Saudi Aramco May Raise Up to $15 Billion in Debut Foreign Bond - Bloomberg:
Saudi Aramco’s widely anticipated international bond debut may raise as much as $15 billion and attract new investors to the oil-rich Gulf region, which was just added to an emerging markets index.
The world’s biggest oil producer may sell the bonds in the first half of the year, and picked five banks to raise the cash it needs for its planned acquisition of petrochemicals giant Saudi Basic Industries Corp.
Aramco could raise about $10 billion from the bond, Saudi Energy Minister Khalid Al-Falih said last month. The deal would force the company to disclose accounts for the first time since its nationalization about four decades ago.
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Thursday 14 February 2019
Saudi Aramco Expands While Oil Retreats - Bloomberg
Saudi Aramco Expands While Oil Retreats - Bloomberg:
According to Khalid Al-Falih, Saudi Arabia’s energy and industry minister and chairman of Saudi Arabian Oil Co., “the world is going to be Saudi Aramco’s playground.” If it is, then that will be partly because some others have ceded ground.
In an interview with the Financial Times published this week, Al-Falih sketched out plans for Saudi Aramco to build an international exploration and production business for the first time. Traditionally, Aramco refrained from making direct investments in upstream projects elsewhere (as opposed to downstream projects such as refineries, where it remains quite active).
The timing is interesting, as Aramco plans to take flight just as many of the listed oil majors have had their wings clipped. Oil investors demand more in the way of payouts these days. That’s partly because returns on the mega-projects built during the oil boom have been poor. It also reflects creeping concern about whether large-scale projects now risk being stranded to some degree by political or economic effects related to climate change. Shorter-cycle assets, such as U.S. shale, are in vogue, and Exxon Mobil Corp.’s higher spending – predicated in part on developing a major
According to Khalid Al-Falih, Saudi Arabia’s energy and industry minister and chairman of Saudi Arabian Oil Co., “the world is going to be Saudi Aramco’s playground.” If it is, then that will be partly because some others have ceded ground.
In an interview with the Financial Times published this week, Al-Falih sketched out plans for Saudi Aramco to build an international exploration and production business for the first time. Traditionally, Aramco refrained from making direct investments in upstream projects elsewhere (as opposed to downstream projects such as refineries, where it remains quite active).
The timing is interesting, as Aramco plans to take flight just as many of the listed oil majors have had their wings clipped. Oil investors demand more in the way of payouts these days. That’s partly because returns on the mega-projects built during the oil boom have been poor. It also reflects creeping concern about whether large-scale projects now risk being stranded to some degree by political or economic effects related to climate change. Shorter-cycle assets, such as U.S. shale, are in vogue, and Exxon Mobil Corp.’s higher spending – predicated in part on developing a major
#AbuDhabi's Etihad Slashes $21 Billion of Airbus, Boeing Orders - Bloomberg
Abu Dhabi's Etihad Slashes $21 Billion of Airbus, Boeing Orders - Bloomberg:
Etihad Airways slashed orders worth $21.4 billion at list prices for Boeing Co. and Airbus SE jetliners, pushing forward with a drastic restructuring after years of operational losses.
The state-owned Gulf carrier cut its order for Boeing 777-9 aircraft to 6 jets from 25, while canceling delivery of 42 Airbus A350 wide-bodies, leaving it with 20. While the airline will continue receiving Boeing 787 Dreamliners, Etihad said it’ll decide what to do with the rest of the original order later, "through rescheduling, restructuring or reduction."
With the cancellation of $1.1 billion worth of A320neos last month, Abu Dhabi-based Etihad has taken $22.5 billion of orders off the table for the plane-manufacturing duopoly. The figures don’t include customary discounts that lower final prices. Airbus announced the loss of the A350s, a modern wide-body, on Thursday when it said it would shut down the older A380 superjumbo program after a dozen years.
Etihad Airways slashed orders worth $21.4 billion at list prices for Boeing Co. and Airbus SE jetliners, pushing forward with a drastic restructuring after years of operational losses.
The state-owned Gulf carrier cut its order for Boeing 777-9 aircraft to 6 jets from 25, while canceling delivery of 42 Airbus A350 wide-bodies, leaving it with 20. While the airline will continue receiving Boeing 787 Dreamliners, Etihad said it’ll decide what to do with the rest of the original order later, "through rescheduling, restructuring or reduction."
With the cancellation of $1.1 billion worth of A320neos last month, Abu Dhabi-based Etihad has taken $22.5 billion of orders off the table for the plane-manufacturing duopoly. The figures don’t include customary discounts that lower final prices. Airbus announced the loss of the A350s, a modern wide-body, on Thursday when it said it would shut down the older A380 superjumbo program after a dozen years.
#AbuDhabi Islamic Bank Said to Weigh Merger Amid M&A Wave - Bloomberg
Abu Dhabi Islamic Bank Said to Weigh Merger Amid M&A Wave - Bloomberg:
Abu Dhabi Islamic Bank PJSC is weighing strategic options for its business, including a potential merger, according to people with knowledge of the matter.
The United Arab Emirates’ second-biggest Islamic lender is in early talks with financial advisers about measures such as combining with a larger entity or buying a smaller institution, said the people, asking not to be identified as the discussions are private.
Abu Dhabi Islamic Bank would prefer to acquire another lender rather than being taken over, two of the people said. A formal process hasn’t started and talks may not result in a deal, the people said. Senior executives at Abu Dhabi Islamic Bank weren’t immediately available for comment.
Abu Dhabi Islamic Bank PJSC is weighing strategic options for its business, including a potential merger, according to people with knowledge of the matter.
The United Arab Emirates’ second-biggest Islamic lender is in early talks with financial advisers about measures such as combining with a larger entity or buying a smaller institution, said the people, asking not to be identified as the discussions are private.
Abu Dhabi Islamic Bank would prefer to acquire another lender rather than being taken over, two of the people said. A formal process hasn’t started and talks may not result in a deal, the people said. Senior executives at Abu Dhabi Islamic Bank weren’t immediately available for comment.
#Saudi equities make up 75% of PIF's assets, says fund's chief | ZAWYA MENA Edition
Saudi equities make up 75% of PIF's assets, says fund's chief | ZAWYA MENA Edition:
Saudi Arabia’s sovereign wealth fund has four folds of investment, of which local equities represent three quarters of its assets under management, the fund’s chief has said.
“The four folds of investments that we have in Saudi by the sovereign fund are Saudi equities, and that represents 75 percent of our assets under management, the giga-projects like NEOM, Red Sea and Qiddiya… then we have real estate and infrastructure, and finally we have the sector development,” Yasir Al-Rumayyan, managing director of the kingdom’s Public Investment Fund (PIF), said at a conference in Abu Dhabi.
PIF currently holds stakes in Saudi majors that include National Commercial Bank (NCB), Saudi Telecom and Saudi Basic Industries (SABIC), among others.
Saudi Arabia’s sovereign wealth fund has four folds of investment, of which local equities represent three quarters of its assets under management, the fund’s chief has said.
“The four folds of investments that we have in Saudi by the sovereign fund are Saudi equities, and that represents 75 percent of our assets under management, the giga-projects like NEOM, Red Sea and Qiddiya… then we have real estate and infrastructure, and finally we have the sector development,” Yasir Al-Rumayyan, managing director of the kingdom’s Public Investment Fund (PIF), said at a conference in Abu Dhabi.
PIF currently holds stakes in Saudi majors that include National Commercial Bank (NCB), Saudi Telecom and Saudi Basic Industries (SABIC), among others.
Aldar's stock surges 12% on rise in Q4 net profit and higher dividend for 2018 | ZAWYA MENA Edition
Aldar's stock surges 12% on rise in Q4 net profit and higher dividend for 2018 | ZAWYA MENA Edition:
Shares in Aldar Properties surged on Thursday as the company announced a rise in fourth quarter (Q4) 2018 earnings and higher dividends for 2018.
Aldar’s Q4 2018 earnings amounted to 318.8 million UAE dirhams ($86.8 million),a 125.5 percent year-on-year (y-o-y) increase on the 141.4 million UAE dirhams profit made in Q4 2017.
The company proposed a cash dividend of 14 fils per share for 2018, subject to the approval of its general assembly meeting, compared to a cash dividend of 12 fils per share for 2017 - a 16.6 percent increase.
Shares in Aldar Properties surged on Thursday as the company announced a rise in fourth quarter (Q4) 2018 earnings and higher dividends for 2018.
Aldar’s Q4 2018 earnings amounted to 318.8 million UAE dirhams ($86.8 million),a 125.5 percent year-on-year (y-o-y) increase on the 141.4 million UAE dirhams profit made in Q4 2017.
The company proposed a cash dividend of 14 fils per share for 2018, subject to the approval of its general assembly meeting, compared to a cash dividend of 12 fils per share for 2017 - a 16.6 percent increase.
MIDEAST STOCKS- #Dubai gains, led by Emaar; #Qatar slips to four-month low | Reuters
MIDEAST STOCKS-Dubai gains, led by Emaar; Qatar slips to four-month low | Reuters:
Dubai stocks rose on Thursday as earnings at Emaar-linked companies lifted its battered real estate shares, while Qatar's market was pulled down to a four-month low by a sell-off in its blue-chip firms.
In Dubai, the index rose 1.7 percent, helped by gains in the emirate's largest listed developer, Emaar Properties and its units, Emaar Development and Emaar Malls.
Emaar Properties, Dubai's biggest listed property company, gained 6.5 percent. It beat expectations to post a 27 percent rise in its fourth-quarter profit after market close.
Dubai stocks rose on Thursday as earnings at Emaar-linked companies lifted its battered real estate shares, while Qatar's market was pulled down to a four-month low by a sell-off in its blue-chip firms.
In Dubai, the index rose 1.7 percent, helped by gains in the emirate's largest listed developer, Emaar Properties and its units, Emaar Development and Emaar Malls.
Emaar Properties, Dubai's biggest listed property company, gained 6.5 percent. It beat expectations to post a 27 percent rise in its fourth-quarter profit after market close.
Saudis Say EU 'High Risk' Money Laundering List Is Not Final - Bloomberg
Saudis Say EU 'High Risk' Money Laundering List Is Not Final - Bloomberg:
Saudi Arabia sought to downplay the impact of the European Commission’s decision to include the kingdom in a black list of 23 countries posing higher risks of money laundering and terrorist financing.
Finance Minister Mohammed Al-Jadaan, in a statement carried by the official Saudi Press Agency, pointed out that the decision isn’t final, and must first be approved by the European Parliament before taking effect.
“Saudi Arabia’s commitment to combating money laundering and the financing of terrorism is a strategic priority,” Al-Jadaan said. The kingdom also reaffirmed its commitment to joint global efforts to combat, according to SPA.
Saudi Arabia sought to downplay the impact of the European Commission’s decision to include the kingdom in a black list of 23 countries posing higher risks of money laundering and terrorist financing.
Finance Minister Mohammed Al-Jadaan, in a statement carried by the official Saudi Press Agency, pointed out that the decision isn’t final, and must first be approved by the European Parliament before taking effect.
“Saudi Arabia’s commitment to combating money laundering and the financing of terrorism is a strategic priority,” Al-Jadaan said. The kingdom also reaffirmed its commitment to joint global efforts to combat, according to SPA.
The Oil Crash Is Over, But Debt Is Still Piling Up in the Gulf - Bloomberg
The Oil Crash Is Over, But Debt Is Still Piling Up in the Gulf - Bloomberg:
The oil crash came and went but the debt pile it left across the Gulf is still growing, leaving the region’s energy-dependent economies more vulnerable next time a crisis strikes.
All but debt-free before crude prices nosedived in 2014, many Gulf governments tried to borrow their way through while making only cautious and halting efforts to cut spending and diversify their economies. Meanwhile, a Saudi-led blockade of Qatar has split the six-state Gulf Cooperation Council and complex regional dynamics mean it’s no longer a foregone conclusion that the strong will bail out the weak with no strings attached.
If oil prices crash again, the pain could be greater than five years ago, raising the risk of a regional recession because governments would have to slash spending while markets would be more reluctant to lend, according to Bloomberg economist Ziad Daoud.
The oil crash came and went but the debt pile it left across the Gulf is still growing, leaving the region’s energy-dependent economies more vulnerable next time a crisis strikes.
All but debt-free before crude prices nosedived in 2014, many Gulf governments tried to borrow their way through while making only cautious and halting efforts to cut spending and diversify their economies. Meanwhile, a Saudi-led blockade of Qatar has split the six-state Gulf Cooperation Council and complex regional dynamics mean it’s no longer a foregone conclusion that the strong will bail out the weak with no strings attached.
If oil prices crash again, the pain could be greater than five years ago, raising the risk of a regional recession because governments would have to slash spending while markets would be more reluctant to lend, according to Bloomberg economist Ziad Daoud.
Brent crude oil hits 2019-high on Sino-U.S. trade hopes, upbeat China data | Reuters
Brent crude oil hits 2019-high on Sino-U.S. trade hopes, upbeat China data | Reuters:
Oil prices rose by around 1 percent on Thursday, with Brent crude futures hitting a 2019-high, buoyed by hopes that the Sino-U.S. tariff dispute could end soon and as China’s trade figures including crude imports beat forecasts.
International Brent crude oil futures were at $64.35 per barrel at 0754 GMT, up 74 cents, or 1.1 percent, from their last close. Brent hit a 2019-high of $64.43 per barrel earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were at $54.46 per barrel, up 57 cents, or 1.1 percent, from their last settlement.
Oil prices rose by around 1 percent on Thursday, with Brent crude futures hitting a 2019-high, buoyed by hopes that the Sino-U.S. tariff dispute could end soon and as China’s trade figures including crude imports beat forecasts.
International Brent crude oil futures were at $64.35 per barrel at 0754 GMT, up 74 cents, or 1.1 percent, from their last close. Brent hit a 2019-high of $64.43 per barrel earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were at $54.46 per barrel, up 57 cents, or 1.1 percent, from their last settlement.
DAMAC quarterly profit down 87 pct as #Dubai property prices tumble | Reuters
DAMAC quarterly profit down 87 pct as Dubai property prices tumble | Reuters:
Dubai’s DAMAC Properties , owner and operator of the only Trump-branded golf club in the Middle East, reported a nearly 60 percent fall in full year profit on Thursday, while its profit in the fourth quarter tumbled 87 percent.
DAMAC posted a full year net profit of 1.15 billion dirhams ($313 million) for 2018. According to Reuters calculations, the firm’s fourth quarter net profit was about 58 million dirhams.
EFG Hermes had forecast the firm would make a fourth-quarter net profit of 214 million dirhams.
Dubai’s DAMAC Properties , owner and operator of the only Trump-branded golf club in the Middle East, reported a nearly 60 percent fall in full year profit on Thursday, while its profit in the fourth quarter tumbled 87 percent.
DAMAC posted a full year net profit of 1.15 billion dirhams ($313 million) for 2018. According to Reuters calculations, the firm’s fourth quarter net profit was about 58 million dirhams.
EFG Hermes had forecast the firm would make a fourth-quarter net profit of 214 million dirhams.
Aramco picks banks for debut international bond: sources | Reuters
Aramco picks banks for debut international bond: sources | Reuters:
Saudi Aramco has selected banks to arrange its first international debt sale, which will help it finance the acquisition of a stake in Saudi Arabian Basic Industries Corp (SABIC), two sources familiar with the matter said on Thursday.
The state oil giant has picked a group of banks including JPMorgan, Morgan Stanley, Citi, HSBC and Saudi Arabia’s National Commercial Bank, the sources said.
JPMorgan and Morgan Stanley have been appointed joint global coordinators and, together with the other banks, joint bookrunners, said one of the sources.
Saudi Aramco has selected banks to arrange its first international debt sale, which will help it finance the acquisition of a stake in Saudi Arabian Basic Industries Corp (SABIC), two sources familiar with the matter said on Thursday.
The state oil giant has picked a group of banks including JPMorgan, Morgan Stanley, Citi, HSBC and Saudi Arabia’s National Commercial Bank, the sources said.
JPMorgan and Morgan Stanley have been appointed joint global coordinators and, together with the other banks, joint bookrunners, said one of the sources.
#AbuDhabi's Etihad Airways restructures Airbus, Boeing jet orders | ZAWYA MENA Edition
Abu Dhabi's Etihad Airways restructures Airbus, Boeing jet orders | ZAWYA MENA Edition:
Etihad Airways said on Thursday it has agreed with Airbus and Boeing to restructure a "large portion" of its orders, in what appeared to be a major cut in long-haul jet orders.
The Abu Dhabi-owned airline said in a statement that it has committed to take delivery of five Airbus A350-1000s and 26 A321neos plus six Boeing 777-9s "over the coming years".
However, it has ordered more aircraft, mostly in 2013 when it went on a jet-buying spree, and said in the statement that the "balance of the remaining orders will be defined at a later time through rescheduling, restructuring or reduction."
Etihad Airways said on Thursday it has agreed with Airbus and Boeing to restructure a "large portion" of its orders, in what appeared to be a major cut in long-haul jet orders.
The Abu Dhabi-owned airline said in a statement that it has committed to take delivery of five Airbus A350-1000s and 26 A321neos plus six Boeing 777-9s "over the coming years".
However, it has ordered more aircraft, mostly in 2013 when it went on a jet-buying spree, and said in the statement that the "balance of the remaining orders will be defined at a later time through rescheduling, restructuring or reduction."
#Abraaj exposure drags Air Arabia to a $166mln 2018 loss | ZAWYA MENA Edition
Abraaj exposure drags Air Arabia to a $166mln 2018 loss | ZAWYA MENA Edition:
Air Arabia suffered a 609.5 million dirham ($166 million) loss in 2018 as it took impairments on its exposure to collapsed private equity firm Abraaj, knocking its shares on Thursday as analysts said its dividend could be hit.
The Sharjah-based carrier, whose stock fell by more than 7 percent on the results, had posted a net profit of 630.6 million dirhams in the same period a year ago.
Air Arabia said it faced impairment charges of 1.13 billon dirhams, mainly due to exposure to Abraaj-related investments.
Air Arabia suffered a 609.5 million dirham ($166 million) loss in 2018 as it took impairments on its exposure to collapsed private equity firm Abraaj, knocking its shares on Thursday as analysts said its dividend could be hit.
The Sharjah-based carrier, whose stock fell by more than 7 percent on the results, had posted a net profit of 630.6 million dirhams in the same period a year ago.
Air Arabia said it faced impairment charges of 1.13 billon dirhams, mainly due to exposure to Abraaj-related investments.
Emirates agrees with Airbus to reduce A380 order, to buy other jets | ZAWYA MENA Edition
Emirates agrees with Airbus to reduce A380 order, to buy other jets | ZAWYA MENA Edition:
Emirates airline said on Thursday it had reached an agreement with Airbus to reduce its total order of A380 aircraft from 162 to 123 jets.
Emirates also said it had signed an new deal with Airbus for 40 A330-900s and 30 A350-900s worth $21.4 billion.
Emirates, the largest A380 customer, will take delivery of 14 more A380s from 2019 until the end of 2021, the airline said in a statement.
Emirates airline said on Thursday it had reached an agreement with Airbus to reduce its total order of A380 aircraft from 162 to 123 jets.
Emirates also said it had signed an new deal with Airbus for 40 A330-900s and 30 A350-900s worth $21.4 billion.
Emirates, the largest A380 customer, will take delivery of 14 more A380s from 2019 until the end of 2021, the airline said in a statement.
Mideast Stocks: #Dubai's real estate stocks rally; #Qatar shares fall | ZAWYA MENA Edition
Mideast Stocks: Dubai's real estate stocks rally; Qatar shares fall | ZAWYA MENA Edition:
Dubai stocks rose on Thursday as strong earnings lifted its battered real estate shares, while Qatar's market was pulled down by drilling rig provider Gulf International Services.
In Dubai, the indexrose 1.7 percent as the emirate's largest listed developer, Emaar Properties, gained 6 percent before reporting full-year results later on Thursday.
Emaar Development rose 7.4 percent after posting a full-year profit of 3.90 billion dirhams ($1.06 billion), up from 2.74 billion dirhams a year earlier.
Dubai stocks rose on Thursday as strong earnings lifted its battered real estate shares, while Qatar's market was pulled down by drilling rig provider Gulf International Services.
In Dubai, the indexrose 1.7 percent as the emirate's largest listed developer, Emaar Properties, gained 6 percent before reporting full-year results later on Thursday.
Emaar Development rose 7.4 percent after posting a full-year profit of 3.90 billion dirhams ($1.06 billion), up from 2.74 billion dirhams a year earlier.