Emirates chairman warns it will be 18-months before aviation industry recovers - Arabianbusiness:
Chairman of Emirates Group Sheikh Ahmed bin Saeed Al-Maktoum has conceded that it will take at least 18 months for travel demand to return to "a semblance of normality".
The Dubai carrier, the largest in the Middle East, posted AED1.1billion ($288 million) in net profit for the financial year ending March, up from $237m the previous year.
It was the 32nd straight year of profit for Emirates, which operates a fleet of 115 Airbus A-380 superjumbos and 155 Boeing-777 airliners.
Al-Maktoum said the airline had performed strongly in the first 11 months of the fiscal year.
Sunday, 10 May 2020
Damac to seek legal action against FAM Properties - Arabianbusiness
Damac to seek legal action against FAM Properties - Arabianbusiness:
Damac Properties is seeking legal action against Dubai-based online brokerage FAM Properties after it claimed the portal advertised its services to clients under the Damac brand.
The dispute began when the developer received complaints from clients about e-mails sent to them by FAM Properties.
"During the past weeks, we have received several complaints from our clients about unsolicited e-mails sent to them by a real estate brokerage company called FAM Properties. It is understood that FAM has approached Damac clients urging them to engage contractually for services related to handover of their Damac units and other services, using falsified information," Damac said in an email to its clients that was seen by Arabian Business.
"At Damac Group, we hereby assure our valued clients that there is no relation between Damac and FAM Properties. Neither do we endorse any information or statements issued by them. Damac is in the process of initiating legal measures against FAM Properties to preserve our rights as a company and your rights as clients," the email continued.
Damac Properties is seeking legal action against Dubai-based online brokerage FAM Properties after it claimed the portal advertised its services to clients under the Damac brand.
The dispute began when the developer received complaints from clients about e-mails sent to them by FAM Properties.
"During the past weeks, we have received several complaints from our clients about unsolicited e-mails sent to them by a real estate brokerage company called FAM Properties. It is understood that FAM has approached Damac clients urging them to engage contractually for services related to handover of their Damac units and other services, using falsified information," Damac said in an email to its clients that was seen by Arabian Business.
"At Damac Group, we hereby assure our valued clients that there is no relation between Damac and FAM Properties. Neither do we endorse any information or statements issued by them. Damac is in the process of initiating legal measures against FAM Properties to preserve our rights as a company and your rights as clients," the email continued.
Rated Gulf banks can absorb up to $36 billion shock before moving into red: S&P - Reuters
Rated Gulf banks can absorb up to $36 billion shock before moving into red: S&P - Reuters:
Rated banks in the Gulf can absorb up to a $36 billion shock before depleting their capital bases, S&P Global Ratings said on Sunday, adding that banks in Bahrain, Oman and the United Arab Emirates are the most vulnerable to increases in cost of risk.
The ratings agency said the relatively strong profits of the region’s rated banks and loan-loss provisions will help them weather the double shock of the coronavirus pandemic and the collapse of oil prices.
The $36 billion shock that S&P estimates banks can absorb is about three times the agency’s calculated normalised losses, “which implies a substantial level of stress,” it said.
S&P said it expected banks’ profitability to suffer in 2020 due to the pandemic and low oil prices.
Rated banks in the Gulf can absorb up to a $36 billion shock before depleting their capital bases, S&P Global Ratings said on Sunday, adding that banks in Bahrain, Oman and the United Arab Emirates are the most vulnerable to increases in cost of risk.
The ratings agency said the relatively strong profits of the region’s rated banks and loan-loss provisions will help them weather the double shock of the coronavirus pandemic and the collapse of oil prices.
The $36 billion shock that S&P estimates banks can absorb is about three times the agency’s calculated normalised losses, “which implies a substantial level of stress,” it said.
S&P said it expected banks’ profitability to suffer in 2020 due to the pandemic and low oil prices.
Exclusive: #Saudi Aramco seeking to review price of SABIC deal - sources - Reuters
Exclusive: Saudi Aramco seeking to review price of SABIC deal - sources - Reuters:
Saudi Aramco is looking to restructure its deal to acquire a controlling stake in petrochemicals maker SABIC after a more than 40% drop in SABIC’s value following a slump in oil prices in coronavirus pandemic, two sources told Reuters.
Aramco last year agreed to buy a 70% stake in Saudi Basic Industries Corp (SABIC) from the Public Investment Fund (PIF), the kingdom’s wealth fund, for $69.1 billion, in one of the biggest deals in the global chemical industry.
The transaction was priced at 123.39 riyal ($32.86) per SABIC share, when the deal was announced in March 2019, but its shares are currently trading at around 70 riyals, as an oil price crash and the coronavirus pandemic pushed SABIC into a second straight quarterly loss in the first quarter..
SABIC’s total market value now is about $56.5 billion, which would make the value of Aramco’s planned stake around $40 billion.
Saudi Aramco is looking to restructure its deal to acquire a controlling stake in petrochemicals maker SABIC after a more than 40% drop in SABIC’s value following a slump in oil prices in coronavirus pandemic, two sources told Reuters.
Aramco last year agreed to buy a 70% stake in Saudi Basic Industries Corp (SABIC) from the Public Investment Fund (PIF), the kingdom’s wealth fund, for $69.1 billion, in one of the biggest deals in the global chemical industry.
The transaction was priced at 123.39 riyal ($32.86) per SABIC share, when the deal was announced in March 2019, but its shares are currently trading at around 70 riyals, as an oil price crash and the coronavirus pandemic pushed SABIC into a second straight quarterly loss in the first quarter..
SABIC’s total market value now is about $56.5 billion, which would make the value of Aramco’s planned stake around $40 billion.
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.
Oil and investment asset price declines will affect Kuwaiti solvency: Emir - Reuters
Oil and investment asset price declines will affect Kuwaiti solvency: Emir - Reuters:
The decline in oil prices and the value of investment assets since the start of the coronavirus outbreak will have an adverse impact on the “financial solvency” of the state, Emir Sheikh Sabah al-Ahmad al-Sabah said on Saturday.
“Kuwait is facing the big and unprecedented challenge of shielding our economy from the external shocks caused by this virus, specifically the decline in oil prices and the value of investments and assets, which will have a negative impact on the financial solvency of the state,” the emir was cited by the state news agency KUNA as saying.
It wasn’t clear if the comment meant that Kuwait could delay the payment of government dues, or whether it was a general statement about the deterioration of the state’s finance as a result of the economic impact of the health crisis.
Moody’s Investors Service has placed Kuwait’s Aa2 long-term issuer rating on review for downgrade, citing the significant decline in government revenue from the collapse in oil prices, and uncertainty that it will be able to access sufficient sources of financing at a time of increased need.
The decline in oil prices and the value of investment assets since the start of the coronavirus outbreak will have an adverse impact on the “financial solvency” of the state, Emir Sheikh Sabah al-Ahmad al-Sabah said on Saturday.
“Kuwait is facing the big and unprecedented challenge of shielding our economy from the external shocks caused by this virus, specifically the decline in oil prices and the value of investments and assets, which will have a negative impact on the financial solvency of the state,” the emir was cited by the state news agency KUNA as saying.
It wasn’t clear if the comment meant that Kuwait could delay the payment of government dues, or whether it was a general statement about the deterioration of the state’s finance as a result of the economic impact of the health crisis.
Moody’s Investors Service has placed Kuwait’s Aa2 long-term issuer rating on review for downgrade, citing the significant decline in government revenue from the collapse in oil prices, and uncertainty that it will be able to access sufficient sources of financing at a time of increased need.
Middle East Stock News for Sunday, May 10, 2020 - Bloomberg
Middle East Stock News for Sunday, May 10, 2020 - Bloomberg:
Stocks in Dubai dropped the most in a week amid mixed share trading across the Middle East and Gulf region.
The DFM General Index retreated more than 2% while the main gauge in Qatar advanced 1.2%. Kuwaiti stocks dropped for a second day, losing as much as 0.9%, after the country imposed a 20-day full curfew as it recorded 641 new Covid-19 cases Friday, its biggest daily increase.
Middle East investors are looking ahead to oil giant Saudi Aramco’s earnings announcement on May 12. The company still appears committed to its dividend policy for now, which is “encouraging,” according to Salih Yilmaz, an analyst with Bloomberg Intelligence in London. The stock advanced 1% as of 10:20 a.m. in Riyadh.
“Dividends are under the spotlight now after Shell cut its payout for the first time since World War II,” Yilmaz wrote in a note. “Before cutting dividends -- which are expected to total $75 billion this year for Aramco -- capital-spending revision is the most-efficient financial lever it’s likely to pull.”
Stocks in Dubai dropped the most in a week amid mixed share trading across the Middle East and Gulf region.
The DFM General Index retreated more than 2% while the main gauge in Qatar advanced 1.2%. Kuwaiti stocks dropped for a second day, losing as much as 0.9%, after the country imposed a 20-day full curfew as it recorded 641 new Covid-19 cases Friday, its biggest daily increase.
Middle East investors are looking ahead to oil giant Saudi Aramco’s earnings announcement on May 12. The company still appears committed to its dividend policy for now, which is “encouraging,” according to Salih Yilmaz, an analyst with Bloomberg Intelligence in London. The stock advanced 1% as of 10:20 a.m. in Riyadh.
“Dividends are under the spotlight now after Shell cut its payout for the first time since World War II,” Yilmaz wrote in a note. “Before cutting dividends -- which are expected to total $75 billion this year for Aramco -- capital-spending revision is the most-efficient financial lever it’s likely to pull.”
Emirates airline reveals 21% increase in profit, on 'healthy demand' and lower fuel prices - Arabianbusiness
Emirates airline reveals 21% increase in profit, on 'healthy demand' and lower fuel prices - Arabianbusiness:
Emirates airline reported an annual profit of AED 1.1 billion ($288 million), up 21% from the previous year, in its results announced today.
The sharp increase in profit was due to "healthy demand", particularly in the second and third quarters of the year and "lower average fuel prices over the year" according to Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group
The airline said its revenue declined by 6% to AED 92bn ($25.1bn), impacted by Dubai International’s airport’s planned runway closure for 45 days last year, and the temporary suspension of passenger flights in March due to Covid-19. ower fuel cost compared to previous year.
Emirates Group, which includes airport services firm Dnata, reported a profit of AED1.7 billion ($456m). Emirates Group said it ended the year with a cash balance of AED25.6 billion ($7bn).
Emirates airline reported an annual profit of AED 1.1 billion ($288 million), up 21% from the previous year, in its results announced today.
The sharp increase in profit was due to "healthy demand", particularly in the second and third quarters of the year and "lower average fuel prices over the year" according to Sheikh Ahmed bin Saeed Al Maktoum, chairman and chief executive, Emirates Airline and Group
The airline said its revenue declined by 6% to AED 92bn ($25.1bn), impacted by Dubai International’s airport’s planned runway closure for 45 days last year, and the temporary suspension of passenger flights in March due to Covid-19. ower fuel cost compared to previous year.
Emirates Group, which includes airport services firm Dnata, reported a profit of AED1.7 billion ($456m). Emirates Group said it ended the year with a cash balance of AED25.6 billion ($7bn).
#Dubai real estate fund says irregular trading dented share price - Reuters
Dubai real estate fund says irregular trading dented share price - Reuters:
Emirates REIT, a Dubai-based sharia-compliant real estate investment trust, said on Sunday it had found evidence of irregular trading activity that has contributed to its low share price and has reported it to regulatory authorities.
The shares were trading at $0.2 a share on Sunday compared with a net asset value (NAV) per share of $1.57 at the end of 2019. Emirates REIT said its board was in the final stages of evaluating options to increase share liquidity and the trust value.
In an email to shareholders and holders of its sukuk, or Islamic bonds, it said a downturn in the United Arab Emirates’ real estate sector and resulting investor sentiment had contributed to its low share price.
The letter was sent by Sylvain Vieujot, the chief executive officer of Equitativa, the manager of Emirates REIT.
Emirates REIT, a Dubai-based sharia-compliant real estate investment trust, said on Sunday it had found evidence of irregular trading activity that has contributed to its low share price and has reported it to regulatory authorities.
The shares were trading at $0.2 a share on Sunday compared with a net asset value (NAV) per share of $1.57 at the end of 2019. Emirates REIT said its board was in the final stages of evaluating options to increase share liquidity and the trust value.
In an email to shareholders and holders of its sukuk, or Islamic bonds, it said a downturn in the United Arab Emirates’ real estate sector and resulting investor sentiment had contributed to its low share price.
The letter was sent by Sylvain Vieujot, the chief executive officer of Equitativa, the manager of Emirates REIT.
Emirates to raise debt as it doesn't see travel recovering for at least 18 months - Reuters
Emirates to raise debt as it doesn't see travel recovering for at least 18 months - Reuters:
Emirates, one of the world’s biggest long-haul airlines, will raise debt to help it through the coronavirus pandemic that has shattered global travel demand, warning that a recovery in travel demand was at least 18 months away.
The state-owned airline, which reported on Sunday a 21% rise in profit for its financial year that ended on March 31, said it would tap banks to raise debt in its first quarter to lessen the impact of the virus outbreak.
Emirates did not say how much it expected to raise. The airline suspended regular passenger flights in March due to the coronavirus pandemic and has been promised financial aid from its Dubai state owner.
“The COVID-19 pandemic will have a huge impact on our 2020-21 performance,” Chairman Sheikh Ahmed bin Saeed said in a statement.
Emirates, one of the world’s biggest long-haul airlines, will raise debt to help it through the coronavirus pandemic that has shattered global travel demand, warning that a recovery in travel demand was at least 18 months away.
The state-owned airline, which reported on Sunday a 21% rise in profit for its financial year that ended on March 31, said it would tap banks to raise debt in its first quarter to lessen the impact of the virus outbreak.
Emirates did not say how much it expected to raise. The airline suspended regular passenger flights in March due to the coronavirus pandemic and has been promised financial aid from its Dubai state owner.
“The COVID-19 pandemic will have a huge impact on our 2020-21 performance,” Chairman Sheikh Ahmed bin Saeed said in a statement.
MIDEAST STOCKS- #Saudi index up on higher oil prices, real estate stocks weigh on Dubai - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi index up on higher oil prices, real estate stocks weigh on Dubai - Agricultural Commodities - Reuters:
Saudi Arabian stocks rose in early trade on Sunday led by banks, mirroring Friday’s gains in oil prices, while Dubai was pressured by losses in property stocks.
On Friday, Brent crude settled up $1.51, or 5.1%, at $30.97 a barrel after U.S. producers cut output with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns.
Saudi Arabia’s benchmark index climbed 0.8%, buoyed by a 0.9% rise in Al Rajhi Bank and a 0.8% increase in oil giant Saudi Aramco.
Aramco has raised the June price for its Arab light crude oil to Asia by $1.40 a barrel from May, setting it at a discount of $5.90 to the Oman/Dubai average, according to a document seen by Reuters on Thursday.
Saudi Arabian stocks rose in early trade on Sunday led by banks, mirroring Friday’s gains in oil prices, while Dubai was pressured by losses in property stocks.
On Friday, Brent crude settled up $1.51, or 5.1%, at $30.97 a barrel after U.S. producers cut output with the number of drilling rigs falling to a record low, and as more states moved ahead with plans to relax lockdowns.
Saudi Arabia’s benchmark index climbed 0.8%, buoyed by a 0.9% rise in Al Rajhi Bank and a 0.8% increase in oil giant Saudi Aramco.
Aramco has raised the June price for its Arab light crude oil to Asia by $1.40 a barrel from May, setting it at a discount of $5.90 to the Oman/Dubai average, according to a document seen by Reuters on Thursday.
Subscribe to:
Posts (Atom)