Sabic, Aramco Plan `Discovery Phase' to Lock In Merger Savings - Bloomberg:
Sabic’s chief executive officer said the chemical company’s $69 billion takeover by oil giant Saudi Aramco will yield cost savings for both sides -- it may just take a bit of time.
Once the deal gets antitrust approval, Aramco and Saudi Basic Industries Corp. will set up a team to work on the potential spending reductions, though it’s too early to give an estimate, CEO Yousef Al Benyan said in a phone interview. Proximity will help, as Aramco’s refineries are close to Sabic’s chemical plants in the port of Jubail, and savings are likely to increase over time as the partners pursue growth projects.
“I’m very optimistic on this,” Al Benyan said. “We need to go through a discovery phase to see what exactly are the synergies that will materialize and how can we bring them efficiently and commercially into Sabic.”
Friday 29 March 2019
Oil Caps Best Quarter in Decade as Siberia to Shale Cut Drilling - Bloomberg
Oil Caps Best Quarter in Decade as Siberia to Shale Cut Drilling - Bloomberg:
Oil closed above $60 for the first time since early November, capping its best quarter since 2009, amid signs of thinning supplies from Siberia to the U.S. shale fields.
Futures rose 1.4 percent in New York on Friday as Russian Energy Minister Alexander Novak said the world’s second-biggest producer would deepen the output cuts its imposed along with OPEC this year to resurrect the market. In the U.S., drillers sidelined more drilling rigs for the sixth straight week.
Fears of an economic slowdown eased, meanwhile, as trade talks between China and the U.S. resumed and two Federal Reserve presidents predicted continuing growth this year.
Oil closed above $60 for the first time since early November, capping its best quarter since 2009, amid signs of thinning supplies from Siberia to the U.S. shale fields.
Futures rose 1.4 percent in New York on Friday as Russian Energy Minister Alexander Novak said the world’s second-biggest producer would deepen the output cuts its imposed along with OPEC this year to resurrect the market. In the U.S., drillers sidelined more drilling rigs for the sixth straight week.
Fears of an economic slowdown eased, meanwhile, as trade talks between China and the U.S. resumed and two Federal Reserve presidents predicted continuing growth this year.
Nine banks win dismissal of #Iran terrorism financing lawsuit: U.S. judge | Reuters
Nine banks win dismissal of Iran terrorism financing lawsuit: U.S. judge | Reuters:
A U.S. judge has dismissed a lawsuit seeking to hold nine large European banks liable for allegedly providing banking services to Iran that enabled militants to conduct 55 attacks against U.S. armed forces in neighboring Iraq.
In a decision on Thursday, U.S. District Judge Laura Taylor Swain in Manhattan said the banks’ alleged misconduct was too far removed from the attacks, which occurred from 2003 to 2011, to support civil liability under federal anti-terrorism laws.
The U.S. Department of State has designated Iran a state sponsor of terrorism since 1984.
A U.S. judge has dismissed a lawsuit seeking to hold nine large European banks liable for allegedly providing banking services to Iran that enabled militants to conduct 55 attacks against U.S. armed forces in neighboring Iraq.
In a decision on Thursday, U.S. District Judge Laura Taylor Swain in Manhattan said the banks’ alleged misconduct was too far removed from the attacks, which occurred from 2003 to 2011, to support civil liability under federal anti-terrorism laws.
The U.S. Department of State has designated Iran a state sponsor of terrorism since 1984.
#Saudi's Kingdom Holding to invest Careem proceeds in Europe, Saudi: CEO | Reuters
Saudi's Kingdom Holding to invest Careem proceeds in Europe, Saudi: CEO | Reuters:
Saudi Arabian investment firm Kingdom Holding will put the proceeds from the sale of its stake in ride-hailing startup Careem toward $600 million in investments in the kingdom and Europe, its chief executive told Reuters on Friday.
Kingdom, which is 95 percent owned by billionaire Price Alwaleed bin Talal, sold its stake in Careem this week for 1.25 billion riyals ($333 million). It will receive 565 million riyals in cash, plus convertible bonds in Uber Technologies worth 685 million riyals.
“We have five companies on the table that are being discussed, deliberated. Hopefully we will be able to come to a conclusion on where to invest within the next eight weeks,” Talal Ibrahim al-Maiman said in a phone interview.
Saudi Arabian investment firm Kingdom Holding will put the proceeds from the sale of its stake in ride-hailing startup Careem toward $600 million in investments in the kingdom and Europe, its chief executive told Reuters on Friday.
Kingdom, which is 95 percent owned by billionaire Price Alwaleed bin Talal, sold its stake in Careem this week for 1.25 billion riyals ($333 million). It will receive 565 million riyals in cash, plus convertible bonds in Uber Technologies worth 685 million riyals.
“We have five companies on the table that are being discussed, deliberated. Hopefully we will be able to come to a conclusion on where to invest within the next eight weeks,” Talal Ibrahim al-Maiman said in a phone interview.
Oil posts biggest quarterly rise since 2009 on OPEC cuts, sanctions | Reuters
Oil posts biggest quarterly rise since 2009 on OPEC cuts, sanctions | Reuters:
Oil prices rose about 1 percent on Friday, posting their biggest quarterly rise in a decade, as U.S. sanctions against Iran and Venezuela as well as OPEC-led supply cuts overshadowed concerns over a slowing global economy.
The May Brent crude oil futures contract, which expired Friday, gained 57 cents, or 0.8 percent, to settle at $68.39 a barrel, marking a first-quarter gain of 27 percent. The more-active June contract settled up 48 cents at $67.58 a barrel.
U.S. West Texas Intermediate (WTI) futures rose 84 cents, or 1.42 percent, to $60.14 a barrel, and posted a rise of 32 percent in the January-March period.
Oil prices rose about 1 percent on Friday, posting their biggest quarterly rise in a decade, as U.S. sanctions against Iran and Venezuela as well as OPEC-led supply cuts overshadowed concerns over a slowing global economy.
The May Brent crude oil futures contract, which expired Friday, gained 57 cents, or 0.8 percent, to settle at $68.39 a barrel, marking a first-quarter gain of 27 percent. The more-active June contract settled up 48 cents at $67.58 a barrel.
U.S. West Texas Intermediate (WTI) futures rose 84 cents, or 1.42 percent, to $60.14 a barrel, and posted a rise of 32 percent in the January-March period.
#SaudiArabia's `Win-Win-Win' Megadeal Is No Dead Cert for Aramco - Bloomberg
Saudi Arabia's `Win-Win-Win' Megadeal Is No Dead Cert for Aramco - Bloomberg:
When Saudi Arabia unveiled the $69 billion Aramco-Sabic deal on Wednesday, officials described it as a "win-win-win" that would bring rewards for the government, the giant oil company and the chemicals group.
The reality is likely to prove more prosaic.
The deal is a Plan B to raise money for the country’s economic agenda after the initial public offering of Aramco, slated for 2018, was postponed. In effect, Crown Prince Mohammed bin Salman is using the company’s pristine balance sheet to finance his ambitions.
When Saudi Arabia unveiled the $69 billion Aramco-Sabic deal on Wednesday, officials described it as a "win-win-win" that would bring rewards for the government, the giant oil company and the chemicals group.
The reality is likely to prove more prosaic.
The deal is a Plan B to raise money for the country’s economic agenda after the initial public offering of Aramco, slated for 2018, was postponed. In effect, Crown Prince Mohammed bin Salman is using the company’s pristine balance sheet to finance his ambitions.
Rescue deal is no panacea for India's struggling Jet Airways | Reuters
Rescue deal is no panacea for India's struggling Jet Airways | Reuters:
Jet Airways’ investors are cheering this week’s government-led rescue deal, but the cash-strapped Indian airline’s future looks mired in uncertainty as convincing a new investor to come on board may not be easy.
The airline, which was on the brink of bankruptcy, was bailed out on Monday by state-run banks, which have temporarily taken a majority stake in the company, given it a new loan of $218 million and forced its chairman, Naresh Goyal, to step down from the board of the airline he founded 25 years ago.
Jet shares have rallied 20 percent since news of the rescue on hopes that the airline would now be able to clear salaries, redeploy grounded planes and claw back market share.
Jet Airways’ investors are cheering this week’s government-led rescue deal, but the cash-strapped Indian airline’s future looks mired in uncertainty as convincing a new investor to come on board may not be easy.
The airline, which was on the brink of bankruptcy, was bailed out on Monday by state-run banks, which have temporarily taken a majority stake in the company, given it a new loan of $218 million and forced its chairman, Naresh Goyal, to step down from the board of the airline he founded 25 years ago.
Jet shares have rallied 20 percent since news of the rescue on hopes that the airline would now be able to clear salaries, redeploy grounded planes and claw back market share.
Emerging market debt sales shrink as window for new issues threatens to shut | Reuters
Emerging market debt sales shrink as window for new issues threatens to shut | Reuters:
Bond sales by emerging market borrowers dipped 15 percent in the first three months of 2019 from the same year-ago period and the outlook for the coming months is clouded by choppy markets, global recession fears and another financial crisis in Turkey.
But borrowers nimble enough to negotiate the market during the first quarter were rewarded by robust demand from investors in search of high-yielding but riskier bets.
A debut international issue for Benin and a $3 billion bond sale for Ghana, the world’s second-largest cocoa producer, were both well-received by investors.
Bond sales by emerging market borrowers dipped 15 percent in the first three months of 2019 from the same year-ago period and the outlook for the coming months is clouded by choppy markets, global recession fears and another financial crisis in Turkey.
But borrowers nimble enough to negotiate the market during the first quarter were rewarded by robust demand from investors in search of high-yielding but riskier bets.
A debut international issue for Benin and a $3 billion bond sale for Ghana, the world’s second-largest cocoa producer, were both well-received by investors.
Oil set for biggest quarterly rise since 2009 amid OPEC cuts, sanctions | Reuters
Oil set for biggest quarterly rise since 2009 amid OPEC cuts, sanctions | Reuters:
Oil prices rose on Friday amid OPEC-led supply cuts and U.S. sanctions against Iran and Venezuela, putting crude markets on track for their biggest quarterly rise since 2009.
Brent crude oil futures were up 75 cents at $68.57 a barrel by 1150 GMT, set for a gain of more than 27 percent in the first quarter.
U.S. West Texas Intermediate (WTI) futures were at $60.15 per barrel, up 85 cents, and on track for a rise of more than 32 percent over the January-March period.
Oil prices rose on Friday amid OPEC-led supply cuts and U.S. sanctions against Iran and Venezuela, putting crude markets on track for their biggest quarterly rise since 2009.
Brent crude oil futures were up 75 cents at $68.57 a barrel by 1150 GMT, set for a gain of more than 27 percent in the first quarter.
U.S. West Texas Intermediate (WTI) futures were at $60.15 per barrel, up 85 cents, and on track for a rise of more than 32 percent over the January-March period.
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