Rolls-Royce problem in Trent engines used for Boeing jets spreads

Rolls-Royce problem in Trent engines used for Boeing jets spreads
Rolls-Royce has been hit by a problem with a compressor in the Trent 1000 package C engine, similar to one above, that is not lasting as long as expected, grounding planes, forcing inspections and angering airline clients. (Reuters)
Updated 13 June 2018

Rolls-Royce problem in Trent engines used for Boeing jets spreads

Rolls-Royce problem in Trent engines used for Boeing jets spreads

LONDON: Britain’s Rolls-Royce said a costly compressor problem that had grounded Boeing planes had now been found in a different type of engine, compounding pressures on a group that is due to cut more than 4,000 jobs this week.
Britain’s best-known engineering company has been hit by a problem with a compressor in the Trent 1000 package C engine that is not lasting as long as expected, grounding planes, forcing inspections and angering airline clients.
The engine powers Boeing’s 787 Dreamliner jet.
On Monday it said it had now found the same issue on a “small number of high life Package B engines,” requiring a one-off inspection of the B fleet and sending its shares down 1 percent.
The news, which will not affect Rolls’ full-year free cash flow target, comes as the group embarks on the latest stage of a major restructuring program under Chief Executive Warren East that is designed to boost profitability.
On Friday the group will host a capital markets day where, according to a person familiar with the situation, it will announce more than 4,000 job cuts, mostly in Britain and affecting support and management roles.
The group, which employs 50,000 people in 50 countries, is also expected to set out how it will make a return on the investment made in recent years and the expected drivers of cash flow beyond its medium-term horizon.
The news about the compressor issue will not help however as Rolls has been fighting to show it has a lid on a problem which has forced airline customers to lease alternative planes to fly in the busy summer holiday period.
The existing package C issue had led to about 30 of the affected aircraft being grounded at any one time for checks. They were flown by airlines including British Airways, Virgin Atlantic and Air New Zealand.
Air New Zealand said earlier this month it would lease two Boeing 777s to cover for 787-9s that are affected by the Rolls engine issue.
Airlines that use the package C engine tend to also take the package B engine. According to Rolls some 380 package C engines are in service while there are 166 package B engines in service.
Rolls said that while this new problem would incur some additional cost, it did not expect it to affect its free cash flow guidance for 2018.
Analysts welcomed the fact the group did not revise the target and noted the comment that the package B issue only affected a “small number” of engines.


Exxon Mobil ordered to pay $14.25m penalty in pollution case

Exxon Mobil ordered to pay $14.25m penalty in pollution case
Updated 36 min 26 sec ago

Exxon Mobil ordered to pay $14.25m penalty in pollution case

Exxon Mobil ordered to pay $14.25m penalty in pollution case
HOUSTON (AP) — A federal judge ordered Exxon Mobil to pay a $14.25 million civil penalty Tuesday in an 11-year-old lawsuit alleging it violated the Clean Air Act for eight years at its flagship Baytown, Texas, refinery.
In setting the penalty, which would go to the U.S. Treasury, U.S. District Judge David Hittner of Houston reduced a previous award he handed down in 2017 of almost $20 million. The 5th U.S. Circuit Court of Appeals overturned that ruling on Exxon's appeal last July and remanded the case to Hittner.
In a statement, Exxon Mobil spokesman Todd Spitler said the company is “currently reviewing the decision and considering next steps.” Luke Metzger, executive director of Environment Texas, the nonprofit advocacy group that filed the suit in 2010, said he expected further appeals.
The group Environment Texas sued the Irving, Texas-based company in 2010. After a trial of almost three weeks in 2014, Hittner ruled against the company and ordered the larger penalty two years later. The appeals court remanded the case to Hittner last July.
“Exxon has been fighting this case for 11 years now, refusing to take any responsibility for spewing millions of pounds of illegal pollution into Texas communities,” Metzger said in a statement. “We call on Exxon to finally stop its scorched-earth litigation tactics, pay its penalty and drop these endless appeals.”
In his latest opinion, filed Tuesday, Hittner said Environment Texas, the Sierra Club and the National Environmental Law Center had proved thousands of instances of illegal flaring and unauthorized releases of pollutants causing smoke, chemical odors, ground-level ozone, and respiratory problems.

US oil industry lobby weighs support of carbon pricing

US oil industry lobby weighs support of carbon pricing
Updated 44 min 34 sec ago

US oil industry lobby weighs support of carbon pricing

US oil industry lobby weighs support of carbon pricing
  • The API is considering carbon pricing “among other policy solutions to reduce emissions and reach the ambitions of the Paris Agreement”

WASHINGTON: The American Petroleum Institute (API) is weighing endorsing a price on carbon emissions, a major shift after long resisting mandatory government climate policies, a source familiar with the decision making said.
The API, the main US oil industry lobby group that includes most of the world’s biggest oil companies, is considering carbon pricing “among other policy solutions to reduce emissions and reach the ambitions of the Paris Agreement,” the source said, confirming a report about the policy shift by the Wall Street Journal.
The group is confronting its previous resistance to regulatory action on climate change amid a shift in industry strategy on the issue and the new US presidency.
European member Total quit the group because of disagreements over API’s climate policies and support for easing drilling regulations and the Biden administration is pursuing a policy agenda that would shift the United States from fossil fuels.
A draft statement of the policy shift reviewed by the Wall Street Journal said the group does not endorse a specific carbon pricing tool such as a tax on carbon emissions or emissions trading scheme. The source said, however, that the group’s State of American Energy report released in January was supportive of a market-based carbon pricing policy.
The API did not comment on whether or when the group would formally endorse a price on carbon but said it has been working for nearly a year on an industry-wide response to climate change.
“Our efforts are focused on supporting a new US contribution to the global Paris agreement,” said API spokeswoman Megan Bloomgren.
Within API, there has been a widening rift between Europe’s top energy companies https://www.reuters.com/article/us-total-api/frances-total-quits-top-u-s-oil-lobby-in-climate-split-idUSKBN29K1LM, which over the past year accelerated plans to cut emissions and build large renewable energy businesses, and their US rivals Exxon Mobil Corp. and Chevron Corp. that have resisted growing investor pressure to diversify.
Other major industry groups like the USChamber of Commerce and the Business Roundtable, which includes Chevron, over the last year have endorsed market-based carbon pricing.
Chevron said it has engaged those groups and API “to support well-designed carbon pricing.”
“We support economy-wide carbon pricing as the primary policy tool to address climate change, applied across the broadest possible area to maximize environmental and economic efficiency and effectiveness,” Chevron spokesman Sean Comey said in an emailed statement.
BP and Shell declined to comment.


Dubai’s Emaar to buy out minority shareholders in malls unit

Dubai’s Emaar to buy out minority shareholders in malls unit
Updated 03 March 2021

Dubai’s Emaar to buy out minority shareholders in malls unit

Dubai’s Emaar to buy out minority shareholders in malls unit
  • Emaar Properties, which already owns close to 85 percent of Emaar Malls, will swap 0.51 of its own shares with shareholders of Emaar Malls

DUBAI: Dubai developer Emaar Properties on Tuesday said it was buying out minority shareholders of its shopping centre unit, less than a decade after floating shares in the company.

The all-share deal comes as both businesses have seen profits plunge over the past year due to the coronavirus pandemic as fewer overseas visitors travel to Dubai.

Emaar Properties, which already owns close to 85 percent of Emaar Malls, will swap 0.51 of its own shares with shareholders of Emaar Malls, the two companies said.

That values Emaar Malls, which operates Dubai’s largest shopping centre, Dubai Mall, at 24 billion dirhams ($6.53 billion), according to Reuters calculations.

Each Emaar Malls share is valued at 1.85 dirhams in the deal, a 10 percent premium based on its last closing price, Reuters calculated.

Emaar Malls, as a wholly owned subsidiary of Emaar Properties, will continue to develop and operate shopping centres and retail assets, the companies said.

Emaar Properties, roughly 30 percent owned by state fund Investment Corp Dubai, will remain listed on the Dubai stock market.

Emaar Properties last month reported a 58 percent fall in 2020 net profit to 2.62 billion dirhams, while Emaar Malls’ yearly net profit dropped 70 percent to 704 million dirhams.

Emaar Properties raised about $1.6 billion listing Emaar Malls in 2014.


Changes in KSA so far just tip of the iceberg, Saudi PIF chief tells the ‘oil man’s Davos’

Changes in KSA so far just tip of the iceberg, Saudi PIF chief tells the ‘oil man’s Davos’
Updated 03 March 2021

Changes in KSA so far just tip of the iceberg, Saudi PIF chief tells the ‘oil man’s Davos’

Changes in KSA so far just tip of the iceberg, Saudi PIF chief tells the ‘oil man’s Davos’

DUBAI: Changes in Saudi Arabia in the past five years are just the “tip of the iceberg” of the transformation the Kingdom will experience under the Vision 2030 strategy and beyond, Yasir Al-Rumayyan, governor of the Public Investment Fund, said on Tuesday.
“The things we’d like to achieve in 2030 will be our optimal way of starting the next phase, which is what we will do until 2040, or after that to 2050,” Al-Rumayyan told a virtual session of CERAWeek — the “oil man’s Davos” — in Houston, Texas.
“Our society is changing, the people are becoming more receptive to new ideas on how companies should work and how society should function, and even the social contract is changing. If you add all of these together, you will have an idea of what Saudi Arabia, by embracing and implementing Vision 2030, will look like in nine years,” he said.
Al-Rumayyan, who is also chairman of Saudi Aramco, said plans remained in place to sell more shares in the world’s biggest oil company, after the biggest initial public offering (IPO) in history in 2019 when it sold less than 2 percent of its shares.
“From the very beginning we said we would be selling more of the shares owned by the government; once we see market conditions improving, and more appetite from different investment institutions and investors, we will definitely consider selling more shares,” he said.
He also underlined the Kingdom’s ambitions in renewable energy and hydrogen fuels. “Aramco is interested in renewables, believe it or not. It is the largest oil and gas company on the planet, but we are thinking of ourselves as an energy and petrochemical company.”
He told Daniel Yergin, the Pulitzer prize-winning oil historian, that PIF would invest $40 billion a year in Saudi Arabia to “stimulate the economy and
create jobs.”
 


Saudi forum to showcase key projects

Saudi forum to showcase key projects
Updated 03 March 2021

Saudi forum to showcase key projects

Saudi forum to showcase key projects
  • The Future Projects Forum aims to showcase future projects in the Middle East

Saudi Contractors Authority (SCA) will hold the Future Projects Forum (FPF) virtually during March 22-24.

The FPF will include the participation of more than 37 government and private  entities to present around 1,000 projects with an estimated total value exceeding SR600 billion ($16 billion).

The Future Projects Forum aims to showcase future projects in the Middle East. It also aims to create opportunities for contractors and investors via identifying details of future projects in the contracting sector and knowing the mechanism of qualification and competition.

The forum seeks to develop a wide network of relationships between contractors, investors and interested parties, in addition to creating partnerships between them.

 The number of delivered residential real estate projects increased from SR12.4 billion ($3.3 billion) in 2019 to SR13.9 billion in 2020.