OPEC Cuts Output to Lowest Since 1991 as Virus Slams Oil Demand - Bloomberg

OPEC Cuts Output to Lowest Since 1991 as Virus Slams Oil Demand - Bloomberg:

OPEC slashed oil production to the lowest level since the Gulf War in 1991, as it escalated efforts to revive global markets just as a resurgence of the coronavirus is threatening demand again.

Saudi Arabia faithfully delivered the extra curbs promised in June, and the laggards, though still trailing in implementing the cuts, stepped up their performance, according to a Bloomberg survey. OPEC and its partners’ record output cuts since May have helped revive the oil market, but a recent surge of Covid-19 infections in countries including the U.S. is highlighting the fragility of the revival.

The Organization of Petroleum Exporting Countries cut production by 1.93 million barrels a day to 22.69 million a day last month, according to the survey. That’s the lowest since May 1991, though membership changes since then affect the comparison.

Middle East Deals: #UAE's Taqa to Offer More Shares in Asset Swap - Bloomberg

Middle East Deals: UAE's Taqa to Offer More Shares in Asset Swap - Bloomberg:

Abu Dhabi’s Taqa plans to sell more shares after completing an asset-transfer deal with its parent, government-owned ADPower, that creates a utility giant in the Gulf Arab region.

Moody’s Investors Service upgraded Taqa’s credit rating by three levels to Aa3, the fourth-highest investment grade, following the transfer. Its stock fell 2.3%, the biggest drop since June 8, to 0.67 dirhams.

Abu Dhabi National Energy Co., as Taqa is officially known, also appointed Jasim Husain Thabet as chief executive officer and managing director, it said in a statement. Thabet was CEO of ADPower, which owns 98.6% of Taqa’s issued shares. The share offering will increase the free float. 


The asset-transfer deal makes Taqa the third-largest listed company in the United Arab Emirates in terms of market capitalization. It acquired most of ADPower’s assets for generating, transmitting and distributing power and water, in exchange for 106 billion new shares, according to the statement.

Sovereign investors ill-prepared for crises, finds report - Reuters

Sovereign investors ill-prepared for crises, finds report - Reuters:

Most government funds are ill-equipped to handle crises such as COVID-19 and some sovereign investors may be hit by government withdrawals, liquidity struggles and mergers even after the pandemic, a report said on Wednesday.

Managing more than $26.5 trillion of capital, sovereign wealth funds and public pension funds are among the largest global investors.

But a report by Global SWF, a financial advisory boutique specialising in sovereign funds, found that the 100 largest funds failed in resilience, a gauge of their ability to respond to crises such as market crashes, withdrawals and other risks.

“Resilience is an issue of mounting concern,” the report said. “Institutional investors still have a lot of work to do when it comes to legitimacy, discipline, spending control, strategic asset allocation and crisis management.”

MIDEAST STOCKS-Banks buoy Qatar's index, DAMAC surges on buyout report - Agricultural Commodities - Reuters

MIDEAST STOCKS-Banks buoy Qatar's index, DAMAC surges on buyout report - Agricultural Commodities - Reuters:

Qatar's banking shares ended higher on
Wednesday after two lenders in the sector said they had started
merger talks, while Dubai-listed DAMAC Properties surged on a
report its chairman might take it private.

The Qatar index advanced 1%, led by a 5% jump in
Masraf Al Rayan after it and Al Khaliji Commercial
Bank said they had started negotiating a potential
merger that could create a combined entity with more than 164
billion riyals ($45.04 billion) in total assets.

Al Khaliji Commercial Bank, which is not part of the index,
soared 10%.

"The potential merger will lead to the creation of one of
the largest Sharia'a (Islamic) compliant banks in Qatar and the
Middle East," the banks said in a filing.

QNB Financial Services in a research note said Al Khaliji
has a very liquid balance sheet position which could benefit
Masraf.

Oil rises on U.S. crude stockpile draw, global manufacturing activity - Reuters

Oil rises on U.S. crude stockpile draw, global manufacturing activity - Reuters:

Oil prices rose about 1% on Wednesday following a drawdown in U.S. crude inventories from record highs and a string of positive manufacturing data, but a surge in coronavirus cases tempered gains.

Brent crude LCOc1 rose 55 cents, or 1.3%, to $41.82 a barrel by 11:08 a.m. EDT (1508 GMT). U.S. crude rose 38 cents, or 1%, to $39.65 a barrel.

U.S. crude inventories USOILC=ECI fell more than expected, dropping by 7.2 million barrels last week, after hitting all-time highs for three consecutive weeks, Energy Information Administration data showed. Analysts had expected a 710,000-barrel drop.

Much of the drawdown was attributed to refiners ramping up production after reducing runs this spring because of the pandemic, as refinery utilization rates USOIRU=ECI rose by 0.9 percentage point to 75.5%, their highest since early April.

#Kuwait’s Agility Seeks $150 Million Cost Saving to Tackle Virus - Bloomberg

Kuwait’s Agility Seeks $150 Million Cost Saving to Tackle Virus - Bloomberg:

Agility Public Warehousing Co. is seeking to save more than $150 million as the Kuwait-based logistics company tackles the fallout of the coronavirus pandemic.

The firm put in place measures “including reduction in spend, personnel measures, and other steps to adjust costs in various business lines to realities on the ground,” Chief Executive Officer Tarek Sultan said in an interview. Agility “made the right sizing and any changes that are needed to make our businesses consistent and relevant to the current world that we’re in.”

Although there have been job losses, it would be “illogical” for Agility to restrict hiring, particularly as some of its businesses are growing and others may come back online quickly, Sultan said. “We would be looking to grow those businesses and maybe leverage the opportunity that Covid presents by being able to attract even better people.”

#UAE Oil-Storage Hub to Finish New Tanks This Year; Client Booked - Bloomberg

UAE Oil-Storage Hub to Finish New Tanks This Year; Client Booked - Bloomberg:

Brooge Energy Ltd. expects new tanks at its oil-storage terminal in the United Arab Emirates to be fully operational by the end of the year, with a single customer booked to lease all the additional capacity.

The U.S.-listed storage operator is adding eight tanks at the site in the UAE port of Fujairah, boosting capacity by 3.8 million barrels of crude and refined products. The importance of adequate oil storage was brought sharply into focus this year as the coronavirus pandemic wiped out fuel demand, leaving tanks around the world brimming.

Brooge will have 1 million cubic meters, or 6.3 million barrels, of storage capacity in total after the phase-two expansion is completed. A planned third phase -- raising the total to 4.5 million cubic meters -- should be complete in late 2022, according to the company, which is in “advanced negotiations” with a potential customer to lease the extra capacity.

Storing crude and fuels gives traders options to hold supply until it’s needed or keep products on the expectation they’ll be worth more later.

#Saudi Bank Merger Points to Trouble at Heart of the Economy - Bloomberg

Saudi Bank Merger Points to Trouble at Heart of the Economy - Bloomberg:

The financial industry was supposed to be the linchpin of “Vision 2030,” Crown Prince Mohammed
bin Salman’s masterplan to wean the economy off oil.

 Photographer: Simon Dawson/Bloomberg

When Saudi Arabia last saw a merger of two of its biggest banks, the oil price was recovering from a dramatic slump, the kingdom was in the midst of a deep recession and its debt exceeded the size of the economy.

That was in 1999, as Samba Financial Group joined forces with United Saudi Bank to create one of the largest banks in the country. Just over two decades later, Samba is once again at the center of consolidation as a year intended to showcase the progress of the kingdom’s transformation plan turns into one of the most testing in its recent history.

The financial industry was supposed to be the linchpin of “Vision 2030,” Crown Prince Mohammed bin Salman’s masterplan to wean the economy off oil. Global investors would put money into state assets being privatized and buy government bonds to help fund new projects. Domestic banks would lend to entrepreneurs and families to help them set up businesses and buy homes.

Instead, banks have joined their counterparts across the world in reacting to a raft of unforeseen challenges while the Saudi central bank has been forced to step in to shore up the financial industry. The collapse in oil prices coupled with the impact of the coronavirus outbreak has crippled Saudi Arabia’s revenue. Shutdowns of business activity remain in place as the authorities struggle to control the pandemic.

#Saudi's Amlak International IPO share price revealed | ZAWYA MENA Edition

Saudi's Amlak International IPO share price revealed | ZAWYA MENA Edition:

Amlak International’s IPO shares will be offered at a price of 16 Saudi riyals ($4.27).

The Saudi Arabian real estate financing firm is offering 30 percent of its shares on the Saudi Stock Exchange (Tadawul). The IPO will start on July 2, 2020 and will be completed by the end of July 5, 2020.

NCB Capital is the financial advisor, lead manager, bookrunner and underwriter for the company’s IPO and has announced the completion of the book building process for institutions and investment funds subscribing to the company’s shares, with a coverage ratio reaching 5x.

“Public and private funds and DPMs amounted to 43.4 percent of the coverage, while the authorized persons, Saudi listed companies, insurance companies, private companies, endowments and QFIs, reached 56.6 percent of the coverage,” Amlak said in a statement.

Damac Properties says it has not received any acquisition requests - Arabianbusiness

Damac Properties says it has not received any acquisition requests - Arabianbusiness:

Dubai-based developer Damac Properties has not received any acquisition requests, amid media reports that company chairman Hussain Sajwani is considering taking the company private, the company said on Wednesday.

On Tuesday, Reuters reported that Sajwani is considering buying out minority stakeholders and taking the $1.1 billion Dubai-listed company private.

Citing anonymous sources, the report said that Sajwani has been mulling the deal since late last year, after share prices fell over the course of the last two years. He is reportedly in talks to finance the deal.

When contacted by Arabian Business, Niall McLoughlin, Damac’s senior vice president of marketing and corporate communications, said, “We would like to clarify that the company has not received to date any requests from any party that includes the intention of the acquisition.”

#AbuDhabi's Taqa to offer more shares in asset-transfer deal - Arabianbusiness

Abu Dhabi's Taqa to offer more shares in asset-transfer deal - Arabianbusiness:

Abu Dhabi National Energy Company, also known as Taqa, has completed an asset-transfer deal with its parent Abu Dhabi Power Corporation’s (ADPower) to create one of the largest utility companies in the Europe, Middle East and Africa (EMEA).

Jasim Husain Thabet, who was CEO of ADPower, has been appointed CEO and MD of Taqa. Saeed Hamad Al Dhaheri has been named deputy CEO, with Stephen John Ridlington appointed as the company’s chief financial officer.

The transaction, saw ADPower transfer the majority of its power and water generation, transmission and distribution assets to Taqa, was completed in exchange for 106 billion new shares.

#UAE's KBBO Group appoints advisers for debt restructuring - Reuters

UAE's KBBO Group appoints advisers for debt restructuring - Reuters:

KBBO Group, whose chairman is a significant shareholder in troubled hospital group NMC Health, said on Wednesday it had hired advisers to restructure outstanding liabilities.

The group has appointed Trussbridge Advisory and PwC Middle East as financial experts, while Hadef & Partners LLC and Cleary Gottlieb Steen and Hamilton LLP have been appointed as legal advisers, it said in a statement.

It did not disclose its outstanding debt.

“The Group has been challenged by its exposure to NMC in addition to the COVID-19 outbreak, which has impacted various operations,” it said, without detailing its exposure to NMC.

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.

DAMAC shares up 11% early on planned privatisation news | Nasdaq

DAMAC shares up 11% early on planned privatisation news | Nasdaq:

Shares of Dubai's DAMAC Properties DAMAC.DU surged nearly 11% to 0.761 UAE dirham ($0.2072) in early trade, after Reuters reported that its chairman is weighing buying out minority shareholders and taking the company private.

Hussain Sajwani, who founded the company nearly two decades ago, has been exploring the deal since late 2019 after DAMAC's share price plunged over the past two years, Reuters reported on Tuesday citing a source.

MIDEAST STOCKS-Masraf Al Rayan boosts Qatar, DAMAC surges on buyout report - Agricultural Commodities - Reuters

MIDEAST STOCKS-Masraf Al Rayan boosts Qatar, DAMAC surges on buyout report - Agricultural Commodities - Reuters:

Qatar’s stock market jumped on Wednesday, boosted by Masraf Al Rayan after the lender and Al Khaliji Commercial Bank said they had started merger talks, while Dubai-listed DAMAC Properties surged on a report its chairman might take it private.

In Qatar, the index advanced 1.5%, boosted by a 6.8% jump in Masraf Al Rayan.

The merger could create a combined entity with more than 164 billion riyals ($45 billion) in total assets.

“The potential merger will lead to the creation of one of the largest Sharia’a (Islamic) compliant banks in Qatar and the Middle East,” the banks said in a filing.

Oil prices climb after U.S. inventory drop signals demand rise - Reuters

Oil prices climb after U.S. inventory drop signals demand rise - Reuters:

Oil prices rose on Wednesday after an industry report showed crude stockpiles in the United States staged a bigger drop than expected, suggesting demand is improving even as the coronavirus outbreak spreads around the world. 

Brent crude LCOc1 rose 31 cents, or 0.8%, to $41.58 a barrel by 0632 GMT after declining more than 1% on Tuesday. U.S. crude was up 35 cents, or 0.9%, at $39.62 a barrel, having dropped by 1.1% in the previous session.

U.S. crude and gasoline stocks fell more than expected last week, while distillate inventories rose, data released by the American Petroleum Institute (API) late on Tuesday showed.

Crude inventories dropped by 8.2 million barrels to 537 million barrels, against analysts’ forecasts for a draw of 710,000 barrels.