Indian billionaire Ambani accelerates debt plan as stake sale to Saudi drags - Arabianbusiness:
Mukesh Ambani, Asia’s richest man, accelerated the timeframe for wiping out $21 billion in net debt at his Reliance Industries Ltd., seeking to quash skepticism that emerged as talks to sell a stake in some assets to Saudi Arabian Oil Co. have dragged on.
The oil, telecom and retail conglomerate now expects to reach zero net debt ahead of the March 2021 target Ambani had set in August, the Mumbai-based company said in a statement Thursday. A $7 billion share sale to existing investors was approved by the board on Thursday, a week after Facebook Inc. agreed to invest $5.7 billion in Reliance Industries’ Jio Platforms business.
The rights issue -- the latest in a series of fund-raising efforts -- may help Ambani, 63, pay down borrowings that piled up as the company spent almost $50 billion to roll out a wireless network. Building investor confidence has become all-the-more crucial after the pandemic caused a crashin oil prices, undermining prospects for Reliance’s proposal to sell an estimated $15 billion stake in its oil and chemicals business to Saudi Arabian Oil.
Friday, 1 May 2020
Moody's cuts #SaudiArabia's outlook to negative from stable - Reuters
Moody's cuts Saudi Arabia's outlook to negative from stable - Reuters:
Moody's Investors Service on Friday cut Saudi Arabia's outlook to "negative" from "stable", saying the oil price crash has raised fiscal risks for the Gulf nation. (bit.ly/3aRYDMd)
However, the ratings agency affirmed sovereign credit rating at “A1”, citing Saudi Arabia government’s “still relatively robust, albeit deteriorating” balance sheet, moderate debt level and substantial fiscal and external liquidity buffers.
Moody's Investors Service on Friday cut Saudi Arabia's outlook to "negative" from "stable", saying the oil price crash has raised fiscal risks for the Gulf nation. (bit.ly/3aRYDMd)
However, the ratings agency affirmed sovereign credit rating at “A1”, citing Saudi Arabia government’s “still relatively robust, albeit deteriorating” balance sheet, moderate debt level and substantial fiscal and external liquidity buffers.
Oil firms, ends with weekly gain, as OPEC+ begins record cuts - Reuters
Oil firms, ends with weekly gain, as OPEC+ begins record cuts - Reuters:
U.S. oil prices were 5% higher while Brent crude rose above $26 per barrel on Friday, with both benchmarks posting their first weekly gain in four weeks as OPEC and its allies embark on record output cuts to tackle a supply glut due to the coronavirus crisis.
In April, U.S. crude fell to an all-time low and traded negative for the first time on record while Brent hit a near-21-year low as the pandemic eroded demand and OPEC and other producers ramped up production before reaching the new supply deal that kicked in on Friday.
Brent futures for July eased 4 cents, or 0.2%, to settle at $26.44 per barrel. The June contract expired on Thursday at $25.27.
U.S. West Texas Intermediate crude (WTI) ended the session 94 cents, or 5% higher, at $19.78 after climbing above $20 earlier in the session.
After three consecutive weeks of losses, Brent crude notched a gain of about 23% while WTI increased about 17%.
U.S. oil prices were 5% higher while Brent crude rose above $26 per barrel on Friday, with both benchmarks posting their first weekly gain in four weeks as OPEC and its allies embark on record output cuts to tackle a supply glut due to the coronavirus crisis.
In April, U.S. crude fell to an all-time low and traded negative for the first time on record while Brent hit a near-21-year low as the pandemic eroded demand and OPEC and other producers ramped up production before reaching the new supply deal that kicked in on Friday.
Brent futures for July eased 4 cents, or 0.2%, to settle at $26.44 per barrel. The June contract expired on Thursday at $25.27.
U.S. West Texas Intermediate crude (WTI) ended the session 94 cents, or 5% higher, at $19.78 after climbing above $20 earlier in the session.
After three consecutive weeks of losses, Brent crude notched a gain of about 23% while WTI increased about 17%.
Oil slips to $26 as weak demand, supply glut weigh - Reuters
Oil slips to $26 as weak demand, supply glut weigh - Reuters:
Oil slipped to around $26 a barrel on Friday as weak demand due to the coronavirus crisis and excess supply pressured the market, even as OPEC and its allies began a record output cut.
The global oil benchmark, Brent crude, has collapsed 60 percent in 2020 and reached a 21-year low last month as the coronavirus pandemic squeezed demand and OPEC and other producers pumped at will before reaching a new supply cut deal which began on Friday.
Brent LCOc1 for July fell 45 cents, or 1.7%, to $26.03 at 1025 GMT. U.S. crude CLc1 for June slipped 46 cents, or 2.4%, to $18.38. Both benchmarks rallied sharply on Thursday. Brent rose 12% and U.S. crude gained 25%.
Output cuts of 9.7 million barrels per day by the Organization of Petroleum Exporting Countries, Russia and other producers, known as OPEC+, began on Friday. Even so, there are doubts the reduction, the largest ever agreed, will be enough.
Oil slipped to around $26 a barrel on Friday as weak demand due to the coronavirus crisis and excess supply pressured the market, even as OPEC and its allies began a record output cut.
The global oil benchmark, Brent crude, has collapsed 60 percent in 2020 and reached a 21-year low last month as the coronavirus pandemic squeezed demand and OPEC and other producers pumped at will before reaching a new supply cut deal which began on Friday.
Brent LCOc1 for July fell 45 cents, or 1.7%, to $26.03 at 1025 GMT. U.S. crude CLc1 for June slipped 46 cents, or 2.4%, to $18.38. Both benchmarks rallied sharply on Thursday. Brent rose 12% and U.S. crude gained 25%.
Output cuts of 9.7 million barrels per day by the Organization of Petroleum Exporting Countries, Russia and other producers, known as OPEC+, began on Friday. Even so, there are doubts the reduction, the largest ever agreed, will be enough.
Finablr says debt may be 4 times higher than reported | Financial Times
Finablr says debt may be 4 times higher than reported | Financial Times:
Finablr, the owner of Travelex, has reported its level of indebtedness may be four times as high as previously reported following an independent investigation at the financial services group.
The UAE-based group said on Thursday that its net debt level may be about $1.3bn, materially higher than that previously disclosed to the board. In June last year, Finablr reported debt of about $334m.
“The board cannot exclude the possibility that some of the proceeds of these borrowings may have been used for purposes outside of the Finablr group,” it said in a statement. It added that verification of its indebtedness was ongoing and that it intended to “engage further with the group’s creditors to explore the options that may be available”.
The news deepens the crisis at Finablr, which last month warned it was in danger of going out of business, as problems also mushroom at NMC Health, which shares the same founder and is also embroiled in accounting scandal.
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| Finablr owns Travelex, the British foreign exchange group, which last week put itself up for sale in the latest blow to its parent © Bloomberg |
Finablr, the owner of Travelex, has reported its level of indebtedness may be four times as high as previously reported following an independent investigation at the financial services group.
The UAE-based group said on Thursday that its net debt level may be about $1.3bn, materially higher than that previously disclosed to the board. In June last year, Finablr reported debt of about $334m.
“The board cannot exclude the possibility that some of the proceeds of these borrowings may have been used for purposes outside of the Finablr group,” it said in a statement. It added that verification of its indebtedness was ongoing and that it intended to “engage further with the group’s creditors to explore the options that may be available”.
The news deepens the crisis at Finablr, which last month warned it was in danger of going out of business, as problems also mushroom at NMC Health, which shares the same founder and is also embroiled in accounting scandal.
Oil Set for First Weekly Gain in a Month as Output Cuts Start - Bloomberg
Oil Set for First Weekly Gain in a Month as Output Cuts Start - Bloomberg:
Oil headed for its first weekly gain in a month as global production cuts began to take effect, while early signs the coronavirus-driven plunge in demand might be starting to bottom out also aided sentiment.
Futures in New York edged above $19 a barrel and are up around 13% so far this week. The OPEC+ bloc’s 10 million barrels a day of output reductions officially start from Friday, while other producers -- including Norway and ConocoPhillips -- have also said they’re cutting back.
Crude’s revival this week was supported by government data showing U.S. gasoline demand rose by the most in almost a year last week and stockpiles of the fuel shrunk. In China, the world’s biggest oil importer, rush-hour traffic in some of the biggest cities has recovered to pre-virus levels.
While the demand data is encouraging it will take some time to clear a massive glut that has built up due to virus lockdowns and the price war, with Saudi Arabia exporting the most crude in at least three years last month. Citigroup Inc. warned the worst is likely yet to come for the oil market as global storage nears capacity even as consumption starts to recover.
Oil headed for its first weekly gain in a month as global production cuts began to take effect, while early signs the coronavirus-driven plunge in demand might be starting to bottom out also aided sentiment.
Futures in New York edged above $19 a barrel and are up around 13% so far this week. The OPEC+ bloc’s 10 million barrels a day of output reductions officially start from Friday, while other producers -- including Norway and ConocoPhillips -- have also said they’re cutting back.
Crude’s revival this week was supported by government data showing U.S. gasoline demand rose by the most in almost a year last week and stockpiles of the fuel shrunk. In China, the world’s biggest oil importer, rush-hour traffic in some of the biggest cities has recovered to pre-virus levels.
While the demand data is encouraging it will take some time to clear a massive glut that has built up due to virus lockdowns and the price war, with Saudi Arabia exporting the most crude in at least three years last month. Citigroup Inc. warned the worst is likely yet to come for the oil market as global storage nears capacity even as consumption starts to recover.
A $6 Trillion Fund’s Guide to the Gulf: Buy #Qatar, Avoid #Saudi - Bloomberg
Investing in the Middle East: Vanguard's Gulf Bond Guide - Bloomberg:
When it comes to the Gulf, Vanguard Asset Management is buying the bonds of Abu Dhabi and Qatar, and shunning those of Saudi Arabia.
The three energy-rich states are among the strongest credits in emerging markets, each of them possessing ratings of single-A or better. This month they sold $24 billion of Eurobonds between them.
But to Vanguard, which manages $6.2 trillion of assets, the world’s biggest oil exporter sticks out as the more vulnerable after the collapse in crude prices this year. It opted against buying the kingdom’s latest bonds two weeks ago -- though with demand topping $50 billion, plenty of other funds thought otherwise.
“Abu Dhabi is probably the best quality of all the oil-producer nations, so we added exposure,” said London-based Nick Eisinger, Vanguard’s co-head of emerging markets active fixed income. “Saudi still has plenty of foreign-exchange reserves and assets to deal with difficulties, but we think it is less robust than Abu Dhabi and Qatar.”
When it comes to the Gulf, Vanguard Asset Management is buying the bonds of Abu Dhabi and Qatar, and shunning those of Saudi Arabia.
The three energy-rich states are among the strongest credits in emerging markets, each of them possessing ratings of single-A or better. This month they sold $24 billion of Eurobonds between them.
But to Vanguard, which manages $6.2 trillion of assets, the world’s biggest oil exporter sticks out as the more vulnerable after the collapse in crude prices this year. It opted against buying the kingdom’s latest bonds two weeks ago -- though with demand topping $50 billion, plenty of other funds thought otherwise.
“Abu Dhabi is probably the best quality of all the oil-producer nations, so we added exposure,” said London-based Nick Eisinger, Vanguard’s co-head of emerging markets active fixed income. “Saudi still has plenty of foreign-exchange reserves and assets to deal with difficulties, but we think it is less robust than Abu Dhabi and Qatar.”
#AbuDhabi National Energy Company to transfer water and electricity assets to Taqa - Arabianbusiness
Abu Dhabi National Energy Company to transfer water and electricity assets to Taqa - Arabianbusiness:
Shareholders of the Abu Dhabi National Energy Company (PJSC) have voted to transfer the majority of Abu Dhabi Power Corporation’s water and electricity assets to Taqa, creating one of the top-10 integrated utilities companies in the region by regulated assets.
The transaction is scheduled to close in the third quarter of the year.
Once the transaction is completed, Taqa’s assets will include majority stakes in almost all power and water generation plants in the UAE.
It will also continue to operate in the USA, Oman, Morocco, India, Saudi Arabia and Ghana, as well as on oil and gas operations in the UK, Netherlands, Canada and Iraq.
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| Once the transaction is completed, Taqa’s assets will include majority stakes in almost all power and water generation plants in the UAE. |
Shareholders of the Abu Dhabi National Energy Company (PJSC) have voted to transfer the majority of Abu Dhabi Power Corporation’s water and electricity assets to Taqa, creating one of the top-10 integrated utilities companies in the region by regulated assets.
The transaction is scheduled to close in the third quarter of the year.
Once the transaction is completed, Taqa’s assets will include majority stakes in almost all power and water generation plants in the UAE.
It will also continue to operate in the USA, Oman, Morocco, India, Saudi Arabia and Ghana, as well as on oil and gas operations in the UK, Netherlands, Canada and Iraq.
Oil prices climb on start of output cuts, U.S. inventories lower than feared - Reuters
Oil prices climb on start of output cuts, U.S. inventories lower than feared - Reuters:
Oil prices rose on Friday, extending the previous session’s gains, as major producers began output cuts to offset a slump in fuel demand triggered by the coronavirus pandemic while data showed U.S. crude inventories grew less than expected.
Still, prices gave up some of their earlier gains as May began with more of the volatility that made April one of the most turbulent months in the history of oil trading, when U.S. futures briefly crashed into negative territory.
Brent crude LCOc1 for July delivery, which started trading on Friday as the new front-month contract, was up 22 cents, or 0.8%, at $26.70 a barrel by 0642 GMT. Brent rose 12% on Thursday and rose about 11% in April, but the international benchmark has sagged around 60% this year on the coronavirus impact.
U.S. crude CLc1 for June delivery rose 34 cents, or 1.8%, to $19.18 a barrel, having gained 25% in the previous session. But U.S. oil fell for a fourth month in April and has tumbled 70% this year.
Oil prices rose on Friday, extending the previous session’s gains, as major producers began output cuts to offset a slump in fuel demand triggered by the coronavirus pandemic while data showed U.S. crude inventories grew less than expected.
Still, prices gave up some of their earlier gains as May began with more of the volatility that made April one of the most turbulent months in the history of oil trading, when U.S. futures briefly crashed into negative territory.
Brent crude LCOc1 for July delivery, which started trading on Friday as the new front-month contract, was up 22 cents, or 0.8%, at $26.70 a barrel by 0642 GMT. Brent rose 12% on Thursday and rose about 11% in April, but the international benchmark has sagged around 60% this year on the coronavirus impact.
U.S. crude CLc1 for June delivery rose 34 cents, or 1.8%, to $19.18 a barrel, having gained 25% in the previous session. But U.S. oil fell for a fourth month in April and has tumbled 70% this year.