Sunday, 5 May 2019
Aramco Cuts Oil Prices to U.S. as Trump Tightens Iran Sanctions - Bloomberg
Aramco Cuts Oil Prices to U.S. as Trump Tightens Iran Sanctions - Bloomberg:
Saudi Arabia, the world’s biggest oil exporter, cut June pricing for all crude grades to the U.S. and raised most pricing to other regions.
The kingdom’s pricing appears to be aimed at easing concerns over supplies to the U.S. after the Trump Administration ended waivers for buyers of Iranian oil, while still benefiting from rising demand for its crude in Asia and Europe.
Key Insights
Saudi Arabia, the world’s biggest oil exporter, cut June pricing for all crude grades to the U.S. and raised most pricing to other regions.
The kingdom’s pricing appears to be aimed at easing concerns over supplies to the U.S. after the Trump Administration ended waivers for buyers of Iranian oil, while still benefiting from rising demand for its crude in Asia and Europe.
Key Insights
- Flagship Arab Light grade rises 70 cents to $2.10 a barrel over the Oman-Dubai benchmark, the biggest spread for the grade since July.
#Dubai's Emaar Properties reports 7.2 percent first quarter profit increase - Reuters
Dubai's Emaar Properties reports 7.2 percent first quarter profit increase - Reuters:
Dubai’s largest listed developer Emaar Properties on Sunday reported a 7.2 percent rise in first-quarter profit helped by a significant jump in sales.
The developer of Dubai’s Burj Khalifa, the world’s tallest tower, said it made 1.74 billion dirhams ($474 million) in the three months to March 31 compared with 1.63 billion dirhams a year earlier.
Revenue rose to 5.89 billion dirhams, according to a bourse statement. It reported revenue of 5.59 billion dirhams for the first quarter of 2018.
Dubai’s largest listed developer Emaar Properties on Sunday reported a 7.2 percent rise in first-quarter profit helped by a significant jump in sales.
The developer of Dubai’s Burj Khalifa, the world’s tallest tower, said it made 1.74 billion dirhams ($474 million) in the three months to March 31 compared with 1.63 billion dirhams a year earlier.
Revenue rose to 5.89 billion dirhams, according to a bourse statement. It reported revenue of 5.59 billion dirhams for the first quarter of 2018.
#Dubai airport first quarter passenger traffic falls 2.2 percent to 22.2 million - Reuters
Dubai airport first quarter passenger traffic falls 2.2 percent to 22.2 million - Reuters:
Dubai International Airport’s first quarter passenger traffic fell 2.2 percent to 22.2 million compared to the same period a year earlier, which operator Dubai Airports partly blamed on the worldwide grounding of the Boeing 737 MAX.
The drop in quarterly passenger figures was largely due to a 3 percent reduction in flights, some caused by the 737 MAX grounding, and the timing of the Easter break this year, Dubai Airports said on Sunday.
The MAX has been grounded since an Ethiopian Airlines MAX crashed in March which followed a LionAir crash last October, killing a total of 346 people.
Dubai International Airport’s first quarter passenger traffic fell 2.2 percent to 22.2 million compared to the same period a year earlier, which operator Dubai Airports partly blamed on the worldwide grounding of the Boeing 737 MAX.
The drop in quarterly passenger figures was largely due to a 3 percent reduction in flights, some caused by the 737 MAX grounding, and the timing of the Easter break this year, Dubai Airports said on Sunday.
The MAX has been grounded since an Ethiopian Airlines MAX crashed in March which followed a LionAir crash last October, killing a total of 346 people.
MENA equity markets set for growth, says Franklin Templeton | ZAWYA MENA Edition
MENA equity markets set for growth, says Franklin Templeton | ZAWYA MENA Edition:
Saudi Arabia and Egypt have been identified by investment management firm Franklin Templeton as two of its three global market picks (with Colombia being the third).
Salah Shamma, a Dubai-based head of investments and MENA equities, also told journalists at a media event last week that the Dubai market had been oversold.
“We believe that we are in the midst of an early cycle recovery,” Shamma said, arguing that the rest of the developed market, and many other emerging markets, had been enjoying a boom in recent years, while the Gulf had experienced a down cycle.
Saudi Arabia and Egypt have been identified by investment management firm Franklin Templeton as two of its three global market picks (with Colombia being the third).
Salah Shamma, a Dubai-based head of investments and MENA equities, also told journalists at a media event last week that the Dubai market had been oversold.
“We believe that we are in the midst of an early cycle recovery,” Shamma said, arguing that the rest of the developed market, and many other emerging markets, had been enjoying a boom in recent years, while the Gulf had experienced a down cycle.
#Dubai Investments reports net profit of $55mln in Q1 2019 | ZAWYA MENA Edition
Dubai Investments reports net profit of $55mln in Q1 2019 | ZAWYA MENA Edition:
Dubai Investments has announced net profit of AED202 million in the first quarter of 2019, compared to AED362 million for the same period last year. Profit for the quarter ended 31st March 2018 included an overall gain of AED333 million on acquisition of stake in Emirates District Cooling, Emicool.
Total assets increased to AED20.11 billion, compared to AED19.55 billion as at 31st December, 2018; while the annualised return on equity achieved for the period was 6.4 percent. Khalid Bin Kalban, Managing Director and Chief Executive Officer of Dubai Investments, said, "Dubai Investments reported gains of AED333 million in Q1 2018 and AED55 million in Q1 2019 on its M&A transactions. Excluding these one-off items, the net profit for Q1 2019 has increased by AED118 million.
This is mainly due to increase in gain on fair valuation of investments which is quite encouraging as it indicates improving market conditions." Kalban added, "The Company’s outlook for the remaining of 2019 is positive with various real estate developments nearing completion and expected recovery of the manufacturing and contracting segment which will further be boosted by the acquisition of Globalpharma."
Dubai Investments has announced net profit of AED202 million in the first quarter of 2019, compared to AED362 million for the same period last year. Profit for the quarter ended 31st March 2018 included an overall gain of AED333 million on acquisition of stake in Emirates District Cooling, Emicool.
Total assets increased to AED20.11 billion, compared to AED19.55 billion as at 31st December, 2018; while the annualised return on equity achieved for the period was 6.4 percent. Khalid Bin Kalban, Managing Director and Chief Executive Officer of Dubai Investments, said, "Dubai Investments reported gains of AED333 million in Q1 2018 and AED55 million in Q1 2019 on its M&A transactions. Excluding these one-off items, the net profit for Q1 2019 has increased by AED118 million.
This is mainly due to increase in gain on fair valuation of investments which is quite encouraging as it indicates improving market conditions." Kalban added, "The Company’s outlook for the remaining of 2019 is positive with various real estate developments nearing completion and expected recovery of the manufacturing and contracting segment which will further be boosted by the acquisition of Globalpharma."
#Iraq oil minister discusses energy cooperation with #Qatar - Reuters
Iraq oil minister discusses energy cooperation with Qatar - Reuters:
Iraqi Oil Minister Thamer Ghadhban has discussed joint cooperation and potential investments in oil, gas and electricity with his Qatari counterpart Saad al-Kaabi, the Iraqi oil ministry said in a statement on Sunday.
Ghadhban, who is visiting Doha, met with Qatari Emir Sheikh Tamim bin Hamad Al Thani, the statement said.
State-run Qatar Petroleum, headed by Kaabi, wants to take part in projects and investments to develop the oil and energy sectors of Iraq, the statement said.
Iraqi Oil Minister Thamer Ghadhban has discussed joint cooperation and potential investments in oil, gas and electricity with his Qatari counterpart Saad al-Kaabi, the Iraqi oil ministry said in a statement on Sunday.
Ghadhban, who is visiting Doha, met with Qatari Emir Sheikh Tamim bin Hamad Al Thani, the statement said.
State-run Qatar Petroleum, headed by Kaabi, wants to take part in projects and investments to develop the oil and energy sectors of Iraq, the statement said.
Air Arabia first-quarter profit up 16 percent as passenger numbers improve - Reuters
Air Arabia first-quarter profit up 16 percent as passenger numbers improve - Reuters:
Air Arabia on Sunday posted a 16 percent jump in first-quarter profit, citing a rise in passenger numbers.
The Middle East budget airline reported a full-year loss for 2018 after booking impairments mainly attributable to its exposure to collapsed private equity firm Abraaj.
Air Arabia made a net profit of 128 million dirhams ($34.9 million) in the three months to March 31 on revenue up 17 percent to 1 billion dirhams, it said in a statement.
Air Arabia on Sunday posted a 16 percent jump in first-quarter profit, citing a rise in passenger numbers.
The Middle East budget airline reported a full-year loss for 2018 after booking impairments mainly attributable to its exposure to collapsed private equity firm Abraaj.
Air Arabia made a net profit of 128 million dirhams ($34.9 million) in the three months to March 31 on revenue up 17 percent to 1 billion dirhams, it said in a statement.
MIDEAST STOCKS-Gulf reverses earlier gains on profit-taking, volumes thin - Reuters
MIDEAST STOCKS-Gulf reverses earlier gains on profit-taking, volumes thin - Reuters:
Middle East stock markets reversed
earlier gains and closed in negative territory on Sunday, hit by
profit-taking and disappointing quarterly results from some
companies, with trading thin ahead of Ramadan.
The Saudi index was the worst hit in the Gulf,
losing 1.7 percent, pulled down by heavyweight names in the
banking and petrochemical sectors.
Al Rajhi Bank, Saudi Arabia’s second-largest
lender by assets, lost 2.5 percent and Alinma Bank
shed 1.7 percent.
Middle East stock markets reversed
earlier gains and closed in negative territory on Sunday, hit by
profit-taking and disappointing quarterly results from some
companies, with trading thin ahead of Ramadan.
The Saudi index was the worst hit in the Gulf,
losing 1.7 percent, pulled down by heavyweight names in the
banking and petrochemical sectors.
Al Rajhi Bank, Saudi Arabia’s second-largest
lender by assets, lost 2.5 percent and Alinma Bank
shed 1.7 percent.
Banks Drag #Saudi Stocks Down by Most This Year Ahead of Ramadan - Bloomberg
Banks Drag Saudi Stocks Down by Most This Year Ahead of Ramadan - Bloomberg:
Saudi Arabian stocks fell the most since December as investors locked in gains ahead of the holy month of Ramadan, when trading volumes in the kingdom typically decline.
Al Rajhi Bank and National Commercial Bank, which account for about a quarter of the index, were the biggest contributors to the Tadawul All Share Index’s 1.7 percent loss. About 160 stocks retreated as of 12:18 p.m. in Riyadh, the most on a closing basis since November.
“After a good rally in the banking sector, investors are taking a breather as most of the quarterly results are out now,” said Muhammad Faisal Potrik, the head of research at Riyad Capital. “Al Rajhi posted record quarterly profit, but it’s also trading close to our target price” of 74 riyals, he said. Its shares fell 2.1 percent to 73.6 riyals on Sunday.
Saudi Arabian stocks fell the most since December as investors locked in gains ahead of the holy month of Ramadan, when trading volumes in the kingdom typically decline.
Al Rajhi Bank and National Commercial Bank, which account for about a quarter of the index, were the biggest contributors to the Tadawul All Share Index’s 1.7 percent loss. About 160 stocks retreated as of 12:18 p.m. in Riyadh, the most on a closing basis since November.
“After a good rally in the banking sector, investors are taking a breather as most of the quarterly results are out now,” said Muhammad Faisal Potrik, the head of research at Riyad Capital. “Al Rajhi posted record quarterly profit, but it’s also trading close to our target price” of 74 riyals, he said. Its shares fell 2.1 percent to 73.6 riyals on Sunday.
Interpol Links Aren't a Get-Out-of-Jail Card, Ghosn, Naqvi Find - Bloomberg
Interpol Links Aren't a Get-Out-of-Jail Card, Ghosn, Naqvi Find - Bloomberg:
Interpol seems to have a crime problem.
When Arif Naqvi, the founder of the Middle East’s biggest private-equity fund, was arrested at London’s Heathrow airport in April, he was quick to brandish his connections to the global policing body.
He told U.K. authorities that he sat on the group’s board, and he was carrying an Interpol passport, a document the organization issues to its officers travelling on business, prosecution lawyer Rachel Kapila said at a London hearing last week.
Interpol seems to have a crime problem.
When Arif Naqvi, the founder of the Middle East’s biggest private-equity fund, was arrested at London’s Heathrow airport in April, he was quick to brandish his connections to the global policing body.
He told U.K. authorities that he sat on the group’s board, and he was carrying an Interpol passport, a document the organization issues to its officers travelling on business, prosecution lawyer Rachel Kapila said at a London hearing last week.
Hyflux in Talks With Middle East's Utico for S$400 Million Funds - Bloomberg
Hyflux in Talks With Middle East's Utico for S$400 Million Funds - Bloomberg:
Singapore’s Hyflux Ltd., the water and power company battling for survival, said it is in talks with Middle Eastern utility Utico FZC about securing S$400 million ($294 million) of funds, disclosing the identity of the potential investor after receiving a non-binding letter of intent.
Hyflux’s legal and financial advisers are in discussions with Utico on the details of the investment, with a view to set them out in a binding term sheet, it said in a filing to the Singapore exchange late Friday. Utico informed Hyflux it plans to keep the company’s main businesses so they remain operational, and to retain current management, according to the statement.
Hyflux said April 25 it had received a non-binding letter of intent from an undisclosed Middle East developer. The possible injection of S$400 million will be used for equity and working capital purposes and “possible urgent interim funding,” it said.
Singapore’s Hyflux Ltd., the water and power company battling for survival, said it is in talks with Middle Eastern utility Utico FZC about securing S$400 million ($294 million) of funds, disclosing the identity of the potential investor after receiving a non-binding letter of intent.
Hyflux’s legal and financial advisers are in discussions with Utico on the details of the investment, with a view to set them out in a binding term sheet, it said in a filing to the Singapore exchange late Friday. Utico informed Hyflux it plans to keep the company’s main businesses so they remain operational, and to retain current management, according to the statement.
Hyflux said April 25 it had received a non-binding letter of intent from an undisclosed Middle East developer. The possible injection of S$400 million will be used for equity and working capital purposes and “possible urgent interim funding,” it said.
#UAE private sector growth picks up at fastest pace since December 2017: PMI | ZAWYA MENA Edition
UAE private sector growth picks up at fastest pace since December 2017: PMI | ZAWYA MENA Edition:
Growth in the United Arab Emirates' non-oil sector picked up in April at its fastest pace since December 2017 as new orders and business activity expanded, a survey showed on Sunday.
The seasonally adjusted Emirates NBD UAE Purchasing Managers' Index (PMI), which covers manufacturing and services and provides an overview of the non-oil private sector economy, rose to 57.6 in April from 55.7 a month earlier.
A reading above 50 indicates expansion and below that, contraction.
Growth in the United Arab Emirates' non-oil sector picked up in April at its fastest pace since December 2017 as new orders and business activity expanded, a survey showed on Sunday.
The seasonally adjusted Emirates NBD UAE Purchasing Managers' Index (PMI), which covers manufacturing and services and provides an overview of the non-oil private sector economy, rose to 57.6 in April from 55.7 a month earlier.
A reading above 50 indicates expansion and below that, contraction.
#Iran has mobilized all resources to sell oil in 'grey market': state media - Reuters
Iran has mobilized all resources to sell oil in 'grey market': state media - Reuters:
Iran has mobilized all its resources to sell oil in a “grey market”, bypassing U.S. sanctions that Tehran sees as illegitimate, state media quoted Deputy Oil Minister Amir Hossein Zamaninia as saying on Sunday.
The United States told buyers of Iranian oil to stop purchases by May 1 or face sanctions, ending six months of waivers that had allowed Iran’s biggest customers to import limited volumes.
“We have mobilized all of the country’s resources and are selling oil in the ‘grey market’,” Zamaninia was quoted by state news agency IRNA as saying. “This is not smuggling. This is countering sanctions which we do not see as just or legitimate.”
Iran has mobilized all its resources to sell oil in a “grey market”, bypassing U.S. sanctions that Tehran sees as illegitimate, state media quoted Deputy Oil Minister Amir Hossein Zamaninia as saying on Sunday.
The United States told buyers of Iranian oil to stop purchases by May 1 or face sanctions, ending six months of waivers that had allowed Iran’s biggest customers to import limited volumes.
“We have mobilized all of the country’s resources and are selling oil in the ‘grey market’,” Zamaninia was quoted by state news agency IRNA as saying. “This is not smuggling. This is countering sanctions which we do not see as just or legitimate.”
#Saudi private sector growth stable in April, employment subdued: PMI - Reuters
Saudi private sector growth stable in April, employment subdued: PMI - Reuters:
Saudi Arabia’s non-oil private sector growth remained steady - though unchanged - in April, but strong demand and increased business confidence did not translate into job creation, a monthly survey of companies showed on Sunday.
The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index remained unchanged month on month at 56.8 in April. A reading above 50 indicates expansion and below that contraction.
The Saudi private sector struggled last year because of fuel price hikes, the introduction of a 5 percent value-added tax and higher fees for hiring foreign workers.
Saudi Arabia’s non-oil private sector growth remained steady - though unchanged - in April, but strong demand and increased business confidence did not translate into job creation, a monthly survey of companies showed on Sunday.
The seasonally adjusted Emirates NBD Saudi Arabia Purchasing Managers’ Index remained unchanged month on month at 56.8 in April. A reading above 50 indicates expansion and below that contraction.
The Saudi private sector struggled last year because of fuel price hikes, the introduction of a 5 percent value-added tax and higher fees for hiring foreign workers.
#Saudi Telecom issues $1.25 billion debut sukuk - Reuters
Saudi Telecom issues $1.25 billion debut sukuk - Reuters:
State-run Saudi Telecom has issued $1.25 billion in international sukuk, or Islamic bonds, the company said on Sunday.
The 10-year bonds - the first U.S. dollar denominated sukuk issued by the company - have been arranged by HSBC, JPMorgan, Standard Chartered, Samba, First Abu Dhabi Bank and KFH.
Saudi Telecom’s new bonds, which will be listed on the Irish Stock Exchange, offer a 3.89 percent return.
State-run Saudi Telecom has issued $1.25 billion in international sukuk, or Islamic bonds, the company said on Sunday.
The 10-year bonds - the first U.S. dollar denominated sukuk issued by the company - have been arranged by HSBC, JPMorgan, Standard Chartered, Samba, First Abu Dhabi Bank and KFH.
Saudi Telecom’s new bonds, which will be listed on the Irish Stock Exchange, offer a 3.89 percent return.
MIDEAST STOCKS-Gulf shares mostly up but volumes thin before Ramadan - Reuters
MIDEAST STOCKS-Gulf shares mostly up but volumes thin before Ramadan - Reuters:
Stock markets in the Gulf mostly gained in early trade on Sunday, reflecting increases in global equities and oil prices late last week, but petrochemical companies and banks dragged down the Saudi exchange.
Volumes were thin, with traded value quite low ahead of the Muslim holy month of Ramadan this week.
Global stock markets rallied on Friday, buoyed by a U.S. payrolls report that exceeded expectations, and Brent crude oil futures settled 10 cents higher at $70.85 a barrel.
Stock markets in the Gulf mostly gained in early trade on Sunday, reflecting increases in global equities and oil prices late last week, but petrochemical companies and banks dragged down the Saudi exchange.
Volumes were thin, with traded value quite low ahead of the Muslim holy month of Ramadan this week.
Global stock markets rallied on Friday, buoyed by a U.S. payrolls report that exceeded expectations, and Brent crude oil futures settled 10 cents higher at $70.85 a barrel.