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Thursday, 20 July 2017

Deyaar Development's first-half revenues rocket - The National

Deyaar Development's first-half revenues rocket - The National:

"Deyaar Development reported a first-half 135 per cent year-on-year increase in revenues to Dh316.4 million, up from Dh134.9m in the same period last year, for the six months ending June 2017. The rise was driven by sales of its properties and construction progress at The Atria and Mont Rose projects, both of which currently exceed 75 per cent completion, it said. Deyaar, based in the UAE, also recorded first-half net profit of Dh67m, down from Dh111.3m in the same period last year. This year’s net profit figure was a result of the progress in Deyaar’s flagship projects, it said."



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Abu Dhabi Commercial Bank profits dip on provisions - The National

Abu Dhabi Commercial Bank profits dip on provisions - The National:

"Abu Dhabi Commercial Bank (ADCB), the UAE's third largest lender, said yesterday that its second -quarter net profit dipped 10.3 per cent, missing analyst forecasts, as money set aside to cover bad debt grew and non-interest income plummeted. Net profit in the three months ended June 30 reached Dh1 billion compared with Dh1.12bn a year earlier, the bank said. Total net interest and Islamic financing income rose 10 per cent year-on-year to Dh1.67bn but non-interest income declined 30 per cent to Dh434 million. Four analysts polled by Bloomberg had forecast an average net profit of Dh1.11bn."



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Diplomatic crisis triggers only minor Qatar economic forecast cuts: Reuters Poll

Diplomatic crisis triggers only minor Qatar economic forecast cuts: Reuters Poll:

"A political crisis between Doha and its neighbors has pushed economists to cut growth forecasts for Qatar -- but not by enough to stop it being one of the region's strongest performers, a Reuters poll showed. The poll of 12 economists lowered the median forecast for Qatar's gross domestic product growth this year to 2.3 percent from 3.5 percent projected in the previous Reuters poll, conducted in April. Next year's growth forecast was cut to 3.1 percent from 3.7 percent. If the new predictions are correct, Qatar will still grow more quickly this year and next year than most of the five other rich Gulf Arab oil exporters."



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Fitch Revises Dunia's Outlook to Negative; Affirms IDR at 'BB'

Fitch Revises Dunia's Outlook to Negative; Affirms IDR at 'BB':

"(The following statement was released by the rating agency) LONDON, July 20 (Fitch) Fitch Ratings has revised Dunia Finance LLC's (Dunia) Outlook to Negative from Stable while affirming the company's Issuer Default Ratings (IDR) at Long-Term 'BB' and Short-Term 'B'. The Outlook revision reflects weakening asset quality, which negatively affected Dunia's profitability in 2016. Fitch expects Dunia's asset quality metrics to remain under pressure throughout 2017. Dunia is a UAE-based finance company, offering smaller-ticket, predominantly unsecured loans, with a particular franchise among salaried expatriates from emerging markets. KEY RATING DRIVERS IDRS The IDRs reflect the balance between the significant exposure of Dunia to credit risk arising from its unsecured lending and the moderate (by finance company benchmarks) leverage under which it operates. Dunia's net impairment charge has approximately doubled in each of the last two years as job losses and wage pressures constrained borrowers' repayment capacities. Simultaneously, loan growth slowed markedly to -2% in 2016 from 34% in 2015 and 47% in 2014. With impairment charges absorbing a materially higher proportion of revenue (72% in 2016, up from 40% in 2015 and 29% in 2014), Dunia's pre-tax profit dropped 67% in 2016 to AED71 million (2015: AED217 million). "



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The Blockade of Qatar Airways’ Home Base Is Trouble for the World’s No. 1 Airline - Bloomberg

The Blockade of Qatar Airways’ Home Base Is Trouble for the World’s No. 1 Airline - Bloomberg:

"You’d think Qatar Airways, voted the world’s best airline in a passenger survey last month, would have no trouble keeping its seats filled. Instead, it’s had to cancel scores of flights after four neighboring countries barred it from their airspace; it’s also being kicked out of an American Airlines Group Inc. code share agreement that eased access to the crucial U.S. market. On July 12, Qatar Air’s brash chief executive officer, Akbar Al Baker, issued a rare public apology after his description of U.S. flight attendants as “grandmothers” was condemned by other airline executives and labor unions. The carrier has now been pressed into service to fly 4,000 dairy cows into the country on cargo planes to assure fresh milk supplies during the blockade."



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Hunting Oil Services Stocks With a DUC Call - Bloomberg Gadfly

Hunting Oil Services Stocks With a DUC Call - Bloomberg Gadfly:

"The problem is, of course, the oil price. E&P firms have cut costs and got a bit of a tailwind from the rally in oil prices earlier this year, leading to a sharp increase in the number of rigs in operation. But it's hard to maintain that sort of enthusiasm when oil futures don't rise above $50 a barrel until early 2020. So the number of oil rigs being added has slowed markedly:
Dog Days
Weekly additions to the U.S. oil-rig fleet this summer have slowed to about a third of the pace in the spring"



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MIDEAST STOCKS-Qatar continues rally near pre-crisis level, SABIC boosts Saudi

MIDEAST STOCKS-Qatar continues rally near pre-crisis level, SABIC boosts Saudi:

"Qatar's stock market continued rebounding on Thursday from lows hit after its diplomatic rift with neighbouring Arab states, while strength in top petrochemical producer Saudi Basic Industries buoyed Saudi Arabia.

The Qatari index rose 0.4 percent to 9,542 points. It had closed at 9,924 points on June 4, just before the crisis erupted, and has rebounded more than 10 percent from its low at the start of July.

Doha Bank gained 2.0 percent after reporting its first-half net profit rose to 716‍​ million riyals ($197 million) from 708 million riyals year ago, as operating income gained 4.8 percent."



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Etihad Airways sells first airline stake amid review | GulfNews.com

Etihad Airways sells first airline stake amid review | GulfNews.com:

"Etihad Airways has sold its minority stake in European regional carrier Darwin Airline, the first divestment since launching a strategic review last year and just weeks after chief executive James Hogan left the Abu Dhabi carrier.
Etihad, which held a 33.3 per cent stake in Darwin Airline, and other investors have sold their shares to a subsidiary of Slovenia’s Adria Airways, according to a Darwin Airline statement sent to Reuters by Etihad on Wednesday.

Darwin Airline was one of eight carriers Etihad had bought since 2011 and the second one sold after British Airways-owner International Airlines Group (IAG) took over Aer Lingus in 2015."



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Adnoc hires banks for fuel retailer IPO: sources

Adnoc hires banks for fuel retailer IPO: sources:

"Abu Dhabi National Oil Company (Adnoc) has picked a local bank and three foreign lenders as bookrunners for the planned initial public offering of its retail unit that could raise $1.5 billion to $2 billion, sources said on Thursday. The listing for ADNOC Distribution, which manages petrol stations as well as convenience stores across the United Arab Emirates (UAE), comes as Abu Dhabi joins other Gulf states, such as Saudi Arabia and Oman, in privatizing energy assets. First Abu Dhabi Bank, HSBC, Bank of America Merrill Lynch and Citigroup have been mandated for the IPO, sources familiar with the matter told Reuters."



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JPMorgan, Citigroup See Mideast Bond Deals Slipping From Record - Bloomberg

JPMorgan, Citigroup See Mideast Bond Deals Slipping From Record - Bloomberg:

"JPMorgan Chase & Co. and Citigroup Inc., the biggest debt arrangers in the Middle East and North Africa, expect regional sales to slow for the rest of the year after sovereigns raised a record $37 billion in the first half.

“We have seen a significant amount of issuance early in the year and it’s not surprising that we are starting to see things slow down,” Hani Deaibes, JPMorgan’s regional head of debt-capital markets, said in an interview. “While we expect activity to pick up a bit later in the year, we don’t see a substantial pipeline at the moment.”"



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Qatar Warms Up to Iran on Natural Gas - Bloomberg

Qatar Warms Up to Iran on Natural Gas - Bloomberg:

"The world’s biggest gas field lies between Qatar and Iran, and the half-competitive, half-cooperative race to exploit it has taken a new turn. For both countries, this enormous resource is also a source of political power. Now, with the emirate at odds with Tehran’s foe, Saudi Arabia, its tacit cooperation with Iran is gaining, even as the two are set to compete more intensely in gas markets. In 1971, Shell first drilled into what became Qatar’s North Field and was disappointed to find not oil, but gas, though in vast quantities. The country was only a modest oil producer with a tiny domestic and regional energy market. Through the 1980s and 1990s, it struggled to develop a liquefied natural gas project to export to Asia, but with low global energy prices, a cost-cutting BP gave up and Mobil took over. The emir, Sheikh Hamad bin Khalifa Al Thani, who took power from his cautious father in a bloodless coup in 1995, was keen to press ahead. Exxon might not have had the entrepreneurial mindset to create the project, but when it bought Mobil in 1998, and soon afterwards oil and gas prices began to rise, it had one of its most valuable global assets. The wily former oil minister, Abdullah bin Hamad al-Attiyah, worked with the emir to use Qatar’s strategic position to sell gas both east and west. Total, ConocoPhillips and Shell also built LNG plants, while the Abu Dhabi state firm Mubadala, with Total and Occidental, constructed the Dolphin pipeline to the neighboring United Arab Emirates."



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MIDEAST STOCKS-Gulf mixed in early trade but Qatar continues rebound

MIDEAST STOCKS-Gulf mixed in early trade but Qatar continues rebound:

"Gulf stock markets were mixed in early trade on Thursday but Qatar continued rebounding from lows hit early this month because of its diplomatic rift with neighbouring Arab states.

The Qatari index rose 0.6 percent to 9,562 points. It closed at 9,924 points on June 4, just before the crisis erupted.

Doha Bank gained 2.2 percent after reporting that first-half net profit rose to 716‍​ million riyals ($197 million) from 708 million riyals year ago, as operating income gained 4.8 percent."



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Saudi Aramco offers fund managers a chance to prove their worth

Saudi Aramco offers fund managers a chance to prove their worth:

"Where is the clamour of investors calling for Saudi Aramco to list in their jurisdiction? Politicians, exchange executives, lawyers and bankers all see benefits from helping the national oil champion sell stock. Prestige, relevance, trading volumes and fees beckon, if the world’s largest extractor of crude oil becomes a public company late next year as planned. Yet recent proposals from the UK regulator to ease the way for a London quote, by removing some governance requirements for state controlled companies, prompted several asset managers to adopt a posture of principled outrage."



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Three Years Into Cheap Oil, Gulf Is Still Depending on a Rebound - Bloomberg

Three Years Into Cheap Oil, Gulf Is Still Depending on a Rebound - Bloomberg:

"Energy-rich Gulf Arab nations have scrambled to adjust to the slump in oil prices since 2014. Three years on, their economies are mired in weak growth and largely just as dependent on crude as they ever were.

The six members of the Gulf Cooperation Council have curtailed subsidies and introduced new taxes to bolster non-oil revenue and reduce ballooning budget deficits. Much of the savings, however, have been due to spending cuts and the pace of reforms has slowed across the region, said Monica Malik, chief economist at Abu Dhabi Commercial Bank. Overall progress in economic diversification has been limited, she said.

 Absent a rebound in oil prices, analysts say it’s unlikely that these nations can repair their finances without deeper spending cuts that could further hurt growth. The standoff between a Saudi-led bloc and Qatar is also undermining investor confidence at a time when the GCC is seeking foreign funds.

"



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