Column: U.S. shale supply chain will emerge smaller from price war, pandemic - Kemp - Reuters:
Slumping oil and gas prices as a result of the pandemic and the volume war earlier in the year between Saudi Arabia and Russia have slashed employment in the U.S. oil and gas fields at some of the fastest rates on record.
Oil and gas-related employment is split across several different categories in the federal government’s statistical system, making it hard to track changes in total oilfield and gasfield employment.
But one of the largest and most visible categories is “support activities for oil and gas operations”, covering a wide range of ancillary activities from exploration, site works, casing and tubing to cementing, fracking and acidizing.
Total employment at support firms fell by 54,000 jobs (20%) in just three months between February and May, according to the U.S. Bureau of Labor Statistics (“Current employment statistics”, July 2).
Friday, 31 July 2020
OPEC July oil output surges as Gulf voluntary cuts end: survey - Reuters
OPEC July oil output surges as Gulf voluntary cuts end: survey - Reuters:
OPEC oil output has risen by over 1 million barrels per day (bpd) in July as Saudi Arabia and other Gulf members ended their voluntary extra supply curbs on top of an OPEC-led deal, and other members made limited progress on compliance.
The 13-member Organization of the Petroleum Exporting Countries pumped 23.32 million bpd on average in June, the survey found, up 970,000 bpd from June’s revised figure, which was the lowest since 1991.
OPEC and allies agreed in April to a record output cut as the coronavirus crisis hammered demand.
An easing of lockdowns and lower supply have helped oil LCOc1 climb above $40 from April’s 21-year low of below $16 a barrel, although concerns of a second wave are keeping a lid on gains.
OPEC oil output has risen by over 1 million barrels per day (bpd) in July as Saudi Arabia and other Gulf members ended their voluntary extra supply curbs on top of an OPEC-led deal, and other members made limited progress on compliance.
The 13-member Organization of the Petroleum Exporting Countries pumped 23.32 million bpd on average in June, the survey found, up 970,000 bpd from June’s revised figure, which was the lowest since 1991.
OPEC and allies agreed in April to a record output cut as the coronavirus crisis hammered demand.
An easing of lockdowns and lower supply have helped oil LCOc1 climb above $40 from April’s 21-year low of below $16 a barrel, although concerns of a second wave are keeping a lid on gains.
Oil posts monthly gains as U.S. reports record output cuts in May - Reuters
Oil posts monthly gains as U.S. reports record output cuts in May - Reuters:
Oil prices rose on Friday and were on track for monthly gains, benefiting from news that U.S. oil output cuts in May were the largest on record.
Brent crude settled up 37 cents, or 0.9%, at $43.31 a barrel.
U.S. crude was up 35 cents, or 0.9%, at $40.27 after dropping 3.3% in the previous session, also off lows not seen since July 10.
Brent crude posted a fourth month of gains and U.S. crude posted a third as both rise from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic.
U.S. crude oil production plummeted in May, falling a record 2 million barrels per day to 10 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.
Oil prices rose on Friday and were on track for monthly gains, benefiting from news that U.S. oil output cuts in May were the largest on record.
Brent crude settled up 37 cents, or 0.9%, at $43.31 a barrel.
U.S. crude was up 35 cents, or 0.9%, at $40.27 after dropping 3.3% in the previous session, also off lows not seen since July 10.
Brent crude posted a fourth month of gains and U.S. crude posted a third as both rise from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic.
U.S. crude oil production plummeted in May, falling a record 2 million barrels per day to 10 million bpd, the U.S. Energy Information Administration said in a monthly report on Friday.
Airlines Take Hit as IAG Seeks to Raise Capital, KLM Cuts Jobs - Bloomberg
Airlines Take Hit as IAG Seeks to Raise Capital, KLM Cuts Jobs - Bloomberg:
Two of Europe’s biggest airlines ratcheted up their response to the coronavirus crisis, underscoring the depth of the downturn and the urgent race to keep ahead of the financial repercussions.
British Airways owner IAG SA set plans for 2.75 billion-euro ($3.3 billion) rights offering, while rival Air France-KLM’s Dutch arm said it would lop off 15% of its workforce and said will also resort to raising fresh equity. Both reported record quarterly losses on Friday, a measure of the strain on network carriers that have seen an unprecedented drop-off in traffic and still face months of pain.
“Anybody who believes this is a temporary crisis and thinks it can be resolved by temporary measures is misguided,” Willie Walsh, IAG’s outgoing chief executive officer, said on a conference call.
Shares of IAG traded 7.9% lower as of 11:43 a.m. in London, bringing the year-to-date loss to 73%. Air France-KLM was down 1.7% after announcing 5,000 job cuts, and has slumped 65% for the year.
Two of Europe’s biggest airlines ratcheted up their response to the coronavirus crisis, underscoring the depth of the downturn and the urgent race to keep ahead of the financial repercussions.
British Airways owner IAG SA set plans for 2.75 billion-euro ($3.3 billion) rights offering, while rival Air France-KLM’s Dutch arm said it would lop off 15% of its workforce and said will also resort to raising fresh equity. Both reported record quarterly losses on Friday, a measure of the strain on network carriers that have seen an unprecedented drop-off in traffic and still face months of pain.
“Anybody who believes this is a temporary crisis and thinks it can be resolved by temporary measures is misguided,” Willie Walsh, IAG’s outgoing chief executive officer, said on a conference call.
Shares of IAG traded 7.9% lower as of 11:43 a.m. in London, bringing the year-to-date loss to 73%. Air France-KLM was down 1.7% after announcing 5,000 job cuts, and has slumped 65% for the year.
Oil set for fragile recovery as economies limp towards normal: Reuters poll - Reuters
Oil set for fragile recovery as economies limp towards normal: Reuters poll - Reuters:
Oil prices are set for a slow crawl upwards this year as the gradual easing of coronavirus-led restrictions buoy demand, although a second COVID-19 wave could slow the pace of recovery, a Reuters poll showed on Friday.
The survey of 43 analysts and economists forecast benchmark Brent crude LCOc1 to average $41.50 a barrel in 2020, up slightly from the $40.41 consensus in last month’s survey and compared with around $42 average for the benchmark thus far this year. It is expected to average $49.85 in 2021.
The 2020 outlook for West Texas Intermediate CLc1 rose to $37.51 per barrel from June’s $36.10.
Oil is “caught-up in a step-wise re-balancing process” with the “pieces moving in the right direction” on the supply side, said Harry Tchilinguirian, head of commodity research at BNP Paribas.
Oil prices are set for a slow crawl upwards this year as the gradual easing of coronavirus-led restrictions buoy demand, although a second COVID-19 wave could slow the pace of recovery, a Reuters poll showed on Friday.
The survey of 43 analysts and economists forecast benchmark Brent crude LCOc1 to average $41.50 a barrel in 2020, up slightly from the $40.41 consensus in last month’s survey and compared with around $42 average for the benchmark thus far this year. It is expected to average $49.85 in 2021.
The 2020 outlook for West Texas Intermediate CLc1 rose to $37.51 per barrel from June’s $36.10.
Gold is king but should you buy it? | Charts That Count - YouTube
Gold is king but should you buy it? | Charts That Count - YouTube:
https://youtu.be/7NmPNuZmWHE
Gold is king in times of crisis, and is seen as a safe haven for investors. However, as the FT's Robert Armstrong explains, it is also traditionally associated with fear, hoarding and inflation, and betting on gold is a bet against history.
https://youtu.be/7NmPNuZmWHE
Gold is king in times of crisis, and is seen as a safe haven for investors. However, as the FT's Robert Armstrong explains, it is also traditionally associated with fear, hoarding and inflation, and betting on gold is a bet against history.
China Oil Giant CNPC Said to Eye BP Stake in #Oman Gas Field - Bloomberg
China Oil Giant CNPC Said to Eye BP Stake in Oman Gas Field - Bloomberg:
China National Petroleum Corp. is in talks to acquire part of BP Plc’s stake in a key gas field in Oman, according to people familiar with the matter.
China’s state-owned oil giant is having advanced discussions with BP for a 10% stake in the Khazzan natural gas field, the people said. The minority stake could fetch about $1.5 billion, said the people, asking not to be identified as the matter is private.
No final decisions have been made and others have also expressed interest in the asset, the people said. Representatives for BP and CNPC declined to comment.
BP was in early talks to sell about a 10% stake in the Khazzan natural gas field, Bloomberg News reported in June. The oil major owns a 60% stake in the project, while its partner Oman Oil Co. still has a 30% stake after it sold a 10% holding to Malaysia’s state oil company in 2018.
China National Petroleum Corp. is in talks to acquire part of BP Plc’s stake in a key gas field in Oman, according to people familiar with the matter.
China’s state-owned oil giant is having advanced discussions with BP for a 10% stake in the Khazzan natural gas field, the people said. The minority stake could fetch about $1.5 billion, said the people, asking not to be identified as the matter is private.
No final decisions have been made and others have also expressed interest in the asset, the people said. Representatives for BP and CNPC declined to comment.
BP was in early talks to sell about a 10% stake in the Khazzan natural gas field, Bloomberg News reported in June. The oil major owns a 60% stake in the project, while its partner Oman Oil Co. still has a 30% stake after it sold a 10% holding to Malaysia’s state oil company in 2018.
Oil rises further from three-week lows, but headwinds loom - Reuters
Oil rises further from three-week lows, but headwinds loom - Reuters:
Oil prices rose on Friday, after touching three-week lows in the previous session, responding to a record decline in U.S. growth as the coronavirus ravaged the world’s biggest economy and oil consumer.
Brent crude was up by 41 cents, or 1%, at $43.35 a barrel by 0702 GMT. On Thursday, Brent closed down 1.9% after touching its lowest level since July 10.
U.S. crude gained 43 cents, or 1.1%, to $40.35 after dropping 3.3% the previous session, also off lows not seen since July 10.
Brent is on track for a fourth month of gains, while U.S. crude is heading for a third, as both rise from depths hit in April when much of the world was in lockdown.
Oil prices rose on Friday, after touching three-week lows in the previous session, responding to a record decline in U.S. growth as the coronavirus ravaged the world’s biggest economy and oil consumer.
Brent crude was up by 41 cents, or 1%, at $43.35 a barrel by 0702 GMT. On Thursday, Brent closed down 1.9% after touching its lowest level since July 10.
U.S. crude gained 43 cents, or 1.1%, to $40.35 after dropping 3.3% the previous session, also off lows not seen since July 10.
Brent is on track for a fourth month of gains, while U.S. crude is heading for a third, as both rise from depths hit in April when much of the world was in lockdown.
Thursday, 30 July 2020
#SaudiArabia consortium withdraws interest in buying Newcastle Utd -statement - Reuters
Saudi Arabia consortium withdraws interest in buying Newcastle Utd -statement - Reuters:
A consortium led by Saudi Arabia’s Public Investment Fund (PIF) has withdrawn its interest in acquiring Newcastle United football club, it said in a statement on Thursday.
The group, which includes PCP Capital Partners and Reuben Brothers, said that the “prolonged process” and “global uncertainty” had “rendered the potential investment no longer commercially viable.”
A consortium led by Saudi Arabia’s Public Investment Fund (PIF) has withdrawn its interest in acquiring Newcastle United football club, it said in a statement on Thursday.
The group, which includes PCP Capital Partners and Reuben Brothers, said that the “prolonged process” and “global uncertainty” had “rendered the potential investment no longer commercially viable.”
Headache for OPEC as oil market structure signals return of glut - Reuters
Headache for OPEC as oil market structure signals return of glut - Reuters:
Rising OPEC and U.S. oil supply, coupled with stalled economic and crude demand recovery, have pushed the futures market structure back to indicating a surplus, last observed during oil’s collapse in April and May amid the coronavirus pandemic.
The development is a headache for OPEC, which had been hoping demand would recover quicker after a round of record global output cuts. The group will either have to consider further production cuts or tolerate lower oil prices for longer.
The surplus market structure, when prompt prices are weaker than future prices, is also a boon for traders, as they can store crude in the hope to resell it later at a profit. Royal Dutch/Shell (RDSa.L), Total (TOTF.PA), Eni (ENI.MI) and Norway’s Equinor (EQNR.OL) have all reported bumper trading profits over the past week.
Front-month September Brent futures in the past week have been trading at a discount of $2 per barrel to March 2021, the steepest discount since May, when lockdown measures against the virus outbreak cut global oil demand by a third.
Rising OPEC and U.S. oil supply, coupled with stalled economic and crude demand recovery, have pushed the futures market structure back to indicating a surplus, last observed during oil’s collapse in April and May amid the coronavirus pandemic.
The development is a headache for OPEC, which had been hoping demand would recover quicker after a round of record global output cuts. The group will either have to consider further production cuts or tolerate lower oil prices for longer.
The surplus market structure, when prompt prices are weaker than future prices, is also a boon for traders, as they can store crude in the hope to resell it later at a profit. Royal Dutch/Shell (RDSa.L), Total (TOTF.PA), Eni (ENI.MI) and Norway’s Equinor (EQNR.OL) have all reported bumper trading profits over the past week.
Front-month September Brent futures in the past week have been trading at a discount of $2 per barrel to March 2021, the steepest discount since May, when lockdown measures against the virus outbreak cut global oil demand by a third.
Oil sinks on weak U.S. economic data, political uncertainty - Reuters
Oil sinks on weak U.S. economic data, political uncertainty - Reuters:
Oil prices sank on Thursday following poor U.S. economic figures and after U.S. President Donald Trump roiled markets with a suggestion that the nation should delay its November presidential election.
Investors sold riskier assets following Trump’s tweet that raised the prospect of delaying the vote. The date of the U.S. election is enshrined in the U.S. Constitution, but Trump’s remarks were viewed as an attack on the integrity of the coming election, worrying investors.
Oil markets recovered from their lowest levels of the selloff. U.S. West Texas Intermediate (WTI) crude futures settled down $1.35, or 3.3%, at $39.92 a barrel after falling 5% earlier in the session.
Brent crude futures, which expire on Friday, fell 81 cents, or 1.9%, to $42.94 a barrel.
Oil prices sank on Thursday following poor U.S. economic figures and after U.S. President Donald Trump roiled markets with a suggestion that the nation should delay its November presidential election.
Investors sold riskier assets following Trump’s tweet that raised the prospect of delaying the vote. The date of the U.S. election is enshrined in the U.S. Constitution, but Trump’s remarks were viewed as an attack on the integrity of the coming election, worrying investors.
Oil markets recovered from their lowest levels of the selloff. U.S. West Texas Intermediate (WTI) crude futures settled down $1.35, or 3.3%, at $39.92 a barrel after falling 5% earlier in the session.
Brent crude futures, which expire on Friday, fell 81 cents, or 1.9%, to $42.94 a barrel.
#UAE oil trader GP Global uncovers fraud among employees - letter | ZAWYA MENA Edition
UAE oil trader GP Global uncovers fraud among employees - letter | ZAWYA MENA Edition:
United Arab Emirates-based oil trader GP Global has uncovered fraud within the company and filed criminal complaints against some of its employees, its legal representative said in a letter to the company's clients on its behalf.
"Few employees have colluded with external entities using the Covid-19 (lockdown) and work from home arrangement to defraud the company and its customers," Arun Abraham, legal consultant and partner at UAE-based Salam Advocates & Legal Consultants said in the letter reviewed by Reuters.
Salam Advocates were advising GP Global on "the internal investigation that was underway," Abraham told Reuters, confirming that the letter had been sent out to some of GP Global's clients last week.
Based on preliminary investigations, "criminal complaints have been filed against few employees in Sharjah and Fujairah," Abraham said in the letter.
United Arab Emirates-based oil trader GP Global has uncovered fraud within the company and filed criminal complaints against some of its employees, its legal representative said in a letter to the company's clients on its behalf.
"Few employees have colluded with external entities using the Covid-19 (lockdown) and work from home arrangement to defraud the company and its customers," Arun Abraham, legal consultant and partner at UAE-based Salam Advocates & Legal Consultants said in the letter reviewed by Reuters.
Salam Advocates were advising GP Global on "the internal investigation that was underway," Abraham told Reuters, confirming that the letter had been sent out to some of GP Global's clients last week.
Based on preliminary investigations, "criminal complaints have been filed against few employees in Sharjah and Fujairah," Abraham said in the letter.
Oil prices slide as virus surge weighs on demand outlook - Reuters
Oil prices slide as virus surge weighs on demand outlook - Reuters:
Oil prices fell on Thursday, as surging coronavirus infections around the world threatened to jeopardise a recovery in fuel demand just as major oil producers are set to raise output.
The most-active Brent crude contract for October fell 51 cents, or 1.2%, to $43.58 a barrel at 0907 GMT. The September Brent contract, which is expiring on Friday, fell 56 cents to $43.19 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were down 60 cents, or 1.5%, at $40.67 a barrel.
Both benchmark contracts rose on Wednesday after the U.S. Energy Information Administration (EIA) reported the largest one-week fall in crude stocks since December.
Oil prices fell on Thursday, as surging coronavirus infections around the world threatened to jeopardise a recovery in fuel demand just as major oil producers are set to raise output.
The most-active Brent crude contract for October fell 51 cents, or 1.2%, to $43.58 a barrel at 0907 GMT. The September Brent contract, which is expiring on Friday, fell 56 cents to $43.19 a barrel.
U.S. West Texas Intermediate (WTI) crude futures were down 60 cents, or 1.5%, at $40.67 a barrel.
Both benchmark contracts rose on Wednesday after the U.S. Energy Information Administration (EIA) reported the largest one-week fall in crude stocks since December.
Saudis Seen Cutting Oil Price as Fresh Supply Meets Demand Slump - Bloomberg
Saudis Seen Cutting Oil Price as Fresh Supply Meets Demand Slump - Bloomberg:
Saudi Arabia may have little choice but to reduce the price of its oil as OPEC and allied producers start to ease output curbs amid weakening demand that’s crashed the value of physical supplies.
Aramco is expected to cut the official selling price for its flagship Arab Light grade by 48 cents a barrel for September sales to Asia, the median estimate in a survey of eight traders and refiners across the region shows. It would be the first drop in four months after a series of hikes that came as OPEC+ cut output and consumption recovered as Asian economies emerged from lockdowns.
A reduction in Saudi OSPs could signal a pause or even a reversal in the rapid recovery across oil markets from the coronavirus. While Asia led the world in the demand rebound, crude and product stockpiles remain stubbornly high and the pandemic is still surging or staging a comeback in many countries. Floods and logistical bottlenecks in China in recent weeks have also contributed to a slump in imports, while Indian fuel sales are dropping again.
Saudi Arabia may have little choice but to reduce the price of its oil as OPEC and allied producers start to ease output curbs amid weakening demand that’s crashed the value of physical supplies.
Aramco is expected to cut the official selling price for its flagship Arab Light grade by 48 cents a barrel for September sales to Asia, the median estimate in a survey of eight traders and refiners across the region shows. It would be the first drop in four months after a series of hikes that came as OPEC+ cut output and consumption recovered as Asian economies emerged from lockdowns.
#Saudi Amlak International achieves 129% net income growth in H1 2020 | ZAWYA MENA Edition
Saudi Amlak International achieves 129% net income growth in H1 2020 | ZAWYA MENA Edition:
Saudi Arabia’s leading non-bank real estate lender, Amlak International has announced its financial results for the period ended June 30, 2020. Net income grew by 20.9% y-o-y to SR23.8 million for the Q2 2020 period, and by 129% y-o-y to SR53.3 million for 1H 2020, with total revenues increasing by 6.2% y-o-y to reach SR73.2 million for Q2 2020 and 7.9% y-o-y to SR 148.4 million for 1H 2020.
Earnings before tax (EBT) increased by 16% y-o-y to SR28.5 million for Q2 2020, at a margin of 38.9%, and by 27% y-o-y to SR61.8 million for 1H 2020. The company recently completed the offering of 30% of its equity on the Saudi Stock Exchange – Tadawul – raising approximately SR435 million.
Amlak’s total financing portfolio increased to SR3.5 billion across its individual and corporate book. Growth in new financing contracts to individuals saw an increase in value of 75.32%, with the corporate lending book accounting for 69% of Amlak’s total portfolio.
The results for the period included a SR6.4 million impairment allowance for expected credit losses (ECL), increasing credit provision from SR89.7 million as at December 2019 to SR96.1 million as at June 2020. The increase results from the expected impact of the COVID-19 pandemic to the company’s business.
Saudi Arabia’s leading non-bank real estate lender, Amlak International has announced its financial results for the period ended June 30, 2020. Net income grew by 20.9% y-o-y to SR23.8 million for the Q2 2020 period, and by 129% y-o-y to SR53.3 million for 1H 2020, with total revenues increasing by 6.2% y-o-y to reach SR73.2 million for Q2 2020 and 7.9% y-o-y to SR 148.4 million for 1H 2020.
Earnings before tax (EBT) increased by 16% y-o-y to SR28.5 million for Q2 2020, at a margin of 38.9%, and by 27% y-o-y to SR61.8 million for 1H 2020. The company recently completed the offering of 30% of its equity on the Saudi Stock Exchange – Tadawul – raising approximately SR435 million.
Amlak’s total financing portfolio increased to SR3.5 billion across its individual and corporate book. Growth in new financing contracts to individuals saw an increase in value of 75.32%, with the corporate lending book accounting for 69% of Amlak’s total portfolio.
The results for the period included a SR6.4 million impairment allowance for expected credit losses (ECL), increasing credit provision from SR89.7 million as at December 2019 to SR96.1 million as at June 2020. The increase results from the expected impact of the COVID-19 pandemic to the company’s business.
Oil prices dip as virus concerns weigh on demand hopes - Reuters
Oil prices dip as virus concerns weigh on demand hopes - Reuters:
Oil prices slipped on Thursday, weighed down by concerns that surging coronavirus infections around the globe could jeopardize a recovery in fuel demand just as major oil producers are set to raise output.
The most-active Brent crude contract for October fell 2 cents, or 0.05%, to $44.07 a barrel at 0555 GMT. The September Brent contract, which is expiring on Friday, fell 7 cents to $43.68 in light trading.
U.S. West Texas Intermediate (WTI) crude futures were down 5 cents at $41.22 a barrel.
Both benchmark contracts rose on Wednesday after the U.S. Energy Information Administration (EIA) reported the largest one-week fall in crude stocks since December.
Oil prices slipped on Thursday, weighed down by concerns that surging coronavirus infections around the globe could jeopardize a recovery in fuel demand just as major oil producers are set to raise output.
The most-active Brent crude contract for October fell 2 cents, or 0.05%, to $44.07 a barrel at 0555 GMT. The September Brent contract, which is expiring on Friday, fell 7 cents to $43.68 in light trading.
U.S. West Texas Intermediate (WTI) crude futures were down 5 cents at $41.22 a barrel.
Both benchmark contracts rose on Wednesday after the U.S. Energy Information Administration (EIA) reported the largest one-week fall in crude stocks since December.
Wednesday, 29 July 2020
Oil edges up after sharp U.S. crude inventory drop - Reuters
Oil edges up after sharp U.S. crude inventory drop - Reuters:
Oil prices rose on Wednesday after a steep drop in U.S. crude inventories, but another record day for coronavirus cases worldwide kept gains in check.
Brent crude futures LCOc1 settled at $43.75 a barrel, up 53 cents, or 1.2%. U.S. West Texas Intermediate crude futures CLc1 settled at $41.27 a barrel, gaining 23 cents, or 0.6%.
U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, the largest drawdown since December.
Net U.S. crude imports fell 1 million barrels per day to 1.9 million bpd, the EIA said.
Oil prices rose on Wednesday after a steep drop in U.S. crude inventories, but another record day for coronavirus cases worldwide kept gains in check.
Brent crude futures LCOc1 settled at $43.75 a barrel, up 53 cents, or 1.2%. U.S. West Texas Intermediate crude futures CLc1 settled at $41.27 a barrel, gaining 23 cents, or 0.6%.
U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, the largest drawdown since December.
Net U.S. crude imports fell 1 million barrels per day to 1.9 million bpd, the EIA said.
MIDEAST STOCKS- #Kuwait leads most of Gulf lower; Egypt edges up - Reuters
MIDEAST STOCKS-Kuwait leads most of Gulf lower; Egypt edges up - Reuters:
Most bourses in the Gulf ended lower on
Wednesday, ahead of Eid Al-Adha holidays, with Kuwaiti shares
falling the most as investors shunned stocks across the board.
Many investors prefer to cash in holdings ahead of the Eid
holiday, which lasts for at least three days in most Gulf
countries.
In Kuwait, the index declined 1.3% as most of its
constituents ended in negative territory, including Kuwait
Finance House, which was down 2.4%.
Dubai's main share index dropped 0.7%, with the
country's biggest sharia-compliant lender Dubai Islamic Bank
and blue-chip developer Emaar Properties
both shedding 0.8%.
Emirates Integrated Telecommunications (du)
retreated 1.4% as the stock traded ex-dividend.
In Abu Dhabi, the index lost 0.5%, driven down by a
1.5% drop in Emirates Telecommunications Group and
a 0.4% decrease in First Abu Dhabi Bank (FAB).
Most bourses in the Gulf ended lower on
Wednesday, ahead of Eid Al-Adha holidays, with Kuwaiti shares
falling the most as investors shunned stocks across the board.
Many investors prefer to cash in holdings ahead of the Eid
holiday, which lasts for at least three days in most Gulf
countries.
In Kuwait, the index declined 1.3% as most of its
constituents ended in negative territory, including Kuwait
Finance House, which was down 2.4%.
Dubai's main share index dropped 0.7%, with the
country's biggest sharia-compliant lender Dubai Islamic Bank
and blue-chip developer Emaar Properties
both shedding 0.8%.
Emirates Integrated Telecommunications (du)
retreated 1.4% as the stock traded ex-dividend.
In Abu Dhabi, the index lost 0.5%, driven down by a
1.5% drop in Emirates Telecommunications Group and
a 0.4% decrease in First Abu Dhabi Bank (FAB).
#Kuwait Pension Fund Posts Record First-Quarter Investment Profit - Bloomberg
Kuwait Pension Fund Posts Record First-Quarter Investment Profit - Bloomberg:
Kuwait’s Public Institution for Social Security posted a record first-quarter investment profit following a reboot of its strategy as the pension fund put behind a corruption scandal involving a previous manager.
The fund, which owns 25% of U.S. private equity firm Stone Point Capital LLC, had an investment profit of $7.3 billion in the three months through June, it said in a statement. That compares with about $4.4 billion for the fiscal year through March 2019, when it last released data.
A new management team was brought into the fund in 2017 to transform the state-owned institution after its former head was found guilty of personally profiting from the organization over decades.
The performance is “undoubtedly a turning point” for the institution, which is “reaping the fruits” of its new investment strategy, Raed Al-Nisf, deputy general manager for investments and operations, said in the statement.
Kuwait’s Public Institution for Social Security posted a record first-quarter investment profit following a reboot of its strategy as the pension fund put behind a corruption scandal involving a previous manager.
The fund, which owns 25% of U.S. private equity firm Stone Point Capital LLC, had an investment profit of $7.3 billion in the three months through June, it said in a statement. That compares with about $4.4 billion for the fiscal year through March 2019, when it last released data.
A new management team was brought into the fund in 2017 to transform the state-owned institution after its former head was found guilty of personally profiting from the organization over decades.
The performance is “undoubtedly a turning point” for the institution, which is “reaping the fruits” of its new investment strategy, Raed Al-Nisf, deputy general manager for investments and operations, said in the statement.
Oil prices gain on sharp U.S. crude inventory drop - Reuters
Oil prices gain on sharp U.S. crude inventory drop - Reuters:
Oil prices edged up on Wednesday after a steep drop in U.S. crude inventories, but another record day for COVID-19 cases worldwide kept gains in check.
Brent crude futures LCOc1 gained 35 cents to $43.57 a barrel by 10:57 a.m. EDT (1457 GMT). U.S. West Texas Intermediate crude futures CLc1 were up 18 cents to $41.22.
U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, in their largest drawdown since December.
Net U.S. crude imports fell 1 million barrels per day to 1.9 million bpd, the EIA said.
Oil prices edged up on Wednesday after a steep drop in U.S. crude inventories, but another record day for COVID-19 cases worldwide kept gains in check.
Brent crude futures LCOc1 gained 35 cents to $43.57 a barrel by 10:57 a.m. EDT (1457 GMT). U.S. West Texas Intermediate crude futures CLc1 were up 18 cents to $41.22.
U.S. crude oil inventories fell by 10.6 million barrels last week to 526 million barrels, the Energy Information Administration said, in their largest drawdown since December.
Net U.S. crude imports fell 1 million barrels per day to 1.9 million bpd, the EIA said.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
#AbuDhabi Commercial Bank Q2 net profit down 15% as impairments rise | ZAWYA MENA Edition
Abu Dhabi Commercial Bank Q2 net profit down 15% as impairments rise | ZAWYA MENA Edition:
Abu Dhabi Commercial Bank posted a 15% drop in second-quarter net profit due to higher impairment costs, including to cover its exposure to troubled hospital operator NMC Health, it said on Wednesday.
Net profit at the United Arab Emirates' third-largest bank fell to 1.23 billion dirhams ($334.9 million) from 1.45 billion a year earlier.
Impairment charges in the first half rose to 2.55 billion dirhams from 1.17 billion a year earlier.
With exposure of about $981 million, ADCB was a major lender to NMC Health, which went into administration this year after months of turmoil following questions over its financial reporting.
Abu Dhabi Commercial Bank posted a 15% drop in second-quarter net profit due to higher impairment costs, including to cover its exposure to troubled hospital operator NMC Health, it said on Wednesday.
Net profit at the United Arab Emirates' third-largest bank fell to 1.23 billion dirhams ($334.9 million) from 1.45 billion a year earlier.
Impairment charges in the first half rose to 2.55 billion dirhams from 1.17 billion a year earlier.
With exposure of about $981 million, ADCB was a major lender to NMC Health, which went into administration this year after months of turmoil following questions over its financial reporting.
#Sharjah real estate deals stave off COVID-19 with 4.1% gain | Property – Gulf News
Sharjah real estate deals stave off COVID-19 with 4.1% gain | Property – Gulf News:
Sharjah city precincts remain the most popular spots for investors, with 1,030 deals being recorded in these areas over the first six months of 2020.
In all, the emirate saw 28,170 transactions, valued at Dh6.2 billion, eking out a 4.1 per cent gain over last year. This came about even as efforts were on in full tilt to contain the COVID-19 outbreak.
Sharjah came out with stimulus packages, and that too seems to have reassured investors. "These included a three-month exemption from annual fees for economic establishments," said Abdul Aziz Ahmed Al Shamsi, Director General of the Sharjah Real Estate Registration Department. "The decisions covered all aspects of institutional and community work.
“His Highness has always been keen to build up a real estate sector capable of overcoming tough situations and challenges, including the ongoing COVID-19 outbreak.”
Sharjah city precincts remain the most popular spots for investors, with 1,030 deals being recorded in these areas over the first six months of 2020.
In all, the emirate saw 28,170 transactions, valued at Dh6.2 billion, eking out a 4.1 per cent gain over last year. This came about even as efforts were on in full tilt to contain the COVID-19 outbreak.
Sharjah came out with stimulus packages, and that too seems to have reassured investors. "These included a three-month exemption from annual fees for economic establishments," said Abdul Aziz Ahmed Al Shamsi, Director General of the Sharjah Real Estate Registration Department. "The decisions covered all aspects of institutional and community work.
“His Highness has always been keen to build up a real estate sector capable of overcoming tough situations and challenges, including the ongoing COVID-19 outbreak.”
Middle East News: Doha Bank CEO Says Worst of Covid Slump Is Over - Bloomberg
Middle East News: Doha Bank CEO Says Worst of Covid Slump Is Over - Bloomberg:
Doha Bank QPSC said the worst of the shock from the coronavirus pandemic and a slump in oil prices has already been reflected on the Qatar lender’s balance sheet.
“We look forward to reset the button as and when the world reaches normalcy,” Chief Executive Officer Raghavan Seetharaman said in an interview on Bloomberg TV on Wednesday.
The lender on Tuesday reported a 3.5% decline in its net income for the first half of the year.
Doha Bank QPSC said the worst of the shock from the coronavirus pandemic and a slump in oil prices has already been reflected on the Qatar lender’s balance sheet.
“We look forward to reset the button as and when the world reaches normalcy,” Chief Executive Officer Raghavan Seetharaman said in an interview on Bloomberg TV on Wednesday.
The lender on Tuesday reported a 3.5% decline in its net income for the first half of the year.
The CEO also said:
- “We have reasons to believe we will get support from the central bank” if needed because the lender has “enough tools” in its armory, including sovereign securities, to back a request.
- The firm’s dividend forecast “is in line with the projections of what we submitted. We are going to be conservative and cautious in terms of risk measurements.”
- The bank’s strategy to de-risk includes improving cost efficiency, focusing on using digital technology, restructuring debt and ensuring it has enough liquidity.
- 95% of Doha Bank’s lending will be in Qatar.
MENA fund managers to increase #Saudi investments with eye to recovery: Reuters poll - Reuters
MENA fund managers to increase Saudi investments with eye to recovery: Reuters poll - Reuters:
Middle Eastern fund managers plan to increase investments in Saudi Arabia in the current quarter, according to a Reuters poll, betting on the kingdom’s ability to bounce back from the coronavirus and low oil price shocks.
The region, which has imposed strict lockdown measures as it deals with the outbreak, is home to many oil producers, who have seen the price of their main resource tumble as they spend to help support their economies.
Half of the eight fund managers polled by Reuters said they would increase their allocations in Saudi Arabia, the Gulf’s largest economy.
While Saudi Arabia’s main stock index .TASI is down 11% this year, it is up 3.25% this quarter. In a separate Reuters poll this month, the oil producer’s GDP was seen shrinking 5.2% this year, before rebounding next year.
Middle Eastern fund managers plan to increase investments in Saudi Arabia in the current quarter, according to a Reuters poll, betting on the kingdom’s ability to bounce back from the coronavirus and low oil price shocks.
The region, which has imposed strict lockdown measures as it deals with the outbreak, is home to many oil producers, who have seen the price of their main resource tumble as they spend to help support their economies.
Half of the eight fund managers polled by Reuters said they would increase their allocations in Saudi Arabia, the Gulf’s largest economy.
While Saudi Arabia’s main stock index .TASI is down 11% this year, it is up 3.25% this quarter. In a separate Reuters poll this month, the oil producer’s GDP was seen shrinking 5.2% this year, before rebounding next year.
Oil prices edge higher as U.S. inventory drop counters demand concerns tied to COVID-19 - Reuters
Oil prices edge higher as U.S. inventory drop counters demand concerns tied to COVID-19 - Reuters:
Oil prices climbed on Wednesday after a surprise drop in U.S. crude inventories was enough to offset concerns about U.S. fuel demand amid record increases in COVID-19 infections in some states.
Brent crude futures LCOc1 were up by 18 cents, or 0.4%, at $43.40 a barrel by 0644 GMT. U.S. West Texas Intermediate crude futures CLc1 gained 12 cents, or 0.3%, to $41.16 a barrel.
Inventories of crude oil in the United States dropped by 6.8 million barrels last week to 531 million barrels, data from industry group the American Petroleum Institute showed on Tuesday.
Analysts’ expectations were for an increase of 357,000 barrels. U.S. government data is due Wednesday.
Oil prices climbed on Wednesday after a surprise drop in U.S. crude inventories was enough to offset concerns about U.S. fuel demand amid record increases in COVID-19 infections in some states.
Brent crude futures LCOc1 were up by 18 cents, or 0.4%, at $43.40 a barrel by 0644 GMT. U.S. West Texas Intermediate crude futures CLc1 gained 12 cents, or 0.3%, to $41.16 a barrel.
Inventories of crude oil in the United States dropped by 6.8 million barrels last week to 531 million barrels, data from industry group the American Petroleum Institute showed on Tuesday.
Analysts’ expectations were for an increase of 357,000 barrels. U.S. government data is due Wednesday.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Qatar mid-session
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Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
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Tuesday, 28 July 2020
Oil falls as U.S. stimulus package faces tough talks - Reuters
Oil falls as U.S. stimulus package faces tough talks - Reuters:
Oil prices fell on Tuesday as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 19 cents, or 0.4%, to settle at $43.22 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 56 cents, or 1.4%, to settle at $41.04 a barrel.
Brent is still on track for a fourth monthly rise, and U.S. crude is expected to gain for a third month.
U.S. Republicans on Monday unveiled a new coronavirus relief proposal hammered out with the White House, four days before millions of Americans lose expanded unemployment benefits. The package is facing opposition both from Democrats and from some Republicans, however.
Oil prices fell on Tuesday as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 19 cents, or 0.4%, to settle at $43.22 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 56 cents, or 1.4%, to settle at $41.04 a barrel.
Brent is still on track for a fourth monthly rise, and U.S. crude is expected to gain for a third month.
U.S. Republicans on Monday unveiled a new coronavirus relief proposal hammered out with the White House, four days before millions of Americans lose expanded unemployment benefits. The package is facing opposition both from Democrats and from some Republicans, however.
Toll of Virus, Oil on #Saudi Budget Laid Bare With Revenue Plunge - Bloomberg
Toll of Virus, Oil on Saudi Budget Laid Bare With Revenue Plunge - Bloomberg:
Saudi Arabia suffered a simultaneous decline in oil and non-oil revenue as the global pandemic combined with lower energy prices to jolt the kingdom’s public finances.
Oil revenue was down 45% in the second quarter from the same period last year to 95.7 billion riyals ($25.5 billion), according to budget data released by the Finance Ministry on Tuesday. Non-oil revenue drawn from sources like taxes and fees declined by 55%.
The deficit more than tripled from the first quarter to 109.2 billion riyals even though authorities cut spending by 17% compared with a year earlier.
Saudi Arabia suffered a simultaneous decline in oil and non-oil revenue as the global pandemic combined with lower energy prices to jolt the kingdom’s public finances.
Oil revenue was down 45% in the second quarter from the same period last year to 95.7 billion riyals ($25.5 billion), according to budget data released by the Finance Ministry on Tuesday. Non-oil revenue drawn from sources like taxes and fees declined by 55%.
The deficit more than tripled from the first quarter to 109.2 billion riyals even though authorities cut spending by 17% compared with a year earlier.
Adnoc Considers Stake Sale in $5 Billion of Properties - Bloomberg
Adnoc Considers Stake Sale in $5 Billion of Properties - Bloomberg:
Abu Dhabi National Oil Co. is exploring the possibility of selling a stake in its real estate portfolio, the latest effort by the state-owned energy producer to raise funds and attract foreign investors.
Initial estimates value the properties at about $5 billion, according to people familiar with the matter, who asked not to be identified because talks are private. The plan is in its inception stage and could still change, they said.
Adnoc declined to comment.
A potential deal could be structured along the same lines as the energy firm’s sale of a $10.1 billion stake in its natural-gas pipelines last month, the people said. In that transaction, Adnoc sold a 49% holding in a new subsidiary housing the assets to a group of investors including Global Infrastructure Partners, Brookfield Asset Management Inc., Ontario Teachers’ Pension Plan and Singapore’s sovereign wealth fund.
Abu Dhabi National Oil Co. is exploring the possibility of selling a stake in its real estate portfolio, the latest effort by the state-owned energy producer to raise funds and attract foreign investors.
Initial estimates value the properties at about $5 billion, according to people familiar with the matter, who asked not to be identified because talks are private. The plan is in its inception stage and could still change, they said.
Adnoc declined to comment.
A potential deal could be structured along the same lines as the energy firm’s sale of a $10.1 billion stake in its natural-gas pipelines last month, the people said. In that transaction, Adnoc sold a 49% holding in a new subsidiary housing the assets to a group of investors including Global Infrastructure Partners, Brookfield Asset Management Inc., Ontario Teachers’ Pension Plan and Singapore’s sovereign wealth fund.
Middle East News: #Oman Seeks to Cut Spending to Tackle Deficit - Bloomberg
Middle East News: Oman Seeks to Cut Spending to Tackle Deficit - Bloomberg:
Oman’s government has asked ministries to slow down projects and identify spending priorities as it looks to tackle the widest budget deficit among Gulf Arab economies.
In a directive to ministries ahead of the country’s fiscal preparation for 2021, the sultanate’s Finance Ministry told the government bodies to avoid exceeding the spending limits set down by the revised budget this year.
The aim is “to prioritize the execution of essential projects that serve economic and social objectives while also slowing down non-essential projects as well as prioritizing the operating of completed projects,” according to a guidance published on the Finance Ministry’s website.
Oman’s government has asked ministries to slow down projects and identify spending priorities as it looks to tackle the widest budget deficit among Gulf Arab economies.
In a directive to ministries ahead of the country’s fiscal preparation for 2021, the sultanate’s Finance Ministry told the government bodies to avoid exceeding the spending limits set down by the revised budget this year.
The aim is “to prioritize the execution of essential projects that serve economic and social objectives while also slowing down non-essential projects as well as prioritizing the operating of completed projects,” according to a guidance published on the Finance Ministry’s website.
#Dubai property developer Nakheel in talks to refinance debt - sources | Nasdaq
Dubai property developer Nakheel in talks to refinance debt - sources | Nasdaq:
Dubai property developer Nakheel has approached banks to refinance outstanding debt, sources said, amid an economic downturn which is exacerbating property oversupply problems and has raised concerns over Dubai's debt sustainability.
State-owned Nakheel, developer of Dubai's palm-shaped islands, was forced into a massive debt restructuring in the aftermath of the emirate's 2009-2010 real estate crash, when the company was one of the hardest hit.
It has recently approached banks to refinance multiple outstanding loans, said three sources familiar with the matter, without disclosing the amount of debt involved.
The refinancing would include debt Nakheel raised for the development of its Deira Mall project, two of the sources said.
Dubai property developer Nakheel has approached banks to refinance outstanding debt, sources said, amid an economic downturn which is exacerbating property oversupply problems and has raised concerns over Dubai's debt sustainability.
State-owned Nakheel, developer of Dubai's palm-shaped islands, was forced into a massive debt restructuring in the aftermath of the emirate's 2009-2010 real estate crash, when the company was one of the hardest hit.
It has recently approached banks to refinance multiple outstanding loans, said three sources familiar with the matter, without disclosing the amount of debt involved.
The refinancing would include debt Nakheel raised for the development of its Deira Mall project, two of the sources said.
UPDATE 1-First #AbuDhabi Bank profit drops 25% as impairments jump - Reuters
UPDATE 1-First Abu Dhabi Bank profit drops 25% as impairments jump - Reuters:
First Abu Dhabi Bank (FAB), the United Arab Emirates’ biggest lender, reported a 25% fall in quarterly profit on Tuesday, dragged down by another quarter of higher impairment charges.
Banks in the region have been hit by the twin shock of the coronavirus pandemic and lower oil price, with most seeing their profits plunge in the second quarter as they book higher provisions for expected credit losses.
FAB’s second-quarter net profit was 2.41 billion dirhams ($656 million) versus 3.22 billion dirhams a year earlier. It was flat compared with the first quarter.
Net impairment charges jumped 127% in the quarter to 1.06 billion dirhams from 467 million dirhams a year ago. In the first quarter, net impairment charges were 738 million dirhams, 81% higher year-on-year.
First Abu Dhabi Bank (FAB), the United Arab Emirates’ biggest lender, reported a 25% fall in quarterly profit on Tuesday, dragged down by another quarter of higher impairment charges.
Banks in the region have been hit by the twin shock of the coronavirus pandemic and lower oil price, with most seeing their profits plunge in the second quarter as they book higher provisions for expected credit losses.
FAB’s second-quarter net profit was 2.41 billion dirhams ($656 million) versus 3.22 billion dirhams a year earlier. It was flat compared with the first quarter.
Net impairment charges jumped 127% in the quarter to 1.06 billion dirhams from 467 million dirhams a year ago. In the first quarter, net impairment charges were 738 million dirhams, 81% higher year-on-year.
Coronavirus hits Gulf banks in Q2 but full impact of bad loans looms - Reuters
Coronavirus hits Gulf banks in Q2 but full impact of bad loans looms - Reuters:
Most Gulf banks’ profits plunged in the second quarter after a spike in impairment charges for expected credit losses, as regional economies reel from the double blow of low oil prices and the coronavirus outbreak.
But the banks may need to set aside even more money in the second half of the year to cover bad loans, as their full impact on banks has so far been curbed by stimulus measures allowing debt repayment delays, analysts say.
“Given that we have payment holidays, the current asset quality metrics as measured by the non-performing loans, still does not fully reflect the true size of these non-performing loans,” said Ashraf Madani, a senior analyst at Moody’s.
“Hence we expect further pressure on provisioning charge once those NPLs (non-performing loans) get reflected in the financial position of banks and as they move to stage 3.”
Most Gulf banks’ profits plunged in the second quarter after a spike in impairment charges for expected credit losses, as regional economies reel from the double blow of low oil prices and the coronavirus outbreak.
But the banks may need to set aside even more money in the second half of the year to cover bad loans, as their full impact on banks has so far been curbed by stimulus measures allowing debt repayment delays, analysts say.
“Given that we have payment holidays, the current asset quality metrics as measured by the non-performing loans, still does not fully reflect the true size of these non-performing loans,” said Ashraf Madani, a senior analyst at Moody’s.
“Hence we expect further pressure on provisioning charge once those NPLs (non-performing loans) get reflected in the financial position of banks and as they move to stage 3.”
MIDEAST STOCKS- #Kuwait shares rise on broad-based gains; others little changed - Reuters
MIDEAST STOCKS-Kuwait shares rise on broad-based gains; others little changed - Reuters:
Broad-based gains pushed Kuwaiti shares
higher on Tuesday, with financial stocks leading the pack, while
other major bourses in the Gulf were little changed ahead of Eid
Al-Azha.
In Kuwait, the index leapt 2.6%, as most of the
stocks on the index ended higher including National Bank of
Kuwait, which was up 3.5%.
Kuwait's government has set a road map and a time frame to
improve the country's credit rating, a statement issued after a
cabinet meeting on Monday said, without giving details.
Saudi Arabia's benchmark index edged up 0.1%,
supported by a 0.8% gain in National Commercial Bank.
Dubai's main share index added 0.2%, with blue-chip
developer Emaar Properties rising 1.6%.
In Abu Dhabi, the index eased 0.2%, weighed by a 2.3%
fall in Abu Dhabi Commercial Bank (ADCB).
Broad-based gains pushed Kuwaiti shares
higher on Tuesday, with financial stocks leading the pack, while
other major bourses in the Gulf were little changed ahead of Eid
Al-Azha.
In Kuwait, the index leapt 2.6%, as most of the
stocks on the index ended higher including National Bank of
Kuwait, which was up 3.5%.
Kuwait's government has set a road map and a time frame to
improve the country's credit rating, a statement issued after a
cabinet meeting on Monday said, without giving details.
Saudi Arabia's benchmark index edged up 0.1%,
supported by a 0.8% gain in National Commercial Bank.
Dubai's main share index added 0.2%, with blue-chip
developer Emaar Properties rising 1.6%.
In Abu Dhabi, the index eased 0.2%, weighed by a 2.3%
fall in Abu Dhabi Commercial Bank (ADCB).
Oil falls as U.S. fiscal package faces tough talks - Reuters
Oil falls as U.S. fiscal package faces tough talks - Reuters:
Oil prices fell around 1% on Tuesday, as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 26 cents, or 0.6%, to $43.15 a barrel by 11:20 a.m. EDT (1520 GMT), while U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1.5%, to $40.98 a barrel.
U.S. Republicans unveiled a new coronavirus relief proposal on Monday, four days before millions of Americans lose expanded unemployment benefits. On Tuesday, they faced difficult talks with Democrats on how best to recover from the coronavirus pandemic.
“There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline,” said John Kilduff, partner at Again Capital LLC in New York. Kilduff added that the longer the talks drag out, the more it will weigh on market sentiment.
Oil prices fell around 1% on Tuesday, as U.S. lawmakers prepared to wrangle over an economic stimulus package and investors worried about a rise in coronavirus cases worldwide.
Brent crude futures fell 26 cents, or 0.6%, to $43.15 a barrel by 11:20 a.m. EDT (1520 GMT), while U.S. West Texas Intermediate (WTI) crude futures fell 62 cents, or 1.5%, to $40.98 a barrel.
U.S. Republicans unveiled a new coronavirus relief proposal on Monday, four days before millions of Americans lose expanded unemployment benefits. On Tuesday, they faced difficult talks with Democrats on how best to recover from the coronavirus pandemic.
“There’s concern with the stimulus out of Washington, which is critical to the oil complex and to supporting demand, especially for gasoline,” said John Kilduff, partner at Again Capital LLC in New York. Kilduff added that the longer the talks drag out, the more it will weigh on market sentiment.
#SaudiArabia posts $29 billion deficit in second quarter as oil revenues slump - Reuters
Saudi Arabia posts $29 billion deficit in second quarter as oil revenues slump - Reuters:
Saudi Arabia posted a deficit of 109.2 billion riyals ($29.12 billion) in the second quarter this year as low oil prices hurt revenues, a finance ministry report published on Tuesday showed.
The coronavirus crisis has hurt the non-oil sectors of the world’s largest oil exporter this year, adding to the impact of historic price lows on the economy.
Second quarter oil revenues fell by 45% year-on-year to $25.5 billion. Total revenues dropped 49% to nearly $36 billion.
Total second-quarter expenditures dropped annually by 17% to around $65 billion, the report on quarterly budget performance showed, although spending increased when compared to Q1 by 7.5%.
Saudi Arabia posted a deficit of 109.2 billion riyals ($29.12 billion) in the second quarter this year as low oil prices hurt revenues, a finance ministry report published on Tuesday showed.
The coronavirus crisis has hurt the non-oil sectors of the world’s largest oil exporter this year, adding to the impact of historic price lows on the economy.
Second quarter oil revenues fell by 45% year-on-year to $25.5 billion. Total revenues dropped 49% to nearly $36 billion.
Total second-quarter expenditures dropped annually by 17% to around $65 billion, the report on quarterly budget performance showed, although spending increased when compared to Q1 by 7.5%.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Exclusive: #Saudi banks may suspend dividend payouts for H1 2020 | ZAWYA MENA Edition
Exclusive: Saudi banks may suspend dividend payouts for H1 2020 | ZAWYA MENA Edition:
Earnings calls this week revealed that Saudi Arabia’s listed banks may withhold dividends for the first half of 2020.
Although some banks like Al Rajhi and Banque Saudi Fransi, which had their earnings calls on Monday, made no direct mention of withholding dividends, they indicated as much.
“Banks stated that while they were not given direct instructions to hold H1 dividends, they were asked by SAMA [the Saudi Arabian Monetary Authority] to exercise prudence when taking the decision. Banks hinted that the decision will be revisited towards year-end, implying that it is a postponement rather than a cancellation. It will then be a function of how developments evolve in H2,” Sara Boutros, Senior Analyst at Egypt-based CI Capital told Zawya.
On Sunday, rumors were rife in the market that bank dividends would be withheld on a directive from SAMA, the central bank, in lieu of the stimulus package that has been allocated to the lenders.
Earnings calls this week revealed that Saudi Arabia’s listed banks may withhold dividends for the first half of 2020.
Although some banks like Al Rajhi and Banque Saudi Fransi, which had their earnings calls on Monday, made no direct mention of withholding dividends, they indicated as much.
“Banks stated that while they were not given direct instructions to hold H1 dividends, they were asked by SAMA [the Saudi Arabian Monetary Authority] to exercise prudence when taking the decision. Banks hinted that the decision will be revisited towards year-end, implying that it is a postponement rather than a cancellation. It will then be a function of how developments evolve in H2,” Sara Boutros, Senior Analyst at Egypt-based CI Capital told Zawya.
On Sunday, rumors were rife in the market that bank dividends would be withheld on a directive from SAMA, the central bank, in lieu of the stimulus package that has been allocated to the lenders.
Singapore’s GIC reports lowest returns since global financial crisis | Financial Times
Singapore’s GIC reports lowest returns since global financial crisis | Financial Times:
GIC has posted its lowest rate of return since the global financial crisis as the Singapore sovereign wealth fund braces for deeper geopolitical and market uncertainties due to the coronavirus pandemic.
“Coming into this year we already had concerns about high valuation, indebtedness, policy room and geopolitics,” said Lim Chow Kiat, chief executive of GIC. “Covid just made every one of them worse and more uncertain.”
The state fund's annualised 20-year real rate of return, its main performance metric, was 2.7 per cent for the year through March. That was down from 3.4 per cent in the previous 12 months, and the lowest since hitting 2.6 per cent in the 2008-2009 global financial crisis.
GIC said the drop was largely due to gains from the “tech-bubble” financial year of 1999-2000 dropping out of the 20-year metric.
GIC has posted its lowest rate of return since the global financial crisis as the Singapore sovereign wealth fund braces for deeper geopolitical and market uncertainties due to the coronavirus pandemic.
“Coming into this year we already had concerns about high valuation, indebtedness, policy room and geopolitics,” said Lim Chow Kiat, chief executive of GIC. “Covid just made every one of them worse and more uncertain.”
The state fund's annualised 20-year real rate of return, its main performance metric, was 2.7 per cent for the year through March. That was down from 3.4 per cent in the previous 12 months, and the lowest since hitting 2.6 per cent in the 2008-2009 global financial crisis.
GIC said the drop was largely due to gains from the “tech-bubble” financial year of 1999-2000 dropping out of the 20-year metric.
‘They want us to leave’ — foreign workers under pressure in the Gulf | Financial Times
‘They want us to leave’ — foreign workers under pressure in the Gulf | Financial Times:
Ashraf, an Egyptian working in Kuwait, lost all his income as a result of the coronavirus pandemic. The country’s curfew was eased two months ago, but for Ashraf there was little respite.
While other areas of the oil-rich sheikhdom opened up, the taxi driver endured a total lockdown in a suburb close to Kuwait City’s airport popular with foreign workers, which only reopened on Sunday. Taxi services, suspended in March, are scheduled to restart on Tuesday. Public transport, almost exclusively used by foreigners, has been halted for months.
Ashraf believes his plight has been made worse by Kuwait’s attitude towards foreign workers. “We feel the lockdown is deliberate, to make us have no work, to push us out,” he said. “Social media is full of [anti-expatriate] comments. We know they want us to leave.”
The coronavirus outbreak has shone a spotlight on the treatment of millions of foreign workers across the oil-rich Gulf. Many have lost their jobs as businesses have closed, and thousands have left. Now there are questions about how many will return and whether Gulf governments will use the crisis to improve workers' conditions.
Ashraf, an Egyptian working in Kuwait, lost all his income as a result of the coronavirus pandemic. The country’s curfew was eased two months ago, but for Ashraf there was little respite.
While other areas of the oil-rich sheikhdom opened up, the taxi driver endured a total lockdown in a suburb close to Kuwait City’s airport popular with foreign workers, which only reopened on Sunday. Taxi services, suspended in March, are scheduled to restart on Tuesday. Public transport, almost exclusively used by foreigners, has been halted for months.
Ashraf believes his plight has been made worse by Kuwait’s attitude towards foreign workers. “We feel the lockdown is deliberate, to make us have no work, to push us out,” he said. “Social media is full of [anti-expatriate] comments. We know they want us to leave.”
The coronavirus outbreak has shone a spotlight on the treatment of millions of foreign workers across the oil-rich Gulf. Many have lost their jobs as businesses have closed, and thousands have left. Now there are questions about how many will return and whether Gulf governments will use the crisis to improve workers' conditions.
#Kuwait Fund Sues London Boss Who ‘Blew’ Budget on Bonuses - Bloomberg
Kuwait Fund Sues London Boss Who ‘Blew’ Budget on Bonuses - Bloomberg:
Kuwait Investment Authority, the fourth-largest sovereign wealth fund, is caught up in a legal dispute with former managers at its U.K. office over accusations of inflated bonuses.
The fund alleges that Simon Hard, who oversaw fixed income at its London branch, and two other managers “blew the whole budget” by raising salaries and bonuses while a senior executive was away. It’s filed a claim for more than 1 million pounds ($1.3 million) in damages. Hard denies the allegations and said he was victimized and faced age discrimination.
The case, which was reported earlier by the Financial Times, was heard at a London court Monday. The Kuwait fund was ordered to postpone its damages claim until a separate lawsuit brought by Hard takes place at the employment tribunal. The fund has asserted diplomatic immunity in the employment case.
Adam Solomon, an attorney for the fund, said it was alerted in the middle of last year to the alleged misconduct by the country’s State Audit Bureau, which raised “serious concerns” about the pay increases in London. It discovered that Hard and two other managers hid a hike in bonuses of more than 50,000 pounds, the fund said in a March legal filing.
Kuwait Investment Authority, the fourth-largest sovereign wealth fund, is caught up in a legal dispute with former managers at its U.K. office over accusations of inflated bonuses.
The fund alleges that Simon Hard, who oversaw fixed income at its London branch, and two other managers “blew the whole budget” by raising salaries and bonuses while a senior executive was away. It’s filed a claim for more than 1 million pounds ($1.3 million) in damages. Hard denies the allegations and said he was victimized and faced age discrimination.
The case, which was reported earlier by the Financial Times, was heard at a London court Monday. The Kuwait fund was ordered to postpone its damages claim until a separate lawsuit brought by Hard takes place at the employment tribunal. The fund has asserted diplomatic immunity in the employment case.
Adam Solomon, an attorney for the fund, said it was alerted in the middle of last year to the alleged misconduct by the country’s State Audit Bureau, which raised “serious concerns” about the pay increases in London. It discovered that Hard and two other managers hid a hike in bonuses of more than 50,000 pounds, the fund said in a March legal filing.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
End game for oil? OPEC prepares for an age of dwindling demand - Reuters
End game for oil? OPEC prepares for an age of dwindling demand - Reuters:
The coronavirus crisis may have triggered the long-anticipated tipping point in oil demand and it is focusing minds in OPEC.
The pandemic drove down daily crude consumption by as much as a third earlier this year, at a time when the rise of electric vehicles and a shift to renewable energy sources were already prompting downward revisions in forecasts for long-term oil demand.
It has prompted some officials in the Organization of the Petroleum Exporting Countries, oil’s most powerful proponent since it was founded 60 years ago, to ask whether this year’s dramatic demand destruction heralds a permanent shift and how best to manage supplies if the age of oil is drawing to a close.
“People are waking up to a new reality and trying to work their heads around it all,” an industry source close to OPEC told Reuters, adding the “possibility exists in the minds of all the key players” that consumption might never fully recover.
The coronavirus crisis may have triggered the long-anticipated tipping point in oil demand and it is focusing minds in OPEC.
The pandemic drove down daily crude consumption by as much as a third earlier this year, at a time when the rise of electric vehicles and a shift to renewable energy sources were already prompting downward revisions in forecasts for long-term oil demand.
It has prompted some officials in the Organization of the Petroleum Exporting Countries, oil’s most powerful proponent since it was founded 60 years ago, to ask whether this year’s dramatic demand destruction heralds a permanent shift and how best to manage supplies if the age of oil is drawing to a close.
“People are waking up to a new reality and trying to work their heads around it all,” an industry source close to OPEC told Reuters, adding the “possibility exists in the minds of all the key players” that consumption might never fully recover.
IMF Bailout May Be Half What #Lebanon Sought When Talks Began - Bloomberg
IMF Bailout May Be Half What Lebanon Sought When Talks Began - Bloomberg:
Lebanon may only count on the International Monetary Fund for as little as half the bailout it had originally sought to help unlock other assistance the country critically needs to bridge the crisis, according to a top official.
With talks over a $10 billion loan program stalling for much of this month, the IMF could provide an amount in a range of $5 billion to $9 billion, Economy Minister Raoul Nehme said in an interview with Bloomberg Television. Although Lebanon’s economic collapse is accelerating, Nehme gave no time frame for when a deal might be reached.
Should negotiations succeed, Lebanon will look to cover the rest of its $30 billion in total needs by seeking help from allies and capitalizing on pledges of about $11 billion made by international donors in 2018 in exchange for a promise of reforms, according to Nehme, a 64-year-old former banking executive.
“All of them are waiting for the IMF, in my opinion,” he said. Without an IMF bailout, Lebanon is looking at a “real black scenario,” and officials are working hard to secure a package as quickly as possible, Nehme said.
Lebanon may only count on the International Monetary Fund for as little as half the bailout it had originally sought to help unlock other assistance the country critically needs to bridge the crisis, according to a top official.
With talks over a $10 billion loan program stalling for much of this month, the IMF could provide an amount in a range of $5 billion to $9 billion, Economy Minister Raoul Nehme said in an interview with Bloomberg Television. Although Lebanon’s economic collapse is accelerating, Nehme gave no time frame for when a deal might be reached.
Should negotiations succeed, Lebanon will look to cover the rest of its $30 billion in total needs by seeking help from allies and capitalizing on pledges of about $11 billion made by international donors in 2018 in exchange for a promise of reforms, according to Nehme, a 64-year-old former banking executive.
“All of them are waiting for the IMF, in my opinion,” he said. Without an IMF bailout, Lebanon is looking at a “real black scenario,” and officials are working hard to secure a package as quickly as possible, Nehme said.
#AbuDhabi's ADCB to lay off 400 employees, sources say - Reuters
Abu Dhabi's ADCB to lay off 400 employees, sources say - Reuters:
Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) is letting go hundreds of employees, sources said, the latest in a round of lay-offs by regional banks as pressure mounts to cut costs amid lower oil prices and the coronavirus crisis.
The UAE’s third-biggest lender is laying off 400 employees, two sources familiar with the matter said, after it had committed to not cutting staff because of the crisis.
In a statement, a spokesman said ADCB had pursued efficiency over the last decade by managing out its lowest underachievers after regular reviews, while ensuring talent was deployed in high-growth areas, such as digital banking.
“A certain number of redundancies are therefore expected every year in the normal course of business,” the bank spokesman added.
Abu Dhabi Commercial Bank (ADCB) (ADCB.AD) is letting go hundreds of employees, sources said, the latest in a round of lay-offs by regional banks as pressure mounts to cut costs amid lower oil prices and the coronavirus crisis.
The UAE’s third-biggest lender is laying off 400 employees, two sources familiar with the matter said, after it had committed to not cutting staff because of the crisis.
In a statement, a spokesman said ADCB had pursued efficiency over the last decade by managing out its lowest underachievers after regular reviews, while ensuring talent was deployed in high-growth areas, such as digital banking.
“A certain number of redundancies are therefore expected every year in the normal course of business,” the bank spokesman added.
Oil prices steady as demand concerns offset U.S. stimulus hopes - Reuters
Oil prices steady as demand concerns offset U.S. stimulus hopes - Reuters:
Oil prices were steady on Tuesday, erasing gains earlier in the session, as rising coronavirus cases dampened the outlook for demand and countered optimism over more U.S. stimulus.
Efforts to stimulate the U.S. economy’s recovery from the coronavirus crisis had raised hopes for stronger oil demand. However, a proposal on Monday from Senate Republicans will likely face opposition from Democrats, delaying the passage of a final stimulus package.
Brent crude futures were unchanged at $43.41 a barrel at 0634 GMT while U.S. West Texas Intermediate (WTI) crude futures fell 14 cents, or 0.3%, to $41.46 a barrel. Both benchmarks rose as much as 0.5% earlier in the session.
“A weaker U.S. dollar is supporting both base and precious metals, but oil traders appear focused on the economic signal that the lower dollar is flashing – i.e. demand destruction,” said Michael McCarthy, chief market strategist at CMC Markets.
Oil prices were steady on Tuesday, erasing gains earlier in the session, as rising coronavirus cases dampened the outlook for demand and countered optimism over more U.S. stimulus.
Efforts to stimulate the U.S. economy’s recovery from the coronavirus crisis had raised hopes for stronger oil demand. However, a proposal on Monday from Senate Republicans will likely face opposition from Democrats, delaying the passage of a final stimulus package.
Brent crude futures were unchanged at $43.41 a barrel at 0634 GMT while U.S. West Texas Intermediate (WTI) crude futures fell 14 cents, or 0.3%, to $41.46 a barrel. Both benchmarks rose as much as 0.5% earlier in the session.
“A weaker U.S. dollar is supporting both base and precious metals, but oil traders appear focused on the economic signal that the lower dollar is flashing – i.e. demand destruction,” said Michael McCarthy, chief market strategist at CMC Markets.
MIDEAST STOCKS- #Saudi dips on financials in quiet trade for major Gulf indexes - Reuters
MIDEAST STOCKS-Saudi dips on financials in quiet trade for major Gulf indexes - Reuters:
The Saudi Arabian stock market slipped in early trade on Tuesday, due to dips in financial shares, while trade on other major bourses in the Gulf was uneventful.
Saudi Arabia’s benchmark index eased 0.1%, hurt by a 0.2% fall in Al Rajhi Bank and a 0.3% decrease in the country’s biggest lender National Commercial Bank.
Elsewhere, Rabigh Refining and Petrochemical Company dropped 2.6%, a day after it posted quarterly losses.
In Dubai, the index rose 0.4%, with blue-chip developer Emaar Properties rising 0.8%, while Arabtec Holding jumped 6.9%.
Meanwhile, global port operator DP World recorded a fall of 8.8% in second-quarter container volumes, warning on Monday the outlook remained uncertain.
The Saudi Arabian stock market slipped in early trade on Tuesday, due to dips in financial shares, while trade on other major bourses in the Gulf was uneventful.
Saudi Arabia’s benchmark index eased 0.1%, hurt by a 0.2% fall in Al Rajhi Bank and a 0.3% decrease in the country’s biggest lender National Commercial Bank.
Elsewhere, Rabigh Refining and Petrochemical Company dropped 2.6%, a day after it posted quarterly losses.
In Dubai, the index rose 0.4%, with blue-chip developer Emaar Properties rising 0.8%, while Arabtec Holding jumped 6.9%.
Meanwhile, global port operator DP World recorded a fall of 8.8% in second-quarter container volumes, warning on Monday the outlook remained uncertain.
Monday, 27 July 2020
The Case Against Emirates Etihad Merger
The Case Against Emirates Etihad Merger:
Emirates, the airline owned by Dubai government and Etihad, the airline owned by Abu Dhabi government have always attracted speculation that they would merge. Economics and the thought of creating an airline behemoth dwarfing Middle Eastern rivals Qatar Airways and Turkish Airlines, seems the right thing to do for both the airlines. But the ground reality is vastly different, and merger could be the last option for both airlines’ owners.
In favor of the merger, experts might argue to use Abu Dhabi airport for US flights as the airport has a US pre-clearance facility and Dubai could cater to other markets. Even better to jointly develop the Dubai DWC airport which is in-between both Dubai and Abu Dhabi.
Here are some of the reasons why Emirates-Etihad merger is almost impossible to happen.
Emirates, the airline owned by Dubai government and Etihad, the airline owned by Abu Dhabi government have always attracted speculation that they would merge. Economics and the thought of creating an airline behemoth dwarfing Middle Eastern rivals Qatar Airways and Turkish Airlines, seems the right thing to do for both the airlines. But the ground reality is vastly different, and merger could be the last option for both airlines’ owners.
In favor of the merger, experts might argue to use Abu Dhabi airport for US flights as the airport has a US pre-clearance facility and Dubai could cater to other markets. Even better to jointly develop the Dubai DWC airport which is in-between both Dubai and Abu Dhabi.
Here are some of the reasons why Emirates-Etihad merger is almost impossible to happen.
Lebanon Credit Rating Cut to Lowest Grade by Moody's - Bloomberg
Lebanon Credit Rating Cut to Lowest Grade by Moody's - Bloomberg:
Lebanon had its rating cut to the lowest grade by Moody’s Investors Service, which said that bond investors will likely suffer major losses on their holdings as the government struggles to secure aid to ease a crippling financial crisis.
Moody’s lowered Lebanon’s credit score to C from Ca, the same level as crisis-ravaged Venezuela. It reflects Moody’s “assessment that the losses incurred by bondholders through Lebanon’s current default are likely to exceed 65%,” the agency said in a statement.
Lebanon, which has already defaulted on billions of dollars in debt this year, is struggling to secure an International Monetary Fund loan deal amid sharp domestic divisions over how to tally losses in the financial system.
“The collapse of the currency in the parallel market and the concomitant surge in inflation fuel a highly unstable environment,” Moody’s said. “In the absence of key steps toward plausible economic and fiscal policy reform, official external funding support to accompany a government debt restructuring is not forthcoming.”
Lebanon had its rating cut to the lowest grade by Moody’s Investors Service, which said that bond investors will likely suffer major losses on their holdings as the government struggles to secure aid to ease a crippling financial crisis.
Moody’s lowered Lebanon’s credit score to C from Ca, the same level as crisis-ravaged Venezuela. It reflects Moody’s “assessment that the losses incurred by bondholders through Lebanon’s current default are likely to exceed 65%,” the agency said in a statement.
Lebanon, which has already defaulted on billions of dollars in debt this year, is struggling to secure an International Monetary Fund loan deal amid sharp domestic divisions over how to tally losses in the financial system.
“The collapse of the currency in the parallel market and the concomitant surge in inflation fuel a highly unstable environment,” Moody’s said. “In the absence of key steps toward plausible economic and fiscal policy reform, official external funding support to accompany a government debt restructuring is not forthcoming.”
Oil rises on hopes for U.S. stimulus measure - Reuters
Oil rises on hopes for U.S. stimulus measure - Reuters:
Oil prices rose on Monday on hopes that stimulus efforts will help revitalize the U.S. economy, but the gains were capped by rising coronavirus cases and tensions between Washington and Beijing.
Brent crude LCOc1 rose 7 cents to settle at $43.41 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose 31 cents to settle at $41.60 a barrel.
U.S. Senate Republicans were expected to unveil a new $1 trillion coronavirus aid package on Monday afternoon.
“If we can put more money into the pockets of consumers, they’re going to spend it on goods and services,” said Phil Flynn, senior analyst at Price Futures group in Chicago. “That should lead to more gasoline demand, more travel and more shopping.”
Oil prices rose on Monday on hopes that stimulus efforts will help revitalize the U.S. economy, but the gains were capped by rising coronavirus cases and tensions between Washington and Beijing.
Brent crude LCOc1 rose 7 cents to settle at $43.41 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 rose 31 cents to settle at $41.60 a barrel.
U.S. Senate Republicans were expected to unveil a new $1 trillion coronavirus aid package on Monday afternoon.
“If we can put more money into the pockets of consumers, they’re going to spend it on goods and services,” said Phil Flynn, senior analyst at Price Futures group in Chicago. “That should lead to more gasoline demand, more travel and more shopping.”
#Dubai Financial Markets reports 21% growth in first half profit as it appoints new chief executive - The National
Dubai Financial Markets reports 21% growth in first half profit as it appoints new chief executive - The National:
DFM company, the operator of the Dubai Financial Market, said net profit rose 21 per cent in the first half of the year as it benefitted from higher trading volumes during periods of market volatility.
Net profit for the six-month period rose 21 per cent to Dh78.9m, and revenue rose 11 per cent to Dh181.1m.
“During the first six months of 2020, the DFM’s trading value has exceeded Dh31 billion, a 25 per cent increase compared to the corresponding period of 2019,” the company’s chairman, Essa Kazim, said.
He also said the market’s performance in the second quarter indicated its resilience, as the DFM general index rebounded by 16 per cent, “restoring a considerable percentage of its previous decline”.
DFM company, the operator of the Dubai Financial Market, said net profit rose 21 per cent in the first half of the year as it benefitted from higher trading volumes during periods of market volatility.
Net profit for the six-month period rose 21 per cent to Dh78.9m, and revenue rose 11 per cent to Dh181.1m.
“During the first six months of 2020, the DFM’s trading value has exceeded Dh31 billion, a 25 per cent increase compared to the corresponding period of 2019,” the company’s chairman, Essa Kazim, said.
He also said the market’s performance in the second quarter indicated its resilience, as the DFM general index rebounded by 16 per cent, “restoring a considerable percentage of its previous decline”.
Damac, Arabtec stock rallies keep #UAE markets buzzing | Markets – Gulf News
Damac, Arabtec stock rallies keep UAE markets buzzing | Markets – Gulf News:
Major UAE real estate sector stocks are on a tear with Arabtec rallying 14.85 per cent and Damac gaining 8.25 per cent for the day.
The wider DFM is in the black by 0.10 per cent, while ADX closed 1.06 per cent higher. The real estate sector has been outperforming the general indices since the lows in March. From the third week of March, DFM has rallied 20 per cent while the DFM Real Estate index is up a staggering 40 per cent.
During the same period, Damac has rallied by an astounding 163 per cent and Arabtec leapt higher by 153 per cent.
There are company-specific and macro-level factors behind the stellar outperformance of real estate stocks. Recently Arabtec had a reshuffle of its top level management - Walled Al Muhairi, who happens to be deputy CEO of the Abu Dhabi sovereign wealth fund Mubadala, was appointed Arabtec chairman, and the hope is that he will speed up the restructuring process.
Major UAE real estate sector stocks are on a tear with Arabtec rallying 14.85 per cent and Damac gaining 8.25 per cent for the day.
The wider DFM is in the black by 0.10 per cent, while ADX closed 1.06 per cent higher. The real estate sector has been outperforming the general indices since the lows in March. From the third week of March, DFM has rallied 20 per cent while the DFM Real Estate index is up a staggering 40 per cent.
During the same period, Damac has rallied by an astounding 163 per cent and Arabtec leapt higher by 153 per cent.
There are company-specific and macro-level factors behind the stellar outperformance of real estate stocks. Recently Arabtec had a reshuffle of its top level management - Walled Al Muhairi, who happens to be deputy CEO of the Abu Dhabi sovereign wealth fund Mubadala, was appointed Arabtec chairman, and the hope is that he will speed up the restructuring process.
#Oman picks FAB and Bank Muscat to arrange $2bln loan - sources | ZAWYA MENA Edition
Oman picks FAB and Bank Muscat to arrange $2bln loan - sources | ZAWYA MENA Edition:
The government of Oman has picked First Abu Dhabi Bank and Bank Muscat to coordinate a $2 billion bridge loan it is seeking to borrow from international and regional banks, according to two sources familiar with the matter.
Oman is taking out the one-year loan - which would subsequently be repaid with money raised from an international bond - to bolster state coffers hit by low oil prices and the economic downturn caused by the coronavirus crisis.
It started talks with banks for the loan in June, sources told Reuters earlier this month.
First Abu Dhabi Bank and Bank Muscat have been chosen to coordinate the deal, two sources said.
The government of Oman has picked First Abu Dhabi Bank and Bank Muscat to coordinate a $2 billion bridge loan it is seeking to borrow from international and regional banks, according to two sources familiar with the matter.
Oman is taking out the one-year loan - which would subsequently be repaid with money raised from an international bond - to bolster state coffers hit by low oil prices and the economic downturn caused by the coronavirus crisis.
It started talks with banks for the loan in June, sources told Reuters earlier this month.
First Abu Dhabi Bank and Bank Muscat have been chosen to coordinate the deal, two sources said.
Oil falls 2% on U.S.-China tensions, rising virus cases - Reuters
Oil falls 2% on U.S.-China tensions, rising virus cases - Reuters:
Oil prices dropped nearly 2% on Monday despite a weaker U.S. dollar, as rising coronavirus cases and tensions between the United States and China clouded the outlook for oil demand’s recovery.
Brent crude LCOc1 lost 81 cents, or 1.9%, to $42.53 a barrel by 11:13 a.m. EDT, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 65 cents, or 1.6%, to $40.64 a barrel.
Following the closures of consulates in Houston and Chendu, investors worried about relations between China and the United States and have retreated to safe havens, such as gold and bonds.
“In lack of larger fundamental news, oil prices are following the overall macro trends, behaving as a ‘risky asset’ and being traded lower when safe-haven assets strengthen,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
Oil prices dropped nearly 2% on Monday despite a weaker U.S. dollar, as rising coronavirus cases and tensions between the United States and China clouded the outlook for oil demand’s recovery.
Brent crude LCOc1 lost 81 cents, or 1.9%, to $42.53 a barrel by 11:13 a.m. EDT, while U.S. West Texas Intermediate (WTI) crude CLc1 fell 65 cents, or 1.6%, to $40.64 a barrel.
Following the closures of consulates in Houston and Chendu, investors worried about relations between China and the United States and have retreated to safe havens, such as gold and bonds.
“In lack of larger fundamental news, oil prices are following the overall macro trends, behaving as a ‘risky asset’ and being traded lower when safe-haven assets strengthen,” said Bjornar Tonhaugen, head of oil markets at Rystad Energy.
MIDEAST STOCKS- #Kuwait leads most of Gulf higher; #Qatar retreats - Reuters
MIDEAST STOCKS-Kuwait leads most of Gulf higher; Qatar retreats - Reuters:
Most Gulf stock markets ended higher on
Monday with Kuwait leading the gains on the back of a broad
increase in shares in its index, while Qatar's was hit by
first-half losses from Qatar Insurance Company.
Saudi Arabia's benchmark index added 0.3%, bolstered
by a 0.6% gain in Saudi Aramco and a 1% rise in Saudi
Basic Industries.
But Yamama Cement declined 1.8% as the company
reported a fall in second-quarter net profit.
In Kuwait, the index advanced 1.7%, buoyed by a 3.5%
jump in National Bank of Kuwait.
News about the health of the Emir of Kuwait, who is in the
United States for medical treatment, is "very reassuring,"
parliament speaker Marzouq al-Ghanim said on Sunday in a
statement on the parliament's Twitter account.
The Qatar index slipped 0.3%, hit by a 4.2% slide in
Qatar Insurance after the company reported a net loss
of 207.8 million riyals ($57.06 million) in the first half,
compared with a profit of 409.9 million riyals a year ago.
Most Gulf stock markets ended higher on
Monday with Kuwait leading the gains on the back of a broad
increase in shares in its index, while Qatar's was hit by
first-half losses from Qatar Insurance Company.
Saudi Arabia's benchmark index added 0.3%, bolstered
by a 0.6% gain in Saudi Aramco and a 1% rise in Saudi
Basic Industries.
But Yamama Cement declined 1.8% as the company
reported a fall in second-quarter net profit.
In Kuwait, the index advanced 1.7%, buoyed by a 3.5%
jump in National Bank of Kuwait.
News about the health of the Emir of Kuwait, who is in the
United States for medical treatment, is "very reassuring,"
parliament speaker Marzouq al-Ghanim said on Sunday in a
statement on the parliament's Twitter account.
The Qatar index slipped 0.3%, hit by a 4.2% slide in
Qatar Insurance after the company reported a net loss
of 207.8 million riyals ($57.06 million) in the first half,
compared with a profit of 409.9 million riyals a year ago.
Blackrock, #Qatar's QIA interested in Atlantia's tollroad unit: sources - Reuters
Blackrock, Qatar's QIA interested in Atlantia's tollroad unit: sources - Reuters:
U.S. asset manager BlackRock (BLK.N) and Qatar’s sovereign fund QIA are interested in investing in Atlantia’s motorway unit (ATL.MI) along with Italian state lender Cassa Depositi e Prestiti (CDP), two sources with knowledge of the matter said.
The two could be part of a consortium made of Italian and foreign funds that is expected to buy around 20% in Atlantia’s Autostrade per l’Italia once it is demerged from its parent company, the source said.
BlackRock and Qatar Investment Authority declined to comment on the issue.
Autostrade is being sold off after the Italian government forced Atlantia to hand over control of the unit or face being stripped of its lucrative tollway concession in the wake of the deadly collapse of a motorway bridge in 2018 in which 43 people were killed.
U.S. asset manager BlackRock (BLK.N) and Qatar’s sovereign fund QIA are interested in investing in Atlantia’s motorway unit (ATL.MI) along with Italian state lender Cassa Depositi e Prestiti (CDP), two sources with knowledge of the matter said.
The two could be part of a consortium made of Italian and foreign funds that is expected to buy around 20% in Atlantia’s Autostrade per l’Italia once it is demerged from its parent company, the source said.
BlackRock and Qatar Investment Authority declined to comment on the issue.
Autostrade is being sold off after the Italian government forced Atlantia to hand over control of the unit or face being stripped of its lucrative tollway concession in the wake of the deadly collapse of a motorway bridge in 2018 in which 43 people were killed.
Oil slips on U.S.-China tensions, rising virus cases - Reuters
Oil slips on U.S.-China tensions, rising virus cases - Reuters:
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors towards safe-haven assets.
Brent crude LCOc1 dipped 20 cents, or 0.5%, to $43.14 a barrel by 1000 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.15 a barrel, down 14 cents, or 0.4%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors towards safe-haven assets.
Brent crude LCOc1 dipped 20 cents, or 0.5%, to $43.14 a barrel by 1000 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.15 a barrel, down 14 cents, or 0.4%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
European, Middle Eastern & African Stocks - Bloomberg #UAE close #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
China National Offshore Oil Corporation picks up rights in ADNOC fields | Energy – Gulf News
China National Offshore Oil Corporation picks up rights in ADNOC fields | Energy – Gulf News:
The Abu Dhabi National Oil Company (ADNOC) has agreed to a transfer of rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions to a unit of China National Offshore Oil Corporation. The rights will shift from the previous holder, China National Petroleum Corporation (CNPC).
The transfer, approved by Abu Dhabi’s Supreme Petroleum Council, marks the first time that a Chinese offshore oil and gas company has joins ADNOC’s concessions, UAE’s state-run energy firm said in a statement.
As a result, CNOOC will hold a 4 per cent interest in the Lower Zakum concession and a 4 per cent interest in the Umm Shaif and Nasr concession, while PetroChina retains a 6 per cent stake in the concessions.
The transfer also includes CNOOC buying 40 per cent in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) Ltd. (PetroChina).
The Abu Dhabi National Oil Company (ADNOC) has agreed to a transfer of rights in its Lower Zakum and Umm Shaif and Nasr offshore concessions to a unit of China National Offshore Oil Corporation. The rights will shift from the previous holder, China National Petroleum Corporation (CNPC).
The transfer, approved by Abu Dhabi’s Supreme Petroleum Council, marks the first time that a Chinese offshore oil and gas company has joins ADNOC’s concessions, UAE’s state-run energy firm said in a statement.
As a result, CNOOC will hold a 4 per cent interest in the Lower Zakum concession and a 4 per cent interest in the Umm Shaif and Nasr concession, while PetroChina retains a 6 per cent stake in the concessions.
The transfer also includes CNOOC buying 40 per cent in CNPC’s majority-owned subsidiary PetroChina Investment Overseas (Middle East) Ltd. (PetroChina).
#SaudiArabia’s NCB reports drop in second quarter profit on higher operating expenses - The National
Saudi Arabia’s NCB reports drop in second quarter profit on higher operating expenses - The National:
Saudi Arabia’s National Commercial Bank (NCB), the kingdom's biggest lender by assets, reported a 22 per cent drop in its second-quarter profit as total operating expenses including impairments for bad loans climbed and operating income decreased.
Net profit for the three months ending June 30 declined to 2.09 billion Saudi riyals (Dh2.05bn), the lender said in a statement to the Tadawul stock exchange, where its shares trade. Operating income during the period slid 5.6 per cent to 4.76bn riyals.
Total operating expenses iclimbed 18.4 per cent during the period, “mainly due to higher net impairment charge for expected credit losses". They were partially offset by a decrease in salaries and employee-related expenses, rent and premises-related expenses, depreciation or amortisation of property, equipment, software and ROU (right of use) assets, and other general and administrative expenses, the statement said.
Saudi Arabia’s National Commercial Bank (NCB), the kingdom's biggest lender by assets, reported a 22 per cent drop in its second-quarter profit as total operating expenses including impairments for bad loans climbed and operating income decreased.
Net profit for the three months ending June 30 declined to 2.09 billion Saudi riyals (Dh2.05bn), the lender said in a statement to the Tadawul stock exchange, where its shares trade. Operating income during the period slid 5.6 per cent to 4.76bn riyals.
Total operating expenses iclimbed 18.4 per cent during the period, “mainly due to higher net impairment charge for expected credit losses". They were partially offset by a decrease in salaries and employee-related expenses, rent and premises-related expenses, depreciation or amortisation of property, equipment, software and ROU (right of use) assets, and other general and administrative expenses, the statement said.
Things Are Looking ‘Very Good’ for Bank Albilad, Says CEO Abdulaziz Al Onaizan - Bloomberg
Things Are Looking ‘Very Good’ for Bank Albilad, Says CEO Abdulaziz Al Onaizan - Bloomberg:
Abdulaziz Al Onaizan, chief executive officer at Bank Albilad, discusses the health of the Saudi economy, support from the central bank and the potential for consolidation with another bank. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Abdulaziz Al Onaizan, chief executive officer at Bank Albilad, discusses the health of the Saudi economy, support from the central bank and the potential for consolidation with another bank. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Global port operator DP World says outlook uncertain as Q2 volumes fall - Reuters
Global port operator DP World says outlook uncertain as Q2 volumes fall - Reuters:
Global port operator DP World recorded a fall of 8.8% in second quarter container volumes, warning on Monday the outlook remained uncertain.
The coronavirus pandemic shut cities and factories worldwide for months, disrupting shipments and global supply chains, while some cities are now reintroducing curbs after a recent rise in infections.
The Dubai state-owned company, which also operates logistics facilities, handled 16.7 million shipping containers in the second quarter, down from 18.3 million a year earlier.
It recorded its biggest quarterly decline in the Asia Pacific and Indian subcontinent region, where volumes fell 12.2% to 7.2 million containers.
Global port operator DP World recorded a fall of 8.8% in second quarter container volumes, warning on Monday the outlook remained uncertain.
The coronavirus pandemic shut cities and factories worldwide for months, disrupting shipments and global supply chains, while some cities are now reintroducing curbs after a recent rise in infections.
The Dubai state-owned company, which also operates logistics facilities, handled 16.7 million shipping containers in the second quarter, down from 18.3 million a year earlier.
It recorded its biggest quarterly decline in the Asia Pacific and Indian subcontinent region, where volumes fell 12.2% to 7.2 million containers.
Oil slips as U.S.-China friction, rising virus cases weigh on markets - Reuters
Oil slips as U.S.-China friction, rising virus cases weigh on markets - Reuters:
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets.
Brent crude LCOc1 dipped 8 cents, or 0.2%, to $43.26 a barrel by 0403 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.22 a barrel, down 7 cents, or 0.2%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
Still, Brent is on track for a fourth straight monthly gain in July and WTI is set to rise for a third month as unprecedented supply cuts from the Organization of the Petroleum Countries and its allies including Russia propped up prices. Output has also fallen in the United States.
Oil prices edged lower on Monday as rising coronavirus cases and tensions between the United States and China pushed investors toward safe-haven assets.
Brent crude LCOc1 dipped 8 cents, or 0.2%, to $43.26 a barrel by 0403 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped to $41.22 a barrel, down 7 cents, or 0.2%.
The fall in oil mirrored moves in broader financial markets in Asia amid concerns about escalating tensions between the world’s two biggest economies following the closures of consulates in Houston and Chengdu. Global coronavirus cases, meanwhile, exceeded 16 million.
Still, Brent is on track for a fourth straight monthly gain in July and WTI is set to rise for a third month as unprecedented supply cuts from the Organization of the Petroleum Countries and its allies including Russia propped up prices. Output has also fallen in the United States.
MIDEAST STOCKS-Most major Gulf stocks rise in early trade; #Qatar slips - Reuters
MIDEAST STOCKS-Most major Gulf stocks rise in early trade; Qatar slips - Reuters:
Most major stocks markets in the Gulf rose in early trade on Monday, largely on the back of their financials, while Qatar’s index was hurt by first-half losses posted by Qatar Insurance Company.
Saudi Arabia’s benchmark index edged up 0.1%, helped by a 0.7% rise in Dr Sulaiman Al-Habib Medical Services , while National Commercial Bank was up 0.4%, despite recording a lower second-quarter profit.
But Banque Saudi Fransi declined 1% as the lender reported a fall in second-quarter net-profit.
The Qatari index lost 0.2%, driven down by a 4.3% slide in Qatar Insurance.
The insurer posted a net loss of 207.8 million riyals ($57.08 million) in the first-half, compared to a profit of 409.9 million riyals year ago.
Most major stocks markets in the Gulf rose in early trade on Monday, largely on the back of their financials, while Qatar’s index was hurt by first-half losses posted by Qatar Insurance Company.
Saudi Arabia’s benchmark index edged up 0.1%, helped by a 0.7% rise in Dr Sulaiman Al-Habib Medical Services , while National Commercial Bank was up 0.4%, despite recording a lower second-quarter profit.
But Banque Saudi Fransi declined 1% as the lender reported a fall in second-quarter net-profit.
The Qatari index lost 0.2%, driven down by a 4.3% slide in Qatar Insurance.
The insurer posted a net loss of 207.8 million riyals ($57.08 million) in the first-half, compared to a profit of 409.9 million riyals year ago.
Sunday, 26 July 2020
US envoy in #Qatar: Gulf dispute 'gone on too long' | News | Al Jazeera
US envoy in Qatar: Gulf dispute 'gone on too long' | News | Al Jazeera:
The three-year blockade of Qatar by neighbouring Arab nations has gone on for too long and threatens regional security and prosperity, a US envoy has said.
US Special Representative for Iran Brian Hook on Sunday acknowledged the challenge ahead of ending the crisis that has torn apart the Gulf Cooperation Council (GCC) - with the United Arab Emirates (UAE), Saudi Arabia, and Bahrain part of the siege.
Egypt also joined the blockade, which saw nations close their airspace and borders to Qatar in June 2017.
Kuwait and Oman, the two other nations in the GCC, have sought dialogue between the countries since, with Kuwait's Emir Sheikh Sabah Al Ahmad Al Sabah leading those efforts.
The three-year blockade of Qatar by neighbouring Arab nations has gone on for too long and threatens regional security and prosperity, a US envoy has said.
US Special Representative for Iran Brian Hook on Sunday acknowledged the challenge ahead of ending the crisis that has torn apart the Gulf Cooperation Council (GCC) - with the United Arab Emirates (UAE), Saudi Arabia, and Bahrain part of the siege.
Egypt also joined the blockade, which saw nations close their airspace and borders to Qatar in June 2017.
Kuwait and Oman, the two other nations in the GCC, have sought dialogue between the countries since, with Kuwait's Emir Sheikh Sabah Al Ahmad Al Sabah leading those efforts.
US oil production wells up after Covid price crash | Financial Times
US oil production wells up after Covid price crash | Financial Times:
US oil companies have increased production by 1.2m barrels a day over the past six weeks, as they restore wells shut earlier this year and start producing from others they left unfinished as prices sank.
Output bottomed out at 9.7m b/d in the second week of June but has since risen to 10.9m b/d as activity starts to pick up in the big shale fields of Texas, according to Genscape, a division of consultancy Wood Mackenzie that monitors energy flows. That figure is more than the UK’s entire crude production of 1.1m b/d.
US production should now stabilise at about 11m b/d through to the end of 2020, analysts said. That is well below the 13m b/d in March before the Saudi-Russian price war and coronavirus pandemic devastated US oil prices.
“It’s a slow, slow recovery, but it’s happening,” said Alexandre Ramos-Peon, a senior analyst at Rystad Energy, a consultancy.
US oil companies have increased production by 1.2m barrels a day over the past six weeks, as they restore wells shut earlier this year and start producing from others they left unfinished as prices sank.
Output bottomed out at 9.7m b/d in the second week of June but has since risen to 10.9m b/d as activity starts to pick up in the big shale fields of Texas, according to Genscape, a division of consultancy Wood Mackenzie that monitors energy flows. That figure is more than the UK’s entire crude production of 1.1m b/d.
US production should now stabilise at about 11m b/d through to the end of 2020, analysts said. That is well below the 13m b/d in March before the Saudi-Russian price war and coronavirus pandemic devastated US oil prices.
“It’s a slow, slow recovery, but it’s happening,” said Alexandre Ramos-Peon, a senior analyst at Rystad Energy, a consultancy.
#Kuwait sovereign wealth fund fights court battle with fired executives | Financial Times
Kuwait sovereign wealth fund fights court battle with fired executives | Financial Times:
The Kuwait Investment Authority’s London arm has launched High Court proceedings against former executives over an alleged conspiracy to award unlawful pay increases.
The case is part of a broader dispute between the $600bn sovereign wealth fund and a number of former employees, which began during a period of upheaval after Saleh Al-Ateeqi, a former McKinsey partner who once worked for Tony Blair, was appointed president of the Kuwait Investment Office in April 2018.
More than 30 out of the KIO’s roughly 100 employees have left the organisation since the start of 2018, according to people familiar with the matter.
The KIO, which opened an office in London in 1953, is the world’s oldest sovereign wealth fund; the KIA was established in 1982 as the KIO’s parent firm.
The Kuwait Investment Authority’s London arm has launched High Court proceedings against former executives over an alleged conspiracy to award unlawful pay increases.
The case is part of a broader dispute between the $600bn sovereign wealth fund and a number of former employees, which began during a period of upheaval after Saleh Al-Ateeqi, a former McKinsey partner who once worked for Tony Blair, was appointed president of the Kuwait Investment Office in April 2018.
More than 30 out of the KIO’s roughly 100 employees have left the organisation since the start of 2018, according to people familiar with the matter.
The KIO, which opened an office in London in 1953, is the world’s oldest sovereign wealth fund; the KIA was established in 1982 as the KIO’s parent firm.
Mubadala invests over $150 million in world’s largest wood pellet-producer | Business – Gulf News
Mubadala invests over $150 million in world’s largest wood pellet-producer | Business – Gulf News:
Abu Dhabi’s Mubadala invested over $150 million as an anchor investor in the recapitalization of Enviva Holdings, the world’s largest producer of industrial wood pellets, the sovereign wealth fund said in a tweet on Sunday.
Last week, Enviva said it completed a series of transactions that recapitalized the company with more than $1 billion of new equity contributions and incremental equity commitments from affiliates of private equity firm Riverstone Holdings LLC.
Companies perform recapitalization to make their capital structure more stable. US-based Enviva helps major utilities around the world to cost-effectively displace coal and other fossil fuels as part of the energy transition to a low-carbon future.
Through its subsidiaries, the company owns and operates eight plants with a combined wood pellet production capacity of about 4.1 million metric tons per year.
Abu Dhabi’s Mubadala invested over $150 million as an anchor investor in the recapitalization of Enviva Holdings, the world’s largest producer of industrial wood pellets, the sovereign wealth fund said in a tweet on Sunday.
Last week, Enviva said it completed a series of transactions that recapitalized the company with more than $1 billion of new equity contributions and incremental equity commitments from affiliates of private equity firm Riverstone Holdings LLC.
Companies perform recapitalization to make their capital structure more stable. US-based Enviva helps major utilities around the world to cost-effectively displace coal and other fossil fuels as part of the energy transition to a low-carbon future.
Through its subsidiaries, the company owns and operates eight plants with a combined wood pellet production capacity of about 4.1 million metric tons per year.
Mideast Stocks - Major Gulf stocks gain; Aramco extends losses | ZAWYA MENA Edition
Mideast Stocks - Major Gulf stocks gain; Aramco extends losses | ZAWYA MENA Edition:
United Arab Emirates stocks ended higher on Sunday, lifted by banks and property shares, while losses at oil giant Saudi Aramco limited Saudi Arabian gains.
Dubai's main share index closed up 0.3%, led by a 6.1% surge in DAMAC Properties and a 0.5% gain in Emirates NBD Bank.
DAMAC Properties confirmed that Port Investment Limited which transferred its shares to Omran Group is owned by DAMAC International Limited, a joint venture company in which DAMAC has a 20% shareholding.
In Abu Dhabi, the index rose 0.6%, with the country's largest lender First Abu Dhabi Bank gaining 0.6% and aquaculture culture firm International Holding 2.4% higher.
Saudi Arabia's benchmark index was up 0.1%, with Al Rajhi Bank gaining 1.9%, while Bank Albilad added 1.5%.
United Arab Emirates stocks ended higher on Sunday, lifted by banks and property shares, while losses at oil giant Saudi Aramco limited Saudi Arabian gains.
Dubai's main share index closed up 0.3%, led by a 6.1% surge in DAMAC Properties and a 0.5% gain in Emirates NBD Bank.
DAMAC Properties confirmed that Port Investment Limited which transferred its shares to Omran Group is owned by DAMAC International Limited, a joint venture company in which DAMAC has a 20% shareholding.
In Abu Dhabi, the index rose 0.6%, with the country's largest lender First Abu Dhabi Bank gaining 0.6% and aquaculture culture firm International Holding 2.4% higher.
Saudi Arabia's benchmark index was up 0.1%, with Al Rajhi Bank gaining 1.9%, while Bank Albilad added 1.5%.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
#Qatar Commercial Bank to Continue to Build Buffers Against Risk - Bloomberg
Qatar Commercial Bank to Continue to Build Buffers Against Risk - Bloomberg:
Commercial Bank of Qatar will continue to build buffers against risk for the rest of the year to protect itself from the fallout of the coronavirus pandemic, according to its group chief executive officer.
Lenders in the gas-rich Gulf state are building up “significant risk buffers in anticipation of prudent provisioning for what may happen once the stimulus measures are taken off,” Joseph Abraham said in an interview with Bloomberg TV on Sunday.
Qatar has a “great degree of resilience” after a Saudi-led standoff that started in 2017, which impacted similar sectors hit by this year’s pandemic. “The banking sector has managed its exposure in these various areas,” he said.
Last week, Commercial Bank of Qatar reported a 8.2% rise in net operating income for the first half.
Commercial Bank of Qatar will continue to build buffers against risk for the rest of the year to protect itself from the fallout of the coronavirus pandemic, according to its group chief executive officer.
Lenders in the gas-rich Gulf state are building up “significant risk buffers in anticipation of prudent provisioning for what may happen once the stimulus measures are taken off,” Joseph Abraham said in an interview with Bloomberg TV on Sunday.
Qatar has a “great degree of resilience” after a Saudi-led standoff that started in 2017, which impacted similar sectors hit by this year’s pandemic. “The banking sector has managed its exposure in these various areas,” he said.
Last week, Commercial Bank of Qatar reported a 8.2% rise in net operating income for the first half.
Middle East Deals: #Saudi Car Rental Firm Theeb Hires IPO Advisers - Bloomberg
Middle East Deals: Saudi Car Rental Firm Theeb Hires IPO Advisers - Bloomberg:
Saudi Arabia’s Theeb Rent-a-Car hired Saudi Fransi Capital to advise on a potential initial public offering, according to people with knowledge of the matter.
The share sale and listing on the local stock exchange would allow Bahrain-based alternative investment firm Investcorp to reduce its stake in the care hire business, the people said, asking not to be identified because the information is private.
The IPO could happen next year, depending on how quickly the company recovers from the impact of the coronavirus outbreak, the people said. Final decisions haven’t been made and the company may decide to delay the share sale, they said.
Saudi Arabian companies are taking the lead in new offerings at a time when IPOs across the region have been scarce. Investcorp, which acquired a stake in Theeb in 2013, is also preparing to sell shares in grocery business BinDawood Holding, in what would be the buyout firm’s third exit from Saudi Arabia via a share sale in five years.
Saudi Arabia’s Theeb Rent-a-Car hired Saudi Fransi Capital to advise on a potential initial public offering, according to people with knowledge of the matter.
The share sale and listing on the local stock exchange would allow Bahrain-based alternative investment firm Investcorp to reduce its stake in the care hire business, the people said, asking not to be identified because the information is private.
The IPO could happen next year, depending on how quickly the company recovers from the impact of the coronavirus outbreak, the people said. Final decisions haven’t been made and the company may decide to delay the share sale, they said.
Saudi Arabian companies are taking the lead in new offerings at a time when IPOs across the region have been scarce. Investcorp, which acquired a stake in Theeb in 2013, is also preparing to sell shares in grocery business BinDawood Holding, in what would be the buyout firm’s third exit from Saudi Arabia via a share sale in five years.
TAQA, Masdar consortium to develop world's largest solar power plant in #AbuDhabi - Arabianbusiness
TAQA, Masdar consortium to develop world's largest solar power plant in Abu Dhabi - Arabianbusiness:
A consortium led by Abu Dhabi National Energy Company (TAQA) and Masdar, with partners French electric utility company, EDF and JinkoPower, will develop the world’s largest solar power plant in Abu Dhabi.
Emirates Water and Electricity Company (EWEC) awarded the contract to develop the 2 GW Al Dhafra Solar Photovoltaic, PV, Independent Power Producer, IPP, project, which will be located approximately 35 kilometres from Abu Dhabi city.
The procurement process resulted in one of the most cost-competitive tariffs for solar PV energy, set at AED 4.97 fils/kWh (USD 1.35 cents/kWh) on a levelised cost of electricity basis.
The Al Dhafra Solar PV project is expected to provide approximately 160,000 households across the UAE with electricity. It will be larger than TAQA’s existing 1.2 GW ‘Noor Abu Dhabi’ solar plant, which is currently the world’s largest operational single-project solar PV plant.
A consortium led by Abu Dhabi National Energy Company (TAQA) and Masdar, with partners French electric utility company, EDF and JinkoPower, will develop the world’s largest solar power plant in Abu Dhabi.
Emirates Water and Electricity Company (EWEC) awarded the contract to develop the 2 GW Al Dhafra Solar Photovoltaic, PV, Independent Power Producer, IPP, project, which will be located approximately 35 kilometres from Abu Dhabi city.
The procurement process resulted in one of the most cost-competitive tariffs for solar PV energy, set at AED 4.97 fils/kWh (USD 1.35 cents/kWh) on a levelised cost of electricity basis.
The Al Dhafra Solar PV project is expected to provide approximately 160,000 households across the UAE with electricity. It will be larger than TAQA’s existing 1.2 GW ‘Noor Abu Dhabi’ solar plant, which is currently the world’s largest operational single-project solar PV plant.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
MIDEAST STOCKS-Gulf markets little changed in early trade - Reuters
MIDEAST STOCKS-Gulf markets little changed in early trade - Reuters:
Major Gulf stock markets were little changed early on Sunday, with the Saudi index slipping slightly on declines among energy companies.
Saudi Arabia’s benchmark index dipped by 0.3%, driven down by a 0.9% fall for oil giant Saudi Aramco and a 1.8% drop for Rabigh Refining and Petrochemical Company.
Al Rajhi Bank, however, firmed by 0.2% despite a fall in second-quarter profit.
The value of kingdom’s oil exports dropped by 65% year on year in May, representing a fall of nearly $12 billion, official data showed on Thursday.
Dubai’s main share index added 0.2%, with lender Emirates NBD rising 0.7% and Emaar Properties up 0.4%.
Major Gulf stock markets were little changed early on Sunday, with the Saudi index slipping slightly on declines among energy companies.
Saudi Arabia’s benchmark index dipped by 0.3%, driven down by a 0.9% fall for oil giant Saudi Aramco and a 1.8% drop for Rabigh Refining and Petrochemical Company.
Al Rajhi Bank, however, firmed by 0.2% despite a fall in second-quarter profit.
The value of kingdom’s oil exports dropped by 65% year on year in May, representing a fall of nearly $12 billion, official data showed on Thursday.
Dubai’s main share index added 0.2%, with lender Emirates NBD rising 0.7% and Emaar Properties up 0.4%.
#UAE's Dana Gas appoints financial adviser for Islamic bonds - Reuters
UAE's Dana Gas appoints financial adviser for Islamic bonds - Reuters:
United Arab Emirates’ Dana Gas said on Sunday it has appointed a financial adviser in relation to its dollar-denominated Islamic bonds, which the company has already restructured twice.
Dana said in a bourse filing it had appointed Houlihan Lokey “as the company’s financial adviser in relation to its Nile Delta Sukuk. The Nile Delta Sukuk currently has $379.6 million outstanding and matures on 31st October 2020.”
Earlier this month the firm asked bondholders to disclose their holdings, a document seen by Reuters showed, with some investors saying the request was possibly a first step toward another restructuring of the firm’s debt.
Dana Gas rocked the global Islamic finance industry in 2017, when it said it would not redeem its $700 million sukuk, or Islamic bonds, arguing they were no longer valid under UAE law because of changes in Islamic financial practice.
United Arab Emirates’ Dana Gas said on Sunday it has appointed a financial adviser in relation to its dollar-denominated Islamic bonds, which the company has already restructured twice.
Dana said in a bourse filing it had appointed Houlihan Lokey “as the company’s financial adviser in relation to its Nile Delta Sukuk. The Nile Delta Sukuk currently has $379.6 million outstanding and matures on 31st October 2020.”
Earlier this month the firm asked bondholders to disclose their holdings, a document seen by Reuters showed, with some investors saying the request was possibly a first step toward another restructuring of the firm’s debt.
Dana Gas rocked the global Islamic finance industry in 2017, when it said it would not redeem its $700 million sukuk, or Islamic bonds, arguing they were no longer valid under UAE law because of changes in Islamic financial practice.
Friday, 24 July 2020
Oil up on strong economic data; U.S.-China tensions cap gains - Reuters
Oil up on strong economic data; U.S.-China tensions cap gains - Reuters:
Oil prices rose on Friday, lifted by some supportive economic data, but tensions between the United States and China limited gains.
Brent crude futures LCOc1 rose 3 cents to settle at $43.34 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 22 cents to settle at $41.29 a barrel.
For the week, Brent rose 0.5%, while U.S. crude rose 1.7%.
Ahead of the weekend, market participants had their eye on Tropical Storm Hanna, forecast to cross to Baffin Bay, 46 miles (74 km) south of Corpus Christi, Texas, on Saturday afternoon or evening.
Oil prices rose on Friday, lifted by some supportive economic data, but tensions between the United States and China limited gains.
Brent crude futures LCOc1 rose 3 cents to settle at $43.34 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose 22 cents to settle at $41.29 a barrel.
For the week, Brent rose 0.5%, while U.S. crude rose 1.7%.
Ahead of the weekend, market participants had their eye on Tropical Storm Hanna, forecast to cross to Baffin Bay, 46 miles (74 km) south of Corpus Christi, Texas, on Saturday afternoon or evening.
Oil prices edge lower on U.S.-China tensions - Reuters
Oil prices edge lower on U.S.-China tensions - Reuters:
Oil prices edged lower on Friday, pressured by tensions between the United States and China, but some supportive economic data in Europe tempered losses.
Brent crude futures fell 13 cents to $43.18 a barrel by 11:19 a.m. EDT (1519 GMT). U.S. West Texas Intermediate (WTI) crude futures fell 5 cents to $41.02 a barrel.
Both benchmarks were on track for a modest weekly rise.
China ordered the United States to close its consulate in the city of Chengdu on Friday, responding to a U.S. demand this week that China close its Houston consulate.
Oil prices edged lower on Friday, pressured by tensions between the United States and China, but some supportive economic data in Europe tempered losses.
Brent crude futures fell 13 cents to $43.18 a barrel by 11:19 a.m. EDT (1519 GMT). U.S. West Texas Intermediate (WTI) crude futures fell 5 cents to $41.02 a barrel.
Both benchmarks were on track for a modest weekly rise.
China ordered the United States to close its consulate in the city of Chengdu on Friday, responding to a U.S. demand this week that China close its Houston consulate.
#Dubai logistics firm Tristar seeks Dubai listing, sources say | Nasdaq
Dubai logistics firm Tristar seeks Dubai listing, sources say | Nasdaq:
Dubai logistics company Tristar has approached investment banks as it looks at a potential initial public offering in Dubai, two sources told Reuters, after a plans for a London listing did not proceed last year.
The company contacted local and regional banks to bid for joint bookrunner roles for the listing on the Dubai Financial Market, the sources familiar with the matter said. They declined to be identified as the deal is not public.
Tristar last year was seeking to raise $250 million in a London listing, and hired Moelis & Co MC.N as a financial adviser for the sale, sources told Reuters at the time.
The deal did not gain momentum because of a tepid response from international investors, one of the sources said.
Dubai logistics company Tristar has approached investment banks as it looks at a potential initial public offering in Dubai, two sources told Reuters, after a plans for a London listing did not proceed last year.
The company contacted local and regional banks to bid for joint bookrunner roles for the listing on the Dubai Financial Market, the sources familiar with the matter said. They declined to be identified as the deal is not public.
Tristar last year was seeking to raise $250 million in a London listing, and hired Moelis & Co MC.N as a financial adviser for the sale, sources told Reuters at the time.
The deal did not gain momentum because of a tepid response from international investors, one of the sources said.
Oil prices edges up on weak dollar, U.S.-China tensions weigh - Reuters
Oil prices edges up on weak dollar, U.S.-China tensions weigh - Reuters:
Oil prices edged higher on Friday, supported by a weaker dollar, though tensions between the United States and China weighed.
Brent crude LCOc1 was up 26 cents at $43.57 a barrel at 0944 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 was up 29 cents at $41.36.
“Both crude benchmarks are roughly back where they were before this week’s upside breakout. Looking ahead, the oil market will likely settle back into a wait-and-see mode amid the increasingly uncertain environment,” PVM analysts said in a note.
China ordered the United States to close its consulate in the city of Chengdu on Friday, responding to a U.S. demand this week that China close its Houston consulate.
Oil prices edged higher on Friday, supported by a weaker dollar, though tensions between the United States and China weighed.
Brent crude LCOc1 was up 26 cents at $43.57 a barrel at 0944 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 was up 29 cents at $41.36.
“Both crude benchmarks are roughly back where they were before this week’s upside breakout. Looking ahead, the oil market will likely settle back into a wait-and-see mode amid the increasingly uncertain environment,” PVM analysts said in a note.
China ordered the United States to close its consulate in the city of Chengdu on Friday, responding to a U.S. demand this week that China close its Houston consulate.
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