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Friday, 13 April 2018

Saudi Aramco’s $2tn valuation looks to be a tough target

Saudi Aramco’s $2tn valuation looks to be a tough target:

"Saudi Aramco is unlikely to achieve the $2tn valuation sought after by Saudi officials ahead of its planned stock market listing despite the state energy giant’s huge profits and cash flows.

The financial community and oil analysts have long been sceptical of the ambitious valuation targets of the kingdom’s crown prince Mohammed bin Salman, but now new financial information adds weight to the idea that Saudi Arabia is unlikely to get there.

For decades financial information has been kept a closely guarded state secret. But now it has emerged that the world’s largest oil producer earned $33.8bn in the first half of 2017, according to Bloomberg that cited company accounts it had seen."

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The Aramco Accounts: Inside the World’s Most Profitable Company - Bloomberg

The Aramco Accounts: Inside the World’s Most Profitable Company - Bloomberg:

"It’s a cornerstone of the global economy, producing and selling 10 million barrels of oil every day. Yet for four decades the financial performance of Saudi Aramco has been one of the biggest secrets in global business, limited to a tiny circle of executives, government officials and princes.

Now, a first glimpse of the state oil giant’s finances shows Aramco churned out $33.8 billion in net income the first six months of 2017, easily outstripping U.S. titans like Apple Inc., JPMorgan Chase & Co. and Exxon Mobil Corp.

The numbers seen by Bloomberg News give investors the most extensive set of data yet to assess the possible value of a once-in-a-generation deal for financial markets: Aramco’s proposed initial public offering. And with Aramco generating the bulk of Saudi Arabia’s revenue, the accounts also provide sovereign bond investors with a unique insight into the kingdom’s financial health."

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Qatar banks’ assets expand by 9% to $378.9bn - The Peninsula Qatar

Qatar banks’ assets expand by 9% to $378.9bn - The Peninsula Qatar:

"Qatar’s non-hydrocarbon sector grew 4.2 percent in 2017, offset by a contraction in the hydrocarbon sector. The real GDP growth slowed marginally in Q4 mainly due to temporary shutdowns for LNG maintenance, QNB noted citing official data.

Brent crude prices were stable on average in March and Qatar’s oil production rose to 621,000 b/d in December from 612000 b/d prior. The country’s property sector continued to recover – the real estate price index rose 1.8 percent in December and falling rents turned a corner, QNB monthly report said.

Qatar’s exports expanded 14 percent year-on-year in February 2018 on higher hydrocarbon prices while import growth remained steady at 0.6 percent year-on-year. Inflation slowed to 0.4 percent y/y in March; food inflation eased while housing inflation picked up."

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AP sources: US, Emirates near deal to solve air subsidy spat

AP sources: US, Emirates near deal to solve air subsidy spat:

"The United States and the United Arab Emirates are nearing a deal to resolve a years-old spat over alleged government subsidies to Emirati airlines that the major U.S. airlines claim have tilted the competition against them, four individuals familiar with the negotiations told The Associated Press. Under the budding deal, Dubai-based Emirates and Abu Dhabi-based Etihad Airways would agree to voluntarily open up their accounting books, long accused by the U.S. airlines of obscuring billions in subsidies. The airlines will also assert to the United States that they currently have no plans to add additional flights to the United States from Europe or other destinations outside of the United Arab Emirates. The deal will closely mirror one reached in January between the U.S. and Qatar, the individuals said. Despite years of rancorous debate, that deal was broadly embraced both by the Qataris and by the big U.S. airlines, making it an attractive model to replicate. The individuals weren’t authorized to discuss the deal ahead of its completion and requested anonymity."

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Qatar's $12 Billion Bond Tops Saudi Debt Sale to Lead EM - Bloomberg

Qatar's $12 Billion Bond Tops Saudi Debt Sale to Lead EM - Bloomberg:

"Qatar raised $12 billion in its first dollar bond sale in two years, surpassing its estranged neighbor Saudi Arabia to issue the biggest dollar bond from an emerging-market nation this year. The world’s biggest liquefied natural gas exporter sold $3 billion of five-year notes, priced to yield 135 basis over similar-maturity U.S. Treasuries, according to two people familiar with the matter, declining to be identified because the information is private. It also placed $3 billion of 10-year bonds at a spread of 170 basis points and $6 billion of 30-year securities at 205 basis points, the people said. The sale, which eclipsed Saudi Arabia’s $11 billion bond issued earlier this week, received more than $53 billion in bids, including interest from joint lead managers. It was the country’s first public international bond sale since the start of a regional spat in June. "

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