Oil in longest rally in two years as vaccines boost demand hopes | Reuters
Oil rose, extending its rally for a ninth day, its longest winning streak in two years, supported by producer supply cuts and hopes vaccine rollouts will drive a recovery in demand.
Brent crude rose 38 cents to settle at $61.47 a barrel, while U.S. crude climbed 32 cents to settle at $58.68.
Wednesday 10 February 2021
OPEC Won't Change Production Policy at Next Meeting, Iraq Oil Minister Says - Bloomberg
OPEC Won't Change Production Policy at Next Meeting, Iraq Oil Minister Says - Bloomberg
Iraq said the OPEC+ oil cartel is unlikely to change its production policy at next month’s meeting and repeated promises to deliver overdue output cuts, even as the Arab nation’s economy reels.
The group of crude exporters meets on March 4 and members will probably agree to keep output steady in April, Iraq’s Oil Minister Ihsan Abdul Jabbar said. The biggest change will come from Saudi Arabia, which will likely end unilateral daily cuts of 1 million barrels after March, he said.
“I think in March the agreement will be that output will remain on the same level,” the minister told reporters in Baghdad Wednesday.
Iraq said the OPEC+ oil cartel is unlikely to change its production policy at next month’s meeting and repeated promises to deliver overdue output cuts, even as the Arab nation’s economy reels.
The group of crude exporters meets on March 4 and members will probably agree to keep output steady in April, Iraq’s Oil Minister Ihsan Abdul Jabbar said. The biggest change will come from Saudi Arabia, which will likely end unilateral daily cuts of 1 million barrels after March, he said.
“I think in March the agreement will be that output will remain on the same level,” the minister told reporters in Baghdad Wednesday.
Norway Energy Giant Equinor Comes to Regret Foray Into U.S. Shale Oil - Bloomberg
Norway Energy Giant Equinor Comes to Regret Foray Into U.S. Shale Oil - Bloomberg
Norwegian oil and gas giant Equinor ASA said it never should have made the investments into U.S. shale fields that resulted in billions of dollars in losses and a brewing political controversy at home.
After the company announced the sale of assets in North Dakota’s Bakken shale formation for $900 million -- just a fraction of the price it originally paid almost a decade ago -- Equinor Chief Executive Officer Anders Opedal said things would have been done very differently in hindsight.
“We should not have made these investments,” Opedal said in a phone interview on Wednesday after Equinor reported a surprise fourth-quarter loss. When the company did these deals “higher oil prices were expected in the future, a high consumption of oil was expected,” but that’s not how it turned out, he said.
Since Equinor’s entry, U.S. shale has undergone two big cycles of boom and bust driven by big swings in crude prices. The industry has barely begun to recover from the slump triggered last year by the coronavirus pandemic, which saw prices fall briefly below zero.
Norwegian oil and gas giant Equinor ASA said it never should have made the investments into U.S. shale fields that resulted in billions of dollars in losses and a brewing political controversy at home.
After the company announced the sale of assets in North Dakota’s Bakken shale formation for $900 million -- just a fraction of the price it originally paid almost a decade ago -- Equinor Chief Executive Officer Anders Opedal said things would have been done very differently in hindsight.
“We should not have made these investments,” Opedal said in a phone interview on Wednesday after Equinor reported a surprise fourth-quarter loss. When the company did these deals “higher oil prices were expected in the future, a high consumption of oil was expected,” but that’s not how it turned out, he said.
Since Equinor’s entry, U.S. shale has undergone two big cycles of boom and bust driven by big swings in crude prices. The industry has barely begun to recover from the slump triggered last year by the coronavirus pandemic, which saw prices fall briefly below zero.
#Qatar Petroleum expands trading as rivals "punch above weight" | Reuters
Qatar Petroleum expands trading as rivals "punch above weight" | Reuters
Qatar Petroleum (QP) aims to build a trading desk to rival oil majors and trading houses and to help smooth out spot gas price spikes, the chief executive of the world’s largest LNG producer told Reuters.
Saad al-Kaabi said in an interview that while state-owned QP would still chiefly use long-term price contracts as it expands its production, spot volumes for trading would represent about 5-10% of volumes sold.
Kaabi said boosting global trading volumes via the new desk will help stabilize the gas market, avoiding the price spikes and falls that he said could threaten its long-term future.
Last month, LNG prices soared to an all-time high due to a deficit in Asia and what Kaabi described as some traders and oil majors “punching above their weight” by trading gas they sometimes have not got.
Kaabi said traders should be supporting the market, and not fuelling spikes that could lead to doubts about the long-term viability and stability of LNG. “I am not happy when I see spikes in LNG,” he said.
Qatar Petroleum (QP) aims to build a trading desk to rival oil majors and trading houses and to help smooth out spot gas price spikes, the chief executive of the world’s largest LNG producer told Reuters.
Saad al-Kaabi said in an interview that while state-owned QP would still chiefly use long-term price contracts as it expands its production, spot volumes for trading would represent about 5-10% of volumes sold.
Kaabi said boosting global trading volumes via the new desk will help stabilize the gas market, avoiding the price spikes and falls that he said could threaten its long-term future.
Last month, LNG prices soared to an all-time high due to a deficit in Asia and what Kaabi described as some traders and oil majors “punching above their weight” by trading gas they sometimes have not got.
Kaabi said traders should be supporting the market, and not fuelling spikes that could lead to doubts about the long-term viability and stability of LNG. “I am not happy when I see spikes in LNG,” he said.
NMC says advisers appointed to explore sale of #UAE, #Oman business | Reuters
NMC says advisers appointed to explore sale of UAE, Oman business | Reuters
NMC Group said on Wednesday it had hired Perella Weinberg Partners and Resonance Capital to advise on the potential sale of its healthcare business in the United Arab Emirates and Oman.
The sale process will run in parallel with the ongoing restructuring discussions with NMC’s lenders, it said.
NMC, founded in the 1970s, became the largest private healthcare provider in the UAE but ran into trouble after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
NMC Group said on Wednesday it had hired Perella Weinberg Partners and Resonance Capital to advise on the potential sale of its healthcare business in the United Arab Emirates and Oman.
The sale process will run in parallel with the ongoing restructuring discussions with NMC’s lenders, it said.
NMC, founded in the 1970s, became the largest private healthcare provider in the UAE but ran into trouble after short-seller Muddy Waters questioned its financial reporting and doubts emerged over the size of stakes owned by its biggest shareholders.
Etihad’s Focus on Smaller Aircraft Puts Fleet Plans in Limbo - Bloomberg video
Etihad’s Focus on Smaller Aircraft Puts Fleet Plans in Limbo - Bloomberg
Etihad Airways plans to rebuild operations around smaller twin-aisle jets once coronavirus lockdowns ease, spelling an uncertain future for the biggest models the Gulf carrier has in its fleet plan.
Etihad hasn’t set a delivery date for Boeing Co.’s coming 777X, and it’s not clear if the Airbus SE A380 superjumbo will ever return or how many A350s are needed, Chief Executive Officer Tony Douglas said in an interview Wednesday. He said the focus will instead be on the smaller Boeing 787 Dreamliner.
“The point really is to concentrate on the backbone, and the backbone for us is the 787,” Douglas said on Bloomberg Television.
The CEO’s comments underscore how far the pandemic is threatening to transform travel as airlines shift focus to shorter routes where demand is expected to recover faster, potentially at the expense of the globe-spanning super-hub model long championed by the three biggest Mideast carriers.
Etihad Airways plans to rebuild operations around smaller twin-aisle jets once coronavirus lockdowns ease, spelling an uncertain future for the biggest models the Gulf carrier has in its fleet plan.
Etihad hasn’t set a delivery date for Boeing Co.’s coming 777X, and it’s not clear if the Airbus SE A380 superjumbo will ever return or how many A350s are needed, Chief Executive Officer Tony Douglas said in an interview Wednesday. He said the focus will instead be on the smaller Boeing 787 Dreamliner.
“The point really is to concentrate on the backbone, and the backbone for us is the 787,” Douglas said on Bloomberg Television.
The CEO’s comments underscore how far the pandemic is threatening to transform travel as airlines shift focus to shorter routes where demand is expected to recover faster, potentially at the expense of the globe-spanning super-hub model long championed by the three biggest Mideast carriers.
#AbuDhabi Banks on Decades of Oil Use in Cosmo Exploration Award - Bloomberg
Abu Dhabi Banks on Decades of Oil Use in Cosmo Exploration Award - Bloomberg
Abu Dhabi awarded Japan’s Cosmo Energy Holdings Co. the right to explore for offshore oil and natural gas as the Middle Eastern emirate seeks to expand its output capacity.
Energy producers have been hit hard over the past year as the coronavirus pandemic hammered economies and crude prices plummeted. Oil and gas firms have had to cancel projects and cut spending, increasing concern that fuel may be in short supply later this decade as demand recovers.
Oil companies generally need to develop new deposits simply to replace older, depleting areas, something they’ve had to do on tighter budgets due to the virus’ impact on the industry. But Abu Dhabi is taking the additional step of working through the downturn to expand its ability to pump crude.
Cosmo will invest as much as $145 million in the exploration phase at Offshore Block 4, government-owned Abu Dhabi National Oil Co. said Wednesday in a statement. Abu Dhabi holds most of the oil in the United Arab Emirates, the third-largest producer in OPEC.
Abu Dhabi awarded Japan’s Cosmo Energy Holdings Co. the right to explore for offshore oil and natural gas as the Middle Eastern emirate seeks to expand its output capacity.
Energy producers have been hit hard over the past year as the coronavirus pandemic hammered economies and crude prices plummeted. Oil and gas firms have had to cancel projects and cut spending, increasing concern that fuel may be in short supply later this decade as demand recovers.
Oil companies generally need to develop new deposits simply to replace older, depleting areas, something they’ve had to do on tighter budgets due to the virus’ impact on the industry. But Abu Dhabi is taking the additional step of working through the downturn to expand its ability to pump crude.
Cosmo will invest as much as $145 million in the exploration phase at Offshore Block 4, government-owned Abu Dhabi National Oil Co. said Wednesday in a statement. Abu Dhabi holds most of the oil in the United Arab Emirates, the third-largest producer in OPEC.
Emirates doesn't see travel recovery until year-end | Reuters
Emirates doesn't see travel recovery until year-end | Reuters
International travel is likely to remain subdued until the end of the year as countries reintroduce tough restrictions to control COVID-19 infections, the head of Dubai-based airline Emirates said on Wednesday.
The comments from Tim Clark represent a more pessimistic view after he told Reuters last month he did not believe the recovery would be further impeded by a new wave of infections and restrictions.
“It is going to take longer than I would have hoped and I think probably we are going to see some difficulties. We are not going to see capacity return that I hoped in July and August, I think, maybe (it will return) in the last quarter this year,” Clark told a virtual summit by aviation consultancy CAPA.
Britain this week announced passengers arriving from certain countries would have to enter mandatory hotel quarantine for 10 days, a similar system to Australia.
International travel is likely to remain subdued until the end of the year as countries reintroduce tough restrictions to control COVID-19 infections, the head of Dubai-based airline Emirates said on Wednesday.
The comments from Tim Clark represent a more pessimistic view after he told Reuters last month he did not believe the recovery would be further impeded by a new wave of infections and restrictions.
“It is going to take longer than I would have hoped and I think probably we are going to see some difficulties. We are not going to see capacity return that I hoped in July and August, I think, maybe (it will return) in the last quarter this year,” Clark told a virtual summit by aviation consultancy CAPA.
Britain this week announced passengers arriving from certain countries would have to enter mandatory hotel quarantine for 10 days, a similar system to Australia.
#Dubai falls; #AbuDhabi, #Saudi manage narrow gains | Reuters
Dubai falls; Abu Dhabi, Saudi manage narrow gains | Reuters
The Dubai stock market weakened on Wednesday, the benchmark’s fifth fall in the last six sessions, while Abu Dhabi and Saudi Arabia eked out marginal gains as sentiment was mixed in the wider Gulf region.
Dubai, the trade and tourism hub in the Middle East, declined 0.6% as a recent spike in coronavirus cases in the United Arab Emirates further hamper the emirate’s recovery hopes despite the country’s fast vaccination rate.
Travel and tourism was the only sector to contract as Dubai’s non-oil private sector expanded for the second consecutive month in January, although at a marginal pace that was a fraction slower than the previous month, an IHS Markit survey showed.
Logistics firm Aramex was the worst performer on the Dubai benchmark, shedding 4.8%, as it reported a near 43% fall in annual profit.
Elsewhere, the Abu Dhabi main index edged up about 0.1% for its second straight session of gains.
Real estate stock Aldar Properties firmed 1.4%, while Abu Dhabi Islamic Bank gained 0.6%.
Saudi Arabia’s benchmark index inched up 0.1%. The kingdom’s biggest lender National Commercial Bank (NCB) jumped 3.7% after it reported higher-than-expected full year profit.
NCB posted a net profit of 11.44 billion riyals ($3.05 billion) in the year that ended on Dec. 31, compared to 11.40 billion riyals in the same period a year earlier.
Separately, Saudi Arabia’s economy shrank by 3.8% in the fourth quarter compared with the same period a year earlier, preliminary government data showed on Wednesday, but it grew 2.8% on a quarterly basis.
Qatar’s benchmark index bounced back from previous session’s losses to finish in the positive territory, tacking on 0.8%.
Industries Qatar was the top gainer in the Qatari index, putting on 3.3%.
The Dubai stock market weakened on Wednesday, the benchmark’s fifth fall in the last six sessions, while Abu Dhabi and Saudi Arabia eked out marginal gains as sentiment was mixed in the wider Gulf region.
Dubai, the trade and tourism hub in the Middle East, declined 0.6% as a recent spike in coronavirus cases in the United Arab Emirates further hamper the emirate’s recovery hopes despite the country’s fast vaccination rate.
Travel and tourism was the only sector to contract as Dubai’s non-oil private sector expanded for the second consecutive month in January, although at a marginal pace that was a fraction slower than the previous month, an IHS Markit survey showed.
Logistics firm Aramex was the worst performer on the Dubai benchmark, shedding 4.8%, as it reported a near 43% fall in annual profit.
Elsewhere, the Abu Dhabi main index edged up about 0.1% for its second straight session of gains.
Real estate stock Aldar Properties firmed 1.4%, while Abu Dhabi Islamic Bank gained 0.6%.
Saudi Arabia’s benchmark index inched up 0.1%. The kingdom’s biggest lender National Commercial Bank (NCB) jumped 3.7% after it reported higher-than-expected full year profit.
NCB posted a net profit of 11.44 billion riyals ($3.05 billion) in the year that ended on Dec. 31, compared to 11.40 billion riyals in the same period a year earlier.
Separately, Saudi Arabia’s economy shrank by 3.8% in the fourth quarter compared with the same period a year earlier, preliminary government data showed on Wednesday, but it grew 2.8% on a quarterly basis.
Qatar’s benchmark index bounced back from previous session’s losses to finish in the positive territory, tacking on 0.8%.
Industries Qatar was the top gainer in the Qatari index, putting on 3.3%.
First #AbuDhabi Bank prices euro-denominated bonds at 0.142% | ZAWYA MENA Edition
First Abu Dhabi Bank prices euro-denominated bonds at 0.142% | ZAWYA MENA Edition
First Abu Dhabi Bank (FAB), the UAE's largest bank, has priced a EUR 750 million ($909 million) five-year bond at mid-swaps +55bps with an all-in yield of 0.142 percent.
This is FAB’s first Euro denominated benchmark issuance and the lowest-ever yield on any public bond issuance from MENA as well as the largest-ever Euro issuance by a bank from the region, the lender said in a statement Wednesday.
The deal has attracted a total orderbook of EUR 1.7 billion from over 110 investors, including large European central banks, asset managers and Sovereigns, Supranational and Agencies (SSAs) representing a 2.3x over-subscription.
This enabled FAB to tighten pricing by 20bps from initial price thoughts and price at EUR 55bps over mid-swaps, it said.
This was FAB’s fifth public issuance in 2021--all in different currencies, USD, CNH, CHF, GBP and now EUR.
First Abu Dhabi Bank (FAB), the UAE's largest bank, has priced a EUR 750 million ($909 million) five-year bond at mid-swaps +55bps with an all-in yield of 0.142 percent.
This is FAB’s first Euro denominated benchmark issuance and the lowest-ever yield on any public bond issuance from MENA as well as the largest-ever Euro issuance by a bank from the region, the lender said in a statement Wednesday.
The deal has attracted a total orderbook of EUR 1.7 billion from over 110 investors, including large European central banks, asset managers and Sovereigns, Supranational and Agencies (SSAs) representing a 2.3x over-subscription.
This enabled FAB to tighten pricing by 20bps from initial price thoughts and price at EUR 55bps over mid-swaps, it said.
This was FAB’s fifth public issuance in 2021--all in different currencies, USD, CNH, CHF, GBP and now EUR.
DAE on track for $1.1bn target of sale-and-leaseback deals in 2021, CEO says | The National
DAE on track for $1.1bn target of sale-and-leaseback deals in 2021, CEO says | The National
Dubai Aerospace Enterprise (DAE), the Middle East’s biggest plane lessor, expects a recovery in air traffic by mid-2021 and is on track to meet a target of $1.1 billion in deals with airlines to buy and lease back their aircraft this year, its chief executive said.
The company sees a "vigorous snapback" in travel demand in the summer if Covid-19 vaccine supplies increase, new vaccines are developed and there is a favourable outcome from current lockdown measures in Europe, Firoz Tarapore told The National.
"As we stand here on February 10, I would say that our central case is very much in play, and the snapback will be an important milestone for resumption to pre-2020 activity in the near future after that," Mr Tarapore said. DAE will reassess its prediction by the end of February, he said.
The state-owned company expects a "solid" pipeline of deals and is on track to do more business in 2021 than last year.
"A lot of airlines fundamentally believe that demand for air traffic will ultimately be as robust as it has been over last few decades and the resumption to that trend is also going to be quite rapid," Mr Tarapore said. "For the most part, airlines want to make sure they have equipment so that when air travel demand comes back they can meet that as opposed to miss out."
Dubai Aerospace Enterprise (DAE), the Middle East’s biggest plane lessor, expects a recovery in air traffic by mid-2021 and is on track to meet a target of $1.1 billion in deals with airlines to buy and lease back their aircraft this year, its chief executive said.
The company sees a "vigorous snapback" in travel demand in the summer if Covid-19 vaccine supplies increase, new vaccines are developed and there is a favourable outcome from current lockdown measures in Europe, Firoz Tarapore told The National.
"As we stand here on February 10, I would say that our central case is very much in play, and the snapback will be an important milestone for resumption to pre-2020 activity in the near future after that," Mr Tarapore said. DAE will reassess its prediction by the end of February, he said.
The state-owned company expects a "solid" pipeline of deals and is on track to do more business in 2021 than last year.
"A lot of airlines fundamentally believe that demand for air traffic will ultimately be as robust as it has been over last few decades and the resumption to that trend is also going to be quite rapid," Mr Tarapore said. "For the most part, airlines want to make sure they have equipment so that when air travel demand comes back they can meet that as opposed to miss out."
DXB Entertainments board recommends Meraas offer as 2020 loss widens | The National
DXB Entertainments board recommends Meraas offer as 2020 loss widens | The National
DXB Entertainments (DXBE), the operator of Dubai Parks and Resorts, is recommending shareholders accept a takeover offer from its parent company, Meraas Leisure and Entertainment after its losses for 2020 widened.
The theme park company needs new funding and without further support its current available liquidity is likely to be exhausted in the second quarter of 2021, DXBE said in a statement to the Dubai Financial Market, where its shares trade. Its available cash balance at the end of 2020 stood at Dh400m, the company said.
DXBE's board “unanimously recommended” shareholders accept the offer made by Meraas in December at the company’s general assembly meeting on March 9.
“The board believes that the offer safeguards the interests of DXBE and is the only viable route for DXBE shareholders to recover value from their investment while also seeking to protect the interests of other stakeholders, including employees, suppliers and customers,” the board said in a separate statement to the DFM.
Meraas Leisure and Entertainment and its parent Meraas Holding have a 52.29 per cent stake in DXBE.
DXB Entertainments (DXBE), the operator of Dubai Parks and Resorts, is recommending shareholders accept a takeover offer from its parent company, Meraas Leisure and Entertainment after its losses for 2020 widened.
The theme park company needs new funding and without further support its current available liquidity is likely to be exhausted in the second quarter of 2021, DXBE said in a statement to the Dubai Financial Market, where its shares trade. Its available cash balance at the end of 2020 stood at Dh400m, the company said.
DXBE's board “unanimously recommended” shareholders accept the offer made by Meraas in December at the company’s general assembly meeting on March 9.
“The board believes that the offer safeguards the interests of DXBE and is the only viable route for DXBE shareholders to recover value from their investment while also seeking to protect the interests of other stakeholders, including employees, suppliers and customers,” the board said in a separate statement to the DFM.
Meraas Leisure and Entertainment and its parent Meraas Holding have a 52.29 per cent stake in DXBE.
GCC banks face risk of surge in loan impairments in 2021 | Banking – Gulf News
GCC banks face risk of surge in loan impairments in 2021 | Banking – Gulf News
GCC banks are expected to face continued asset quality risks resulting in higher loan impairments and elevated provisions leading to strain on profitability in 2021, according to analysts and raging agencies.
Rating agency Fitch says that asset-quality deterioration is the main risk for GCC banks following the economic shock due to the coronavirus pandemic and low oil prices.
The rating agency believes the prolonged loan deferral schemes have only postponed the asset quality issues.
“The extension of support measures for borrowers will limit short-term pressure on asset quality, delaying the recognition of Stage 3 loans well into 2021. Nevertheless, asset-quality metrics could weaken materially in 2021-2022 once support measures are withdrawn,” said Redmond Ramsdale, Head of Middle East Bank Ratings at Fitch.
GCC banks are expected to face continued asset quality risks resulting in higher loan impairments and elevated provisions leading to strain on profitability in 2021, according to analysts and raging agencies.
Rating agency Fitch says that asset-quality deterioration is the main risk for GCC banks following the economic shock due to the coronavirus pandemic and low oil prices.
The rating agency believes the prolonged loan deferral schemes have only postponed the asset quality issues.
“The extension of support measures for borrowers will limit short-term pressure on asset quality, delaying the recognition of Stage 3 loans well into 2021. Nevertheless, asset-quality metrics could weaken materially in 2021-2022 once support measures are withdrawn,” said Redmond Ramsdale, Head of Middle East Bank Ratings at Fitch.
#Saudi IPO market set for bumper year boosted by lockdown savings | Reuters
Saudi IPO market set for bumper year boosted by lockdown savings | Reuters
Saudi Arabia’s stock market is set for another bumper year of stock market listings with several sizeable initial public offerings (IPO) in the pipeline as investors look to allocate a pile of cash built up through the coronavirus pandemic.
After the then record $29.4 billion listing of oil giant Saudi Aramco shone a spotlight on the country’s equity market in late 2019, the kingdom generated IPO proceeds worth $1.45 billion last year despite the economic fallout from the pandemic.
At the same time, total deposits at Saudi commercial banks increased, from nearly 1.8 trillion riyals ($479.88 billion) at the end of 2019 to 1.94 trillion riyals as of December last year, according to central bank data.
“There is surely more liquidity in the market but that is natural after COVID as there is more disposable income to invest,” said Mazen al-Sudairi, head of research at Al-Rajhi Capital in Riyadh.
Saudi Arabia’s stock market is set for another bumper year of stock market listings with several sizeable initial public offerings (IPO) in the pipeline as investors look to allocate a pile of cash built up through the coronavirus pandemic.
After the then record $29.4 billion listing of oil giant Saudi Aramco shone a spotlight on the country’s equity market in late 2019, the kingdom generated IPO proceeds worth $1.45 billion last year despite the economic fallout from the pandemic.
At the same time, total deposits at Saudi commercial banks increased, from nearly 1.8 trillion riyals ($479.88 billion) at the end of 2019 to 1.94 trillion riyals as of December last year, according to central bank data.
“There is surely more liquidity in the market but that is natural after COVID as there is more disposable income to invest,” said Mazen al-Sudairi, head of research at Al-Rajhi Capital in Riyadh.
ADNOC natgas pipeline investors Galaxy raise nearly $4 billion via bonds | Reuters
ADNOC natgas pipeline investors Galaxy raise nearly $4 billion via bonds | Reuters
Galaxy Pipeline Assets BidCo, owned by a consortium of investors that took a stake in Abu Dhabi National Oil Company’s (ADNOC) natural gas pipeline assets, launched $3.92 billion in a dual-tranche amortising bond offering on Tuesday, a document showed.
The Gulf has seen a flood of debt sales so far this year, as borrowers in the oil-dependent region take advantage of cheap rates and abundant global liquidity to plug finances hit by the pandemic-induced downturn.
The issuer sold $1.75 billion in a tranche maturing on March 31, 2034 at 2.16% and $2.17 billion in a tranche maturing on Sept. 30, 2040 at 2.94% after receiving over $8 billion in combined orders, documents from banks running the deal showed.
It had given initial price guidance of around 2.38% for the first tranche and around 3.16% for the second tranche. The amortising bonds have a weighted average life of 7.3 years and 12-1/2 years respectively, a document showed, meaning the principal will be repaid in those time frames.
Galaxy Pipeline Assets BidCo, owned by a consortium of investors that took a stake in Abu Dhabi National Oil Company’s (ADNOC) natural gas pipeline assets, launched $3.92 billion in a dual-tranche amortising bond offering on Tuesday, a document showed.
The Gulf has seen a flood of debt sales so far this year, as borrowers in the oil-dependent region take advantage of cheap rates and abundant global liquidity to plug finances hit by the pandemic-induced downturn.
The issuer sold $1.75 billion in a tranche maturing on March 31, 2034 at 2.16% and $2.17 billion in a tranche maturing on Sept. 30, 2040 at 2.94% after receiving over $8 billion in combined orders, documents from banks running the deal showed.
It had given initial price guidance of around 2.38% for the first tranche and around 3.16% for the second tranche. The amortising bonds have a weighted average life of 7.3 years and 12-1/2 years respectively, a document showed, meaning the principal will be repaid in those time frames.
#Saudi Aramco prepares $10 billion loan for pipeline business buyers: sources | Reuters
Saudi Aramco prepares $10 billion loan for pipeline business buyers: sources | Reuters
Saudi Aramco is preparing a financing package of up to $10 billion that it could offer to buyers of its pipeline business unit, three sources said, as the oil giant seeks to extract value from its assets in an era of lower oil prices.
Aramco is in talks with banks to provide “staple financing”, which is a financing package provided by the seller that buyers can use to back their purchase.
International investors including BlackRock, KKR and Brookfield Asset Management, which could invest in the pipeline business, are also in talks with lenders on possible financing, said the sources, speaking anonymously because the talks are private.
The loan could be up to $10 billion, said two of the sources, covering much of the value of the assets.
Aramco and Brookfield declined to comment. BlackRock and KKR did not respond to comment requests.
Saudi Aramco is preparing a financing package of up to $10 billion that it could offer to buyers of its pipeline business unit, three sources said, as the oil giant seeks to extract value from its assets in an era of lower oil prices.
Aramco is in talks with banks to provide “staple financing”, which is a financing package provided by the seller that buyers can use to back their purchase.
International investors including BlackRock, KKR and Brookfield Asset Management, which could invest in the pipeline business, are also in talks with lenders on possible financing, said the sources, speaking anonymously because the talks are private.
The loan could be up to $10 billion, said two of the sources, covering much of the value of the assets.
Aramco and Brookfield declined to comment. BlackRock and KKR did not respond to comment requests.
#Saudi Economy Grew 2.8% in Fourth Quarter As Covid Impact Eased - Bloomberg
Saudi Economy Grew 2.8% in Fourth Quarter As Covid Impact Eased - Bloomberg
Saudi Arabia’s economy grew 2.8% in the fourth quarter of 2020 compared to the previous three months, spurred by a decline in Covid-19 cases and the easing of restrictions.
The largest Arab economy shrank 4.1% last year, flash estimates from the General Authority for Statistics showed Wednesday, the sharpest contraction in more than three decades. The figures are in line with estimates from the International Monetary Fund. Gross domestic product contracted 3.8% in the fourth quarter compared with the same period the previous year.
Like other Gulf oil producers, Saudi Arabia was hit hard last year as a drop in crude prices decimated government revenue while measures to stop the spread of the coronavirus limited economic activity. Although benchmark Brent crude rose above $60 per barrel for the first time in a year this week, a new set of restrictions to combat Covid-19 might cloud future growth prospects.
The statistics authority said more details on economic growth, including a breakdown of oil and non-oil GDP, would be published on March 21. Saudi Arabia didn’t disclose a breakdown of revenue in its annual budget statement last year as doing so would give clues about the state of energy giant Aramco’s dividend plans.
Saudi Arabia’s economy grew 2.8% in the fourth quarter of 2020 compared to the previous three months, spurred by a decline in Covid-19 cases and the easing of restrictions.
The largest Arab economy shrank 4.1% last year, flash estimates from the General Authority for Statistics showed Wednesday, the sharpest contraction in more than three decades. The figures are in line with estimates from the International Monetary Fund. Gross domestic product contracted 3.8% in the fourth quarter compared with the same period the previous year.
Like other Gulf oil producers, Saudi Arabia was hit hard last year as a drop in crude prices decimated government revenue while measures to stop the spread of the coronavirus limited economic activity. Although benchmark Brent crude rose above $60 per barrel for the first time in a year this week, a new set of restrictions to combat Covid-19 might cloud future growth prospects.
The statistics authority said more details on economic growth, including a breakdown of oil and non-oil GDP, would be published on March 21. Saudi Arabia didn’t disclose a breakdown of revenue in its annual budget statement last year as doing so would give clues about the state of energy giant Aramco’s dividend plans.
Oil price rally falters despite unexpected drop in U.S. inventories | Reuters
Oil price rally falters despite unexpected drop in U.S. inventories | Reuters
Oil prices slipped on Wednesday, threatening to end the longest rally in two years as investors shrugged off industry data showing a fall in U.S. crude oil stocks that added to optimism about an expected rise in global fuel demand.
Brent crude was down by 1 cent at $61.08 by 0752 GMT after rising nearly 1% on Tuesday, when it touched a 13-month high. U.S. crude dropped 8 cents to $58.28.
Brent had risen for eight days in a row, the longest sustained run of gains since January 2019. U.S. oil had gained for seven days, the longest rally since February 2019.
“Higher oil prices may encourage increased output globally, while increased hedging could also limit further upside,” said Kevin Solomon, energy economics analyst at StoneX.
Oil prices slipped on Wednesday, threatening to end the longest rally in two years as investors shrugged off industry data showing a fall in U.S. crude oil stocks that added to optimism about an expected rise in global fuel demand.
Brent crude was down by 1 cent at $61.08 by 0752 GMT after rising nearly 1% on Tuesday, when it touched a 13-month high. U.S. crude dropped 8 cents to $58.28.
Brent had risen for eight days in a row, the longest sustained run of gains since January 2019. U.S. oil had gained for seven days, the longest rally since February 2019.
“Higher oil prices may encourage increased output globally, while increased hedging could also limit further upside,” said Kevin Solomon, energy economics analyst at StoneX.
MIDEAST STOCKS-Most major Gulf markets gain in early trade; #AbuDhabi dips | Nasdaq
MIDEAST STOCKS-Most major Gulf markets gain in early trade; Abu Dhabi dips | Nasdaq
Most major stock markets in the Gulf traded higher on Wednesday, extending gains from the previous day, with Saudi Arabia on track to extend gains for fifth consecutive session.
Saudi Arabia's benchmark index .TASI rose 0.5%, boosted by a 3.9% jump in National Commercial Bank (NCB) 1180.SE after it reported higher-than-expected full year profit.
NCB, the kingdom's biggest lender, posted a net profit of 11.44 billion riyals ($3.05 billion) in the year that ended on Dec. 31, compared to 11.40 billion riyals in the same period a year earlier.
Analysts had projected the bank will post a net profit of 10.25 billion riyals, an average forecast of 10 analysts' estimates available in Refinitiv data showed.
In Dubai, the index .DFMGI edged up 0.1%, with Emirates NBD Bank ENBD.DU rising 0.4%, while blue-chip developer Emaar Properties EMAR.DU added 0.5%.
The emirate's non-oil private sector expanded for the second consecutive month in January, although at a marginal pace that was a fraction slower than the previous month as business activity and new orders softened.
The sector expanded in only six months of last year as the COVID-19 pandemic pummelled the economy of the Middle East's tourism and commerce hub.
The Abu Dhabi index .ADI eased 0.1%, hit by a 0.5% fall in the country's largest lender First Abu Dhabi Bank FAB.AD.
Qatar's benchmark .QSI rebounded 0.7%, driven by a 2.5% rise in petrochemical firm Industries Qatar IQCD.QA.
Most major stock markets in the Gulf traded higher on Wednesday, extending gains from the previous day, with Saudi Arabia on track to extend gains for fifth consecutive session.
Saudi Arabia's benchmark index .TASI rose 0.5%, boosted by a 3.9% jump in National Commercial Bank (NCB) 1180.SE after it reported higher-than-expected full year profit.
NCB, the kingdom's biggest lender, posted a net profit of 11.44 billion riyals ($3.05 billion) in the year that ended on Dec. 31, compared to 11.40 billion riyals in the same period a year earlier.
Analysts had projected the bank will post a net profit of 10.25 billion riyals, an average forecast of 10 analysts' estimates available in Refinitiv data showed.
In Dubai, the index .DFMGI edged up 0.1%, with Emirates NBD Bank ENBD.DU rising 0.4%, while blue-chip developer Emaar Properties EMAR.DU added 0.5%.
The emirate's non-oil private sector expanded for the second consecutive month in January, although at a marginal pace that was a fraction slower than the previous month as business activity and new orders softened.
The sector expanded in only six months of last year as the COVID-19 pandemic pummelled the economy of the Middle East's tourism and commerce hub.
The Abu Dhabi index .ADI eased 0.1%, hit by a 0.5% fall in the country's largest lender First Abu Dhabi Bank FAB.AD.
Qatar's benchmark .QSI rebounded 0.7%, driven by a 2.5% rise in petrochemical firm Industries Qatar IQCD.QA.
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