Saudi Aramco survivor navigates choppy IPO waters | Financial Times:
Earlier this year, Saudi Arabia’s oil minister Khalid al-Falih tried to remove Amin Nasser from his post at the head of the state oil company, according to four people familiar with the matter.
Since he was appointed chief executive of Saudi Aramco in 2015, Mr Nasser had played second fiddle to Mr Falih, a high-profile technocrat and the seemingly untouchable chief of Saudi energy policy at home and abroad.
Yet Mr Nasser had started to prove an obstacle to Mr Falih’s attempts to make use of Saudi Aramco’s funds and staff, prompting the attempt to oust him.
Unexpectedly, though, it was Mr Falih who was fired as minister and chairman of the company, and the 60-year-old Mr Nasser who survived.
Those survival skill
Friday, 18 October 2019
Breakingviews - Aramco’s latest IPO delay is a triple fail - Reuters
Breakingviews - Aramco’s latest IPO delay is a triple fail - Reuters:
Saudi Aramco’s interminable soap opera just commenced a new and problematic chapter. Early on Thursday, the kingdom finally appeared ready to launch the listing of a 5% stake in its oil giant. By the end of the day that was off again, with the latest delay set to last weeks or even months. It’s a triple setback.
The immediate problem is that this is Aramco’s second false start. Riyadh pulled its first attempt at an initial public offering last year amid concern the company wouldn’t hit Crown Prince Mohammed bin Salman’s desired $2 trillion valuation. Last month’s rocket attacks on critical Aramco infrastructure, which temporarily knocked out half its output of 10 million barrels of oil per day, justified further caution. Yet Aramco pressed on, readying its newly appointed bankers to launch the IPO this Sunday, only to put the process on hold again. The company hopes that third-quarter results will reassure investors following the outages, two sources familiar with the matter told Reuters.
Saudi Aramco’s interminable soap opera just commenced a new and problematic chapter. Early on Thursday, the kingdom finally appeared ready to launch the listing of a 5% stake in its oil giant. By the end of the day that was off again, with the latest delay set to last weeks or even months. It’s a triple setback.
The immediate problem is that this is Aramco’s second false start. Riyadh pulled its first attempt at an initial public offering last year amid concern the company wouldn’t hit Crown Prince Mohammed bin Salman’s desired $2 trillion valuation. Last month’s rocket attacks on critical Aramco infrastructure, which temporarily knocked out half its output of 10 million barrels of oil per day, justified further caution. Yet Aramco pressed on, readying its newly appointed bankers to launch the IPO this Sunday, only to put the process on hold again. The company hopes that third-quarter results will reassure investors following the outages, two sources familiar with the matter told Reuters.
Oil falls as China economic concerns outweigh rising refinery runs - Reuters
Oil falls as China economic concerns outweigh rising refinery runs - Reuters:
Oil prices edged lower on Friday, as concerns about China’s economy outweighed bullish signals from its refining sector, but losses were limited on hopes for progress toward a U.S.-China trade agreement.
Benchmark Brent crude oil futures LCOc1 fell 49 cents to settle at $59.42 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures lost 15 cents to settle at $53.78 a barrel.
For the week Brent fell 1.8%, while WTI lost 1.7%.
China’s economic growth slowed to 6% year-on-year in the third quarter, its weakest in 27-1/2 years and short of expectations due to soft factory production and continuing trade tensions with the United States.
Oil prices edged lower on Friday, as concerns about China’s economy outweighed bullish signals from its refining sector, but losses were limited on hopes for progress toward a U.S.-China trade agreement.
Benchmark Brent crude oil futures LCOc1 fell 49 cents to settle at $59.42 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures lost 15 cents to settle at $53.78 a barrel.
For the week Brent fell 1.8%, while WTI lost 1.7%.
China’s economic growth slowed to 6% year-on-year in the third quarter, its weakest in 27-1/2 years and short of expectations due to soft factory production and continuing trade tensions with the United States.
Lebanon, pushed to the brink, faces reckoning over graft - Reuters
Lebanon, pushed to the brink, faces reckoning over graft - Reuters:
Lebanon is closer to a financial crisis than at any time since at least the war-torn 1980s as allies, investors and this week nationwide protests pile pressure on the government to tackle a corrupt system and enact long-promised reforms.
Prime Minister Saad al-Hariri’s government on Thursday hastily reversed a plan, announced hours earlier, to tax WhatsApp voice calls in the face of the biggest public protests in years, with people burning tyres and blocking roads.
The country - among the world's most indebted tmsnrt.rs/2OUN93n and quickly running out of dollar reserves - urgently needs to convince regional allies and Western donors it is finally serious about tackling entrenched problems such as its unreliable and wasteful electricity sector.
Lebanon is closer to a financial crisis than at any time since at least the war-torn 1980s as allies, investors and this week nationwide protests pile pressure on the government to tackle a corrupt system and enact long-promised reforms.
Prime Minister Saad al-Hariri’s government on Thursday hastily reversed a plan, announced hours earlier, to tax WhatsApp voice calls in the face of the biggest public protests in years, with people burning tyres and blocking roads.
The country - among the world's most indebted tmsnrt.rs/2OUN93n and quickly running out of dollar reserves - urgently needs to convince regional allies and Western donors it is finally serious about tackling entrenched problems such as its unreliable and wasteful electricity sector.
The Oil Rig Count Collapse Continues | OilPrice.com
The Oil Rig Count Collapse Continues | OilPrice.com:
The US oil and gas rig count fell this week, according to Baker Hughes, decreasing by 5 for the week, according to Baker Hughes. This week marks eight decreases in the last nine weeks.
The total oil and gas rig count now stands at 851, or 216 down from this time last year.
The total number of active oil rigs in the United States increased by 1 according to the report, reaching 713. The number of active gas rigs decreased by 6 to reach 137.
Oil rigs have seen a loss of 160 rigs year on year, with gas rigs down 57 since this time last year.
The US oil and gas rig count fell this week, according to Baker Hughes, decreasing by 5 for the week, according to Baker Hughes. This week marks eight decreases in the last nine weeks.
The total oil and gas rig count now stands at 851, or 216 down from this time last year.
The total number of active oil rigs in the United States increased by 1 according to the report, reaching 713. The number of active gas rigs decreased by 6 to reach 137.
Oil rigs have seen a loss of 160 rigs year on year, with gas rigs down 57 since this time last year.
Oil Set for Weekly Loss as China Growth Slows, U.S. Supply Jumps - Bloomberg
Oil Set for Weekly Loss as China Growth Slows, U.S. Supply Jumps - Bloomberg:
Oil headed for a weekly loss amid swelling U.S. crude inventories, concerns over the demand outlook and the ongoing struggle between Washington and Beijing to finalize a trade deal.
Futures in New York traded near $54 a barrel on Friday and are down 1% for the week. China’s economy expanded at the slowest pace since the early 1990s last quarter, data showed on Friday, more evidence that the trade war is taking a toll on global growth. American crude inventories climbed last week by the most in almost six months, though stockpiles of refined fuels shrank, according to the Energy Information Administration.
Oil headed for a weekly loss amid swelling U.S. crude inventories, concerns over the demand outlook and the ongoing struggle between Washington and Beijing to finalize a trade deal.
Futures in New York traded near $54 a barrel on Friday and are down 1% for the week. China’s economy expanded at the slowest pace since the early 1990s last quarter, data showed on Friday, more evidence that the trade war is taking a toll on global growth. American crude inventories climbed last week by the most in almost six months, though stockpiles of refined fuels shrank, according to the Energy Information Administration.
DAMAC says pause needed for #Dubai real estate recovery - Reuters
DAMAC says pause needed for Dubai real estate recovery - Reuters:
The chairman of DAMAC Properties (DAMAC.DU) said on Thursday property developers should refrain from launching any new residential projects in Dubai for at least a year in order to kickstart a recovery in a market where prices are down sharply.
Dubai has faced a slowing real estate market for most of the decade, barring a brief pickup more than five years ago. Housing oversupply has driven prices down at least a quarter since 2014.
The slowdown has squeezed the earnings of the emirate’s top developers, including DAMAC, whose second-quarter profit fell 87% and whose share price has lost nearly 40% so far this year.
The chairman of DAMAC Properties (DAMAC.DU) said on Thursday property developers should refrain from launching any new residential projects in Dubai for at least a year in order to kickstart a recovery in a market where prices are down sharply.
Dubai has faced a slowing real estate market for most of the decade, barring a brief pickup more than five years ago. Housing oversupply has driven prices down at least a quarter since 2014.
The slowdown has squeezed the earnings of the emirate’s top developers, including DAMAC, whose second-quarter profit fell 87% and whose share price has lost nearly 40% so far this year.
#UAE banks prepare for rough ride ahead | Financial Times
UAE banks prepare for rough ride ahead | Financial Times:
Despite a four-year economic slowdown since oil prices collapsed in 2014, the United Arab Emirates’ banks have fared better than other struggling sectors of the economy, such as retail and property.
Higher US interest rates since 2016 — which the UAE currency follows — have boosted profitability, while cost-cutting and financial buffers have insulated lenders against the downturn: in the first half of 2019, profits at the UAE’s four largest banks were up 16 per cent year on year, according to rating agency Moody’s.
Yet the prospect of lower interest rates, as well as rising provisioning costs on bad loans, point towards rougher times ahead.
 |
| Meydan, the master developer for swaths of desert around the city’s horse racecourse, has billions of dirhams in disputed contracts © Getty |
Despite a four-year economic slowdown since oil prices collapsed in 2014, the United Arab Emirates’ banks have fared better than other struggling sectors of the economy, such as retail and property.
Higher US interest rates since 2016 — which the UAE currency follows — have boosted profitability, while cost-cutting and financial buffers have insulated lenders against the downturn: in the first half of 2019, profits at the UAE’s four largest banks were up 16 per cent year on year, according to rating agency Moody’s.
Yet the prospect of lower interest rates, as well as rising provisioning costs on bad loans, point towards rougher times ahead.
#SaudiArabia’s privatisation goals fall short on progress | Financial Times
Saudi Arabia’s privatisation goals fall short on progress | Financial Times:
As Saudi Arabia pushes ahead with its ambitious socio-economic overhaul to wean the kingdom off its dependence on oil, local and international banks are lining up to seize new business.
The changes are creating opportunities in project financing and debt raising, with the potential privatisation of Saudi Aramco, the state oil company, still to come. But growth continues to be lacklustre, with the private sector reeling from the pain of some of the reforms.
The murder of journalist Jamal Khashoggi by government agents at the Saudi consulate in Istanbul last year sent the kingdom into its worst diplomatic crisis since the 9/11 terrorist attacks, and intensified international scrutiny of the country’s military campaign in Yemen.
As Saudi Arabia pushes ahead with its ambitious socio-economic overhaul to wean the kingdom off its dependence on oil, local and international banks are lining up to seize new business.
The changes are creating opportunities in project financing and debt raising, with the potential privatisation of Saudi Aramco, the state oil company, still to come. But growth continues to be lacklustre, with the private sector reeling from the pain of some of the reforms.
The murder of journalist Jamal Khashoggi by government agents at the Saudi consulate in Istanbul last year sent the kingdom into its worst diplomatic crisis since the 9/11 terrorist attacks, and intensified international scrutiny of the country’s military campaign in Yemen.
#Qatar pins growth hopes on domestic renewal | Financial Times
Qatar pins growth hopes on domestic renewal | Financial Times:
Doha’s newly opened metro system whisks travellers at 100km/h below the gnarly traffic that bedevils the streets of Qatar’s capital.
The Japanese-built carriages serve 13 stations on the part-opened red line, the first of three that will connect the city centre to far-flung suburbs including the new city of Lusail, where the final of the Fifa World Cup will be held in December 2022.
If neighbouring Dubai’s 10-year-old metro is any guide, next year’s opening of the full three-line, 76km Doha network should eventually prove a success and de-clog the road network. For now, however, the carriages serve joyriders rather than commuters.
Doha’s newly opened metro system whisks travellers at 100km/h below the gnarly traffic that bedevils the streets of Qatar’s capital.
The Japanese-built carriages serve 13 stations on the part-opened red line, the first of three that will connect the city centre to far-flung suburbs including the new city of Lusail, where the final of the Fifa World Cup will be held in December 2022.
If neighbouring Dubai’s 10-year-old metro is any guide, next year’s opening of the full three-line, 76km Doha network should eventually prove a success and de-clog the road network. For now, however, the carriages serve joyriders rather than commuters.
OPEC’s Next Meeting May Unveil New Approach: Preemption - Bloomberg
OPEC’s Next Meeting May Unveil New Approach: Preemption - Bloomberg:
As the clamor grows for OPEC to slash even more oil production, and the cartel vows to consider any necessary action, its next meeting could result in an unusual step: a preemptive supply cut.
The Organization of Petroleum Exporting Countries and its partners -- known as OPEC+ -- have reduced output this year to contain a glut created by faltering oil demand and surging U.S. shale supply. Amid forecasts of a new surplus next year, there’s a chorus of calls from Morgan Stanley to Commerzbank AG for the alliance to deepen the curbs when it meets in Vienna in December.
But in recent months global markets have grown tighter, removing any immediate need to act. If extra cutbacks are announced, it would mark a break with tradition for the cartel, which typically waits for a glut to emerge before responding.
As the clamor grows for OPEC to slash even more oil production, and the cartel vows to consider any necessary action, its next meeting could result in an unusual step: a preemptive supply cut.
The Organization of Petroleum Exporting Countries and its partners -- known as OPEC+ -- have reduced output this year to contain a glut created by faltering oil demand and surging U.S. shale supply. Amid forecasts of a new surplus next year, there’s a chorus of calls from Morgan Stanley to Commerzbank AG for the alliance to deepen the curbs when it meets in Vienna in December.
But in recent months global markets have grown tighter, removing any immediate need to act. If extra cutbacks are announced, it would mark a break with tradition for the cartel, which typically waits for a glut to emerge before responding.
Oil ebbs as China's slowest GDP growth in almost three decades stokes demand fears - Reuters
Oil ebbs as China's slowest GDP growth in almost three decades stokes demand fears - Reuters:
Oil prices slid on Friday on jitters over demand from China after the world’s largest oil importer recorded its weakest quarter of economic growth in nearly three decades, dragged down by a trade dispute with the United States.
Global benchmark Brent crude oil futures LCOc1 fell by 21 cents, 0.4%, to $59.70 a barrel by 0646 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures edged down by 4 cents, or 0.1%, to $53.89 per barrel.
In the third quarter, China’s gross domestic product (GDP) growth slowed to 6% year-on-year, its weakest pace in 27-1/2 years and below expectations, dogged by soft factory production amid ongoing trade tensions with United States and sluggish domestic demand.
Oil prices slid on Friday on jitters over demand from China after the world’s largest oil importer recorded its weakest quarter of economic growth in nearly three decades, dragged down by a trade dispute with the United States.
Global benchmark Brent crude oil futures LCOc1 fell by 21 cents, 0.4%, to $59.70 a barrel by 0646 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures edged down by 4 cents, or 0.1%, to $53.89 per barrel.
In the third quarter, China’s gross domestic product (GDP) growth slowed to 6% year-on-year, its weakest pace in 27-1/2 years and below expectations, dogged by soft factory production amid ongoing trade tensions with United States and sluggish domestic demand.
#Saudi Aramco Delays IPO Again Just Days Before Planned Launch - Bloomberg
Saudi Aramco Delays IPO Again Just Days Before Planned Launch - Bloomberg:
Saudi Aramco’s stop-start initial public offering was delayed again just days before a planned launch as doubts re-emerged about the $2 trillion valuation placed on the state oil giant by Crown Prince Mohammed bin Salman.
The postponement, by at least a few weeks, will allow the array of Wall Street bankers advising Aramco to incorporate third-quarter results into their pre-IPO assessments of the company, according to people briefed on the situation. The banks are still struggling to meet the valuation the company is seeking, according to one of the people, who asked not to be named discussing private deliberations.
Aramco, which pumps about 10% of the world’s crude oil, said in a statement that the timing of the IPO will depend on market conditions and that it continues to engage with shareholders on activities related to the listing.
Saudi Aramco’s stop-start initial public offering was delayed again just days before a planned launch as doubts re-emerged about the $2 trillion valuation placed on the state oil giant by Crown Prince Mohammed bin Salman.
The postponement, by at least a few weeks, will allow the array of Wall Street bankers advising Aramco to incorporate third-quarter results into their pre-IPO assessments of the company, according to people briefed on the situation. The banks are still struggling to meet the valuation the company is seeking, according to one of the people, who asked not to be named discussing private deliberations.
Aramco, which pumps about 10% of the world’s crude oil, said in a statement that the timing of the IPO will depend on market conditions and that it continues to engage with shareholders on activities related to the listing.