Once-Mighty Gulf Airlines Turn to Budget Allies for Growth - Bloomberg:
From a desert outpost to a sprawling metropolis boasting the world’s biggest long-haul airline, Dubai has long epitomized rapid growth, and its biennial air show has typically mirrored that quest with record-breaking plane orders.
But the last two years haven’t been easy on the aviation industry or the global economy, turning the event, which starts Sunday, into a barometer for future demand.
Boeing Co.’s 737 Max, a star at the 2017 gathering, is grounded following two fatal accidents. The Airbus SE A380 super-jumbo has been canceled, and the three big regional carriers -- Emirates, Etihad Airways and Qatar Airways -- are re-evaluating their fleet requirements and route networks after gorging on wide-body orders in the last decade. The appetite to invest more has also been dented by the fallout from lower oil prices and trade tensions roiling global economies.
Friday, 15 November 2019
Here’s What Investors Say Aramco Should Be Valued at: Survey - Bloomberg
Here’s What Investors Say Aramco Should Be Valued at: Survey - Bloomberg:
As Saudi Aramco prepares to unveil the price range for its long-awaited IPO on Sunday, an investor survey points to a maximum valuation for the oil giant of $1.5 trillion.
The poll of 24 money managers by Bloomberg News showed that more than 40% put the company’s fair range at $1.2 trillion to $1.5 trillion. That’s less than the figure of about $1.7 trillion Crown Prince Mohammed Bin Salman is said to be currently willing to accept, having reduced it from an original public target of $2 trillion.
Saudi Arabia is pulling out all the stops to ensure the IPO has as high as valuation at possible. It’s sought large commitments from rich Saudi families, many of whom had members held in the Riyadh’s Ritz-Carlton during 2017’s corruption crackdown. The sale will also be aggressively pitched to retail investors, who’ll be offered loans to finance purchases.
As Saudi Aramco prepares to unveil the price range for its long-awaited IPO on Sunday, an investor survey points to a maximum valuation for the oil giant of $1.5 trillion.
The poll of 24 money managers by Bloomberg News showed that more than 40% put the company’s fair range at $1.2 trillion to $1.5 trillion. That’s less than the figure of about $1.7 trillion Crown Prince Mohammed Bin Salman is said to be currently willing to accept, having reduced it from an original public target of $2 trillion.
Saudi Arabia is pulling out all the stops to ensure the IPO has as high as valuation at possible. It’s sought large commitments from rich Saudi families, many of whom had members held in the Riyadh’s Ritz-Carlton during 2017’s corruption crackdown. The sale will also be aggressively pitched to retail investors, who’ll be offered loans to finance purchases.
S&P Dow Jones, FTSE Russell could fast-track Aramco into indices - Reuters
S&P Dow Jones, FTSE Russell could fast-track Aramco into indices - Reuters:
Index providers S&P Dow Jones and FTSE Russell told clients this week that they could fast-track Saudi Aramco’s inclusion into their indices as soon as the end of December, documents seen by Reuters showed.
MSCI, the world’s biggest provider of indexes, which are tracked or used as a benchmark by funds with trillions of dollars in assets globally, also has the potential to fast-track newly-listed companies but declined to comment on Aramco.
State-owned Saudi Aramco, the world’s most profitable company, is set to launch a share sale process on Nov. 17, aiming to raise $20 billion-$40 billion in a domestic initial public offering (IPO) in early December.
Index providers S&P Dow Jones and FTSE Russell told clients this week that they could fast-track Saudi Aramco’s inclusion into their indices as soon as the end of December, documents seen by Reuters showed.
MSCI, the world’s biggest provider of indexes, which are tracked or used as a benchmark by funds with trillions of dollars in assets globally, also has the potential to fast-track newly-listed companies but declined to comment on Aramco.
State-owned Saudi Aramco, the world’s most profitable company, is set to launch a share sale process on Nov. 17, aiming to raise $20 billion-$40 billion in a domestic initial public offering (IPO) in early December.
OPEC+ faces 'major challenge' from competitors' surging output: IEA - Reuters
OPEC+ faces 'major challenge' from competitors' surging output: IEA - Reuters:
The Organization of the Petroleum Exporting Countries and its allies face stiffening competition in 2020, the International Energy Agency said on Friday, adding urgency to the oil producer group’s policy meeting next month.
“The OPEC+ countries face a major challenge in 2020 as demand for their crude is expected to fall sharply,” the Paris-based agency said in a monthly report.
The IEA estimated non-OPEC supply growth would surge to 2.3 million barrels per day (bpd) next year compared to 1.8 million bpd in 2019, citing production from the United States, Brazil, Norway and Guyana.
The Organization of the Petroleum Exporting Countries and its allies face stiffening competition in 2020, the International Energy Agency said on Friday, adding urgency to the oil producer group’s policy meeting next month.
“The OPEC+ countries face a major challenge in 2020 as demand for their crude is expected to fall sharply,” the Paris-based agency said in a monthly report.
The IEA estimated non-OPEC supply growth would surge to 2.3 million barrels per day (bpd) next year compared to 1.8 million bpd in 2019, citing production from the United States, Brazil, Norway and Guyana.
Oil prices gain 2% despite concerns about rising supplies - Reuters
Oil prices gain 2% despite concerns about rising supplies - Reuters:
Oil futures gained nearly 2% on Friday as comments from a top U.S. official raised optimism for a U.S.-China trade deal, but worries about increasing crude supplies capped prices.
Brent crude gained $1.02, or 1.6%, to settle at $63.30 a barrel, while West Texas Intermediate crude rose 95 cents, or 1.7%, to settle at $57.72 a barrel.
Both benchmarks posted their second straight weekly gain. Brent rose 1.3%, and WTI gained 0.8%.
U.S. Commerce Secretary Wilbur Ross said in an interview on Fox Business Network that there was a very high probability the United States would reach a final agreement on a phase one trade deal with China.
Oil futures gained nearly 2% on Friday as comments from a top U.S. official raised optimism for a U.S.-China trade deal, but worries about increasing crude supplies capped prices.
Brent crude gained $1.02, or 1.6%, to settle at $63.30 a barrel, while West Texas Intermediate crude rose 95 cents, or 1.7%, to settle at $57.72 a barrel.
Both benchmarks posted their second straight weekly gain. Brent rose 1.3%, and WTI gained 0.8%.
U.S. Commerce Secretary Wilbur Ross said in an interview on Fox Business Network that there was a very high probability the United States would reach a final agreement on a phase one trade deal with China.
Russia Is Making More Money From OPEC+ Deal Than #SaudiArabia - Bloomberg
Russia Is Making More Money From OPEC+ Deal Than Saudi Arabia - Bloomberg:
Russia has earned more money this year from the OPEC+ deal than Saudi Arabia, underscoring how the kingdom has carried a greater share of the burden of production cuts.
Saudi Arabia on average has cut production almost ten times deeper than Russia since the countries joined forces at the end of 2016, according to estimates in the International Energy Agency’s monthly oil market report published on Friday. Yet Riyadh has received just three quarters of the additional financial benefit enjoyed by Moscow, the data show.
Russia has earned an average of $670 million a day in gross crude oil revenues in 2019. That’s $170 million a day more than in the last quarter of 2016, when the Organization of Petroleum Exporting Countries and its partners reached the first production-cuts deal, the IEA said. Saudi Arabia has been earning $630 million every day since the start of the year, up $125 million compared to the fourth quarter of 2016.
Russia has earned more money this year from the OPEC+ deal than Saudi Arabia, underscoring how the kingdom has carried a greater share of the burden of production cuts.
Saudi Arabia on average has cut production almost ten times deeper than Russia since the countries joined forces at the end of 2016, according to estimates in the International Energy Agency’s monthly oil market report published on Friday. Yet Riyadh has received just three quarters of the additional financial benefit enjoyed by Moscow, the data show.
Russia has earned an average of $670 million a day in gross crude oil revenues in 2019. That’s $170 million a day more than in the last quarter of 2016, when the Organization of Petroleum Exporting Countries and its partners reached the first production-cuts deal, the IEA said. Saudi Arabia has been earning $630 million every day since the start of the year, up $125 million compared to the fourth quarter of 2016.
#Dubai-listed contractor Arabtec posts Q3 loss - Reuters
Dubai-listed contractor Arabtec posts Q3 loss - Reuters:
Arabtec fell to a third-quarter loss of 437.4 million dirhams ($119.1 million) attributable to owners, the Dubai-listed contractor reported on Friday.
In the third quarter of 2018, it recorded a profit of 67.5 million dirhams.
Revenue fell to 1.6 billion dirhams from 2.3 billion, Arabtec said in a bourse filing.
Arabtec fell to a third-quarter loss of 437.4 million dirhams ($119.1 million) attributable to owners, the Dubai-listed contractor reported on Friday.
In the third quarter of 2018, it recorded a profit of 67.5 million dirhams.
Revenue fell to 1.6 billion dirhams from 2.3 billion, Arabtec said in a bourse filing.
Oil rises amid optimism over OPEC supply cuts, hopes on U.S.-China trade - Reuters
Oil rises amid optimism over OPEC supply cuts, hopes on U.S.-China trade - Reuters:
Oil prices gained on Friday after OPEC’s forecast for oil demand next year fueled hopes that the producer group and allies will maintain supply cuts when they meet to discuss policy on output next month.
Optimism that the United States and China may soon sign an agreement to end their trade war helped support prices after White House economic adviser Larry Kudlow said a deal was “getting close”, citing what he called very constructive discussions with Beijing.
Brent crude futures were up 19 cents, or 0.3%, at $62.47 a barrel by 0759 GMT, having dropped 9 cents on Thursday.
West Texas Intermediate crude was up 21 cents, or 0.4%, at $56.98 a barrel, after falling 0.6% in the previous session.
Oil prices gained on Friday after OPEC’s forecast for oil demand next year fueled hopes that the producer group and allies will maintain supply cuts when they meet to discuss policy on output next month.
Optimism that the United States and China may soon sign an agreement to end their trade war helped support prices after White House economic adviser Larry Kudlow said a deal was “getting close”, citing what he called very constructive discussions with Beijing.
Brent crude futures were up 19 cents, or 0.3%, at $62.47 a barrel by 0759 GMT, having dropped 9 cents on Thursday.
West Texas Intermediate crude was up 21 cents, or 0.4%, at $56.98 a barrel, after falling 0.6% in the previous session.
Could The Aramco IPO Kill OPEC? | OilPrice.com
Could The Aramco IPO Kill OPEC? | OilPrice.com:
The global oil market could be entering unchartered waters in the coming weeks. After the US shale revolution, which threatened OPEC’s hold on and the stability of the market, a new danger is lurking around the corner.
The Aramco IPO, the largest IPO in history, will not only impact OPEC but will also have repercussions for the Kingdom, Crown Prince Mohammed bin Salman, and the entire GCC region.
Most analysts have pointed out that there are some major issues with the company’s financials, its valuation and possible returns for the Kingdom. International banks are presenting their own IPO valuations, indicating a wide range of price targets, leaving a lot of room for speculation. At the same time, Aramco’s IPO prospectus indicates some threats which seem not to have been included in most analyses, such as the impact of flattening oil demand growth, potential legal repercussions if listed on Western stock exchanges and the potential lack of interest from US and European institutional investors.
The global oil market could be entering unchartered waters in the coming weeks. After the US shale revolution, which threatened OPEC’s hold on and the stability of the market, a new danger is lurking around the corner.
The Aramco IPO, the largest IPO in history, will not only impact OPEC but will also have repercussions for the Kingdom, Crown Prince Mohammed bin Salman, and the entire GCC region.
Most analysts have pointed out that there are some major issues with the company’s financials, its valuation and possible returns for the Kingdom. International banks are presenting their own IPO valuations, indicating a wide range of price targets, leaving a lot of room for speculation. At the same time, Aramco’s IPO prospectus indicates some threats which seem not to have been included in most analyses, such as the impact of flattening oil demand growth, potential legal repercussions if listed on Western stock exchanges and the potential lack of interest from US and European institutional investors.
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