Seychelles Pays $1 to Acquire Etihad’s Stake in Its Flag Carrier - Bloomberg
Seychelles said it repurchased Etihad Airways’ 40% stake in its flag carrier for $1, ousted its board and began restructuring the airline’s debt.
Etihad accepted a 79% haircut on $72.3 million of debt owed by Air Seychelles Ltd., Patrick Payet, secretary of state at the nation’s finance ministry, said in an emailed response to queries. The government also offered to pay $20 million to bondholders with $71.5 million of debt outstanding, Payet said.
Etihad has been unwinding a global expansion plan through which the state-owned Gulf carrier bought a 40% stake in Air Seychelles in 2012. For Seychelles, known for its pristine beaches and diving sites, the revamp of the flag carrier is an opportunity to focus on profitable routes as travel slowly recovers from the pandemic-induced crisis.
“This is a time of opportunity for both Air Seychelles and the country, as tourism starts to rebuild following the reopening of its borders,” Etihad said in an emailed statement, without disclosing financial details. “Seychelles is an important destination on Etihad’s global network, with bookings steadily increasing.”
Remco Althuis, chief executive officer of Air Seychelles, and Chief Financial Officer Michael Berlouis will remain on until June 30, Etihad said.
The Indian Ocean nation is in talks with the Trade Development Bank for a $31.4 million loan, Payet said. The government will offer $20 million to bondholders and $11.4 million will be used to pay Etihad’s debt from 2022, he said.
Friday, 30 April 2021
India demand fears, weak Japan crude imports knock oil prices | Reuters
India demand fears, weak Japan crude imports knock oil prices | Reuters
Oil prices fell from six-week highs on Friday as investors unloaded positions after weak Japanese crude import data and on worries about fuel demand in India, where COVID-19 infections have soared.
U.S. crude and global benchmark Brent logged their biggest daily drops in more than three weeks, but saw monthly gains of near 6% and 8%, respectively. Fuel demand worldwide is mixed, with consumption rising in the United States and China, while other nations resume lockdowns to stem the rising infection rate.
Brent crude settled at $67.25 a barrel, falling $1.31, or 1.9% on the last day of trading for the front-month June contract. U.S. West Texas Intermediate crude for June settled at $63.58 a barrel, down $1.43, or 2.2%. Brent gained 1.7% on the week and WTI rose 2.3%.
Oil prices fell from six-week highs on Friday as investors unloaded positions after weak Japanese crude import data and on worries about fuel demand in India, where COVID-19 infections have soared.
U.S. crude and global benchmark Brent logged their biggest daily drops in more than three weeks, but saw monthly gains of near 6% and 8%, respectively. Fuel demand worldwide is mixed, with consumption rising in the United States and China, while other nations resume lockdowns to stem the rising infection rate.
Brent crude settled at $67.25 a barrel, falling $1.31, or 1.9% on the last day of trading for the front-month June contract. U.S. West Texas Intermediate crude for June settled at $63.58 a barrel, down $1.43, or 2.2%. Brent gained 1.7% on the week and WTI rose 2.3%.
Oil prices to drift higher despite India demand hiccup | Reuters
Oil prices to drift higher despite India demand hiccup | Reuters
Oil prices will inch higher this year as vaccines revive demand and OPEC+ keeps a leash on supply, but the worsening COVID crisis in India and elsewhere poses a roadblock, a Reuters poll showed on Friday.
The survey of 49 participants forecast that Brent would average $64.17 in 2021, up from last month’s consensus of $63.12 per barrel and the $62.3 average for the benchmark so far this year. [O/R]
This is also the fifth straight upward revision in the 2021 consensus, and also the highest outlook for the period since January last year.
“With vaccine rollouts gaining pace this year, we anticipate people will likely go out again and businesses will fully reopen over the coming quarters — indeed, this is already happening in the U.S. and the UK,” supporting demand and pushing Brent to about $75 in the second half, UBS analyst Giovanni Staunovo said.
Oil demand was seen growing by 5.5 million-6.5 million barrels per day (bpd) this year.
This was in line with a cautiously optimistic picture drawn by the International Energy Agency earlier this month that producers may then need to pump 2 million bpd more to meet the expected demand.
The Organization of the Petroleum Exporting Countries has also raised its forecast, although three sources from the OPEC+ joint technical committee (JTC) flagged surging COVID-19 cases in India and elsewhere as a concern.
“The recent rise in COVID-19 cases in Europe, India, and Brazil, along with the risks associated with fast-spreading variants, could blunt the world oil demand recovery,” said Marshall Steeves, energy markets analyst at IEG Vantage.
India, the world’s third-biggest oil consumer, is being hit hardest by the pandemic, with large parts of the country now under lockdown. But some analysts say the impact may be limited.
“India oil demand growth will be affected for a couple of months at least, but may not make a major enough dent to global oil demand recovery,” said Suvro Sarkar, an analyst at DBS Bank.
Oil prices will inch higher this year as vaccines revive demand and OPEC+ keeps a leash on supply, but the worsening COVID crisis in India and elsewhere poses a roadblock, a Reuters poll showed on Friday.
The survey of 49 participants forecast that Brent would average $64.17 in 2021, up from last month’s consensus of $63.12 per barrel and the $62.3 average for the benchmark so far this year. [O/R]
This is also the fifth straight upward revision in the 2021 consensus, and also the highest outlook for the period since January last year.
“With vaccine rollouts gaining pace this year, we anticipate people will likely go out again and businesses will fully reopen over the coming quarters — indeed, this is already happening in the U.S. and the UK,” supporting demand and pushing Brent to about $75 in the second half, UBS analyst Giovanni Staunovo said.
Oil demand was seen growing by 5.5 million-6.5 million barrels per day (bpd) this year.
This was in line with a cautiously optimistic picture drawn by the International Energy Agency earlier this month that producers may then need to pump 2 million bpd more to meet the expected demand.
The Organization of the Petroleum Exporting Countries has also raised its forecast, although three sources from the OPEC+ joint technical committee (JTC) flagged surging COVID-19 cases in India and elsewhere as a concern.
“The recent rise in COVID-19 cases in Europe, India, and Brazil, along with the risks associated with fast-spreading variants, could blunt the world oil demand recovery,” said Marshall Steeves, energy markets analyst at IEG Vantage.
India, the world’s third-biggest oil consumer, is being hit hardest by the pandemic, with large parts of the country now under lockdown. But some analysts say the impact may be limited.
“India oil demand growth will be affected for a couple of months at least, but may not make a major enough dent to global oil demand recovery,” said Suvro Sarkar, an analyst at DBS Bank.
#SaudiArabia Tourism to Get 2 Billion Riyal Boost for Project Funds - Bloomberg
Saudi Arabia Tourism to Get 2 Billion Riyal Boost for Project Funds - Bloomberg
Saudi Arabia will provide up to 2 billion riyals ($533.4 million) to fund 113 tourism projects nationwide this year, as the kingdom aims to expand the sector under Crown Prince Mohammed bin Salman’s plan to diversify the economy.
The Tourism Development Fund and Riyad Bank, which is backed by the country’s sovereign wealth fund, will provide funding starting at 1 million riyals and rising to 100 million riyals for the biggest projects, according to a statement.
Last week, TDF enlisted Riyad Bank to help finance a 1.3 billion-riyal project in the holy city of Medina. Saudi Arabia started TDF with an initial capital of $4 billion.
Saudi Arabia will provide up to 2 billion riyals ($533.4 million) to fund 113 tourism projects nationwide this year, as the kingdom aims to expand the sector under Crown Prince Mohammed bin Salman’s plan to diversify the economy.
The Tourism Development Fund and Riyad Bank, which is backed by the country’s sovereign wealth fund, will provide funding starting at 1 million riyals and rising to 100 million riyals for the biggest projects, according to a statement.
Last week, TDF enlisted Riyad Bank to help finance a 1.3 billion-riyal project in the holy city of Medina. Saudi Arabia started TDF with an initial capital of $4 billion.
Oil prices slip from six-week high as India's demand worries weigh | Reuters
Oil prices slip from six-week high as India's demand worries weigh | Reuters
Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic offset a bullish outlook on summer fuel demand and economic recovery.
Brent crude fell 31 cents, or 0.5%, to $68.25 a barrel by 0630 GMT, the last day’s trading for the front-month June contract. U.S. West Texas Intermediate crude for June was at $64.59 a barrel, down 42 cents, or 0.7%.
Prices also came under pressure after China’s factory activity growth slowed and missed forecasts in April, although a private sector survey showed that Japan’s factory activity expanded in April at the fastest pace since early 2018.
“The post-COVID-19 demand recovery is still uneven and the surge in Indian cases serves as a timely reminder that any rally to $70 is too premature,” Energy Aspects analysts said in a note.
Such a level is likely to be reached only in the third quarter this year, when demand improves materially and destocking ends, they said.
Oil prices slipped on Friday, taking a breather after touching their highest in six weeks as concerns of wider lockdowns in India and Brazil to curb the COVID-19 pandemic offset a bullish outlook on summer fuel demand and economic recovery.
Brent crude fell 31 cents, or 0.5%, to $68.25 a barrel by 0630 GMT, the last day’s trading for the front-month June contract. U.S. West Texas Intermediate crude for June was at $64.59 a barrel, down 42 cents, or 0.7%.
Prices also came under pressure after China’s factory activity growth slowed and missed forecasts in April, although a private sector survey showed that Japan’s factory activity expanded in April at the fastest pace since early 2018.
“The post-COVID-19 demand recovery is still uneven and the surge in Indian cases serves as a timely reminder that any rally to $70 is too premature,” Energy Aspects analysts said in a note.
Such a level is likely to be reached only in the third quarter this year, when demand improves materially and destocking ends, they said.
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