From Real Estate to Aviation, It's Been a Tough Week for Dubai - Bloomberg:
It’s a week Dubai companies would like to forget.
The biggest of them, in real estate and aviation -- industries underpinning the economy of the Middle East business hub -- posted lower profits.
The bad news started pouring in Wednesday morning with Damac Properties PJSC reporting a 68 percent drop in third-quarter net income. That was soon followed by lower profit at state-owned Nakheel PJSC, which built Dubai’s iconic palm-shaped islands, and Emaar Properties PJSC, the developer of the world’s tallest tower.
Thursday 15 November 2018
Crude Treads Water as Saudi Sanctions Counter Stockpile Gains - Bloomberg
Crude Treads Water as Saudi Sanctions Counter Stockpile Gains - Bloomberg:
Oil prices rose slightly as tension over U.S. sanctions against Saudi Arabia countered a jump in American crude stockpiles.
Futures in New York rose 0.4 percent after the Trump administration issued financial penalties against 17 top Saudi officials over the death of journalist Jamal Khashoggi, hours after the kingdom charged 11 people for the murder. The geopolitical strife outweighed a government report showing the biggest weekly crude-storage increase since February 2017.
“These massive crude oil builds that we’ve seen week after week in the U.S. sucked all of the geopolitical risk out of the crude oil price,” said Rob Thummel, managing director at Tortoise, which manages $16 billion in energy-related assets. The announcement on sanctions “puts some risk back into the market.”
Oil prices rose slightly as tension over U.S. sanctions against Saudi Arabia countered a jump in American crude stockpiles.
Futures in New York rose 0.4 percent after the Trump administration issued financial penalties against 17 top Saudi officials over the death of journalist Jamal Khashoggi, hours after the kingdom charged 11 people for the murder. The geopolitical strife outweighed a government report showing the biggest weekly crude-storage increase since February 2017.
“These massive crude oil builds that we’ve seen week after week in the U.S. sucked all of the geopolitical risk out of the crude oil price,” said Rob Thummel, managing director at Tortoise, which manages $16 billion in energy-related assets. The announcement on sanctions “puts some risk back into the market.”
Emirates NBD postpones bond issue due to market conditions - sources | Reuters
Emirates NBD postpones bond issue due to market conditions - sources | Reuters:
Emirates NBD (ENBD), Dubai’s largest bank, has postponed a planned issue of U.S. dollar-denominated bonds due to challenging market conditions, sources close to the matter said.
The bank announced earlier this week that it intended to issue a Regulation S senior unsecured benchmark bond with a five-year maturity.
Benchmark bonds generally total more than $500 million. The paper would have been issued under ENBD’s $12.5 billion bond programme.
Emirates NBD (ENBD), Dubai’s largest bank, has postponed a planned issue of U.S. dollar-denominated bonds due to challenging market conditions, sources close to the matter said.
The bank announced earlier this week that it intended to issue a Regulation S senior unsecured benchmark bond with a five-year maturity.
Benchmark bonds generally total more than $500 million. The paper would have been issued under ENBD’s $12.5 billion bond programme.
SaudiGulf Airlines signs agreement for 10 Airbus A320neo jets | Reuters
SaudiGulf Airlines signs agreement for 10 Airbus A320neo jets | Reuters:
Saudi Arabian airline SaudiGulf owner Al-Qahtani Aviation has signed an agreement to buy 10 Airbus (AIR.PA) A320neo family jets, Airbus said in a statement on Thursday.
The value of deal was not announced. It would be worth around $1.1 billion at list prices, though discounts are common.
The “commitment” was announced at the Bahrain International Airshow, which is taking place this week, Airbus said.
Saudi Arabian airline SaudiGulf owner Al-Qahtani Aviation has signed an agreement to buy 10 Airbus (AIR.PA) A320neo family jets, Airbus said in a statement on Thursday.
The value of deal was not announced. It would be worth around $1.1 billion at list prices, though discounts are common.
The “commitment” was announced at the Bahrain International Airshow, which is taking place this week, Airbus said.
Saudi Aramco taps banks for $5 billion petrochemical project finance: sources | Reuters
Saudi Aramco taps banks for $5 billion petrochemical project finance: sources | Reuters:
Saudi Aramco has approached banks to finance its $5 billion Amiral petrochemical project that the state-owned oil producer plans to develop with France’s Total, five sources familiar with the matter said.
Aramco, the world’s largest crude producer, plans to boost investment in refining and petrochemicals in a bid to cut reliance on crude as demand for oil slows.
Plans for the giant Amiral petrochemical complex in the Saudi city of Jubail were announced in April. It will be located next to the Satorp refinery, which is also jointly owned and operated by Aramco and Total.
Saudi Aramco has approached banks to finance its $5 billion Amiral petrochemical project that the state-owned oil producer plans to develop with France’s Total, five sources familiar with the matter said.
Aramco, the world’s largest crude producer, plans to boost investment in refining and petrochemicals in a bid to cut reliance on crude as demand for oil slows.
Plans for the giant Amiral petrochemical complex in the Saudi city of Jubail were announced in April. It will be located next to the Satorp refinery, which is also jointly owned and operated by Aramco and Total.
Upset by Trump's Iran waivers, Saudis push for deep oil output cut | Reuters
Upset by Trump's Iran waivers, Saudis push for deep oil output cut | Reuters:
When U.S. President Donald Trump asked Saudi Arabia this summer to raise oil production to compensate for lower crude exports from Iran, Riyadh swiftly told Washington it would do so.
But Saudi Arabia did not receive advance warning when Trump made a U-turn by offering generous waivers that are keeping more Iranian crude in the market instead of driving exports from Riyadh’s arch-rival down to zero, OPEC and industry sources say.Angered by the U.S. move that has raised worries about over supply, Saudi Arabia is now considering cutting output with OPEC and its allies by about 1.4 million barrels per day (bpd) or 1.5 percent of global supply, sources told Reuters this week.
“The Saudis are very angry at Trump. They don’t trust him any more and feel very strongly about a cut. They had no heads-up about the waivers,” said one senior source briefed on Saudi energy policies.
When U.S. President Donald Trump asked Saudi Arabia this summer to raise oil production to compensate for lower crude exports from Iran, Riyadh swiftly told Washington it would do so.
But Saudi Arabia did not receive advance warning when Trump made a U-turn by offering generous waivers that are keeping more Iranian crude in the market instead of driving exports from Riyadh’s arch-rival down to zero, OPEC and industry sources say.Angered by the U.S. move that has raised worries about over supply, Saudi Arabia is now considering cutting output with OPEC and its allies by about 1.4 million barrels per day (bpd) or 1.5 percent of global supply, sources told Reuters this week.
“The Saudis are very angry at Trump. They don’t trust him any more and feel very strongly about a cut. They had no heads-up about the waivers,” said one senior source briefed on Saudi energy policies.
Factbox: Who are the Saudis under the spotlight over Khashoggi's killing? | Reuters
Factbox: Who are the Saudis under the spotlight over Khashoggi's killing? | Reuters:
Saudi Arabia is seeking the death penalty against five out of 21 people under investigation in connection with the murder of journalist Jamal Khashoggi. Five senior government officials have also been dismissed.
Khashoggi, a Washington Post columnist and critic of Saudi policies, was killed in the Saudi consulate in Istanbul on Oct. 2 after entering to obtain documents for his marriage.
Saudi Arabia initially denied knowledge of his fate, then offered contradictory explanations including that he was killed in a rogue operation and that the killing was premeditated. Those varying accounts drew international scepticism.
Saudi Arabia is seeking the death penalty against five out of 21 people under investigation in connection with the murder of journalist Jamal Khashoggi. Five senior government officials have also been dismissed.
Khashoggi, a Washington Post columnist and critic of Saudi policies, was killed in the Saudi consulate in Istanbul on Oct. 2 after entering to obtain documents for his marriage.
Saudi Arabia initially denied knowledge of his fate, then offered contradictory explanations including that he was killed in a rogue operation and that the killing was premeditated. Those varying accounts drew international scepticism.
MIDEAST STOCKS-Most of region firm, blue chips boost Egypt sharply | Reuters
MIDEAST STOCKS-Most of region firm, blue chips boost Egypt sharply | Reuters:
Most Middle Eastern stock markets were firm on Thursday while Egypt rose sharply in active trade on buying of blue chips that was encouraged by strength in emerging markets, generally due to optimism over the Sino-U.S. trade dispute.
The Egyptian blue-chip index rose 1.4 percent, far outperforming the broader EGX100, which was almost flat.
Global Telecom gained 3.2 percent and Edita Food added 7.3 percent. Orascom Investment Holding rose 2.8 percent after reporting a profit for its third quarter compared with a loss last year.
Most Middle Eastern stock markets were firm on Thursday while Egypt rose sharply in active trade on buying of blue chips that was encouraged by strength in emerging markets, generally due to optimism over the Sino-U.S. trade dispute.
The Egyptian blue-chip index rose 1.4 percent, far outperforming the broader EGX100, which was almost flat.
Global Telecom gained 3.2 percent and Edita Food added 7.3 percent. Orascom Investment Holding rose 2.8 percent after reporting a profit for its third quarter compared with a loss last year.
Emirates warns of tough six months ahead as profit drops | ZAWYA MENA Edition
Emirates warns of tough six months ahead as profit drops | ZAWYA MENA Edition:
Emirates said on Thursday it will face tough conditions over the next six months after the airline reported an 86 percent drop in first-half profit.
Higher fuel costs and unfavourable currency exchange rates eroded profits for the state-owned Middle East airline, which warned earlier this week earnings were being squeezed.
Dubai-based Emirates, one of the world's biggest international carriers, made a net profit of 226 million dirhams ($62 million) in the six months to Sept. 30, down from 1.7 billion dirhams a year earlier. Revenue rose 10 percent to 48.9 billion dirhams.
Emirates said on Thursday it will face tough conditions over the next six months after the airline reported an 86 percent drop in first-half profit.
Higher fuel costs and unfavourable currency exchange rates eroded profits for the state-owned Middle East airline, which warned earlier this week earnings were being squeezed.
Dubai-based Emirates, one of the world's biggest international carriers, made a net profit of 226 million dirhams ($62 million) in the six months to Sept. 30, down from 1.7 billion dirhams a year earlier. Revenue rose 10 percent to 48.9 billion dirhams.
Mideast Stocks: Qatar smarts from MSCI decision, Gulf mostly moves little | ZAWYA MENA Edition
Mideast Stocks: Qatar smarts from MSCI decision, Gulf mostly moves little | ZAWYA MENA Edition:
Qatar's stock market continued to suffer in early trade on Thursday from MSCI's decision to exclude two of its major stocks in a semi-annual index review, while the rest of the Gulf moved little.
The Qatar index fell for a third straight session, dropping 0.5 percent after 90 minutes. Qatar Fuel, which had plunged 10 percent on Wednesday after MSCI decided against market expectations not to include the stock in its global indexes for now, dived a further 6.2 percent.
Mesaieed Petrochemical, which had lost 1.5 percent on Wednesday after it was also excluded, fell a further 1.2 percent. Doha Bank dropped 0.7 percent; it had lost 6.3 percent on Wednesday after MSCI decided to move it to a small cap index from the Qatar standard index.
Qatar's stock market continued to suffer in early trade on Thursday from MSCI's decision to exclude two of its major stocks in a semi-annual index review, while the rest of the Gulf moved little.
The Qatar index fell for a third straight session, dropping 0.5 percent after 90 minutes. Qatar Fuel, which had plunged 10 percent on Wednesday after MSCI decided against market expectations not to include the stock in its global indexes for now, dived a further 6.2 percent.
Mesaieed Petrochemical, which had lost 1.5 percent on Wednesday after it was also excluded, fell a further 1.2 percent. Doha Bank dropped 0.7 percent; it had lost 6.3 percent on Wednesday after MSCI decided to move it to a small cap index from the Qatar standard index.
Oil prices stabilize, but supply glut concerns weigh on sentiment | Reuters
Oil prices stabilize, but supply glut concerns weigh on sentiment | Reuters:
Oil prices stabilized on Thursday, reversing earlier declines, but market sentiment remained cautious over concerns that a supply glut may emerge amid a glum economic outlook.
Front-month Brent crude oil futures were trading at $66.17 per barrel at 0737 GMT, up 5 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $56.29 a barrel, up 4 cents from their last settlement.
Oil prices stabilized on Thursday, reversing earlier declines, but market sentiment remained cautious over concerns that a supply glut may emerge amid a glum economic outlook.
Front-month Brent crude oil futures were trading at $66.17 per barrel at 0737 GMT, up 5 cents from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $56.29 a barrel, up 4 cents from their last settlement.
UAE's Aldar Properties profit drops 30%, hit by higher costs | ZAWYA MENA Edition
UAE's Aldar Properties profit drops 30%, hit by higher costs | ZAWYA MENA Edition:
Aldar Properties, the largest property developer in Abu Dhabi, on Thursday reported a 30 percent fall in third-quarter profit due to higher costs and the lack of government infrastructure contracts that benefited earnings a year ago.
The state-owned builder of Abu Dhabi's Formula One circuit made a net profit attributable to owners of 421 million dirhams ($114.7 million) in the three months ended Sept. 30, its financial results showed.
That compared with a net profit attributable to owners of 598 million dirhams in the same period a year earlier.
Aldar Properties, the largest property developer in Abu Dhabi, on Thursday reported a 30 percent fall in third-quarter profit due to higher costs and the lack of government infrastructure contracts that benefited earnings a year ago.
The state-owned builder of Abu Dhabi's Formula One circuit made a net profit attributable to owners of 421 million dirhams ($114.7 million) in the three months ended Sept. 30, its financial results showed.
That compared with a net profit attributable to owners of 598 million dirhams in the same period a year earlier.
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