Oil prices climb on prospects for deeper OPEC+ output cuts - Reuters:
Oil prices edged higher on Thursday as investors hoped the world’s biggest producers would cut output more while they largely shrugged off forecasts of slumping demand due to the coronavirus outbreak in top oil importer China.
Brent crude LCOc1 ended the session up 55 cents, or 1%, at $56.34 a barrel while U.S. West Texas Intermediate (WTI) CLc1 settled up 25 cents, or 0.5%, at $51.42 a barrel.
The Organization of the Petroleum Exporting Countries lowered its 2020 demand forecast for its crude by 200,000 bpd, prompting expectations the producer group and its allies, known as OPEC+, could cut output further.
“The Russians have pretty much signaled that everyone is on board for OPEC+ delivering deeper production cuts,” said Edward Moya, senior market analyst at OANDA in New York. “Crude’s price action possibly suggests a firm bottom is in place. As long as the coronavirus does not show strong signs that the spreading of the virus is intensifying, WTI crude could make a run towards the mid-$50s.”
Thursday 13 February 2020
Shuaa's profits triple in fourth quarter as revenues rise - The National
Shuaa's profits triple in fourth quarter as revenues rise - The National:
Dubai investment bank Shuaa Capital’s profits more than tripled in the fourth quarter over the third quarter due to higher revenues.
Net profit attributable to the shareholders for the period ending December 31 reached Dh73 million compared to Dh22m during the third quarter of 2019, the company said in a statement on Thursday.
The investment bank did not provide year-on-year figures for its profitability. Revenues during the period jumped 63 per cent to Dh146m, driven by a number of significant transactions that closed in the final quarter.
Group Ebitda for the quarter amounted to Dh134m compared with Dh63m in the third quarter of 2019. For the full year, the company reported a profit of Dh45m.
Dubai investment bank Shuaa Capital’s profits more than tripled in the fourth quarter over the third quarter due to higher revenues.
Net profit attributable to the shareholders for the period ending December 31 reached Dh73 million compared to Dh22m during the third quarter of 2019, the company said in a statement on Thursday.
The investment bank did not provide year-on-year figures for its profitability. Revenues during the period jumped 63 per cent to Dh146m, driven by a number of significant transactions that closed in the final quarter.
Group Ebitda for the quarter amounted to Dh134m compared with Dh63m in the third quarter of 2019. For the full year, the company reported a profit of Dh45m.
Union Properties slips into Dh218.8m loss | Property – Gulf News
Union Properties slips into Dh218.8m loss | Property – Gulf News:
Union Properties slipped into losses totalling Dh218.8 million against net profits of Dh62.32 million a year ago.
Bank financing costs related to subsidiaries’ loans “contributed significantly” to achieving net losses last year, “which are currently being settled,” the Dubai headquartered developer said in a statement issued to Dubai Financial Market.
The company instead focussed on the silver lining – that despite the “stagnation” in the real estate sector, the “Group was able to achieve revenues exceeding half a billion dirhams”.
Indeed, revenues were at Dh535.5 million, through down from Dh762.08 million in 2018.
Union Properties slipped into losses totalling Dh218.8 million against net profits of Dh62.32 million a year ago.
Bank financing costs related to subsidiaries’ loans “contributed significantly” to achieving net losses last year, “which are currently being settled,” the Dubai headquartered developer said in a statement issued to Dubai Financial Market.
The company instead focussed on the silver lining – that despite the “stagnation” in the real estate sector, the “Group was able to achieve revenues exceeding half a billion dirhams”.
Indeed, revenues were at Dh535.5 million, through down from Dh762.08 million in 2018.
Chevron prepares to restart Wafra oilfield on #Saudi-Kuwaiti border - Reuters
Chevron prepares to restart Wafra oilfield on Saudi-Kuwaiti border - Reuters:
Chevron has begun preparations to restart production at the Wafra oilfield in the Kuwaiti-Saudi Neutral Zone, the company said in a statement on Thursday.
The two neighbouring Middle Eastern countries in December signed a deal aiming to end their five-year dispute over the Neutral Zone and resume production which can amount to up to 0.5 percent of global oil supply.
Saudi Arabian Chevron (SAC), on behalf of Saudi Arabia, jointly operates the Wafra field with the Kuwait Gulf Oil Company (KGOC). The Wafra field has been shut in since May 2015.
“SAC has now embarked on a series of pre-startup activities, which includes efforts to ensure its workforce is ready to safely restart operations and then production,” the Chevron statement said.
Chevron has begun preparations to restart production at the Wafra oilfield in the Kuwaiti-Saudi Neutral Zone, the company said in a statement on Thursday.
The two neighbouring Middle Eastern countries in December signed a deal aiming to end their five-year dispute over the Neutral Zone and resume production which can amount to up to 0.5 percent of global oil supply.
Saudi Arabian Chevron (SAC), on behalf of Saudi Arabia, jointly operates the Wafra field with the Kuwait Gulf Oil Company (KGOC). The Wafra field has been shut in since May 2015.
“SAC has now embarked on a series of pre-startup activities, which includes efforts to ensure its workforce is ready to safely restart operations and then production,” the Chevron statement said.
#AbuDhabi's NMC Health Target Slashed 85% at Societe Generale - Bloomberg
Abu Dhabi's NMC Health Target Slashed 85% at Societe Generale - Bloomberg:
NMC Health Plc received its first analyst downgrade after short seller Muddy Waters Capital LLC published a critical report on the hospital operator in December, sending the stock tumbling 69% since then.
Societe Generale cut its rating to sell from buy and slashed its price target by 85%, saying that confidence in the operator of the biggest medical network in the United Arab Emirates is “broken” after recent issues around the possible misreporting of stakes.
NMC this week said Chairman Bavaguthu Raghuram Shetty will be removed from board discussions after he said he may have misreported the size of his stake. The company is also asking its main shareholders for clarity on whether they have pledged any of their holdings as collateral, amid speculation in the market they may have faced margin calls.
“Enough is enough,” analyst Delphine Le Louet wrote in a note dated Wednesday. “We cannot invalidate MW’s accounting claims with what we know, while the lack of clarity on the corporate ownership front is unacceptable.”
NMC Health Plc received its first analyst downgrade after short seller Muddy Waters Capital LLC published a critical report on the hospital operator in December, sending the stock tumbling 69% since then.
Societe Generale cut its rating to sell from buy and slashed its price target by 85%, saying that confidence in the operator of the biggest medical network in the United Arab Emirates is “broken” after recent issues around the possible misreporting of stakes.
NMC this week said Chairman Bavaguthu Raghuram Shetty will be removed from board discussions after he said he may have misreported the size of his stake. The company is also asking its main shareholders for clarity on whether they have pledged any of their holdings as collateral, amid speculation in the market they may have faced margin calls.
“Enough is enough,” analyst Delphine Le Louet wrote in a note dated Wednesday. “We cannot invalidate MW’s accounting claims with what we know, while the lack of clarity on the corporate ownership front is unacceptable.”
Sovereign investors pulled back from equities in fourth quarter -report | ZAWYA MENA Edition
Sovereign investors pulled back from equities in fourth quarter -report | ZAWYA MENA Edition:
Sovereign wealth fund investment in equities via external asset managers fell in the final quarter of last year, data from research firm eVestment showed on Thursday.
A total of $4.85 billion was pulled from global equity strategies overseen by third-party fund managers during the quarter, after two quarters of inflows, while $1.87 billion left emerging market equities, outflows particularly striking given global stocks have continued to touch record highs.
With the exception of the third quarter, when there was a surge in investment into passively managed stocks in the United States and equities in mainland China and elsewhere, sovereign funds have been removing assets from equity strategies at an elevated rate since 2018.
Sovereign wealth funds, among the largest investors in global stocks, own close to $3 trillion in equities, including assets they hold directly as well as through third-party managers, and about half as much in fixed income, estimates State Street Global Advisors.
Sovereign wealth fund investment in equities via external asset managers fell in the final quarter of last year, data from research firm eVestment showed on Thursday.
A total of $4.85 billion was pulled from global equity strategies overseen by third-party fund managers during the quarter, after two quarters of inflows, while $1.87 billion left emerging market equities, outflows particularly striking given global stocks have continued to touch record highs.
With the exception of the third quarter, when there was a surge in investment into passively managed stocks in the United States and equities in mainland China and elsewhere, sovereign funds have been removing assets from equity strategies at an elevated rate since 2018.
Sovereign wealth funds, among the largest investors in global stocks, own close to $3 trillion in equities, including assets they hold directly as well as through third-party managers, and about half as much in fixed income, estimates State Street Global Advisors.
REFILE-Investors oppose delisting of #Dubai real estate fund amid property slump - Reuters
REFILE-Investors oppose delisting of Dubai real estate fund amid property slump - Reuters:
Dubai real estate investment trust ENBD REIT is facing opposition to going private from some shareholders who fear the move could further erode its value, two sources said.
The trust, managed by the asset management unit of Emirates NBD, Dubai’s largest bank, has said it plans to delist because of low trading liquidity and a more than 50% discount on its shares versus the net asset value of the fund.
Dubai’s property market has been hit by oversupply and sluggish growth in the private sector, which shrank in the United Arab Emirates in January for the first time since 2009.
The shareholders believe the vehicle’s fee structure rewards its managers without taking fully into account the sector’s condition, and a delisting would not solve the problem, said the two sources familiar with the matter.
Dubai real estate investment trust ENBD REIT is facing opposition to going private from some shareholders who fear the move could further erode its value, two sources said.
The trust, managed by the asset management unit of Emirates NBD, Dubai’s largest bank, has said it plans to delist because of low trading liquidity and a more than 50% discount on its shares versus the net asset value of the fund.
Dubai’s property market has been hit by oversupply and sluggish growth in the private sector, which shrank in the United Arab Emirates in January for the first time since 2009.
The shareholders believe the vehicle’s fee structure rewards its managers without taking fully into account the sector’s condition, and a delisting would not solve the problem, said the two sources familiar with the matter.
#Lebanon weighs defaulting or paying Eurobond next month
Lebanon weighs defaulting or paying Eurobond next month:
Lebanon’s finance minister said Thursday the country’s new government is weighing whether to pay or default on its $1.2 billion Eurobond maturing next month, amid an economic crisis that has sparked months of unrest.
Lebanon is facing a deepening liquidity crunch and a soaring public debt. Lebanese banks raised interests rates in a bid to attract foreign investments — but now the influx of foreign currencies has dried up and the Central Bank’s foreign currency reserves are shrinking.
“It is not easy,” Ghazi Wazni told reporters before the new Cabinet’s first meeting. He was speaking after reviewing different options with the government’s financial team.
“This is an important decision for the country, depositors, banks, the economic sector and international institutions,” he said, adding that the search for the “right decision” was ongoing.
Lebanon’s finance minister said Thursday the country’s new government is weighing whether to pay or default on its $1.2 billion Eurobond maturing next month, amid an economic crisis that has sparked months of unrest.
Lebanon is facing a deepening liquidity crunch and a soaring public debt. Lebanese banks raised interests rates in a bid to attract foreign investments — but now the influx of foreign currencies has dried up and the Central Bank’s foreign currency reserves are shrinking.
“It is not easy,” Ghazi Wazni told reporters before the new Cabinet’s first meeting. He was speaking after reviewing different options with the government’s financial team.
“This is an important decision for the country, depositors, banks, the economic sector and international institutions,” he said, adding that the search for the “right decision” was ongoing.
Oil demand set for first fall in a decade as virus takes toll: IEA - Reuters
Oil demand set for first fall in a decade as virus takes toll: IEA - Reuters:
Oil demand is set to fall this quarter for the first time since the financial crisis in 2009 due to the coronavirus outbreak in China, the International Energy Agency (IEA) said on Thursday.
“The consequences of Covid-19 for global oil demand will be significant,” the Paris-based IEA said in a monthly report, using the new scientific name for the virus.
Demand in the first quarter of 2020 is expected to fall by 435,000 barrels per day (bpd) compared with a year earlier, it said, noted it would be “the first quarterly decrease in more than a decade”.
“For 2020 as a whole, we have reduced our global growth forecast by 365,000 bpd to 825,000 bpd, the lowest since 2011,” the IEA said, adding that it assumed economic activity from the second quarter would return progressively to normal.
Oil demand is set to fall this quarter for the first time since the financial crisis in 2009 due to the coronavirus outbreak in China, the International Energy Agency (IEA) said on Thursday.
“The consequences of Covid-19 for global oil demand will be significant,” the Paris-based IEA said in a monthly report, using the new scientific name for the virus.
Demand in the first quarter of 2020 is expected to fall by 435,000 barrels per day (bpd) compared with a year earlier, it said, noted it would be “the first quarterly decrease in more than a decade”.
“For 2020 as a whole, we have reduced our global growth forecast by 365,000 bpd to 825,000 bpd, the lowest since 2011,” the IEA said, adding that it assumed economic activity from the second quarter would return progressively to normal.
Mideast Stocks: Most major Gulf bourses ease on lacklustre results | ZAWYA MENA Edition
Mideast Stocks: Most major Gulf bourses ease on lacklustre results | ZAWYA MENA Edition:
Most major Gulf stock markets retreated on Thursday, as weak corporate earnings continue to weigh on investor sentiment, while Dubai bucked the trend supported by Dubai Islamic Bank.
Saudi Arabia's benchmark index was down 0.5%, led by a 2% fall in Saudi Basic Industries 2010.SE and a 0.5% dip in Al Rajhi Bank 1120.SE .
Rabigh Refining and Petrochemical Company (PetroRabigh) 2380.SE plunged 10%, its biggest intraday fall since May 2017. The firm swung to a net loss of 544 million riyals ($145.04 million) in 2019, from a profit of 669 million riyals in 2018.
Qatar's index dropped 1.1%, as most of the stocks on the index declined. Qatar Islamic Bank and Industries Qatar both were down 2.1%.
Most major Gulf stock markets retreated on Thursday, as weak corporate earnings continue to weigh on investor sentiment, while Dubai bucked the trend supported by Dubai Islamic Bank.
Saudi Arabia's benchmark index was down 0.5%, led by a 2% fall in Saudi Basic Industries 2010.SE and a 0.5% dip in Al Rajhi Bank 1120.SE .
Rabigh Refining and Petrochemical Company (PetroRabigh) 2380.SE plunged 10%, its biggest intraday fall since May 2017. The firm swung to a net loss of 544 million riyals ($145.04 million) in 2019, from a profit of 669 million riyals in 2018.
Qatar's index dropped 1.1%, as most of the stocks on the index declined. Qatar Islamic Bank and Industries Qatar both were down 2.1%.
Empty LNG Ships at Biggest Producer Show How Virus Grips Market - Bloomberg
Empty LNG Ships at Biggest Producer Show How Virus Grips Market - Bloomberg:
At least 12 empty liquefied natural gas vessels are sitting idle off the coast of Qatar, one of the world’s biggest producers of the fuel, as the deadly coronavirus plays havoc with international commodities markets.
The reasons for the unusual gathering of ships aren’t immediately clear. But the timing coincides with ship diversions, cargo cancellations and reduced demand in Asia.
The parked vessels have returned after delivering cargoes to places including India, Pakistan, Bangladesh, South Korea, Japan and Poland. Some have been floating just offshore Qatar’s production lines since last week, ship-tracking data on Bloomberg show.
Delays in loading ships that in ordinary times would be kept busy follow a plunge in Asian spot LNG prices to record lows. The coronavirus outbreak forced China National Offshore Oil Corp., the nation’s biggest LNG buyer, to tell suppliers including Royal Dutch Shell Plc and Total SA that it won’t take delivery of cargoes. Both of the oil majors rejected the force majeure.
At least 12 empty liquefied natural gas vessels are sitting idle off the coast of Qatar, one of the world’s biggest producers of the fuel, as the deadly coronavirus plays havoc with international commodities markets.
The reasons for the unusual gathering of ships aren’t immediately clear. But the timing coincides with ship diversions, cargo cancellations and reduced demand in Asia.
 |
| LNG tankers outside Qatar’s Ras Laffan plants |
The parked vessels have returned after delivering cargoes to places including India, Pakistan, Bangladesh, South Korea, Japan and Poland. Some have been floating just offshore Qatar’s production lines since last week, ship-tracking data on Bloomberg show.
Delays in loading ships that in ordinary times would be kept busy follow a plunge in Asian spot LNG prices to record lows. The coronavirus outbreak forced China National Offshore Oil Corp., the nation’s biggest LNG buyer, to tell suppliers including Royal Dutch Shell Plc and Total SA that it won’t take delivery of cargoes. Both of the oil majors rejected the force majeure.
#SaudiArabia vs #Dubai Could Be the Gulf's Next Big Rivalry - Bloomberg
Saudi Arabia vs Dubai Could Be the Gulf's Next Big Rivalry - Bloomberg:
Ronny Froehlich’s voice echoed across the empty rooms as he walked through his company’s new office in Riyadh.
The German entrepreneur had just set up the internet, but he was already imagining the space as the bustling future headquarters of Golden Scent, a Dubai-based e-commerce firm he co-founded with a Saudi friend five years ago. The next step is to move employees from Dubai and hire more in the Saudi capital.
“If you want to be big in the Middle East, you need to be in Saudi—full stop,” he said. “Maybe in six months we’ll stand here and it’s full.”
The growing number of startups in Riyadh reflects an undeclared competition between two Gulf allies that’s set to intensify this year, realigning the economics of a region striving to reduce its reliance on oil.
Ronny Froehlich’s voice echoed across the empty rooms as he walked through his company’s new office in Riyadh.
The German entrepreneur had just set up the internet, but he was already imagining the space as the bustling future headquarters of Golden Scent, a Dubai-based e-commerce firm he co-founded with a Saudi friend five years ago. The next step is to move employees from Dubai and hire more in the Saudi capital.
“If you want to be big in the Middle East, you need to be in Saudi—full stop,” he said. “Maybe in six months we’ll stand here and it’s full.”
The growing number of startups in Riyadh reflects an undeclared competition between two Gulf allies that’s set to intensify this year, realigning the economics of a region striving to reduce its reliance on oil.
IMF note on Gulf's depleting wealth 'a call to action' - Mubadala official | ZAWYA MENA Edition
IMF note on Gulf's depleting wealth 'a call to action' - Mubadala official | ZAWYA MENA Edition:
The International Monetary Fund’s (IMF) recent report noting that GCC states could see their financial wealth depleted in the next 15 years is an important call to action for the region, a senior officer at the Abu Dhabi state fund said.
“The quest for economic diversification and the bridge that hydrocarbon has given us is something that we’ll continue to be looking at and focus on for the next 20 to 40 years,” Waleed Al Mokarrab Al Muhairi, Deputy Group CEO, Mubadala, told delegates at the Milken Institute Summit held in Abu Dhabi.
On whether the 15 years’ time horizon for the Gulf states is too aggressive, Al Muhairi said: “Whatever the number is, it is an important call for action. Everybody in the GCC is thinking about diversifying, but not everybody is at the same level of diversification.”
While the UAE’s hydrocarbon wealth was transformed over the last 45 years into world-class infrastructure, great education, and good healthcare, Mubadala’s Al Muhairi said, this would still not be enough.
The International Monetary Fund’s (IMF) recent report noting that GCC states could see their financial wealth depleted in the next 15 years is an important call to action for the region, a senior officer at the Abu Dhabi state fund said.
“The quest for economic diversification and the bridge that hydrocarbon has given us is something that we’ll continue to be looking at and focus on for the next 20 to 40 years,” Waleed Al Mokarrab Al Muhairi, Deputy Group CEO, Mubadala, told delegates at the Milken Institute Summit held in Abu Dhabi.
On whether the 15 years’ time horizon for the Gulf states is too aggressive, Al Muhairi said: “Whatever the number is, it is an important call for action. Everybody in the GCC is thinking about diversifying, but not everybody is at the same level of diversification.”
While the UAE’s hydrocarbon wealth was transformed over the last 45 years into world-class infrastructure, great education, and good healthcare, Mubadala’s Al Muhairi said, this would still not be enough.
#AbuDhabi's Khalifa Fund, Facebook to train female entrepreneurs in the #UAE - Gulf Business
Abu Dhabi's Khalifa Fund, Facebook to train female entrepreneurs in the UAE - Gulf Business:
Abu Dhabi’s Khalifa Fund for Enterprise Development partnered with social networking company Facebook to train and mentor women entrepreneurs across the country, official news agency WAM reported.
The collaboration will see Khalifa Fund supporting Facebook’s global initiative ‘She Means Business’, whose training sessions will be conducted in the UAE throughout 2020.
Female entrepreneurs will be mentored along a series of courses managed and conducted by the Khalifa Fund, a statement said.
The one-day training will mentor the participants on sourcing business ideas, growing globally, and using social media to leverage commercial opportunities.
Abu Dhabi’s Khalifa Fund for Enterprise Development partnered with social networking company Facebook to train and mentor women entrepreneurs across the country, official news agency WAM reported.
The collaboration will see Khalifa Fund supporting Facebook’s global initiative ‘She Means Business’, whose training sessions will be conducted in the UAE throughout 2020.
Female entrepreneurs will be mentored along a series of courses managed and conducted by the Khalifa Fund, a statement said.
The one-day training will mentor the participants on sourcing business ideas, growing globally, and using social media to leverage commercial opportunities.
Oil prices mixed as demand concerns outweigh output cut expectations - Reuters
Oil prices mixed as demand concerns outweigh output cut expectations - Reuters:
Oil prices were mixed on Thursday as concerns about falling demand caused by travel restrictions tied to the coronavirus outbreak in China, the world’s biggest oil importer, outweighed expectations of supply cuts from major producers.
Brent crude LCOc1 fell 6 cents, or 0.1%, to $55.73 per barrel at 0735 GMT. U.S. West Texas Intermediate (WTI) CLc1 was up 5 cents, or 0.1%, to $51.22 a barrel. Brent rose 3.2% on Wednesday while WTI gained 2.5% as a slowdown in new Chinese coronavirus cases boosted expectations of a demand recovery.
However, Hubei province, the epicenter of the outbreak, said on Thursday the number of new confirmed cases there jumped by 14,840 on Feb. 12 to 48,206, and deaths climbed by a daily record of 242 to 1,310, reflecting changes to the diagnostic methodology.
Oil demand in China, the world’s second-largest crude consumer, has plunged because of travel restrictions to and from the country and quarantines within it. Another Chinese oil refiner China National Chemical Corp said on Thursday it would close a 100,000 barrel-per-day plant and cut processing at two other amid falling fuel demand.
Oil prices were mixed on Thursday as concerns about falling demand caused by travel restrictions tied to the coronavirus outbreak in China, the world’s biggest oil importer, outweighed expectations of supply cuts from major producers.
Brent crude LCOc1 fell 6 cents, or 0.1%, to $55.73 per barrel at 0735 GMT. U.S. West Texas Intermediate (WTI) CLc1 was up 5 cents, or 0.1%, to $51.22 a barrel. Brent rose 3.2% on Wednesday while WTI gained 2.5% as a slowdown in new Chinese coronavirus cases boosted expectations of a demand recovery.
However, Hubei province, the epicenter of the outbreak, said on Thursday the number of new confirmed cases there jumped by 14,840 on Feb. 12 to 48,206, and deaths climbed by a daily record of 242 to 1,310, reflecting changes to the diagnostic methodology.
Oil demand in China, the world’s second-largest crude consumer, has plunged because of travel restrictions to and from the country and quarantines within it. Another Chinese oil refiner China National Chemical Corp said on Thursday it would close a 100,000 barrel-per-day plant and cut processing at two other amid falling fuel demand.
MIDEAST STOCKS-Most major Gulf markets dampened by disappointing earnings - Reuters
MIDEAST STOCKS-Most major Gulf markets dampened by disappointing earnings - Reuters:
Most major Gulf markets were subdued on Thursday, digesting disappointing earnings at major companies.
The Dubai index slipped 0.2% with its largest listed developer Emaar Properties losing 1%, while its unit Emaar Malls was down 1.7%.
Emaar Properties posted a 1.7% fall in fourth-quarter profit to 1.76 billion dirhams on Wednesday, compared to 1.79 billion dirhams year ago.
Dubai is expected to see the biggest number of new homes completed in more than a decade this year, adding to pressure on a once-booming but now struggling property sector, a Knight Frank report said.
Most major Gulf markets were subdued on Thursday, digesting disappointing earnings at major companies.
The Dubai index slipped 0.2% with its largest listed developer Emaar Properties losing 1%, while its unit Emaar Malls was down 1.7%.
Emaar Properties posted a 1.7% fall in fourth-quarter profit to 1.76 billion dirhams on Wednesday, compared to 1.79 billion dirhams year ago.
Dubai is expected to see the biggest number of new homes completed in more than a decade this year, adding to pressure on a once-booming but now struggling property sector, a Knight Frank report said.