Airlines must consolidate fast or die : Swiss Int'l chief

business-times.asia1.com.sg :

The head of Swiss carrier Swiss International Air Lines, which is being bought by Germany's Lufthansa, warned other airlines to act fast on consolidation or they may not survive. Christoph Franz told reporters on the sidelines of the World Economic Forum in Davos, Switzerland, that he expected more consolidation in the sector.

The sector has come under significant pressure to cut costs due to the slump in air traffic immediately after the September 11, 2001 terrorist attacks in the United States, the rise of budget airlines and the soaring price of oil. Mr Franz said that with surcharges on tickets, airlines had already passed on some of the rise in fuel prices to customers, but if oil spiked to US$100 per barrel, as feared, some airlines would not survive.

(2006-02-01 23:59:47 SGT) [Biz] Permalink

Gulf Arab states to invest surplus oil money in China and India

business-times.asia1.com.sg :

Arab Gulf monarchies Kuwait, Abu Dhabi in the United Arab Emirates and Qatar plan to channel more of their revenue from oil sales into Asian countries such as China to boost returns and strengthen ties with their fastest-growing customers. Officials from the three monarchies, which sold about US$300 billion worth of oil last year, said in interviews at the World Economic Forum's annual meeting in Davos, Switzerland they intend to tap economic expansion in India and China.

The focus of the five-day forum on China and India prompted concern the United States and Europe will lose investment. Saudi Arabian monarch last week made the first trip to China and India. 'We are in China, where we are considering expansion, and we are trying to invest in India,' Abdullah Jum'ah, president of state-owned Saudi Aramco, said in Davos.

Meanwhile, the developed world is still luring plenty of cash from the Persian Gulf. Dubai plans to set up a fund worth as much US$15 billion with other Arab Gulf states and institutions to invest in the world's biggest companies. DP World, Dubai's port company, last week agreed to pay 3.9 billion (S$11.2 billion) for the UK's Peninsular & Oriental Steam Navigation Co, trumping a bid by PSA International of Singapore.

(2006-02-01 23:54:29 SGT) [Biz] Permalink

Exxon Mobil posts record profit of $10.7 billion

peakoil.com -> msnbc.msn.com :

Exxon Mobil Corp. posted record profits for any U.S. company on Monday - $10.71 billion for the fourth quarter and $36.13 billion for the year - as the world's biggest publicly traded oil company benefited from high oil and natural-gas prices and solid demand for refined products. The result topped the then-record quarterly profit of $9.92 billion Exxon posted in the third quarter of 2005. Exxon's profit for the year was also the largest annual reported net income in U.S. history, according to Howard Silverblatt, a senior index analyst for Standard & Poor's. He said the previous high was Exxon's $25.3 billion profit in 2004.

Exxon's results lifted the combined 2005 profits for the country's three largest integrated oil companies to more than $63 billion. ConocoPhillips said that its fourth-quarter earnings rose 51 percent to $3.68 billion, while annual income climbed 66% to $13.53 billion. Chevron Corp. said its fourth-quarter earnings rose 20 percent to $4.14 billion, while annual income jumped 6% to $14.1 billion. The oil industry's stellar results renewed talk among some politicians for a windfall profit tax that would push companies to invest more in new production and refining capacity.

(2006-02-01 23:37:46 SGT) [Energy] Permalink

Malaysia wants to be world's biggest biodiesel producer

peakoil.com -> au.biz.yahoo.com :

Malaysia, already a major producer of palm oil, now aims to be the world's biggest producer of biodiesel, says Deputy Prime Minister Najib Razak. Najib said it would be a mistake if Malaysia, as a major palm oil producer, did not tap the huge potential in the biodiesel market particularly in meeting the demand in Europe and the United States. "We're sure the demand for biodiesel will increase significantly worldwide because the price of petroleum fuel will continue to rise whilst its production is limited," he said.

Najib said biodiesel demand would also increase due to the European countries' commitment towards the Kyoto Protocol that calls for the reduction of air pollution. "They're very sensitive over the environment and don't want to use fuel that can contribute to pollution. Biodiesel is the alternative and we're aware of the huge potential," he said, adding that biodiesel production in Europe could only meet one sixth of the demand.

Najib also thanked Australian and Italian investors who contributed 30% equity for the setting up of the biodiesel plant that was said to be the first commercial biodiesel plant in Southeast Asia.

(2006-02-01 23:25:31 SGT) [Energy] Permalink

Brazil is the next economic (and political) superpower

Times are changing in Brazil and it is no longer inconceivable that Brazil will emerge in the next few decades alongside India and China as one of the world's economic superpowers. Brazil under Lula has recently repaid its debts to the International Monetary Fund and the Paris Club well ahead of schedule. It is running a fast growing surplus on its trade account, its exports are booming, growing at a faster rate than China's. Its economy is growing steadily at around 3 to 3.5 percent. This is happening in a country that is the world's fifth largest both in population and size. Moreover, Brazil is home to the world's largest tropical forest and Brazil has the world's largest reservoirs of freshwater and ample hydro electric power. It is self-sufficient in oil and gas.

Brazil has a head start on India and China. It has been developing in its sometime madcap way for over 100 years. Between 1960 and 1980 Brazil doubled its per capita income. Its income per head is almost $8000 (in purchasing power parity). This compares with China's $4,500 and India's $3000. At the very least Brazil will outgrow Canada, pace Russia and leave Mexico way behind.

Brazil has a good chance of emerging as the world's first economic superpower without nuclear weapons. It hasn't been to war for 135 years. It is the most tolerant of countries, one that never had Jim Crow laws and which abolished capital punishment in 1885. If Brazil succeeds it can only make the world a better place.

(2006-02-01 23:03:58 SGT) [Biz] Permalink

Material costs put heat on business

peakoil.com -> mlive.com :

Manufacturers and service providers alike are caught in a vise grip between higher commodity prices and customers who "just say no" to paying more. The costs of fueling a truck, heating a plant and lighting an office are expected to remain high, bringing new challenges and expenses for businesses in virtually every sector.

The U.S. Department of Energy is forecasting higher demand will contribute to tightened supplies and raise prices for oil and gas. Rising natural gas prices could force more manufacturers to move production to countries where energy is cheaper and more widely available. Likewise, rates for electricity also are expected to climb as demand increases and the prices of fuel for plants, including coal and natural gas, also rise.

Manufacturers are squeezed between rising material prices and customers stiff-arming them on any price increases. This is the year that companies will have to make hard choices. The pressure has grown so intense that some suppliers are getting tough with penny-pinching customers. Lear Corp has sued DaimlerChrysler to get paid more for its auto-interior parts. Lear threatened to stop shipments when the automaker refused to pay more for Lear's trim, products hit by both high steel and resin prices. The lawsuit was settled out of court.

Grand Rapids Chair Co. also has seen prices rise across the board - for wood, steel and plastics, said Tom Southwell, a partner and vice president of sales. "Commodities seem to be changing so rapidly that we have price books printed, our costs change, and it comes right out of the bottom line," he said.

(2006-02-01 14:39:24 SGT) [Biz] Permalink

Main | Next page of day (Jan 31, 2006) »

Most popular blog postings on lowem.log :

1. Singapore MRT rail network length to double by 2020
2. 2010 Nissan Leaf electric car specifications : 107hp, 24KWh lithium-ion batteries, 100-mile range
3. Live spot gold price quotes chart on COMEX
4. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
5. AVG Anti-Virus Free Edition 2011 direct download link
6. Real-time live gold and silver price quotes chart on COMEX
7. Singapore electric vehicles : Government agencies EMA and LTA to study EV introduction
8. Book review : Shut Down by William Flynn

Featured articles on lowem.log :

1. Book review : Shut Down by William Flynn
2. Singapore electric cars testing starts with 9 electric vehicles
3. Honda, GS Yuasa JV to make lithium-ion batteries for 2010/2011 Honda Civic Hybrid
4. 2010 Honda Civic Hybrid preliminary specifications released
5. 2010 Honda CR-Z hybrid, 2010 Honda Fit/Jazz hybrid models confirmed
6. 2010 Toyota Prius specifications released : 50 mpg, 1.8L, 134hp, Ni-MH, solar roof option
7. NYMEX crude oil recovers from $32.40 low after 2.2 mbpd OPEC production cut announced
8. Singapore : Nuclear power not ruled out