Saudi Binladin Leadership Overhaul Slows $15 Billion Debt Revamp - Bloomberg:
Saudi Arabia’s biggest construction company overhauled its top management, delaying plans to appoint an adviser for a proposed $15 billion debt restructuring, people familiar with the matter said.
Saudi Binladin Group’s previous chairman and managing director left within months of being appointed, the people said, asking not to be identified because the matter hasn’t been made public. The company also named four new directors to its board this week, they said.
Binladin -- for decades Saudi Arabia’s go-to developer for mega-projects such as airports and religious sites -- is planning to reorganize its borrowings after the kingdom delayed payments to contractors following a drop in oil prices.
The builder had shortlisted Moelis & Co. and Rothschild & Co. to advise on the debt restructuring, people familiar with the matter said in October.
Thursday, 5 December 2019
Oil little changed despite OPEC+ plan to deepen cuts - Reuters
Oil little changed despite OPEC+ plan to deepen cuts - Reuters:
Oil futures were steady to slightly firmer on Thursday despite OPEC and its allies planning one of the deepest output cuts this decade to prevent oversupply.
The deal would apply for an unexpectedly short period of the first three months of 2020, without an extension that the markets had been eyeing, and would exclude condensates from the cuts for the non-OPEC allies, like Russia.
Brent crude LCOc1 futures settled at $63.39 a barrel, up 39 cents or 0.6%. West Texas Intermediate (WTI) crude CLc1 futures ended at $58.43 a barrel, unchanged from the previous settlement, after hitting the highest since late September earlier in the session.
Oil futures were steady to slightly firmer on Thursday despite OPEC and its allies planning one of the deepest output cuts this decade to prevent oversupply.
The deal would apply for an unexpectedly short period of the first three months of 2020, without an extension that the markets had been eyeing, and would exclude condensates from the cuts for the non-OPEC allies, like Russia.
Brent crude LCOc1 futures settled at $63.39 a barrel, up 39 cents or 0.6%. West Texas Intermediate (WTI) crude CLc1 futures ended at $58.43 a barrel, unchanged from the previous settlement, after hitting the highest since late September earlier in the session.
#Saudi Aramco prices shares at top of range in world's biggest IPO - Reuters
Saudi Aramco prices shares at top of range in world's biggest IPO - Reuters:
State-owned oil giant Saudi Aramco’s initial public offering (IPO) will be the biggest in history, but will fall short of the towering $2 trillion valuation long sought by Crown Prince Mohammed bin Salman. Aramco priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, the company said in a statement, raising $25.6 billion and beating Alibaba Group Holding Ltd’s (BABA.N) record $25 billion listing in 2014. At that level, Aramco has a market valuation of $1.7 trillion, comfortably overtaking Apple Inc (AAPL.O) as the world’s most valuable listed firm. But the listing, expected later this month on the Riyadh stock exchange, is a far cry from the blockbuster debut originally envisaged by the Crown Prince.
Aramco did not say when shares would start trading on the Saudi stock market but two sources said it was scheduled for Dec. 11.
State-owned oil giant Saudi Aramco’s initial public offering (IPO) will be the biggest in history, but will fall short of the towering $2 trillion valuation long sought by Crown Prince Mohammed bin Salman. Aramco priced its IPO at 32 riyals ($8.53) per share, the top of its indicative range, the company said in a statement, raising $25.6 billion and beating Alibaba Group Holding Ltd’s (BABA.N) record $25 billion listing in 2014. At that level, Aramco has a market valuation of $1.7 trillion, comfortably overtaking Apple Inc (AAPL.O) as the world’s most valuable listed firm. But the listing, expected later this month on the Riyadh stock exchange, is a far cry from the blockbuster debut originally envisaged by the Crown Prince.
Aramco did not say when shares would start trading on the Saudi stock market but two sources said it was scheduled for Dec. 11.
OPEC, allies agree to deepen oil output cuts - Reuters
OPEC, allies agree to deepen oil output cuts - Reuters:
Oil producers led by Saudi Arabia and Russia agreed on Thursday to cut output by an extra 500,000 barrels a day for the final three months of their deal to curb supply but stopped short of pledging action beyond next March.
The countries involved pump over 40% of the world’s oil, and their new combined cuts amount to 1.7 million bpd or 1.7% of global production.
A panel of energy ministers representing the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia recommended the deeper cut on Thursday, Russian Energy Minister Alexander Novak said.
“We really do see some risks of oversupply in the first quarter due to lower seasonal demand for refined products and for crude oil,” Novak said.
Oil producers led by Saudi Arabia and Russia agreed on Thursday to cut output by an extra 500,000 barrels a day for the final three months of their deal to curb supply but stopped short of pledging action beyond next March.
The countries involved pump over 40% of the world’s oil, and their new combined cuts amount to 1.7 million bpd or 1.7% of global production.
A panel of energy ministers representing the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producers led by Russia recommended the deeper cut on Thursday, Russian Energy Minister Alexander Novak said.
“We really do see some risks of oversupply in the first quarter due to lower seasonal demand for refined products and for crude oil,” Novak said.
MIDEAST STOCKS- #Qatar outperforms Gulf markets as Egypt retreats - Reuters
MIDEAST STOCKS-Qatar outperforms Gulf markets as Egypt retreats - Reuters:
Qatar outperformed other Gulf stock
markets Thursday, while the Egypt bourse slipped as most of its
blue-chip stocks fell.
The Qatari index rose 0.8%, with Qatar Islamic Bank
up 3% and Mesaieed Petrochemical 0.8% higher
after it said it had received an income tax exemption and a tax
refund of 170 million riyals ($46.7 million).
In Saudi Arabia, the benchmark index rose 0.4% with
National Commercial Bank and Riyad Bank
gaining 2% and 1.7% respectively.
Elsewhere, Anaam Holding soared 9.9%, the top
gainer on the index, a day after its board proposed a capital
increase through a rights issue.
Qatar outperformed other Gulf stock
markets Thursday, while the Egypt bourse slipped as most of its
blue-chip stocks fell.
The Qatari index rose 0.8%, with Qatar Islamic Bank
up 3% and Mesaieed Petrochemical 0.8% higher
after it said it had received an income tax exemption and a tax
refund of 170 million riyals ($46.7 million).
In Saudi Arabia, the benchmark index rose 0.4% with
National Commercial Bank and Riyad Bank
gaining 2% and 1.7% respectively.
Elsewhere, Anaam Holding soared 9.9%, the top
gainer on the index, a day after its board proposed a capital
increase through a rights issue.
Saudis Offer OPEC+ Quid Pro Quo: We’ll Cut If You Stop Cheating - Bloomberg
Saudis Offer OPEC+ Quid Pro Quo: We’ll Cut If You Stop Cheating - Bloomberg:
Saudi Arabia is offering fellow OPEC+ members a quid pro quo: If you stop cheating, we’ll curb production.
With just hours to go before the Organization of Petroleum Exporting Countries’ meeting in Vienna, it was unclear if the kingdom was simply offering to return to its average output for 2019 -- ending a brief surge to compensate for the September attacks on its oil facilities -- or whether it was willing to take even more oil off a market that’s looking oversupplied in early 2020.
What was becoming clear, according to OPEC delegates, was new Saudi Oil Minister Prince Abdulaziz bin Salman’s reluctance to endorse the status quo, in which countries including Iraq, Nigeria and Russia have consistently failed to implement their pledged output cuts, leaving the kingdom carrying most of the burden of supporting crude prices.
Saudi Arabia is offering fellow OPEC+ members a quid pro quo: If you stop cheating, we’ll curb production.
With just hours to go before the Organization of Petroleum Exporting Countries’ meeting in Vienna, it was unclear if the kingdom was simply offering to return to its average output for 2019 -- ending a brief surge to compensate for the September attacks on its oil facilities -- or whether it was willing to take even more oil off a market that’s looking oversupplied in early 2020.
What was becoming clear, according to OPEC delegates, was new Saudi Oil Minister Prince Abdulaziz bin Salman’s reluctance to endorse the status quo, in which countries including Iraq, Nigeria and Russia have consistently failed to implement their pledged output cuts, leaving the kingdom carrying most of the burden of supporting crude prices.
Russia cutting even more oil output than agreed under OPEC+ pact: energy minister - Reuters
Russia cutting even more oil output than agreed under OPEC+ pact: energy minister - Reuters:
Russian energy minister Alexander Novak said on Thursday Russia was currently cutting even more oil output than agreed under an OPEC+ pact to curb supply, without taking into account gas condensate.
Speaking at an OPEC+ meeting in Vienna, Novak said he had had a “constructive meeting” with the oil minister of Saudi Arabia and that Russia would adopt a position on any future OPEC+ deal after further discussions.
Russian energy minister Alexander Novak said on Thursday Russia was currently cutting even more oil output than agreed under an OPEC+ pact to curb supply, without taking into account gas condensate.
Speaking at an OPEC+ meeting in Vienna, Novak said he had had a “constructive meeting” with the oil minister of Saudi Arabia and that Russia would adopt a position on any future OPEC+ deal after further discussions.
Saudi Arabian miner Ma'aden eyes $5 billion Waad al-Shamal debt refinancing - Reuters
Saudi Arabian miner Ma'aden eyes $5 billion Waad al-Shamal debt refinancing - Reuters:
Saudi Arabian Mining Co (Ma’aden) is considering full or partial refinancing of debt it raised for the Waad al-Shamal project, which is about $5 billion in total, its chief executive said on Thursday.
Ma’aden, the Gulf’s largest miner and the world’s third-biggest phosphate producer, has the necessary cash flow to pay down its existing debt but is looking to better manage its obligations at a time of low commodity prices, Ma’aden CEO Darren Davis told reporters on the sidelines of a conference in Dubai.
“We are looking at different options, whether we refinance the whole thing or partially. We are still in the early stages on that one. Our goal is to do it next year,” said Davis of the planned debt refinancing.
Ma’aden, which mines gold and copper and has in recent years expanded into aluminium and phosphates, is key to Saudi Arabia’s plan to diversify its economy away from hydrocarbons.
Saudi Arabian Mining Co (Ma’aden) is considering full or partial refinancing of debt it raised for the Waad al-Shamal project, which is about $5 billion in total, its chief executive said on Thursday.
Ma’aden, the Gulf’s largest miner and the world’s third-biggest phosphate producer, has the necessary cash flow to pay down its existing debt but is looking to better manage its obligations at a time of low commodity prices, Ma’aden CEO Darren Davis told reporters on the sidelines of a conference in Dubai.
“We are looking at different options, whether we refinance the whole thing or partially. We are still in the early stages on that one. Our goal is to do it next year,” said Davis of the planned debt refinancing.
Ma’aden, which mines gold and copper and has in recent years expanded into aluminium and phosphates, is key to Saudi Arabia’s plan to diversify its economy away from hydrocarbons.
If OPEC+ Announces a New Cut, It May Not Be Quite What It Seems - Bloomberg
If OPEC+ Announces a New Cut, It May Not Be Quite What It Seems - Bloomberg:
Speculation is mounting that OPEC and its allies may agree a deeper production cut at their meeting in Vienna on Thursday, but market watchers shouldn’t take any such announcement at face value.
Even a sizable “new” cut like the 400,000 barrel-a-day reduction Iraq’s Oil Minister Thamir Ghadhban was suggesting wouldn’t necessarily remove any oil from the market. It could simply formalize the group’s current production, which has been well below its target for most of 2019.
A year ago, the Organization of Petroleum Exporting Countries and its allies agreed to remove 1.2 million barrels a day from the market. In October, their cuts actually added up to about 1.7 million barrels a day, according to the group’s Joint Technical Committee.
So the group could deepen its output-cuts target by as much as 500,000 barrels a day without requiring any member to pump less oil.
Speculation is mounting that OPEC and its allies may agree a deeper production cut at their meeting in Vienna on Thursday, but market watchers shouldn’t take any such announcement at face value.
Even a sizable “new” cut like the 400,000 barrel-a-day reduction Iraq’s Oil Minister Thamir Ghadhban was suggesting wouldn’t necessarily remove any oil from the market. It could simply formalize the group’s current production, which has been well below its target for most of 2019.
A year ago, the Organization of Petroleum Exporting Countries and its allies agreed to remove 1.2 million barrels a day from the market. In October, their cuts actually added up to about 1.7 million barrels a day, according to the group’s Joint Technical Committee.
So the group could deepen its output-cuts target by as much as 500,000 barrels a day without requiring any member to pump less oil.
#UAE Economy Falters With First-Ever Drop in New Orders - Bloomberg
U.A.E. Economy Falters With First-Ever Drop in New Orders - Bloomberg:
The second-biggest Arab economy is ending a difficult year on a low as business activity slumps to a level not seen in more than a decade.
New orders for companies in the United Arab Emirates fell for the first time on record in November as the impact of recent price cuts to stimulate demand waned. Output growth and payroll numbers also fell, according to the IHS Markit Purchasing Managers’ Index, which tracks the country’s non-oil economy.
The oil-rich country is grappling with low crude prices as well as global trade headwinds. A strong dollar is also hurting tourism and retail demand in Dubai, the country’s business hub.
“Price discounts that led to marked surges in demand earlier this year are now relatively ineffectual,” IHS Markit economist David Owen wrote. “While the overall decline in sales was marginal, it offered a first hint that the non-oil private sector might endure a period of contraction.”
The second-biggest Arab economy is ending a difficult year on a low as business activity slumps to a level not seen in more than a decade.
New orders for companies in the United Arab Emirates fell for the first time on record in November as the impact of recent price cuts to stimulate demand waned. Output growth and payroll numbers also fell, according to the IHS Markit Purchasing Managers’ Index, which tracks the country’s non-oil economy.
The oil-rich country is grappling with low crude prices as well as global trade headwinds. A strong dollar is also hurting tourism and retail demand in Dubai, the country’s business hub.
“Price discounts that led to marked surges in demand earlier this year are now relatively ineffectual,” IHS Markit economist David Owen wrote. “While the overall decline in sales was marginal, it offered a first hint that the non-oil private sector might endure a period of contraction.”
#Dubai-owned P&O Ferries struggling with $120m pension deficit - auditor - Arabianbusiness
Dubai-owned P&O Ferries struggling with $120m pension deficit - auditor - Arabianbusiness:
The auditor behind P&O Ferries, the British shipping and ferries operator owned by Dubai’s DP World, has warned he cannot “guarantee that the company will continue in operation” due to it's growing pension shortfall.
The deficit in the company’s pension schemes surged to £92.5 million ($120.23m) last year, up from £67.1m in 2017, according to a report by the Mail on Sunday.
The shipping firm, which DP World bought from state-owned holding company Dubai World for £322m in February this year, had a turnover of £145.2m and a pre-tax profit of £13.2m, before the pension deficit was factored in.
The company has moved registration of its vessels from the United Kingdom to Cyprus as part of preparation ahead of the UK’s exit from the European Union, but its accounts warned that “unprecedented levels of uncertainty” due to Brexit were a concern.
The auditor behind P&O Ferries, the British shipping and ferries operator owned by Dubai’s DP World, has warned he cannot “guarantee that the company will continue in operation” due to it's growing pension shortfall.
The deficit in the company’s pension schemes surged to £92.5 million ($120.23m) last year, up from £67.1m in 2017, according to a report by the Mail on Sunday.
The shipping firm, which DP World bought from state-owned holding company Dubai World for £322m in February this year, had a turnover of £145.2m and a pre-tax profit of £13.2m, before the pension deficit was factored in.
The company has moved registration of its vessels from the United Kingdom to Cyprus as part of preparation ahead of the UK’s exit from the European Union, but its accounts warned that “unprecedented levels of uncertainty” due to Brexit were a concern.
#UAE private sector growth falls to 10-year low in November: PMI - Reuters
UAE private sector growth falls to 10-year low in November: PMI - Reuters:
Growth in the United Arab Emirates’ non-oil private sector slowed to a 10-year low in November and firms experienced the first monthly decline in new orders on record, a survey showed on Thursday.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, fell to 50.3 from 51.1 in October.
Although the non-oil sector remained in growth territory — a reading above 50 indicates expansion and below, contraction — it was the UAE’s weakest growth rate since August 2009.
The survey data showed the first month-on-month decline in new business at UAE non-oil companies in the series history, though the overall reduction was marginal.
Growth in the United Arab Emirates’ non-oil private sector slowed to a 10-year low in November and firms experienced the first monthly decline in new orders on record, a survey showed on Thursday.
The seasonally adjusted IHS Markit UAE Purchasing Managers’ Index (PMI), which covers manufacturing and services, fell to 50.3 from 51.1 in October.
Although the non-oil sector remained in growth territory — a reading above 50 indicates expansion and below, contraction — it was the UAE’s weakest growth rate since August 2009.
The survey data showed the first month-on-month decline in new business at UAE non-oil companies in the series history, though the overall reduction was marginal.
Oil dips as OPEC weighs deeper output cuts - Reuters
Oil dips as OPEC weighs deeper output cuts - Reuters:
Oil prices edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year.
Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies by Russia by more than 400,000 barrels per day (bpd) from their current level of 1.2 million bpd.
The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with Russia and other producers. The group is known as OPEC+.
Brent crude futures were up 21 cents, or 0.33%, to $63.21 a barrel at 1005 GMT. Brent surged 3.6% on Wednesday. West Texas Intermediate (WTI) crude futures were up 1 cents to $58.44 a barrel. They settled up 4.2% on Wednesday.
Oil prices edged higher on Thursday ahead of an OPEC meeting where members are expected to agree on deeper output cuts in an effort to prop up prices and prevent a glut next year.
Sources told Reuters that OPEC was seeking to increase production cuts by the group and its allies by Russia by more than 400,000 barrels per day (bpd) from their current level of 1.2 million bpd.
The Organization of the Petroleum Exporting Countries meets on Thursday in Vienna followed by a meeting on Friday with Russia and other producers. The group is known as OPEC+.
Brent crude futures were up 21 cents, or 0.33%, to $63.21 a barrel at 1005 GMT. Brent surged 3.6% on Wednesday. West Texas Intermediate (WTI) crude futures were up 1 cents to $58.44 a barrel. They settled up 4.2% on Wednesday.
OPEC and allies prepare to deepen oil output cuts - Reuters
OPEC and allies prepare to deepen oil output cuts - Reuters:
OPEC and its allies led by Russia were moving closer on Thursday to agreeing to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said.
The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday.
OPEC+ has curbed supply since 2017 to counter booming output from the United States, which has become the world’s biggest producer.
Next year, rising production in the United States and other non-OPEC countries such as Brazil and Norway threaten to add to the glut.
OPEC and its allies led by Russia were moving closer on Thursday to agreeing to deeper oil supply cuts next year to support crude prices and prevent a glut, sources from OPEC and its allied producers said.
The Organization of the Petroleum Exporting Countries (OPEC) meets on Thursday in Vienna followed by a meeting with Russia and others, a grouping known as OPEC+, on Friday.
OPEC+ has curbed supply since 2017 to counter booming output from the United States, which has become the world’s biggest producer.
Next year, rising production in the United States and other non-OPEC countries such as Brazil and Norway threaten to add to the glut.
Hedge Funds Are Quietly Piling Into Oil | OilPrice.com
Hedge Funds Are Quietly Piling Into Oil | OilPrice.com:
Two weeks ago, hedge funds were selling off oil, taking their profits on an oil price rally that came about due to hopeful U.S.-China trade deal talks (disappointed again) and the sentiment that U.S. shale production will be slower next year and that OPEC will further cut production.
Now, they’re back into buying, and they’re playing the stability range.
Reuters columnist John Kemp noted that profit-taking the previous week had subsided, and last week had seen futures and options worth 144 million barrels of crude in six contracts.
All told, Kemp said, citing commodities records, six out of the past seven weeks have seen portfolio managers buying more heavily into crude. In total, they added over 290 million barrels to their portfolios during that period.
Two weeks ago, hedge funds were selling off oil, taking their profits on an oil price rally that came about due to hopeful U.S.-China trade deal talks (disappointed again) and the sentiment that U.S. shale production will be slower next year and that OPEC will further cut production.
Now, they’re back into buying, and they’re playing the stability range.
Reuters columnist John Kemp noted that profit-taking the previous week had subsided, and last week had seen futures and options worth 144 million barrels of crude in six contracts.
All told, Kemp said, citing commodities records, six out of the past seven weeks have seen portfolio managers buying more heavily into crude. In total, they added over 290 million barrels to their portfolios during that period.
MIDEAST STOCKS- #Saudi falls on bank losses; other Gulf markets quiet - Reuters
MIDEAST STOCKS-Saudi falls on bank losses; other Gulf markets quiet - Reuters:
Saudi Arabian stocks opened lower on Thursday, extending previous losses, after declines by banking shares. Other major Gulf markets were little changed.
The Saudi index fell 0.3% in early trade as Al Rajhi Bank declined 0.5% and Samba Financial Group was down 1%.
Among other stocks, Saudi Basic Industries decreased 0.8%.
Saudi Aramco’s bookrunners have recommended pricing its initial public offering at 32 riyals ($8.5) per share, the top of an indicated price range, Reuters reported, citing three sources familiar with the deal, potentially making it the world’s biggest IPO.
Saudi Arabian stocks opened lower on Thursday, extending previous losses, after declines by banking shares. Other major Gulf markets were little changed.
The Saudi index fell 0.3% in early trade as Al Rajhi Bank declined 0.5% and Samba Financial Group was down 1%.
Among other stocks, Saudi Basic Industries decreased 0.8%.
Saudi Aramco’s bookrunners have recommended pricing its initial public offering at 32 riyals ($8.5) per share, the top of an indicated price range, Reuters reported, citing three sources familiar with the deal, potentially making it the world’s biggest IPO.
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