Browsed by
Tag: Europes

Europe’s Glutted Gas Market Braces for More Flows From Caspian

Europe’s Glutted Gas Market Braces for More Flows From Caspian

(Bloomberg) — Europe’s glutted natural gas markets are about to get a fresh source of supply after BP Plc and its partners finished a major new pipeline from Azerbaijan into southern Europe.

Loading...

Load Error

The Trans Adriatic Pipeline, or TAP, project is “substantially complete” 4 1/2 years after construction started on the 878-kilometer link, the group developing the project said on Tuesday. The partners that invested 4.5 billion euros ($5.3 billion) are now preparing for commercial operations and offering capacity to buyers.

Flows from the pipeline add to pressure on Europe’s gas distribution grid, which is struggling to absorb unusually high storage levels and shipments of liquefied natural gas, said James Huckstepp, leader of a team at S&P Global Platts analyzing the industry. The link will bring an additional 8 billion cubic meters of gas per year to Italy, and 1 billion cubic meters to Greece and Bulgaria, shifting the dynamic of a market that gets much of is supplies from Russia and the North Sea.

“TAP is a bearish factor, mainly for Southern Europe,” Huckstepp said. “It will also have an indirect impact in Northwest Europe, as it will mean less gas being exported to the south.”



map: TAP


© via Bloomberg
TAP

The pipeline starts near the Evros area of Kipoi at the Greek-Turkish border, where it is connected to the Trans Anatolian Pipeline. It traverses northern Greece and crossing Albania and the Adriatic Sea, comes ashore in Southern Italy to connect to the Italian gas network.

Trans Adriatic Pipeline AG

Completing the link is a major milestone for the European Union, which has worked for years to diversify its sources of gas supply away from Russia. While Germany is supporting Russia’s controversial Nord Stream 2 route to bring gas to the continent via the Baltic Sea, TAP as part

Read the rest
Polish e-commerce company Allegro lights up Europe’s IPO market

Polish e-commerce company Allegro lights up Europe’s IPO market

WARSAW/GDANSK, Poland (Reuters) – Shares in Polish e-commerce group Allegro leapt more than 60% on their debut on Monday, giving the company a market value of almost $19 billion in Europe’s biggest initial public offering (IPO) so far this year.

Allegro logo is seen on a smartphone in front of a displayed stock graph in this illustration taken October 12, 2020. REUTERS/Dado Ruvic/Illustration

Founded more than 20 years ago as a home-grown rival to eBay, Allegro is central Europe’s most recognised e-commerce brand and its website is attracting 20 million visitors a month as consumers go online during the COVID-19 pandemic.

Allegro’s strong start mirrored the performance of some recent IPOs in the United States where shares have shot up as investors showed they were willing to pay for companies with potential for growth.

Last month, British e-commerce firm The Hut Group made the biggest debut on the London Stock Exchange in seven years and Allegro’s successful launch was a further sign the European IPO market is picking up.

However, investor appetite seems to be reserved for tech and growth companies – sectors that corporate Europe is light on compared to the United States, where a number of blockbuster tech IPOs have launched this year.

“The recent pandemic highlighted the value of e-commerce for a consumer, and accelerated e-commerce penetration,” said Ivan Kim, an analyst at Xtellus Capital. “Allegro is a well-established marketplace … and is already quite profitable.”

Shares in Allegro closed the day at 70 zlotys, up 63% from their IPO price of 43 zlotys, which was at the upper end of the guidance range.

Allegro immediately became the most valuable company on the Warsaw bourse, which said the company would replace Commerzbank’s mBank in its index of the 20 biggest companies WIG20

Read the rest
E-Commerce Group Allegro Lights up Europe’s IPO Market, Leaping 50% on Debut | Technology News

E-Commerce Group Allegro Lights up Europe’s IPO Market, Leaping 50% on Debut | Technology News

By Anna Banacka and Anna Koper

WARSAW/GDANSK, Poland (Reuters) – Shares in Polish e-commerce group Allegro leapt more than 50% on their trading debut on Monday, giving the company a market value of about $17.6 billion in Europe’s biggest IPO so far this year.

Allegro’s strong start mirrored the performance of some recent U.S. IPOs that have shot up on their first days of trading, demonstrating investors’ willingness to pay for growth.

Allegro, founded more than 20 years ago as a home-grown rival to eBay, is central Europe’s most recognised e-commerce brand, with its website attracting 20 million visitors a month.

At 1126 GMT, its shares were trading at 68.1 zlotys, up 58.4% from their IPO price of 43 zlotys, which was itself at the upper end of the guidance range.

“When pricing deals like Allegro, it is more important to build momentum than to maximize price on day one,” said Christoph Stanger, who co-heads Goldman Sachs’ European equity capital markets business, which helped organise the IPO.

Private equity owners Cinven, Permira and Mid Europa will want to benefit from that momentum in follow-on placements, after only 25% of the Polish company was floated in the IPO, Stanger said.

Europe’s IPO market is showing some signs of picking up, with Britain’s The Hut Group last month making the biggest debut on the London Stock Exchange in seven years.

However, investor appetite seems to be reserved for tech and growth companies – sectors that corporate Europe is light on compared to the United States, where a number of blockbuster tech IPOs have priced this year.

Allegro operates in one of few business areas to benefit during the coronavirus pandemic, as shoppers switch to buying online.

“The recent pandemic highlighted the value of e-commerce for a consumer, and accelerated e-commerce penetration,” said

Read the rest
Europe’s Economic Recovery Is a Summer Memory

Europe’s Economic Recovery Is a Summer Memory

LONDON — What faint hopes remained that Europe was recovering from the economic catastrophe delivered by the pandemic have disappeared as the lethal virus has resumed spreading rapidly across much of the continent.

After sharply expanding in the early part of the summer, Britain’s economy grew far less than anticipated in August — just 2.1 percent compared with July, the government reported on Friday, adding to worries that further weakness lies ahead.

Earlier in the week, France, Europe’s second-largest economy, downgraded its forecast for the pace of expansion for the last three months of the year from an already minimal 1 percent to zero. Over all, the national statistics agency predicted the economy would contract by 9 percent this year.

The diminished expectations are a direct outgrowth of alarm over the revival of the virus. France reported nearly 19,000 new cases on Wednesday — a one-day record, and almost double the number the day before. The surge prompted President Emmanuel Macron to announce new restrictions, including a two-month shutdown of cafes and bars in Paris and surrounding areas.

In Spain, the central bank governor warned this week that the accelerating spread of the virus could force the government to impose restrictions that would produce an economic contraction of as much as 12.6 percent this year.

The European Central Bank’s chief economist cautioned on Tuesday that the 19 countries that share the euro currency might not recover from the disaster until 2022, with those that are dependent on tourism especially vulnerable.

Summer increasingly feels like a long time ago.

In July, with infection rates down, lockdowns lifted and many Europeans indulging in the sacred ritual of the summer holiday, signs of revival appeared abundant. Many European economies expanded strongly as people returned to shops, restaurants and vacation destinations. The most optimistic

Read the rest