Cyprus Offshore – Island Crisis http://islandcrisis.net/ Tue, 20 Sep 2022 11:23:43 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://islandcrisis.net/wp-content/uploads/2021/04/default1-150x150.png Cyprus Offshore – Island Crisis http://islandcrisis.net/ 32 32 Chevron launches Plan Aphrodite, as ministers talk maritime borders https://islandcrisis.net/chevron-launches-plan-aphrodite-as-ministers-talk-maritime-borders/ Tue, 20 Sep 2022 11:23:43 +0000 https://islandcrisis.net/chevron-launches-plan-aphrodite-as-ministers-talk-maritime-borders/ Chevron and its partners are committed to developing the Aphrodite field, offshore Cyprus, with drilling expected to begin in the first half of 2023, while political talks continue. NewMed Energy, which has a 30% stake in the block, said the partners had approved a budget of $130 million to drill the A-3 well. They will […]]]>

Chevron and its partners are committed to developing the Aphrodite field, offshore Cyprus, with drilling expected to begin in the first half of 2023, while political talks continue.

NewMed Energy, which has a 30% stake in the block, said the partners had approved a budget of $130 million to drill the A-3 well. They will also provide an additional $62 million for an advance engineering and design study (pre-FEED).

Chevron and Shell each hold a 35% stake in Block 12, home of Aphrodite.

They have contracted the Stena Forth to drill the A-3 well, which will start in the first half of next year.

The well will provide more information about the reservoir, which the partners say currently contains 124 billion cubic meters of gas. Drilling will focus on Oligo-Miocene sand layers. The well will also act as a producer during the development of the reservoir.

Border talks

Israeli Energy Minister Karine Elharrar traveled to Cyprus on September 19 to meet with her counterpart Natasa Pileidou. The two discussed the fields of Aphrodite and Ishai.

Israel claimed that Aphrodite’s tanks crossed the sea border, all the way to Ishai.

© Provided by the Cyprus Ministry of E
The picture shows ; Israeli Energy Minister Karine Elharrar traveled to Cyprus on September 19 to meet with her counterpart Natasa Pileidou. Cyprus. Provided by the Cyprus Ministry of Energy, Trade and Industry Date; 09/19/2022

A statement from Cyprus said the two were working to achieve a “just and speedy resolution” of the dispute. They established working groups and established a roadmap for the negotiations.

Elharrar said it was “in our interests” for both sides to work towards a quick settlement, citing Europe’s energy crisis. “The trust between us and the continuation of our fruitful cooperation in the various fields is very important to both parties.”

Pileidou said the two states had a “shared vision to fully exploit” gas reserves in the eastern Mediterranean. They had made “significant progress” in a “mutually beneficial resolution” of the issues.

Additional supplies

NewMed CEO Yossi Abu also stressed the importance of local and international markets.

“Along with the intense production expansion activity of the Leviathan reservoir, which meets the needs of national and regional markets, we are promoting the development of the Aphrodite reservoir, another large reservoir, to help meet the growing global demand for natural resources gas,” he said.

The partners think about how to produce from Aphrodite’s field. Options include integration with already existing facilities and cross-border links with Egypt.

Cyprus’ Ministry of Energy, Trade and Industry, in a joint statement with Chevron in July, said it would provide a development concept by the end of the year.

Cyprus has already mentioned an undersea pipeline linking Aphrodite to the Egyptian LNG plant at Idku. In addition to exports in the form of LNG, part of Aphrodite’s gas would also be destined for Egypt’s domestic needs.

Noble Energy drilled the original A-1 discovery well on Aphrodite in 2011 yielding approximately 5–8 trillion cubic feet (142–227 bcm) of gas. It drilled the A-2 follow-on well in 2013.

The Stena Forth recently drilled the Cronos discovery offshore Cyprus for Eni and TotalEnergies. The platform also drilled the Glaucus-2 valuation for ExxonMobil offshore Cyprus.

The rig is currently operating offshore Egypt. Esgian announced that he was under contract with Chevron. It was to be available from May 2023.

recommended for you

A drilling rig burns gas on a blue sea

Chevron and NewMed are working on gas export options from Israel

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What you need to know about forex trading in Nigeria in 2022 https://islandcrisis.net/what-you-need-to-know-about-forex-trading-in-nigeria-in-2022/ Sat, 17 Sep 2022 23:26:39 +0000 https://islandcrisis.net/what-you-need-to-know-about-forex-trading-in-nigeria-in-2022/ When talking about forex trading, Nigeria and Africa in general are not the first thing that comes to mind. But such dismissive presumptions are not justified by reality. Nigeria is not only the most populous country on the African continent, but also one of the largest and fastest growing economies in the region. Online forex […]]]>

When talking about forex trading, Nigeria and Africa in general are not the first thing that comes to mind. But such dismissive presumptions are not justified by reality. Nigeria is not only the most populous country on the African continent, but also one of the largest and fastest growing economies in the region. Online forex and CFD trading is actually very popular in the country, with Nigeria even surpassing South Africa in this regard.

Despite the activity in this market, however, forex trading is not placed in a formal regulatory framework and is virtually unregulated. This is not to say that Nigeria is like a financial Wild West. Earlier this year, for example, the Central Bank of Nigeria (CBN) and the local Securities and Exchange Commission (SEC) stepped in to introduce guidelines for companies offering cryptocurrency trading. The move was the result of a crypto investment boom in the country, which was predictably coupled with an increase in crypto-related scams.

But in terms of forex and CFD trading, the responsibility of judging which broker is trustworthy rests entirely on the shoulders of the trader. Although it carries risks for inexperienced people who are new to forex trading of falling into the clutches of scammers, investors in this country actually have quite an extensive choice of quality brokers.

Being a large emerging market, Nigeria has attracted many industry leading brands. In the absence of a specific regulatory framework, they generally offer their services in Nigeria through their offshore divisions based in jurisdictions such as Belize or Saint Vincent and the Grenadines. As a general rule, the retail trader is advised to use the services of duly licensed regulated intermediaries. But in the absence of such a choice, the next best option is a broker with an established international brand.

The desire of these brands to preserve their image drives them to maintain good business practices even in their formally unregulated offshore branches. Many offer offshore clients safeguards such as negative balance protection and segregation of client money from company operational funds, although they are not required to do so.

One of the advantages of global brands is that they offer their clients the latest and greatest trading software. At the very least, a trader can expect access to advanced platforms such as MetaTrader 4 (MT4) and MetaTrader 5 (MT5), as well as the ability to trade from any device most practice. Competition among major players in the Nigerian market also benefits customers as it leads to more advantageous overall terms.

The most experienced and risk-willing Nigerian traders can also benefit from much higher levels of leverage than allowed for retail clients in highly regulated jurisdictions. Many forex brokers in Nigeria also take advantage of the opportunity to offer bonuses and promotions to clients, which is prohibited for their branches in the European Union, United States or Australia.

Let us see who are the major brokerage brands operating in Nigeria and what they offer their clients.

FXMC

Although not a ranking, it makes sense to mention FXTM first. It is one of the most established international brands, licensed in the EU, UK and South Africa, and has received numerous industry awards. In Nigeria, FXTM operates through a company incorporated in Mauritius. But the company’s presence in this African country is not limited to the Internet: customers have the possibility of contacting two local offices in Lagos and Abuja.

FXTM allows novice traders to open a micro account for just a minimum deposit of 10 USD. The broker also maintains an extensive library of educational materials. The threshold for the more professional trading accounts, Advantage and Advantage Plus, is $500. These two accounts give the trader the choice of paying the broker either just a spread or a fixed commission, the amount of which depends on the trading volume – i.e. the more actively and on a large scale you trade, the greater the price you pay is low.

The maximum leverage reaches the impressive level of 1:2000 when trading with major currency pairs, but the broker imposes lower limits when the account balance exceeds 50,000 USD.

FXTM clients have the option of using both desktop and mobile versions of the MetaTrader 4 and MetaTrader 5 platforms. This software has been an undisputed favorite of brokers and traders for a second decade thanks to its extensive and advanced automated trading features.

FXTM clients can take advantage of loyalty programs and participate in trading contests for which they can receive rewards. The broker also offers a referral bonus of 50 USD.

Depositing and withdrawing funds can be done with virtually any method – international and local bank transfer, credit/debit cards, a host of popular e-wallets and even Bitcoin.

FBS

FBS is also a well-known and award-winning global brand with licensed branches in Cyprus, Australia, South Africa and Belize. The latter is responsible for the broker’s operations in Nigeria, as well as other emerging markets such as Indonesia and Malaysia.

In terms of trading software, FBS offers an industry standard choice between MetaTrader 4 and MetaTrader 5, with the addition of their own mobile app, FBS Trader.

However, the broker stands out with a very wide selection of trading accounts covering the needs of the widest possible range of traders. Beginners can open a Cent or Micro account for as little as $1 and $5, respectively. Professional investors can benefit from a Zero Spread Account or an ECN account with an investment of 500 USD and 1000 USD. There is even a dedicated cryptocurrency trading account, which also has a threshold of only 1 USD.
The standard account requires a minimum deposit of 100 USD, but offers a competitive floating spread from 0.5 pips. When Zero Spread and ESP accounts are used, the trader can expect a spread close to zero, but pays a fixed commission of $20 and $6 per lot respectively.

The maximum leverage depends on the account type, with Micro, Standard and Zero Spread reaching the impressive level of 1:3000. Even the ECN account allows trading with a leverage of 1:500, which is tens of times higher than that allowed in Europe or the United States.

The bonuses offered by FBS Nigeria include a “Level Up” bonus up to 140 USD, a 100% deposit bonus as well as a cashback promotion for clients who trade more than 5 lots. Customers can also participate in business competitions with prizes including even luxury cars.

Account funding and withdrawals can be made via Visa, Skrill, Neteller, StickPay, PerfectMoney and wire transfer.

OctaFX

OctaFX is another big name in the industry that offers its services in Nigeria. The main license of this top brand comes from the Cyprus Securities and Exchange Commission (CySEC). In unregulated markets outside of the EU such as Nigeria, OctaFX operates through a subsidiary incorporated in St. Vincent and the Grenadines. As mentioned, working with an offshore branch means you have to trust the brand completely, but in this case that’s not a problem.

Like its main competitors, OctaFX offers its clients the possibility to use the full capacity of the MetaTrader 4 and 5 platforms, including the ability to trade copy, which is particularly useful for novice traders who wish to benefit from the insight of traders experienced.

The trading platform is the main difference between the two account types offered by OctaFX. The account for MT5 users is called Smart Trader and the one for those who prefer MT4 is called Habitual Trader. MT5 users also have access to trade with more indices – 10 against 4.

The financial instruments offered by OctaFX are relatively few and clearly focused on cryptocurrencies. The broker offers to trade 30 cryptocurrencies and only 35 fiat currency pairs.

In this regard, it is worth noting the very high leverage offered for crypto trading – 1:25. By comparison, clients of a broker’s Cyprus division can trade crypto assets with a leverage of no more than 1:2. The maximum leverage for forex trading is 1:500.

Both accounts only have a recommended minimum deposit of $100 and promise competitive spreads starting at 0.6 pips.

OctaFX also offers a 50% deposit bonus and holds regular trading competitions in which outstanding traders receive various prizes. If you have referred other clients to OctaFX, you receive rewards based on their trading volume.

As you’d expect, Octa offers a very wide choice of payment methods, ranging from local banks, established e-wallets like Skrill and Neteller, to a host of cryptocurrencies.

FP Markets

Another easy to recommend broker is FP Markets. The group of companies behind the brand are licensed by respected regulatory bodies such as CySEC and the Australian Securities and Exchanges Commission (ASIC). In markets like Nigeria, the broker operates through a company registered in St. Vincent and the Grenadines.

FP Markets offers two types of accounts to all of its clients – Standard and Raw, through which over 60 currency pairs, commodities and indices can be traded. With the Standard account, the client pays a single spread from 1 pip. As the name suggests, the Raw account offers raw spreads starting at 0.0 pips, coupled with a commission of 3 USD per side per lot.

Both accounts can be used with both MT4 and MT5 platforms. The software is available on all major desktop operating systems, mobile devices, as well as in browser version.
FP Markets clients in Nigeria can, as expected, benefit from higher leverage than those in Australia or Europe – up to 1:500. The minimum deposit is 100 AUD or equivalent in another

currency.

The accounts have an included benefit in the form of a virtual private server, which allows automated trading scripts to be independent of the trader’s personal hardware.

A significant difference between FP Markets and most of their competitors is that their offshore company does not offer bonuses and promotions. However, this is compensated by the favorable trading conditions and the large amount of educational materials and programs.

The list of payment methods is impressive. In addition to standard options such as credit cards, local and international bank transfers and e-wallets such as Skrill and Neteller, FP Markets allows account funding through a large number of local providers as well as with the Broker-method. to-Broker.

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The Eastern Mediterranean needs a more muscular American strategy https://islandcrisis.net/the-eastern-mediterranean-needs-a-more-muscular-american-strategy/ Fri, 16 Sep 2022 13:00:00 +0000 https://islandcrisis.net/the-eastern-mediterranean-needs-a-more-muscular-american-strategy/ Turkey’s maritime deal with Libya’s Government of National Accord (GNA), which largely ignores Greek and Cypriot legal claims, is destabilizing the eastern Mediterranean, as are Greek actions like the militarization of the Aegean islands near the Turkish coasts. The aggressive maneuvers of the Turkish Navy have led to numerous naval incidents with Greece, Cyprus and […]]]>

Turkey’s maritime deal with Libya’s Government of National Accord (GNA), which largely ignores Greek and Cypriot legal claims, is destabilizing the eastern Mediterranean, as are Greek actions like the militarization of the Aegean islands near the Turkish coasts. The aggressive maneuvers of the Turkish Navy have led to numerous naval incidents with Greece, Cyprus and Israel and an arms race with Greece, another NATO member.

Russia and China perceive the Eastern Mediterranean as a node of competition between great powers. Russia seeks to undermine US, EU and NATO objectives in this theatre. Russia’s soft power initiatives aim to eliminate US allies such as Greece, Cyprus and Turkey, countries susceptible to Russian offers of investment, energy and tourism dollars. These Russian efforts rely on exploiting the fissures between the eastern Mediterranean states and between them and the United States.

China’s Belt and Road Initiative is expanding in the region. As noted by Nader Habibi, Henry J. Leir Professor of Middle Eastern Economics at the Crown Center, “China has become the largest source of imports for Egypt, Israel and Lebanon, and the second for Turkey, Syria, and Jordan… As undesirable as this sustained trade deficit is for the countries of the Levant, China, for its part, is using its trade surplus to invest in the region. In addition to the political and military leverage these investments will provide to China, one concern is that technologies developed with or by China could provide backdoor access to US state secrets and give China the ability to hack into American cyber systems. Another concern is with Eastern Mediterranean states using Chinese payment systems instead of the US dollar.

Russia’s maritime doctrine of 2022 places the Mediterranean at the top of its priorities, allowing the use of military force to achieve national security objectives. The document also indicates that Russian law supersedes international law in the region. A large contingent of Russian warships operating from the Russian naval base in Tartous, Syria poses a threat to NATO’s southern flank – to NATO members Greece, Turkey, the Italy and Europe as a whole. Russian President Vladimir Putin expands Tartus base capabilities as the United States pulls away from the region. In June 2022, Putin sent a message to the United States in Syria when his fighter jets attacked the al-Tanf garrison, where hundreds of American soldiers are stationed. Russian planes have also “threatened” their American counterparts recently in Syria. Finally, Russia has just sent a nuclear submarine to the Mediterranean to deter NATO forces and provide external defense for its operations in the Black Sea. These escalations could lead to offshore disputes.

America has not been inactive or invisible in the Eastern Mediterranean. The United States recently signed an amended bilateral defense agreement with Greece. The United States also has a naval presence in Souda Bay in Crete and Greece, and the Sixth Fleet is stationed in Italy. America has also created soft power agreements that promote cooperation and collaboration. One of these agreements is the regional energy forum called the Eastern Mediterranean Gas Forum. Forum members include Israel, Greece, Italy, the Palestinian Authority, Jordan and Cyprus. The United States and the EU retain observer status, as does the World Bank Group. A second grouping is a regional defense network called the 3+1 initiative. This initiative includes Greece, Israel and Cyprus, with the United States as +1.

Notably, the Biden administration is currently negotiating a maritime border dispute between Israel and Lebanon — countries like Turkey and Cyprus have no diplomatic relations and need outside-led arbitration. Despite the efforts of malign actors such as the terrorist entity Hezbollah, US-led mediation appears likely to succeed.

The United States has various tools to bring order to the eastern Mediterranean and arm it against Russian and Chinese efforts to supplant the United States as the region’s primary power broker. The right combination of diplomacy, military assistance, and economic investment will reaffirm America’s leadership position in this geostrategic space. Here are four recommendations for the United States.

First, the United States must arbitrate the maritime disputes between Turkey and Greece and Turkey and Cyprus. Direct bilateral negotiations between Greece and Turkey have stalled indefinitely, weakening NATO and the West, as troops and resources are diverted to defend rather than deter adversaries like Russia. The chaos caused by this offshore conflict makes it the most pressing problem in the Eastern Mediterranean, and its resolution is therefore of paramount importance. US-sponsored talks would strengthen regional ties and prevent opportunities for Russia and China.

Second, increase the American military position in the eastern Mediterranean. A more visible US military presence would restore confidence in allies rightly shaken by the war in Ukraine and restore red lines and deterrence in the face of a cornered Putin. The current posture of US forces is insufficient to address the threat matrix and provide strategic clarity to our friends and foes. Deterrence can be restored in low-cost, high-impact ways by introducing permanent U.S. naval assets to Greece and more ships on rotation, more vigorously exploring security cooperation with Cyprus, patrolling eastern Mediterranean and escorting Allied convoys through those waters more effectively. routine fashion.

The 3+1 format could be expanded to create new 2 or 3+1s which would be a first step towards integrating Turkey into a common defense framework. For example, the United States could put its feet on fire from Turkish President Recep Erdogan over his ostensible re-establishment of ties with Israel and Egypt by proposing a 3+1 initiative including Israel, Egypt and Turkey.

Third, increase political pressure to limit China’s influence and boost trade and investment in the Eastern Mediterranean. China is investing heavily in the Eastern Mediterranean, particularly in energy infrastructure, transport, manufacturing and export, as well as communications and technology development. To challenge China’s growing influence, the United States should exert diplomatic pressure on regional allies, but also urge them to work with the United States rather than China. The United States would have to find trade opportunities and targeted investments that would be mutually beneficial, limiting China’s ability to make economic breakthroughs that could turn into deeper political and military ties with traditional American allies.

Fourth, find new areas of potential cooperation between regional partners regarding food, climate change and water scarcity. There is a precedent for the establishment of a consortium along these lines. The I2U2 group is a forum comprising India, Israel, the United Arab Emirates and the United States. The group’s first joint statement, released on July 14, 2022, says the countries aim to cooperate on “joint investments and new initiatives in water, energy, transport, space, health and food safety”. Creating an Eastern Mediterranean version of the 12U2 group would forestall China and Russia and provide the United States with another manifestation of soft power in the region.

The American diplomatic and military posture in the Eastern Mediterranean must adapt to new realities. The right balance between proactive political savvy and the application of a more forceful deterrence strategy would bring calm to the Eastern Mediterranean. Moreover, it would ensure that most of the eastern Mediterranean riparian states are well within the western orbit for the foreseeable future.

Nicholas Saidel, JD, MA, is the associate director of the Institute for Strategic Threat Analysis & Response (ISTAR) at the University of Pennsylvania.

Picture: Reuters.

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Locked in some profits from my oil stocks, but kept Eni (E) https://islandcrisis.net/locked-in-some-profits-from-my-oil-stocks-but-kept-eni-e/ Fri, 09 Sep 2022 17:42:00 +0000 https://islandcrisis.net/locked-in-some-profits-from-my-oil-stocks-but-kept-eni-e/ mauro_grigollo Introduction Over the past few months, I have sold most of my energy stocks while locking in some gains. I’ve owned a few Exxon (XOM), Chevron (CVX), Enbridge (ENB), Crestwood Equity The partners (CEQP) and Alerian MLP ETF (AMLP). On the other side, I decided to stay and increase my position in Eni SpA […]]]>

mauro_grigollo

Introduction

Over the past few months, I have sold most of my energy stocks while locking in some gains. I’ve owned a few Exxon (XOM), Chevron (CVX), Enbridge (ENB), Crestwood Equity The partners (CEQP) and Alerian MLP ETF (AMLP). On the other side, I decided to stay and increase my position in Eni SpA (NYSE:E) for two reasons :

  1. It is still trading at a discount from its pre-Covid price
  2. More importantly, starting next week, he will implement a new dividend policy which I believe will benefit me from the current high oil price.

A company with a key role in Europe

Eni SpA is the Italian oil company, which is one of the so-called seven oil supermajors. After TotalEnergies (TTE), it is the second largest European oil company, with a market capitalization of $50 billion. In the current European energy crisis, the company is playing an important role in diversifying sources to disentangle Europe from its relationship with Russia.

Recently, Eni has strengthened its relations with Algeria, which respectively led to an increase in the supply of 4 billion cubic meters of gas to Italy. In addition, alongside other oil majors such as TotalEnergies, Eni signed a new exploitation contract in the Berkine basin which allowed the exploitation of significant quantities of gas. In Egypt, Eni plays a key role in helping the country become a regional hub for natural gas, thanks to the Zohr field discovered by Eni in 2015, which is, to date, the largest gas discovery ever made in the Mediterranean Sea. In addition, Eni is in talks with Egypt to undertake solar and wind energy projects, with up to 10 GW of installed capacity over the next few years.

In June 2022, Eni also entered into a partnership with QatarEnergy, which makes the Italian company a new international partner for the expansion of the North Field East project, the largest LNG project in the world.

In the same days, Eni started pumping gas from the offshore Coral South field in Mozambique to Sul Coral, a floating liquefied natural gas facility. It is the first FLNG ever installed on the African continent in deep waters. With it, Mozambique joins the ranks of LNG-producing countries and offers additional diversification.

Here is a map that shows all the other agreements signed in the last year and a half by Eni.

Eni source of diversification, Eni share, Eni azioni

Eni website

For this map, we have to consider two recent novellas.

  1. Eni has announced a large gas discovery at the Cronos-1 well off Cyprus with early estimates indicating 2.5 trillion cubic feet of gas available, not including additional discoveries at other nearby wells.
  2. Just a few days ago, Eni added another source when announcing its acquisition of BP’s activities in Algeria, which controls two major gas fields. These two fields, called “In Amenas” and “In Salah” are located south of the Sahara and their production of gas and associated liquids began in 2006 and 2004 respectively. In 2021, they produced around 11 billion cubic meters of gas, 12 million barrels of condensate and LPG.

All this news makes me consider Eni as a strategic player in the current geopolitical environment because it will play a key role not only in the diversification of Italy’s gas sources, but it will also contribute to creating a Mediterranean gas hub for the Europe, as shown in the slide below.

Eni Share

Presentation of Eni 1H 2022 results

As can be seen, Algeria and Congo will both contribute from the end of the coming winter, which will be the most difficult period for Europe in terms of gas supply, because the stored gas will be low and demand still high. This makes the company confident in stating that by 2024 it will have replaced 100% of the current Russian supply.

Currently, the company is in any case able to fulfill all its obligations without using its Russian sources, as the CEO of Eni Descalzi said in the last earnings call:

I would like to point out that the company’s remaining contractual obligation for 2022 can be fully met without any Russian sources and without any additional costs.

Other recent news

In June, Eni said it planned to launch the IPO of Plénitude, which is the company’s renewable energy division. There was great interest in this IPO, but due to deteriorating market conditions, Eni decided to postpone it. Although initially disappointing for many investors, I thought this decision was the right one because it showed two things:

  1. Eni does not need this IPO to raise funds, which shows that it is quite confident about its balance sheet.
  2. With European utilities under pressure, it is better to use the strength of Eni to protect the value of Plénitude until the situation clears up.

Since energy prices are very high, many European governments have decided to tax the extra profits made by energy companies. Eni will also be subject to an exceptional tax of 25% in 2022 which will cost the company 1.4 billion euros, instead of the planned 550 million euros. Even though this is a large amount, you have to keep in mind that it taxes the extra profits, which means that the company is making, like all oil majors, a lot of money this year, as we will see in a moment.

Finance

If we say that Eni works very well, it is not a surprise given the current conditions. As summarized by the company in the slide below, we see a very strong EBIT of €11 billion and a 6x year-over-year net profit of €7.1 billion. Operating cash flow of 10.8 billion euros is already enough to cover more than double the annual dividends that Eni will pay. This is one of the most important data that leads me to write this article and share it with the Seeking Alpha community. But we’ll get to that in a minute.

Eni action, E action, Eni results

Presentation of Eni 1H 2022 results

What is really important is that Eni, despite a huge increase in profits, keeps its investments under control, thus taking advantage of the current situation to further deleverage its balance sheet which currently sees a net debt TTM of 16 billion euros , which is more than covered by TTM’s €26 billion EBITDA.

Eni has also improved its efficiency and reduced its cash neutrality from $45/bbl in 2018 to $40/bbl currently.

New dividend distribution policy

Today, despite high oil prices, Eni has yet to regain its pre-covid price, unlike other peers close to ATH. Although Eni has always been more discounted than other oil companies, I still see that the stock is able to recover at least up to $30.

I think some support for the share price will come from the new dividend distribution policy announced by Eni. Until this year, Eni used to pay its dividend twice a year in May and September. Starting in September, Eni will pay a quarterly dividend in September, November, March and May, making the stock more attractive to investors looking for income.

There are, however, two caveats. The first is that the Italian tax on dividends is 26%. The second is that Eni’s distribution policy, as shown in the graph below, makes the dividend variable depending on oil prices. However, I decided to keep Eni in my portfolio as it currently has a very high yield which I plan to maintain until 2023 as oil prices are expected to remain high.

Now let’s look at the chart and see how Eni’s dividend policy works.

Eni dividend, Eni share, E share

Eni website

Eni’s shareholder remuneration policy is structured as follows. First, the dividend is linked to the oil price scenario assessed in July and then updated in October. For starters, there is an annual dividend floor of €0.36 per share, and it will be paid as long as the price of Brent is at least $43/bbl. It is very unlikely that the price of oil will fall below this benchmark for a long time. The annual dividend per share then increases as follows:

  • €0.41 per share for a reference price of Brent between $44 and $46/bbl
  • €0.49 per share for a reference price of Brent between $47 and $50/bbl
  • €0.61 per share for a Brent reference price between $51 and $55/bbl
  • €0.75 per share for a reference price of Brent between $56 and $60/bbl
  • €0.86 per share for a reference price of Brent between $61 and $79/bbl
  • €0.88 per share for a reference price of Brent between $80 and $90/bbl

Whatever the amount of the dividend, it will be divided by four and paid quarterly, with the first detachment on September 19.

In addition to the dividend, a share buyback program is triggered from a Brent reference price of $56/bbl worth 300 million euros per year. This amount is as follows:

  • 400 million euros per year for a reference price of Brent between $61 and $65/bbl
  • 800 million euros per year for a reference price of Brent between 66 and 79 $/bbl
  • 1.1 billion euros per year for a reference price of Brent between 80 and 90 $/bbl

If we reach a Brent reference price above $90/bbl, Eni will add an additional buyback equivalent to 30% of the associated additional FCF.

However, we are currently in the best scenario with a dividend of and a share buyback program which has been raised from 1.1 to 2.4 billion euros. The buyout is something I’m very fond of right now because Eni, as said above, is not trading at a very high valuation. Regarding Eni’s NYSE shares, the annual dividend is not €0.88, but $1.80. The dividend yield of 8.30%, however, is the same as that of shares traded in Europe.

Since the start of the buyback program, Eni has purchased approximately 1.92% of the share capital for a total amount of 821 million euros. This means that Eni still has 1.6 billion euros to deploy, which is equivalent to an additional 4% of the total market capitalization. Eni said it would complete its takeover by the end of the first quarter of 2023. This leads to an expected annual total return of 12%, which allowed me to stay invested in the stock and actually buy a few more shares recently as the first quarterly dividend approaches.

Conclusion

Eni is of course discounting its variable dividend policy and certain country risks since it is linked to Italy and Europe. However, with a PE of 3 versus a PE of 7.4 and 8.2 for XOM and CVX respectively and a forward EV/EBITDA of 2 versus the 4.2 and 4.8 for the two mentioned above, being given that Eni has a higher return on capital employed of 16.5% compared to 13.6% for XOM and 10.9% for CVX, I think the company is discounted enough to provide a margin of safety while still offering a better return to shareholders for at least a year and a half. That’s why I’m rating it as a buy.

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No EastMed reference by the head of ENI https://islandcrisis.net/no-eastmed-reference-by-the-head-of-eni/ Thu, 08 Sep 2022 01:01:41 +0000 https://islandcrisis.net/no-eastmed-reference-by-the-head-of-eni/ ENI’s chief said the Italian company will fully replace Russian gas by 2025 using additional resources from the Eastern Mediterranean, a benchmark that was taken out of context by Cypriot media. Reuters reported on Tuesday that at a Gastech 2022 conference in Milan this week, ENI chief executive Guido Brusco said his company would “fully […]]]>

ENI’s chief said the Italian company will fully replace Russian gas by 2025 using additional resources from the Eastern Mediterranean, a benchmark that was taken out of context by Cypriot media.

Reuters reported on Tuesday that at a Gastech 2022 conference in Milan this week, ENI chief executive Guido Brusco said his company would “fully replace Russian gas by 2025 by drawing additional resources from the fields.” of gas from the Eastern Mediterranean”.

Hours earlier, local media in Cyprus on Tuesday quoted an early version of the Reuters report that the EastMed pipeline would be fully completed by 2025, but the global news agency, which quoted ENI’s Guido Brusco during of an event in Milan, then issued a correction.

“ENI will fully replace Russian gas by 2025, aided by East Med fields, COO Guido Brusco said Tuesday at an event in Milan,” the corrected report said.

Cypriot Energy Minister Natasa Pilides, who also attended the conference, made the case for the Republic of Cyprus, saying offshore gas from the island and the latest discoveries could boost both energy security and Europe’s energy transition.

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EU suspends visa deal with Russia https://islandcrisis.net/eu-suspends-visa-deal-with-russia/ Tue, 06 Sep 2022 05:02:23 +0000 https://islandcrisis.net/eu-suspends-visa-deal-with-russia/ The 27 governments of the European Union have agreed on a “complete suspension” of the visa agreement between the EU and Russia. As a result, the number of new visas for Russian citizens will be “significantly reduced”, EU Foreign Commissioner Josep Borrell said last Wednesday at a summit of EU foreign ministers in Prague. Foreign […]]]>

The 27 governments of the European Union have agreed on a “complete suspension” of the visa agreement between the EU and Russia. As a result, the number of new visas for Russian citizens will be “significantly reduced”, EU Foreign Commissioner Josep Borrell said last Wednesday at a summit of EU foreign ministers in Prague.

Foreign Minister Annalena Baerbock with her Estonian counterpart Eva-Maria Liimets in March [Photo by Estonian Foreign Ministry/CC BY-SA 2.0]

The measures include doubling the visa fee from 35 euros to 80 euros and eliminating the standard processing time of ten calendar days after receiving an application. A freeze on the 12 million visas currently valid is also being considered by EU officials. Borrell justified the aggressive move by citing a “significant increase in border crossings from Russia to neighboring countries,” which would pose a “security risk.”

In addition to the millions of holidaymakers directly affected, Russia’s middle and working class citizens must also be systematically excluded from Europe. Just days after the start of the war, the EU imposed an airspace ban on Russian planes and airlines, which has since forced Russian holidaymakers to enter the EU overland via Finland , Estonia and Lithuania, where they face open hostility from governments and authorities. .

The visa agreement between the EU and Russia had facilitated the issuance of visas for travelers since 2007 but, after the start of the war, it was initially suspended for businessmen, government officials and the diplomats. German Foreign Minister Annalena Baerbock (Green Party) – who is believed to have played a key role behind the scenes in the negotiation of the agreement between EU states – explained that in the future, demands for visas for Russian citizens would take “several months in case of doubt”. ”.

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The Israeli army will hold a 3-day exercise near the border with Lebanon https://islandcrisis.net/the-israeli-army-will-hold-a-3-day-exercise-near-the-border-with-lebanon/ Sun, 04 Sep 2022 08:05:03 +0000 https://islandcrisis.net/the-israeli-army-will-hold-a-3-day-exercise-near-the-border-with-lebanon/ The Israel Defense Forces announced on Sunday that it would conduct a three-day military exercise along the Lebanese border, as tensions remained high with the Iran-backed Hezbollah terror group. The IDF said the exercise would end Tuesday afternoon. Explosions are expected to be heard in nearby towns, he added. The military said the exercise was […]]]>

The Israel Defense Forces announced on Sunday that it would conduct a three-day military exercise along the Lebanese border, as tensions remained high with the Iran-backed Hezbollah terror group.

The IDF said the exercise would end Tuesday afternoon. Explosions are expected to be heard in nearby towns, he added.

The military said the exercise was planned in advance, indicating it was not the result of a new assessment.

Tensions between Israel and Lebanon have been high recently as they have been engaged for more than a year in rare US-brokered talks aimed at resolving a dispute over rights to offshore fields believed to contain gas riches natural. The parties are said to be close to an agreement.

Both countries claim some 860 square kilometers (330 square miles) of Mediterranean Sea. Lebanon also claims Israel’s Karish gas field is in disputed territory under ongoing maritime border negotiations, while Israel claims it is within its internationally recognized economic waters.

Hezbollah has stepped up its rhetoric in recent months as Israel and Lebanon have engaged in talks. He remains fiercely opposed to any concessions to Israel. Tensions rose in June when an Israeli-chartered production vessel arrived near the Karish offshore gas field.

A sea-based Iron Dome air defense system is seen on a Navy ship, guarding the floating production, storage and offloading vessel Energean at the Karish gas field, in images released by the military on July 2 2022. (Israel Defense Forces)

Hezbollah leader Hassan Nasrallah has repeatedly threatened to target Israeli offshore facilities. In July, the IDF said it shot down four unarmed Hezbollah drones launched at a gas platform in Karish.

Lebanon and Israel last fought a war in 2006, have no diplomatic relations and are separated by the UN-patrolled ceasefire line.

In June, the IDF held a major military exercise in Cyprus, simulating a ground offensive deep into Lebanon in a potential war against the Iran-backed group.

Hezbollah has long been the IDF’s most significant adversary on Israel’s borders, with an arsenal estimated at nearly 150,000 rockets and missiles that can reach anywhere in Israel.

Agencies contributed to this report.

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Cuba demands more electricity from Turkish powers https://islandcrisis.net/cuba-demands-more-electricity-from-turkish-powers/ Thu, 01 Sep 2022 03:30:46 +0000 https://islandcrisis.net/cuba-demands-more-electricity-from-turkish-powers/ What are cookies As is common practice with almost all professional websites, https://cyprus-mail.com (our “To place”) uses cookies, which are tiny files downloaded to your device, to improve your experience. This document describes what information they collect, how we use it and why we sometimes need to store these cookies. We will also share how […]]]>

What are cookies

As is common practice with almost all professional websites, https://cyprus-mail.com (our “To place”) uses cookies, which are tiny files downloaded to your device, to improve your experience.

This document describes what information they collect, how we use it and why we sometimes need to store these cookies. We will also share how you can prevent these cookies from being stored, however this may downgrade or ‘break’ certain elements of the site’s functionality.

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Why don’t the Russian billionaires who own Brittney Griner’s basketball team help her get out of jail? https://islandcrisis.net/why-dont-the-russian-billionaires-who-own-brittney-griners-basketball-team-help-her-get-out-of-jail/ Sat, 27 Aug 2022 18:53:38 +0000 https://islandcrisis.net/why-dont-the-russian-billionaires-who-own-brittney-griners-basketball-team-help-her-get-out-of-jail/ Brittney Griner’s nine-year sentence in a Russian penal colony, which, let’s face it, conjures up chilling images and brings to mind “A Day in the Life of Ivan Denisovitch” by Alexander Solzhenitsyn. Set in a Soviet labor camp, the short novel describes the prisoner’s struggle for human dignity. Judging by brief footage of the six-foot-nine […]]]>

Brittney Griner’s nine-year sentence in a Russian penal colony, which, let’s face it, conjures up chilling images and brings to mind “A Day in the Life of Ivan Denisovitch” by Alexander Solzhenitsyn. Set in a Soviet labor camp, the short novel describes the prisoner’s struggle for human dignity.

Judging by brief footage of the six-foot-nine WNBA superstar being escorted to his Moscow court appearances, the last of which ended with the draconian nine-year sentence for less than a gram of cannabis oil, Griner seems to have his human dignity intact.

What about the billionaire owners of Griner’s Russian basketball team?

Dignity does not come to mind when one reflects on the inaction of the Russian oligarchs who did not say anything to their friend Vladimir Putin, as far as anyone knows, nor pressure him to grant a respite for the 31-year-old basketball player and allow her to walk freely.

Ask yourself why? That might shed some light

The Griner team has played for the past seven years, the UMMC Yekaterinburg is controlled by Russian billionaires Iskander Makhmudov and its business partner, Andrei Kozitsyn. The two men also run the Ural Mining and Metallurgical Company, one of Russia’s leading producers of copper, zinc, coal, gold and silver.

Proceeds from mining helped Makhmudov and Kozitsyn invest in women’s basketball and other sports in Russia, such as martial arts, hockey, motorcycle racing, table tennis, etc.

The invasion that changed everything

The day Russia invaded Ukraine, Putin brought together at least 13 of the country’s wealthiest businessmen – the oligarchs who surfaced after the collapse of the Soviet Union and began to appropriate investment interests in major industries like the gas, oil and precious metals.

The purpose of the meeting other than telling them that the invasion was a “necessary measure”, was to let his friends know (as if they didn’t already know) that they would likely face economic sanctions from the United States. United and European Union.

Too late for some to hide their assets

Roman Abramovichformer owner of Chelsea Football Club had its $4.5 billion in assets in London (about a third of its total) sold or frozen after the invasion.

Russian oligarchs have been hiding their assets for years. As much as $1 trillion of Russian wealth is stored in offshore companies in places like Switzerland, Cyprus and even the United States.

Makhmudov and his team owner partner Griner Kozitsyn were at Putin’s meeting and, except for the sanctions, they would not have suffered too much.

Makhmudov (net worth $9.41 billion), who has been charged with racketeering, fraud, bribery and attempted murder, also co-owned two British Virgin Islands companies with another billionaire. Andrei Bokarev (net worth $2.2 billion).

Kozitsyn, (net worth $3.8 billion) with a shorter or lesser-known criminal record, was recently added to the EU sanctions list for financially supporting the Russian invasion of Ukraine.

While these facts don’t answer the question of why Makhmudov and Kozitsyn aren’t pushing for Griner’s release, stories of Putin’s vitriol when someone dares to question or criticize his actions have been circulating for years.

Dignity? This came out with Ivan Denisovich.

Photos: Wikimedia Commons

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Cyprus’ total potential natural gas capacity is now between 11.7 Tcf and 14.7 Tcf – Greek City Times https://islandcrisis.net/cyprus-total-potential-natural-gas-capacity-is-now-between-11-7-tcf-and-14-7-tcf-greek-city-times/ Tue, 23 Aug 2022 13:17:34 +0000 https://islandcrisis.net/cyprus-total-potential-natural-gas-capacity-is-now-between-11-7-tcf-and-14-7-tcf-greek-city-times/ The major natural gas discovery by France’s TotalEnergies TTEF.PA and Italy’s Eni ENI.MI at the Cronos-1 well off Cyprus brings the Mediterranean island’s total potential capacity to between 11.7 tcf and 14 tcf .7 tcf. That’s what Philenews reported on Tuesday, just hours after Eni said preliminary estimates point to around 2.5 tcf of gas […]]]>

The major natural gas discovery by France’s TotalEnergies TTEF.PA and Italy’s Eni ENI.MI at the Cronos-1 well off Cyprus brings the Mediterranean island’s total potential capacity to between 11.7 tcf and 14 tcf .7 tcf.

That’s what Philenews reported on Tuesday, just hours after Eni said preliminary estimates point to around 2.5 tcf of gas in place, with a significant additional upside to be investigated by another exploration well in the region.

The island reported its first natural gas discovery, Aphrodite, in 2011, measuring around 4.5 trillion cubic feet (tcf) and now managed by US energy company Chevron CVX.N.

Monday’s discovery marks the third offshore gas discovery reported in Cyprus, all of which remain untapped.

And it comes as the European Union seeks an alternative supply to Russian gas after Moscow invaded Ukraine in February.

At the same time, any confirmed quantity in the Calypso field, in Block 6, is not calculated because ENI announced in 2018 that it had identified a deposit but has not yet made an official estimate of the quantity.

Insiders in Cyprus said that this discovery is unofficially estimated between 1 and 3 tcf, without being certain that it is recoverable due to the peculiarities of the seabed.

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