Fitch sees more GCC privatisation plans:
Fitch, an international credit rating agency, expects more privatisation plans in the Gulf Co-operation Council (GCC) in 2019, starting with the utilities sector, without compromising the links with the sovereigns.
The rating agency also said in a report the GCC corporates – particularly industrials, property and real estate, natural resources and utilities – have “stable” outlook, reflecting stronger fundamentals, high oil prices and favourable macroeconomics.
“While the majority of the GCC corporates are on a stable outlook, increasing macro-economic challenges and new government reforms will put pressure on cash flows at a time when we expect increasing debt capital market activity in 2019,” said Samer Haydar, associate director, EMEA Corporates.
Thursday, 13 December 2018
Saudis Are Said to Target U.S. With Sharp Oil Export Cut - Bloomberg
Saudis Are Said to Target U.S. With Sharp Oil Export Cut - Bloomberg:
After flooding the U.S. market in recent months, Saudi Arabia plans to slash exports to the world’s largest oil market in the coming weeks in an effort to dampen visible build-ups in crude inventories.
American-based oil refiners have been told to expect much lower shipments from the kingdom in January than in recent months following the OPEC agreement to reduce production, according to people briefed on the plans of state oil company Saudi Aramco.
Saudi crude shipments to the U.S. next month could even test the 30-year low set in late 2017 of 582,000 barrels a day, down about 40 percent from the most recent three-month average, the same people said, asking not to be named as the information isn’t public. The final figure could still change, they added.
After flooding the U.S. market in recent months, Saudi Arabia plans to slash exports to the world’s largest oil market in the coming weeks in an effort to dampen visible build-ups in crude inventories.
American-based oil refiners have been told to expect much lower shipments from the kingdom in January than in recent months following the OPEC agreement to reduce production, according to people briefed on the plans of state oil company Saudi Aramco.
Saudi crude shipments to the U.S. next month could even test the 30-year low set in late 2017 of 582,000 barrels a day, down about 40 percent from the most recent three-month average, the same people said, asking not to be named as the information isn’t public. The final figure could still change, they added.
Missing Billionaire's Empire Boomed After Arrest in Saudi Arabia #MbS - Bloomberg
Missing Billionaire's Empire Boomed After Arrest in Saudi Arabia - Bloomberg:
More than a year ago, he vanished into the Ritz-Carlton in Riyadh, along with dozens of Saudi princes and businessmen.
Before long, rumors swirled: Was the billionaire Mohammed Al Amoudi even alive?
Now, at last, comes the answer. Al Amoudi, is "still alive" and will stand trial at some point for corruption and bribery, according to a Saudi official, who asked not to be identified.
More than a year ago, he vanished into the Ritz-Carlton in Riyadh, along with dozens of Saudi princes and businessmen.
Before long, rumors swirled: Was the billionaire Mohammed Al Amoudi even alive?
Now, at last, comes the answer. Al Amoudi, is "still alive" and will stand trial at some point for corruption and bribery, according to a Saudi official, who asked not to be identified.
Saudi's AHAB seeks creditor support for settlement under bankruptcy law | ZAWYA MENA Edition
Saudi's AHAB seeks creditor support for settlement under bankruptcy law | ZAWYA MENA Edition:
Saudi Arabian conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) has begun canvassing creditor support for its bid to become the first company to achieve a settlement under the kingdom's new bankruptcy law, a senior executive said.
Creditors will vote in the first quarter of 2019 on whether they agree to AHAB's plan to reach a protective settlement under the law, said Simon Charlton, AHAB’s chief restructuring officer.
Similar to Chapter 11 proceedings in the United States, the mechanism offers a cram-down provision, stopping minority dissenting creditors from blocking a settlement agreed by the majority.
Saudi Arabian conglomerate Ahmad Hamad Algosaibi and Brothers (AHAB) has begun canvassing creditor support for its bid to become the first company to achieve a settlement under the kingdom's new bankruptcy law, a senior executive said.
Creditors will vote in the first quarter of 2019 on whether they agree to AHAB's plan to reach a protective settlement under the law, said Simon Charlton, AHAB’s chief restructuring officer.
Similar to Chapter 11 proceedings in the United States, the mechanism offers a cram-down provision, stopping minority dissenting creditors from blocking a settlement agreed by the majority.
OPEC's oil-cut pledge is vague, but Saudi plans lend some credibility | ZAWYA MENA Edition
OPEC's oil-cut pledge is vague, but Saudi plans lend some credibility | ZAWYA MENA Edition:
OPEC's supply-cutting deal agreed last week is vague even by the standards of the oil producer group as no individual output targets are likely to be published, although precise plans from top exporter Saudi Arabia boost the agreement's credibility.
The Organization of the Petroleum Exporting Countries, seeking to prevent a surplus that could weaken oil prices, agreed to cut production by 2.5 percent or 800,000 barrels per day (bpd) as part of a deal with Russia and other non-members.
OPEC has published less detail on how the cut will work than it did in 2016, when it first announced a supply-limiting deal with its allies.
OPEC's supply-cutting deal agreed last week is vague even by the standards of the oil producer group as no individual output targets are likely to be published, although precise plans from top exporter Saudi Arabia boost the agreement's credibility.
The Organization of the Petroleum Exporting Countries, seeking to prevent a surplus that could weaken oil prices, agreed to cut production by 2.5 percent or 800,000 barrels per day (bpd) as part of a deal with Russia and other non-members.
OPEC has published less detail on how the cut will work than it did in 2016, when it first announced a supply-limiting deal with its allies.
Iran engineers rial recovery as it defies U.S. sanctions | Reuters
Iran engineers rial recovery as it defies U.S. sanctions | Reuters:
Iran is intervening in the foreign exchange market and threatening speculators to engineer a dramatic recovery of its rial currency, easing pressure on the oil-exporting economy as Tehran defies renewed U.S. sanctions.
The rial jumped to 105,500 against the U.S. dollar on Wednesday from 117,000 at the end of last week - and 152,500 at the end of October, according to foreign exchange website Bonbast.com (www.bonbast.com/).
The Financial Tribune and some other Iranian media reported on Tuesday that the rial had risen beyond 100,000 to the dollar. The foreign exchange market, however, has no single, official set of prices and traders often quote slightly different levels.
Iran is intervening in the foreign exchange market and threatening speculators to engineer a dramatic recovery of its rial currency, easing pressure on the oil-exporting economy as Tehran defies renewed U.S. sanctions.
The rial jumped to 105,500 against the U.S. dollar on Wednesday from 117,000 at the end of last week - and 152,500 at the end of October, according to foreign exchange website Bonbast.com (www.bonbast.com/).
The Financial Tribune and some other Iranian media reported on Tuesday that the rial had risen beyond 100,000 to the dollar. The foreign exchange market, however, has no single, official set of prices and traders often quote slightly different levels.
Iran will not reduce oil output, to stay in OPEC: Zanganeh | Reuters
Iran will not reduce oil output, to stay in OPEC: Zanganeh | Reuters:
Iranian Oil Minister Bijan Zanganeh said on Thursday that his country has no plans to reduce its oil production, but will remain a member of OPEC, the official news agency IRNA reported on Thursday.
OPEC and its Russia-led allies agreed on Friday in Vienna to slash oil production by more than the market expected in a bid to shore up prices despite pressure from U.S. President Donald Trump to reduce the price of crude.
Iranian Oil Minister Bijan Zanganeh said on Thursday that his country has no plans to reduce its oil production, but will remain a member of OPEC, the official news agency IRNA reported on Thursday.
OPEC and its Russia-led allies agreed on Friday in Vienna to slash oil production by more than the market expected in a bid to shore up prices despite pressure from U.S. President Donald Trump to reduce the price of crude.
The Latest: Senate OKs resolution blaming Saudi crown prince #MbS
The Latest: Senate OKs resolution blaming Saudi crown prince:
The Senate has passed a resolution saying Saudi Crown Prince Mohammed bin Salman is responsible for the slaying of journalist Jamal Khashoggi.
Senators unanimously passed a resolution Thursday in a direct rebuke to the crown prince. It calls for the Saudi Arabian government to “ensure appropriate accountability.”
It’s unclear whether the House will consider the measure. Senators voted on it after President Donald Trump equivocated on who is to blame for Khashoggi’s death and praised the kingdom. U.S. intelligence officials have concluded that bin Salman must have at least known of the plot.
Passage of the resolution came after senators passed a separate measure calling for the end of U.S. aid to the Saudi-led war in Yemen.
The Senate has passed a resolution saying Saudi Crown Prince Mohammed bin Salman is responsible for the slaying of journalist Jamal Khashoggi.
Senators unanimously passed a resolution Thursday in a direct rebuke to the crown prince. It calls for the Saudi Arabian government to “ensure appropriate accountability.”
It’s unclear whether the House will consider the measure. Senators voted on it after President Donald Trump equivocated on who is to blame for Khashoggi’s death and praised the kingdom. U.S. intelligence officials have concluded that bin Salman must have at least known of the plot.
Passage of the resolution came after senators passed a separate measure calling for the end of U.S. aid to the Saudi-led war in Yemen.
Oil prices edge up on hopes global supplies will tighten | Reuters
Oil prices edge up on hopes global supplies will tighten | Reuters:
Oil prices climbed 1 percent on Thursday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought.
OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if top producers stick to the deal, the International Energy Agency said in its monthly Oil Market Report. [IEA/M]
U.S. crude inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell by nearly 822,000 barrels in the week through Dec. 11, traders said, citing data from market intelligence firm Genscape.
Brent crude LCOc1 was up 57 cents, or 1 percent, at $60.72 per barrel by 12:02 p.m. EST (1702 GMT). U.S. light crude CLc1 was 79 cents higher, or 1.5 percent, at $51.94 a barrel.
Oil prices climbed 1 percent on Thursday, after data showed inventory declines in the United States and as investors began to expect that the global oil market could have a deficit sooner than they had previously thought.
OPEC’s output agreement with Russia and Canada’s decision to mandate production cuts could create an oil market supply deficit by the second quarter of next year, if top producers stick to the deal, the International Energy Agency said in its monthly Oil Market Report. [IEA/M]
U.S. crude inventories at Cushing, Oklahoma, the delivery point for U.S. crude futures, fell by nearly 822,000 barrels in the week through Dec. 11, traders said, citing data from market intelligence firm Genscape.
Brent crude LCOc1 was up 57 cents, or 1 percent, at $60.72 per barrel by 12:02 p.m. EST (1702 GMT). U.S. light crude CLc1 was 79 cents higher, or 1.5 percent, at $51.94 a barrel.
UPDATE 2- #Qatar 2019 budget projects small spending boost, return to surplus | Reuters
UPDATE 2-Qatar 2019 budget projects small spending boost, return to surplus | Reuters:
Qatar’s state budget for 2019 features a small rise in government spending and the first surplus in three years thanks to higher oil prices and a new tax, the finance ministry said on Thursday.
Like other energy-exporting Gulf countries benefiting from higher oil prices, Qatar expects a substantial rise in revenues next year, despite an embargo imposed on Doha by neighbouring countries since mid-2017 in a row over security issues.
But the world’s biggest liquefied natural gas exporter is adopting a conservative approach in its budget.
Qatar’s state budget for 2019 features a small rise in government spending and the first surplus in three years thanks to higher oil prices and a new tax, the finance ministry said on Thursday.
Like other energy-exporting Gulf countries benefiting from higher oil prices, Qatar expects a substantial rise in revenues next year, despite an embargo imposed on Doha by neighbouring countries since mid-2017 in a row over security issues.
But the world’s biggest liquefied natural gas exporter is adopting a conservative approach in its budget.
#Kuwait's Equate amends terms of $2.9bln in bank debt | ZAWYA MENA Edition
Kuwait's Equate amends terms of $2.9bln in bank debt | ZAWYA MENA Edition:
Kuwait's Equate Group said on Thursday it had amended and extended $2.9 billion in bank debt split between a $1.9 billion term loan and a $1 billion revolving credit facility.
The petrochemicals producer extended by two years its term loan, to 2023 from the existing 2021 maturity, while the maturity of the revolving loan was extended to June 2022 from June 2020.
The revolving loan has two further extension options.
Kuwait's Equate Group said on Thursday it had amended and extended $2.9 billion in bank debt split between a $1.9 billion term loan and a $1 billion revolving credit facility.
The petrochemicals producer extended by two years its term loan, to 2023 from the existing 2021 maturity, while the maturity of the revolving loan was extended to June 2022 from June 2020.
The revolving loan has two further extension options.
IEA Says Too Early to Tell If OPEC+ Oil-Supply Cuts Will Succeed - Bloomberg
IEA Says Too Early to Tell If OPEC+ Oil-Supply Cuts Will Succeed - Bloomberg:
The International Energy Agency said it’s too early to tell whether oil-supply cuts announced by OPEC and its allies last week will succeed in balancing global markets.
Even if the Organization of Petroleum Exporting Countries and its partners reduce production as promised, there could be some surplus in 2019, according to a monthly report from the agency. The IEA slashed its forecast for new supplies outside OPEC next year because of a lower outlook for Russia -- which is cooperating with OPEC -- and Canada, which is separately suppressing output to deplete brimming inventories.
“Time will tell how effective the new production agreement will be in rebalancing the oil market,” said the Paris-based IEA, which advises most of the world’s major economies on energy policy. “Stocks have been building with the potential for significant oversupply next year.”
The International Energy Agency said it’s too early to tell whether oil-supply cuts announced by OPEC and its allies last week will succeed in balancing global markets.
Even if the Organization of Petroleum Exporting Countries and its partners reduce production as promised, there could be some surplus in 2019, according to a monthly report from the agency. The IEA slashed its forecast for new supplies outside OPEC next year because of a lower outlook for Russia -- which is cooperating with OPEC -- and Canada, which is separately suppressing output to deplete brimming inventories.
“Time will tell how effective the new production agreement will be in rebalancing the oil market,” said the Paris-based IEA, which advises most of the world’s major economies on energy policy. “Stocks have been building with the potential for significant oversupply next year.”
#Abraaj Credit Fund Said to Be Taken Over by Kuwait's NBK Capital - Bloomberg
Abraaj Credit Fund Said to Be Taken Over by Kuwait's NBK Capital - Bloomberg:
Liquidators of the collapsed private equity fund Abraaj Group are close to completing the transfer of its credit fund to another investment manager as they seek to wind down the company, according to people familiar with the matter.
NBK Capital Partners, the private equity arm of Kuwait’s biggest bank, will make a nominal payment and could take over management of the Abraaj Global Credit Fund as soon as January, the people said, asking not to be identified as the information is private. No Abraaj staff will be transferred as part of the deal, one of the people said.
Abraaj raised about $260 million for the fund and had made three investments before it collapsed after allegations of misusing investor money, the people said. NBK Capital Partners plans to use the deal as a way to build relationships with new investors ahead of raising a new fund, one of the people said.
Liquidators of the collapsed private equity fund Abraaj Group are close to completing the transfer of its credit fund to another investment manager as they seek to wind down the company, according to people familiar with the matter.
NBK Capital Partners, the private equity arm of Kuwait’s biggest bank, will make a nominal payment and could take over management of the Abraaj Global Credit Fund as soon as January, the people said, asking not to be identified as the information is private. No Abraaj staff will be transferred as part of the deal, one of the people said.
Abraaj raised about $260 million for the fund and had made three investments before it collapsed after allegations of misusing investor money, the people said. NBK Capital Partners plans to use the deal as a way to build relationships with new investors ahead of raising a new fund, one of the people said.
Mideast Stocks: Real estate continues to lift #Dubai, banks hurt #Qatar | ZAWYA MENA Edition
Mideast Stocks: Real estate continues to lift Dubai, banks hurt Qatar | ZAWYA MENA Edition:
The Dubai stock market continued to benefit from a recovery of beaten-down real estate stocks early on Thursday while Qatar fell, pressured by banks.
In Dubai, the index gained for a third straight day, rising 0.7 percent. Dubai Investments and Union Properties, which have been trading at multi-year lows, added 6.2 percent and 4.7 percent respectively.
Emaar Properties, which had rebounded 6.4 percent on Wednesday in its biggest one-day gain since June 2017, added a further 0.5 percent.
The Dubai stock market continued to benefit from a recovery of beaten-down real estate stocks early on Thursday while Qatar fell, pressured by banks.
In Dubai, the index gained for a third straight day, rising 0.7 percent. Dubai Investments and Union Properties, which have been trading at multi-year lows, added 6.2 percent and 4.7 percent respectively.
Emaar Properties, which had rebounded 6.4 percent on Wednesday in its biggest one-day gain since June 2017, added a further 0.5 percent.
OPEC exit frees #Qatar from U.S. legal concerns | Reuters
OPEC exit frees Qatar from U.S. legal concerns | Reuters:
Even before taking over Qatar’s energy policy in a government reshuffle last month, Qatar Petroleum (QP) CEO Saad al-Kaabi had long wanted the Gulf state to leave OPEC.
Kaabi was concerned OPEC membership could be a stumbling block for QP’s ambitions in the United States, where it has one of the world’s biggest LNG terminals, and a distraction as Doha doubles down on gas production, three industry sources said.
Proposed U.S. legislation known as NOPEC (No Oil Producing and Exporting Cartels Act) could expose members of the oil exporters club to antitrust lawsuits, a risk for QP at a time it is planning to invest billions more in the United States.
Even before taking over Qatar’s energy policy in a government reshuffle last month, Qatar Petroleum (QP) CEO Saad al-Kaabi had long wanted the Gulf state to leave OPEC.
Kaabi was concerned OPEC membership could be a stumbling block for QP’s ambitions in the United States, where it has one of the world’s biggest LNG terminals, and a distraction as Doha doubles down on gas production, three industry sources said.
Proposed U.S. legislation known as NOPEC (No Oil Producing and Exporting Cartels Act) could expose members of the oil exporters club to antitrust lawsuits, a risk for QP at a time it is planning to invest billions more in the United States.
Oil prices steady as China-U.S. trade tensions ease | Reuters
Oil prices steady as China-U.S. trade tensions ease | Reuters:
Oil prices steadied on Thursday, under pressure from high inventories but buoyed by a drawdown in U.S. crude stockpiles and indications that the trade war between the United States and China may be easing.
Global oil supply has outstripped demand over the last six months, inflating inventories and pushing crude oil to its lowest in more than a year at the end of November.
But the Organization of the Petroleum Exporting Countries and other big producers, including Russia, agreed last week to reduce supply to try to trim the surplus.
Brent crude oil LCOc1 was unchanged at $60.15 per barrel by 0945 GMT. U.S. light crude CLc1 was steady at $51.15.
Oil prices steadied on Thursday, under pressure from high inventories but buoyed by a drawdown in U.S. crude stockpiles and indications that the trade war between the United States and China may be easing.
Global oil supply has outstripped demand over the last six months, inflating inventories and pushing crude oil to its lowest in more than a year at the end of November.
But the Organization of the Petroleum Exporting Countries and other big producers, including Russia, agreed last week to reduce supply to try to trim the surplus.
Brent crude oil LCOc1 was unchanged at $60.15 per barrel by 0945 GMT. U.S. light crude CLc1 was steady at $51.15.
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