s fuel market. The facility came into media headlines during the Iran war by emerging as a viable non-Gulf alternative source for Africa and Europe in terms of importing jet fuel.

During Monday’s event, Aliko Dangote said that while the refinery had profited from the conflicts in the Middle East and Ukraine, his conglomerate eyes making the energy business ‌sustainable ⁠over the long term.

As per the African business tycoon, UAE’s state energy giant ADNOC was interested in investing in the plant alongside others.

Among the other details mentioned in the IPO prospectus, the refinery made an after-tax profit of USD 1.82 billion in the first half of 2026, compared with ⁠a USD 476 million loss for all of 2025.

Dangote refinery will be initially offering 4.1 billion ordinary shares at 525 naira each. However, the business possesses a “greenshoe option” whereby it could sell up to 30% more if demand exceeds that amount.

“The intent is very much the people’s IPO, ⁠drive wide participation, enable Nigerians and the Nigerian diaspora, and Africans more broadly, and the opportunity to participate in this wealth creation that comes from such an iconic industrial asset, like the Dangote refinery,” David Bird, chief executive of ⁠the refinery, told Reuters.

Aliko Dangote, with a net worth estimated at up to USD 35 billion, also plans to build a refinery on Kenya’s coast in partnership with East African governments.

Talking about the IPO-bound refinery, a private placement in July indicated a valuation of USD 40 billion for the infrastructure. However, some investors and analysts described the ratio as being highly relative when compared to other listed stand-alone oil refiners.

For example, Turkey’s Tupras, ⁠which has a Dangote-like refining capacity spread across four sites, has a market value of about USD 12 billion, while New York-listed HF Sinclair, with a capacity of roughly 678,000 bpd, is valued at about USD 16 billion.

Dangote previously declared his intention of transforming the refinery into one of Africa’s largest companies, generating more than USD 12 billion in earnings before interest, tax, depreciation and amortization (EBITDA).

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Iran war rewires Gulf trade, and infrastructure becomes the new oil

International Finance Business Desk — Mon, 07 Sep 2026 02:00:31 +0000

For half a century the Gulf’s business model rested on a single assumption, that oil and gas loaded at Basra, Ras Tanura, Ras Laffan and Jebel Ali would sail out through a 21-mile-wide gap between Oman and Iran without incident.

The Iran war has broken that assumption, and the region is now spending its way out of the consequences.

The Strait of Hormuz was previously a chokepoint for around 20% of global oil flows, and it has been virtually blocked for much of the past six months, prompting a burst of billions of dollars in investment commitments as Gulf energy exporters try to future-proof economies now facing a severe slowdown.

Trade has been redirected to Saudi ports on the Red Sea and to the United Arab Emirates’ eastern ports, but capacity there is smaller.

The scramble is no longer about finding a workaround for one bad quarter. Gulf governments are now looking at ways to build permanent, integrated solutions that get around the strait entirely, according to an industry source who declined to be named because of the sensitivity of the matter.

Ports, ports, ports
The most striking shift is in how Gulf capital is being allocated. For a decade the headline spending went into tourism, sport, giga-projects and artificial intelligence (AI). That order has been rearranged almost overnight.

Ports have become a mission-critical priority for Gulf governments including Saudi Arabia, a second industry source told Reuters, adding that where two years ago sport was the buzz, for the next year or two it will be “ports, ports, ports”.

The numbers behind that shift are grim. AD Ports, which runs terminals in the UAE and internationally, saw UAE container throughput as well as bulk and general cargo volumes fall by around two thirds in the second quarter from a year earlier, describing the period as the most significant challenge in its 20-year history.

Abu Dhabi sovereign wealth fund L’IMAD has said it plans to buy out the rest of AD Ports as it revamps the company’s strategy.

Dubai’s DP World, one of the world’s largest port operators, also reported a first-half decline, and is developing two container terminals in Fujairah as well as inland container depots in the UAE.

Fujairah is the tell. Sitting on the Gulf of Oman, outside the strait, it is the one Emirati port that tankers can reach without entering the Persian Gulf at all.

The UAE is building a new oil pipeline there that will double crude capacity to Fujairah when it becomes operational next year.

Analysts at Kpler estimate the country is targeting 3.6 million barrels per day of bypass capacity by mid-2027, roughly double the current level, through a parallel line alongside the existing Abu Dhabi Crude Oil Pipeline.

Saudi Arabia is running the same play at greater scale. The Kingdom has fast-tracked billion-dollar plans to steer oil away from Hormuz, including a capacity expansion of its crude pipeline to the western Red Sea coast, which could also help neighbours move oil without crossing the strait.

The Abqaiq to Yanbu system, known as Petroline, was designed for five million barrels per day, with Aramco reporting in March 2025 that capacity had been raised to seven million, and as of early 2026 only around two million barrels per day was being used, leaving substantial headroom.

Funding, for now, is not the binding constraint. Costs could run into hundreds of billions of dollars over coming years, and Gulf sovereign wealth funds, among the biggest in the world, are already stepping in to accelerate the push, while some governments may also court external capital as international infrastructure funds circle the region’s assets.

Zin Bekkali, chief executive of UK-based Silk Invest, argues Gulf governments have the capital to fund most of this internally, and that infrastructure is clearly set to benefit.

The bill for six months of war
The spending is happening against a badly deteriorating macro backdrop, which is precisely why it counts as strategy rather than stimulus.

Qatar and Kuwait’s economies are expected to contract by just over 8% this year, according to a Reuters poll, while Saudi Arabia is forecast to grow only 1.4% after 4.5% in 2025. Qatar, among the world’s top LNG exporters before the war, depends entirely on the strait to ship gas and is also dealing with severe production shortfalls after damage to its energy facilities.

Beyond shipping, strikes on production facilities have hit refineries, aluminium plants and data centres, while air traffic remains below pre-war levels, dragging on tourism and business travel.

Landlocked in effect, if not in law, the smaller producers have the worst hand. Kuwait Petroleum Corp is in talks with Saudi Arabia and the UAE about expanding their pipeline systems to carry Kuwaiti oil.

Kuwait was forced to declare force majeure in March, and Bahrain’s Sitra refinery was struck repeatedly. The reputational damage may outlast the physical damage. The war has shaken the standing of Gulf hubs as safe havens, and that is a harder thing to rebuild than a jetty.

Iraq, the dark horse
If there is a winner-in-waiting, it is the country least equipped to look like one. Iraq entered the war with a single functioning export outlet, the southern terminals at Basra, and paid for that concentration immediately.

Output fell from 4.3 million barrels per day to under 1.5 million in May. By July, southern exports were running at about 35.5 million barrels a month, against roughly 105 million before the shipping crisis.

That collapse has done what two decades of feasibility studies could not, which is force Baghdad to build overland. Iraq is working to expand exports through Turkey’s Ceyhan port and aims to begin shipping through Syria’s Baniyas and Jordan’s Aqaba, involving new pipelines.

In August, Iraq and Turkey signed a one-year agreement providing for a minimum of 750,000 barrels per day through the Kirkuk to Ceyhan line while a broader framework covering oil, electricity and water is finalised.

The bigger prize is the Basra to Haditha trunk line. Designed for around 2.5 million barrels per day, it would move southern crude westwards and fan out in three directions, towards Baniyas, Ceyhan and Aqaba, while feeding refineries along its route.

Prime Minister Mohammed Shia al-Sudani approved USD 1.5 billion for the work in 2026, to be carried out with Chinese partners.

Execution risk is real. The old Kirkuk to Baniyas line has been out of service since it was damaged during the 2003 invasion, and Iraq has announced the Aqaba route before without building it.

But the strategic logic has changed. A Basra to Mediterranean corridor would make Iraq the only large producer able to reach European and Asian buyers from both ends of West Asia, and it would give Kuwait and, in time, Gulf gas a second landbridge that does not depend on Saudi goodwill alone.

West Asia becomes the workaround
What began as a Gulf problem is being solved on a West Asian map. Syria’s Mediterranean coast, Jordan’s Red Sea outlet and Turkey’s Ceyhan terminal have all been pulled into the energy security calculations of countries that previously treated them as peripheral. Damascus, in particular, acquires leverage it has not held in a generation.

Rail is following the same logic. Turkey and Saudi Arabia intend to build a line connecting the two countries through Jordan and Syria within three or four years, Turkey’s transport minister said in June, with other Gulf states expected to join.

The honest caveat is that none of this arrives soon. There has been some reopening of the strait, though trade remains limited and there is no clear end in sight to the conflict between Iran and the United States despite a cooling of hostilities.

Pipelines take years, ports take longer, and every alternative route carries its own exposure, whether that is Red Sea shipping risk or Iraqi and Syrian security.

Afaq Hussain, formerly of the Atlantic Council’s Middle East Initiative, put the lesson plainly, saying the crisis showed these vulnerabilities are real and can strike any chokepoint at any time, and that backup routes are worth building even when they look uneconomical at first.

For a region that has spent fifty years optimising for cost, learning to pay for redundancy may be the most expensive lesson of all.

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UK energy price cap to rise 4% as government’s electricity VAT cut faces test

International Finance Business Desk — Thu, 27 Aug 2026 03:00:28 +0000

In what seems to be the first test of the stewardship of the new Prime Minister Andy Burnham, energy regulator Ofgem has announced a 4% hike in its domestic price cap, a move that would see British households end up spending more on energy bills from October.

The regulator has cited the Iran war pushing up wholesale energy costs while justifying the move.

The rise, according to analysts, will undermine Burnham’s pledge to alleviate the United Kingdom’s cost-of-living pressures. The Ofgem announcement is also going to wipe out the benefits of the measures the new British PM announced last month, in which the tax got cut on electricity bills.

“High international gas prices are continuing to drive energy costs in the UK. We ⁠welcome the government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter,” said Neil Kenward, Ofgem’s director general for markets.

ALSO READ | How the Iran war rewired the world’s energy habits in just five months

The increase, a 60-pound rise to 1,723 pounds (USD 2,348) from the previous cap for July to September, will hit around 22 million households on variable tariffs, with the price cap covering around 65% of customers.

Benchmark wholesale British gas prices have more than doubled since the beginning of the Iran war, as the European country, just like its global peers, is feeling the heat from the severely curbed energy trade through the Strait of Hormuz, the transit route for a fifth of the world’s liquefied natural gas (LNG).

Wholesale costs are the biggest single driver ‌of ⁠Ofgem’s quarterly price cap, which limits what suppliers can charge households and also reflects network and policy costs.

Britain’s new Energy Secretary Miatta Fahnbulleh, reacting to the news, said consumers will be concerned about the costs of bills this winter.

“People are under huge amounts of pressure with the cost of living and energy bills. And we are absolutely alongside them. And we are trying to do everything that we can. That is why the prime minister on Day One of the job put that cut to VAT on electricity bills, which will come into effect this October. We will keep looking at what more we can do to protect families from unaffordable bills,” she remarked while speaking on BBC Radio 4’s Today program.

The removal of the VAT on electricity prevented ⁠the cap from rising by an additional 45 pounds until now. In April, the Labour government, under the leadership of the then Prime Minister Keir Starmer, also shifted some levies to cut around 150 pounds from an average bill.

ALSO READ | Iran war: Higher fuel costs weigh on UK carriers’ earnings outlook

With little sign of an end to the Middle East conflict, analysts forecast wholesale ⁠energy costs are likely to remain elevated and the price cap could continue to rise.

Analysts at Cornwall Insight forecast that at current wholesale prices, the cap could rise a further 9% in January 2027 to 1,872 pounds.

“Even if ⁠we saw an end to the conflict, lower stocks going into winter as demand increases mean falling bills in January (are) unlikely,” said Craig Lowrey, principal consultant at Cornwall Insight.

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No foreign listing for now as Dangote Refinery eyes retail-focused IPO

International Finance Business Desk — Mon, 17 Aug 2026 03:00:13 +0000

Dangote Petroleum Refinery’s planned October 2026 IPO, which could become Africa’s largest, has been designed to let Nigerians share in the company’s growth, said the CEO, David Bird, while stating that a foreign listing is at least three years away.

The ‌refinery has submitted an application for a USD 5 billion IPO to Nigeria’s Securities and Exchange Commission, as per the reports. The final size of the listing, however, is not decided yet.

“We really want to drive participation. The mandate of the IPO was to be the people’s IPO,” CEO David Bird told Reuters.

As per Bird, the African energy giant wanted at least three years of ⁠proven production and financial performance before pursuing an overseas listing, which could support a stronger valuation. London has been mentioned as a possible venue.

While Bird didn’t say anything about the IPO’s size or the refinery’s valuation, reports suggest that the company could take into account the USD 2.5 billion raised in a July private placement, which valued the refinery at about USD 40 billion.

ALSO READ | Ahead of IPO, Dangote refinery hits another production milestone

The refinery, owned by Africa’s richest man, Aliko Dangote, has emerged as a major beneficiary of the Iran war-related disruption, selling jet fuel across Africa and into western Europe as buyers sought alternative supplies. As per Bird, the company became Europe’s largest supplier of ‌jet ⁠fuel in June and July.

“Preparations for the IPO were on schedule, and investor interest had been strong during pre-marketing and the July private placement,” he stated further.

Africa Finance Corporation has already led a group of strategic investors in Dangote’s private placement, adding that the deal was 3.7 times subscribed and attracted strong demand ⁠from African and international institutional investors.

Bird said his venture compared favorably with American refining assets because of its access to local crude supplies, strong domestic demand, and integrated operations.

He also confirmed the company’s plans to double its refining capacity to 1.4 million barrels per day within three years, which will be funded partly through the IPO and debt. The expansion would cost substantially less than the roughly USD 20 billion spent on the ⁠original refinery.

“Africa remains structurally short of refined fuels and petrochemicals, creating significant room for growth. The refinery supplies most of Nigeria’s gasoline and diesel demand and all of its jet fuel needs,” Bird remarked.

While the CEO has dismissed claims about Dangote’s immediate foreign listings, reports discussed the Johannesburg Stock Exchange engaging with the group, with the exchange’s spokesperson even mentioning that the company could list ‌its petroleum refinery in South Africa after a Nigerian IPO.

While the JSE said, “They (Dangote) will list in Nigeria first but with strong intent to hopefully bring ⁠the listing to South Africa,” there were even rumors about the group looking for participation from the regional capital markets in Dangote’s October IPO, with Kenya potentially raising USD 500 million.

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Aramco posts 44% profit rise as higher oil prices boost energy sector earnings

International Finance Business Desk — Wed, 05 Aug 2026 00:00:56 +0000

Saudi energy giant Aramco witnessed a 44% increase in its Q2 2026 profits, as it faced windfall from higher crude oil prices, ‌refined products and chemicals while forced to reroute shipments to avoid the war-hit Strait of Hormuz.

The world’s top oil exporter posted net profit of USD 32.69 billion in the three months ended June 30, compared with USD 22.67 billion a year earlier.

Aramco said it maintained a supply reliability rate of 98.4% during the quarter despite continued geopolitical uncertainty in ‌the ⁠wider Gulf region.

The energy major’s adjusted net income during the quarter stood at USD 33.4 billion. For the H1 (first half) of 2026, the total number was USD 67.2 billion.

Cash flow from operating activities stood at USD 25.4 billion and USD 56.2 billion for Q2 and H1, respectively. Free cash flow, on the other hand, was at USD 12.3 billion and USD 30.9 billion at the same timeframes.

ALSO READ | Energy shock bites: Iran war forces IMF to cut global growth outlook

Gearing ratio (company’s debt to its equity), by June 30, 2026, was registered at 6.2%, compared to 4.8% as of March 31, 2026.

While announcing its results, Aramco also informed its investors and key stakeholders about the energy giant’s board declaring a Q2 2026 base dividend of USD 21.9 billion, which will be paid in the third quarter.

“Aramco’s first half performance in 2026 has been defined by the remarkable resilience of our people and the agility of our business and operations to withstand and respond to rapidly changing market conditions. Despite the unprecedented supply disruption through the Strait of Hormuz, we continued to demonstrate our ability to maintain business continuity by capitalizing on our diverse asset base and multi-decade planning, including strategic infrastructure such as the East-West Pipeline, storage capacity, and export terminals. That enabled us to sustain production and exports while advancing key projects, despite the challenging regional environment,” said Amin H. Nasser, President and CEO of Aramco.

“With geopolitical uncertainty and declining global inventories, the importance of both energy security and energy addition has never been clearer. Our role in swiftly responding to short-term market dynamics, coupled with our ability to ramp up production and focus on strategic investment and technology deployment, reinforce our continued position in the global economy,” Nasser remarked.

“We have entered the second half of the year with solid financial and operating momentum with one of the strongest balance sheets in the sector, sustainable and progressive base dividend distributions, and a clear focus on our strategic growth objectives. Even through periods of uncertainty, Aramco has stayed anchored to its long-term priorities. Our disciplined execution, combined with our lower-cost and higher-reliability operations, has supported our profitability,” he added further.

While Aramco, amid the ongoing regional disruptions due to the Iran war, has continued the utilisation of the strategically important East-West Pipeline to secure flows across the network, it also kept the Zuluf crude oil increment and Fadhili Gas Plant expansion on track for completion in 2026 and 2027, respectively.

Phase one of the Jafurah Gas Plant maintained steady production of sales gas and condensate, and phase two continued with procurement and construction activities, with an expected completion in 2027.

ALSO READ | Saudi economy stays resilient amid Iran war, retains top Fitch ratings

Exports through the East-West Pipeline to the Red Sea port of Yanbu, which Nasser previously called a critical lifeline for the Middle East’s energy trade, have now ⁠also come under threat. In July, Iran-backed Houthi rebels announced a blockade of the Kingdom’s oil industry in the Red ⁠Sea, extending the disruption to a second major waterway.

Still, Aramco has reportedly offered additional crude cargoes for loading from Egypt’s Mediterranean port of Sidi Kerir, according to five trading sources cited by Reuters.

The cargoes, first shipped to Egypt’s Red Sea port of Ain Sukhna and then carried by the Suez-Mediterranean Pipeline to Sidi Kerir, by the last week of July, were being offered on a spot basis, supplementing supplies to Aramco’s term buyers.

Aramco already supplies its European and North American customers ⁠from Sidi Kerir. The additional volumes suggest the company is seeking greater flexibility in reaching its markets after Houthis vowed to attack the Kingdom’s crude exports travelling through the Bab el-Mandeb strait at the southern end of the Red Sea.

The Houthis have already attacked two Saudi ‌oil ⁠tankers in the Red Sea, with Saudi state media confirming one of the vessels received fire damages. The rising security threat has already forced oil tankers to change course in the Red Sea to head towards the Suez Canal at the north exit.

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TotalEnergies posts strongest quarter in nearly three years, plans Arctic LNG 2 exit

International Finance Business Desk — Sun, 26 Jul 2026 02:00:29 +0000

French oil major TotalEnergies posted a 67% second-quarter earnings rise, its best quarter in nearly three years, as higher oil prices (due to the Iran war) and strong profit margins for refining fuels resulting ‌from supply disruptions provided strong tailwainds for the business.

TotalEnergies also sees its production growing significantly in the third quarter, although exports will still be dependent on freedom of passage through the Strait of Hormuz.

“Hormuz is a battleground, and the risks of crossing are extremely high … We are beginning to consider this could become the new normal, with the strait opening on and off,” CEO Patrick Pouyanne told analysts on a results call.

TotalEnergies’ adjusted net income was USD 6 billion, in line with expectations, according to a consensus of analysts polled by LSEG.

However, weaker LNG earnings proved to be a big drag on the earnings. ⁠Still, the latest figures stood way above USD 3.6 billion, seen in the second quarter of 2025, and USD 5.4 billion, registered in the first quarter of 2026.

The company has also maintained its USD 1.5 billion share buyback scheme for the third quarter, with its stock rising 37% so far this year.

The Iran-Iraq war has disrupted traffic through the Strait of Hormuz, still cutting supplies, which is in turn causing massive price volatilities in the crude and gas segments. While the phenomenon has left a damaging imprint on the global economy, oil majors such as Norway’s Equinor have registered massive profit windfalls in this environment.

TotalEnergies’ exploration and production earnings reached USD 3.2 billion, a 64% rise from the same period a year ago and 25% higher than the first quarter of 2026, with Middle East operations slowly stabilising.

As per Pouyanne, both upstream and downstream segments benefitted from the war, which is unusual, as a higher upstream oil price means smaller margins on refining fuels. TotalEnergies’ refineries, mostly in Europe, have maximised diesel and jet ‌fuel production, ⁠which are earning the best premiums given low inventories across the continent.

“Income from refining and chemicals, which includes TotalEnergies’ oil trading division, rose 362% to USD 1.8 billion, helped by stronger fuel margins and robust oil trading — eclipsing last quarter’s standout USD 1.5 billion contribution,” Pouyanne noted, while stating that the French energy giant’s SATORP refinery in Saudi Arabia should return to full capacity by the end of the Q3 2026 after sustaining damage from Iran war-related attacks.

Talking about the LNG division, it earned USD 807 million, a 22% drop, due to trading ⁠underperformance amid flat demand in Europe. The electricity division was down 7% at USD 533 million, but cash flow excluding working capital was up 28% due to TotalEnergies nearly doubling its portfolio of gas-fired power plants in the continent after closing a deal with EPH in April.

TotalEnergies will soon finalise its exit ⁠from its 10% stake in the sanctioned Arctic LNG 2 plant in Russia. The transfer of the venture’s 10% stake to Nordline, a subsidiary of the plant’s majority owner Novatek, has been approved by Russian authorities and will be completed ⁠in the short term.

Following Western sanctions on Russia in the wake of Moscow’s invasion of Ukraine, Total maintained ownership in key Russian plants exporting LNG but had been considering selling the stakes as the European Union (EU) kerbs are targeting companies from importing that gas or selling it in other jurisdictions.

“Soon after Arctic LNG 2 became subject to US sanctions in November 2023, ‌Novatek ⁠approached us about a potential transfer,” Pouyanne said.

In 2022, the year which saw both the beginning of the Ukraine war and the West’s targeted economic response against Russia, Total took a USD 4.1 billion impairment on the project. In 2023, it declared force majeure. Total, however, is still earning about USD 400 million annually from selling cargoes from Russia’s Yamal LNG plant.

In Namibia, Total is expecting a final investment decision (FID) on the 150,000-barrels-per-day Venus development in the coming weeks. In Suriname, production on the Gran Morgu development will begin in 2028. In Cyprus, the Cronos gas field development will receive FID by the end of July 2026.

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Energy shock bites: Iran war forces IMF to cut global growth outlook

International Finance Business Desk — Mon, 13 Jul 2026 02:00:15 +0000

The global energy shock, caused by the Iran war, has found its mention in the International Monetary Fund’s latest growth forecast, with the global monetary body cutting its 2026 growth forecast for the second time this year.

The global economy is now expected to grow 3% in 2026, down from an April forecast of 3.1%, a modest slowdown partly offset by artificial intelligence (AI)-driven demand. Growth is projected to rebound to 3.4% in 2027, still below the 3.5% average recorded across 2024 and 2025. Global headline inflation is expected to reach 4.7% this year, up from 4.1% in 2025, before easing to 3.9% in 2027.

“The global outlook is being shaped by two powerful forces pulling in opposite directions: the lingering effects of the energy shock from the war in the Middle East and a technology-driven investment boom,” said Petya Koeva Brooks, deputy director of the IMF’s research department.

The downgrade came after the United States renewed strikes on Iran following attacks on three commercial ships in the Strait of Hormuz, days before a second round of American bombing raids on Iranian targets.

President Donald Trump said he believed the ceasefire between Washington and Tehran was over, a remark that sent Brent crude up as much as 7%, briefly topping USD 79 a barrel. The IMF’s forecast assumes shipping through the Strait of Hormuz begins normalising in mid-July, with prewar conditions restored by March 2027.

Energy prices are now running about 25% above pre-war levels, with the fund pencilling in an average of USD 89 a barrel for 2026.

Deniz Igan, chief of the IMF’s World Economic Studies division, said the global economy had proven more resilient than expected in April, helped by the release of strategic oil reserves and improved energy efficiency, though she cautioned that a collapse of the ceasefire could catch the world economy in a weaker position than before.

The outlook varies sharply by region. The United States is forecast to grow 2.3%, the fastest among major advanced economies, supported by fiscal policy and continued technology-related investment.

The eurozone forecast was trimmed to 0.9%, Japan to 0.6% and Canada to 1.1%, while Brazil’s outlook was raised to 2.4%. China is expected to grow 4.6%, up from April’s 4.4% estimate, and India was downgraded slightly to 6.4%.

Countries at the centre of the AI hardware supply chain fared best. Taiwan, South Korea, Thailand and Malaysia all posted stronger-than-expected results, with South Korea’s annualised first-quarter growth reaching 7.5%, nearly four times the fund’s earlier estimate, despite its heavy reliance on Middle Eastern energy imports.

The Middle East and Central Asia region bore the brunt of the downgrade, with growth cut to 0.7% for 2026 before an expected rebound to 6.5% in 2027. Saudi Arabia’s forecast was reduced by 1.4 percentage points to 1.7%.

The IMF’s update follows a starker warning from the World Bank, which cut its own 2026 global growth forecast to 2.5%, describing the slowdown as the worst hit to the global economy since the Covid-19 pandemic.

The fund urged policymakers to keep monetary policy focused on restoring price stability and to avoid broad-based subsidies or price controls that could distort markets.

Talking about the Iran war, the recent escalation of hostilities between the Washington and Tehran could upend the International Energy Agency’s forecast of a significant oil market surplus in 2027, it said on ‌Friday. While global supply jumped in June with the reopening of the strategically important Strait of Hormuz, supply levels haven’t been able to reach the pre-war levels.

The effective closure of the maritime chokehold had taken out ⁠as much as 14 million barrels per day of crude flows during the peak of the largest oil supply crisis in history.

As per the, IEA ‘s data, global oil supply rose by 4.1 million bpd in June, but remained 9.4 million bpd below pre-war levels. While the energy watchdog sees supply expanding by 7.5 million bpd in 2027 after a 3.7 million bpd contraction in 2026, realisation of the estimates will still be dependent upon the improvement in Hormuz transits.

“An escalation in hostilities on 7-8 July, however, ‌clouds ⁠the outlook and could upend the forecast that sees the market flipping to a surplus next year,” IEA said, adding that a lasting peace agreement is a “must” for oil markets to normalise.

The IEA’s 2027 forecasts imply that supply will outweigh demand by ⁠4.62 million bpd in 2027 from 2026’s deficit of 860,000 bpd, provided producers can restart fields and refiners can resume normal product shipments.

The Paris-based agency also sees global oil demand falling by 1 million bpd this year, before rebounding to rise two million bpd in 2027. In the nearer term, ⁠it sees the peak summer fuel demand season lifting consumption by around eight million bpd when compared with May’s low point at the peak of the Hormuz crisis.

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TIME and Statista name world’s most sustainable companies for 2026

International Finance Business Desk — Thu, 09 Jul 2026 01:00:30 +0000

Every year, more companies talk about going green. But which ones are actually walking the talk? That is the question TIME and the data firm Statista set out to answer with their World’s Most Sustainable Companies list for 2026, now in its third edition. The list was announced on 23 June 2026.

The scale of the exercise is worth noting. More than 5,800 companies across 43 countries and 20 industries were assessed, with 750 selected worldwide. The selection began with a shortlist of over 5,000 of the world’s largest and most influential firms, chosen for their revenue, market capitalisation and public prominence, before a four step process narrowed the field. Companies tied to fossil fuels, deforestation or major environmental scandals were automatically ruled out at the first stage, before the rest were scored against more than 20 sustainability indicators.

Topping the list this year is Schneider Electric, the French energy management giant. This is no one-off. The company has held the number one spot for three years running, in 2024, 2025 and now 2026, a run that analysts put down to the growing demand for decarbonisation technology.

How companies reacted
For firms that made the cut, the recognition has become something to shout about. Japan’s Ricoh, which has now appeared on the list for three consecutive years, had its sustainability chief call it a reflection of the firm’s push to embed transparency and accountability into daily operations.

Canada’s CAE described the listing as a considerable honour tied to its climate transition work, while Michigan based BorgWarner’s chief executive linked the recognition directly to long term growth, arguing that sustainability and business strength go hand in hand. Finland’s Elisa, ranked just behind fellow Finnish firm Nokia, called its own three year streak on the list proof of steady, long term work rather than a quick fix.

The broader picture
The context behind this year’s list is more complicated than the celebratory press releases suggest. Sustainability chiefs have had a difficult year, with many companies shifting focus towards cost savings, the US government withdrawing renewable energy tax credits and rolling back environmental rules, and an energy crisis stemming from the war in Iran threatening to push up prices across the board. Despite this, experts argue that most companies are staying the course. Maria Mendiluce, head of the We Mean Business Coalition, says pragmatism is taking hold among both companies and regulators, with Europe and Asia continuing to back green policy even as the politics get noisier.

One driver of this staying power is regulation. The European Union’s Carbon Border Adjustment Mechanism, a tariff on carbon heavy imports that took effect at the start of 2026, has pushed more companies to pay closer attention to disclosure data so they can gauge how the tax will hit their bottom line. Similarly, the EU’s 2025 rule requiring a minimum share of sustainable aviation fuel at European airports has made operators like ninth placed Aena more active in encouraging its uptake.

Oxford researcher Kaya Axelsson sums up where this is heading. She argues that the next phase of corporate climate action will be less about setting individual targets and more about changing the systems companies operate within, even as economics make the case for a green transition clearer than the politics.

For everyday readers, the takeaway is simple. Sustainability is no longer a side project chasing good headlines. It is increasingly being tracked, measured and, as this list shows, rewarded.

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