World Trade Center Transportation Hub Oculus Designed in Remembrance of 9/11

The opening of the World Trade Center Transportation Hub's Oculus will take a rain check on the 17th anniversary of 9/11, according to Steve Coleman, a spokesperson for the Port Authority. Designed by Santiago Calatrava, the 335-foot-long skylight was designed to allow the “Way of Light” to pass through the main hub of the transit hall at 10:28 a.m.—the moment that the North Tower of the WTC collapsed on September 11, 2001. Symbolizing the light that continues to shine through after the darkness of the tragedy, the Oculus opening allows light to fill the massive space as a memorial to the attacks on the twin towers.

The Transportation Hub is conceived at street level as a freestanding structure situated on axis along the southern edge of the “Wedge of Light” plaza. As described in Daniel Libeskind’s master plan for the site, the Plaza is bounded by Fulton, Greenwich and Church Streets to the North, West and East respectively and Tower 3 to the south. Calatrava’s design used the angle of light as a guiding principle for orienting the transportation hub. Each year, a beam of light can pass through the opening in the roof and projects all the way down the center of the Oculus floor.

Calatrava speaks of light as a structural element in the Hub, saying that the building is supported by “columns of light.” At night, the illuminated Oculus serves as a lantern in the reconstructed WTC site. On September 11th of each year, as well as on temperate spring and summer days, the Oculus’s operable skylight opens to bring a slice of the New York sky into the building. A placard at the Oculus explains:

https://www.archdaily.com/901840/world-trade-center-transportation-hub-oculus-designed-in-remembrance-of-9-11

Roadrunner Transportation’s Shares Tumble Sharply, Extending Decline

Shares in Roadrunner Transportation RRTS +2.89% Systems Inc. tumbled to below $1 a share on Monday, accelerating a recent selloff as the trucking company grapples with an operational overhaul and fallout from accounting problems that led to the indictment this year of two former executives.

Roadrunner’s stock has plunged nearly 80% since mid-March, when it was trading at $4.14 per share. The Illinois-based company said it had engaged Barclays BCS -1.07% Capital Inc. to advise the business.

Roadrunner shares fell to 87 cents a share Monday, down nearly 18% from Friday’s close.

The company, which grew rapidly in recent years through a series of acquisitions, has been losing money despite a buoyant freight market, as it restates several years of financial reports and overhauls its operations.

Roadrunner said in a statement that it was working with Barclays and Elliott Management Corp., a major shareholder, on its capital structure and “long-term business plans.”

“We are encouraged by the current trends in all three of our business segments and are continuing to move forward in implementing improvements in our operational and corporate structure which are designed to support future growth,” Roadrunner said in the statement.

The company lost $42 million in the second quarter, up from a $37.9 million loss in the same quarter last year, on higher interest costs while its revenue increased 5% to $558 million in the June quarter. It also reported $8.6 million in corporate restructuring and restatement costs in the second quarter.

The losses follow a $91.2 million reported net loss in fiscal 2017.

In June, federal prosecutors charged two former Roadrunner executives for their alleged role in a complicated accounting and securities fraud scheme that authorities said resulted in the loss of more than $245 million in shareholder value. The company had previously said it would restate earnings going back several years after disclosing accounting problems in the wake of a rapid spate of acquisitions.

Roadrunner said the company has taken corrective actions since January of 2017 to strengthen its internal compliance processes and controls, including replacing its former management team.

Roadrunner last week also disclosed a data breach after employees clicked on phishing emails earlier this year.

The company’s woes stand in contrast to the broader transportation sector, where stock prices have been rising steadily this summer on strong freight demand ahead of what is expected be a busy peak shipping season.

https://www.wsj.com/articles/roadrunner-transportations-shares-extend-fall-amid-rising-concerns-1536610825

Valuation Aspects That Are Often Overlooked

Valuations are becoming even more challenging in the current economic climate which means that aspects of valuations would need to be considered more carefully.

In particular, situations such as IPOs, transactions, and reporting, valuations are subject to challenging debate, revealing certain weaknesses in the supporting analyses. Quite often we find the commercial aspects of valuations, which are fundamental to derive a well-founded and robust valuation, to have been reviewed less diligently.

Sales, profits, cash, working capital, book values of assets and liabilities are metrics we are familiar with and they are often perceived as sufficient to calculate a value. However, these metrics are mere ‘results’ as opposed to ‘value drivers’. A robust valuation not only requires a thorough analysis of financial data, but it also requires having a strong grasp on the key commercial aspects and the value drivers of a business.

In our experience of valuing businesses and reviewing valuations undertaken, some of the key commercial aspects often overlooked include the following:

BRAND & MARKETING

Valuations often (and simply) consider sales growth percentages achieved in the past and projected in the future with a trend analysis. However, a business’ brand management capability and the existence of an adequate marketing function may be overlooked or not assessed carefully enough. A businesses ‘sustainable’ sales growth is directly affected by its brand management and having a well-formulated marketing strategy. Damaged reputation and poor marketing directly impact revenue which, all else being equal, results in lower cash flows and therefore, a lower valuation.

CASH MANAGEMENT

The reported cash balance as at a valuation date is often taken as a direct input for the valuation in the net debt calculation. However, further consideration is required around the efficiency of managing cash through working capital, capital expenditure and the day to day financing of the business. Issues such as over or under expenditure on capital items, higher collection days versus lower payment days, inefficiency of stock turnover can easily become escalating problems which can impair business value over time. Cash related issues can restrict working capital and the ability to pay dividends which can also impact shareholder returns.

COMBINATIONS & INTEGRATION

When valuing larger conglomerates or businesses which have grown through acquisitions, the track record of business combinations and integrations needs to be considered. Studies suggest that a significant number of acquisitions and mergers fail to achieve their planned objectives. The reasons include the inability to extract synergies, poor integration planning vs implementation and a disjointed strategy, amongst others.

Acquisitions and business integrations, if conducted properly, should add value to businesses. While conducting valuations of businesses which have undertaken acquisitions or mergers previously, it is important to consider how well the integration process and if indeed the transaction enhanced the business with sustainable benefits. Any costs or liabilities associated with the acquisition and integration should also be reviewed in case they may crystallize in the future.

PEOPLE & GOVERNANCE

Adequate management teams, a well-constituted board, experienced leadership, and regulatory compliance are commercial and operational aspects which are difficult to quantify but they can impact business value over time. Management and leadership are charged with operating a business which directly affects financial results. Maintaining adequate operations, internal controls and governance help sustain value in a business and mitigate the risk of fraud and misappropriation. Reviewing these matters as part of the valuation may highlight certain points which may negatively or positively impact a business’ value.

STRATEGY & PLANNING

Having an adequate strategy and diligently implemented plans are important for any businesses and its future success. As a fundamental and commercial consideration in a valuation, business strategy should be challenged, stress tested and mapped to the plans which are prepared. The financial forecasts of a business should reflect the strategy and the related plans. Overly prudent or ambitious strategies with mismatched planning can cast doubt over the future financial performance of the business which increases uncertainty; thereby reducing the price a prospective purchaser may be willing to pay for the business.

To conclude, valuations can often be perceived as a relatively simple calculation; the application of the known methodology to a set of numbers and formulae to produce a result. In doing so, several commercial aspects are not considered in the value derivation. It is important to conduct a thorough review of the wider commercial and non-financial aspects of a business to help derive a robust value assessment which can stand scrutiny in all situations.

https://www.forbesmiddleeast.com/en/valuation-aspects-that-are-often-overlooked/

Injunction hearing stifles pipeline construction, raises questions about protester arrests

Construction on part of the Bayou Bridge Pipeline on hold until a lawsuit is settled.

Monday’s injunction not only stops work on the pipeline but also raised questions about the arrests of demonstrators protesting at the construction site.

Landowner Peter Aalsted filed an injunction against Energy Transfer Partners because he says they’re building the Bayou Bridge Pipeline on his property without his permission.

“They have not completed the necessary process to expropriate the property. And, there are other landowners like our plaintiff, our client, who have not agreed or signed easement agreements. So, they have been acting without authorization in violation of the law in the state,” said Atchafalaya Basin Keeper Staff Attorney.

During Monday’s hearing, lawmakers for Aalsted and the pipeline reached an agreement.

“Bayou Bridge has agreed to not entering the property or engage in any construction activities thereon,” said Mitchell.

This complicates the legality of the arrests of thirteen demonstrators protesting construction of the pipeline on the property.

The St. Martin Sheriff’s Office made the arrests through what’s known as an “unauthorized entry of a critical infrastructure” felony charge.

It’s part of a newly amended law that took effect in August.

“L’eau Est la Vie” camp member Cindy Spoon was arrested just a few weeks ago but came right back after being bailed out of jail.

“They shouldn’t even be able to have surveyors on the property. Much less cut trees, have private security brutalizing people. Lay pipe, all of these things are illegal. And, actually we have express, explicit, written permission from the landowner to be on this land, and to protect this land from Energy Transfer Partners,” said Spoon.

The attorney representing those demonstrators says Monday’s proceeding impacts their cases.

“What’s ironic in all of this is the company has had the protestors arrested on the basis that they were trespassing onto property and it’s clear that the company was as well,” said Center for Constitutional Rights attorney Pam Spees.

We’ve reached out to St. Martin’s Sheriffs Office about the arrests but they have not returned our messages.

Another hearing in this case is set for November 27th.

According to our partners at The Advocate, Energy Transfer Partners says today’s agreement will not “have any impact to their construction schedule.”

https://katc.com/news/2018/09/10/injunction-stops-pipeline-construction-raises-questions-about-protester-arrests/

API releases new standard for well control valves

The American Petroleum Institute issued the newest version of its standard governing the design and operations of critical safety valves in onshore and offshore oil and gas wells. The 21st Edition of Specification 6A—Wellhead and Tree Equipment includes automatic closure requirements to ensure additional protection for workers and the environment in loss of power and emergency situations, API said.

Other improvements include rigorous requirements for modern technologies, including equipment quality provisions, and recognition of the environmental conditions in which well equipment is to be placed safely in service. The US Bureau of Safety and Environmental Enforcement has relied upon this specification in its offshore oil and gas safety regulations, API noted.

“Each day, more than 1.6 million bbl of oil are pumped from hundreds of deepwater wells in the Gulf of Mexico,” API Global Industry Services Vice-Pres. Debra Phillips said. “Ensuring the immediate closure of valves connecting underwater production systems to surface facilities will help keep workers safe and adds an additional layer of environmental protection where they operate.”

API published its first 6A standard in 1925, making it one of the largest US oil and gas trade association’s longest existing standards that underpin its core value of continuously improving global industry operations, Phillips said.

https://www.ogj.com/articles/2018/11/api-releases-new-standard-for-well-control-valves.html

Some 350 oil and gas service providers to participate in exhibition

AS THE oil and gas industry worldwide continues its slow recovery with upstream companies increasing production, the midstream and services businesses in Malaysia and the region are expected to benefit from the recovery and play a pivotal role in catalysing regional industry growth.

For some 350 oil and gas service providers, the upcoming 4th Malaysian Oil & Gas Services Exhibition and Conference 2018 (Mogsec 2018) in Kuala Lumpur will provide the opportune platform to showcase their latest technology, equipment and machinery in the fields of oil, gas and petrochemical engineering.

It will also provide possible collaborations and partnership opportunities with other players locally or regionally, in terms of technologies, integrated solutions, quality talent or export capabilities.

To be held at Kuala Lumpur Convention Centre from Sept 25 to 27, Mogsec 2018 will feature exhibitors such as stakeholder Petronas while major players include Bureau Veritas, Draeger, Geveke Oil & Gas, MMC Oil & Gas Engineering, Sapura Energy Bhd and Velesto Energy Bhd as well as the Malaysian Oil & Gas Services Council (MOGSC) SME Pavilion and Sabah and Sarawak Pavilions, among others.

Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin is scheduled to officiate at the opening ceremony of Mogsec 2018.

“Malaysia continues to be one of the fastest growing economies in the Asia Pacific region, and our oil and gas sector has created plenty of opportunities for businesses in the O&G services sector,” said MOGSC president Sharifah Zaida Nurlisha.

“To maintain its projected annual growth rate of 5% until 2020, the industry has invested heavily into enhancing the output of existing oil and gas fields as well as new marginal fields, while also enhancing the exploration and development of deepwater areas.

“This year’s theme, “Catalysing regional growth in oil and gas”, signifies the need for Malaysian OGSE players to actively explore and develop synergistic partnerships and collaborations across the value chain, both locally and internationally, to further stimulate the oil and gas industry in Malaysia.”

Alun Jones, country general manager of UBM Malaysia, the organiser of Mogsec 2018, added: “Mogsec 2018 is expected to welcome about 7,000 trade visitors who will make their way here to forge new business leads and strengthen business partnerships, in the hopes of growing and strengthening their business operations and service offerings here in Malaysia.”

The special features of Mogsec 2018 include the Mogsec Innovation Centres, the MOGSC Innovation Awards, Matrade International Sourcing Programme, Matrade Incoming Buying Mission, MIDA Business Clinic, International Delegation Programme.

https://www.thestar.com.my/metro/metro-news/2018/09/11/some-350-oil-and-gas-service-providers-to-participate-in-exhibition/

In Germany, Construction Has Begun On Controversial New Russian Gas Pipeline

The quiet beach resort of Lubmin on Germany's Baltic coast has long been an energy hub. Just a mile from the pier are the remains of what was once East Germany's largest nuclear power station.

Now the town is the entry point for natural gas from Russia. Construction began in May on a new pipeline that will enable Russia to increase its natural gas exports not only to Germany but to other countries in Europe as well. The gas will be supplied by Russia's state-owned Gazprom.

Lubmin's Mayor Axel Vogt is delighted.

"This gas pipeline is of huge significance for the region," Vogt says. "Our small industrial harbor is earning a lot of money because of it."

But relations between the European Union and Russia are at an all-time low, and many EU countries agree with President Trump's warning in July that the private, commercial pipeline project known as Nord Stream 2 will make Germany "captive to Russia." However, the German government gave the final go-ahead for the pipeline's construction earlier this year.

The Soviet Union began supplying gas to Germany in the 1970s, and Germany now gets roughly 40 percent of its gas from Russia, according to the German Federal Association of Energy Economy. The Nord Stream 2 pipeline, following the same route as an existing pipeline known as Nord Stream, will double Gazprom's current supply capacity to Europe. While this worries many in the EU, Vogt is not perturbed.

"I'm not afraid of Russia," he insists. "Look, here in former East Germany, we grew up close to Russia. Many people here still have a deep connection to former Soviet states or directly with Russia."

But Germany's eastern neighbors are especially nervous about relying on Moscow for energy. After decades as Soviet satellite states, their distrust of Russia runs deep. Poland and the Baltic states fear being at Russia's mercy and worry it could increase gas prices — or turn off the tap.

Just 50 miles east of Lubmin is the Polish border, and terminals are being built on the Polish coast to receive liquefied natural gas from Qatar, the U.S. — anywhere but Russia.

Norbert Röttgen, a politician with Germany's ruling Christian Democratic Union, is one of few in the government to criticize Nord Stream 2. He says he is concerned about Germany's relationship with its neighbors. Röttgen argues that Nord Stream 2 is a political move by Moscow, intended to deprive Ukraine of the revenue it makes from transporting Russian gas through its territory.

German Chancellor Angela Merkel recently started to voice her own concern about the damage the pipeline could do to Ukraine's economy. Speaking before a bilateral meeting with Russian President Vladimir Putin in August, Merkel said: "In my view, Ukraine must continue to play a role in transporting Russian gas to Europe, even once Nord Stream 2 is operational."

But Berlin still rejects the notion that the project is in any way political. Merkel's spokespersons have repeated the same line again and again. At a recent government press conference, deputy spokesperson Ulrike Demmer stressed, "Nord Stream 2 is purely an economic endeavor."

But, Röttgen argues, "It cannot be that a matter that in Poland and the Baltic States is perceived as a matter of national security, is identified and characterized by the German government as a non-political topic."

Reinhard Bütikofer, who represents Germany's Greens in the European Parliament, notes that former German Chancellor Gerhard Schröder has been pushing Nord Stream in Germany for years. Schröder paved the way for the first pipeline, Nord Stream 1, in 2005, while he was still in office. In 2006, after leaving office, Schröder became chair of Nord Stream's shareholders' committee, a post he still holds today. Bütikofer says Schröder continues to holds sway in Germany's Social Democratic Party.

"It's been a political project from the very beginning. It's part of a very clear geopolitical strategy of the Russian government," Bütikofer contends. "If you look at the high level of involvement of government officials in Germany, it's just a lie."

Out in the Baltic Sea, ships are already laying pipes on the seabed to transport Russian gas. Surveying the work from a boat nearby, Steffen Ebert, a spokesperson for Nord Stream 2, says that Europe's own gas reserves are running out and that all of Europe – not just Germany – stands to profit from the new pipeline.

"Russia has been sending gas to Europe for a at least 40 years and has proved itself a reliable partner, even during the Cold War," Ebert says. "Sinister stories about Russia turning off the tap are just scaremongering."

With plans to reduce its fossil fuel usage in the coming years, Germany may not need Russian gas for much longer anyway. Energy expert Claudia Kemfert at the German Institute of Economic Research believes there's nothing to worry about, provided Germany sticks to its Paris climate accord commitments and the European Commission's goal to reduce fossil fuel usage by 80 percent by 2050, compared with 1990 levels.

"Gas is cleaner than coal because it produces less emissions, that's for sure," she says. "But we have to see that a full de-carbonization of the whole economy means that by 2050, the gas demand has to drastically decline."

Back in the Baltic, Lubmin is already preparing for the time when fossil fuels are history. A few miles north of the new pipeline, a huge offshore wind farm is also under construction.

https://www.npr.org/2018/09/10/644968728/in-germany-construction-has-begun-on-controversial-new-russian-gas-pipeline