Oil ends little changed, U.S. oil inventories fall | Reuters
Oil ended little changed on Wednesday after two days of gains despite a sharp drawdown in U.S. crude stocks, as the market weighs the outlook for demand with coronavirus infections still surging worldwide.
Both Brent and U.S. futures contracts hit their highest levels since mid-March in intraday trade before retreating. The $70-per-barrel mark has acted as a barrier for the market since March, with investors unwilling to push oil higher as COVID-19 cases increase in parts of the world.
Brent crude settled at $68.96 a barrel, up 8 cents. U.S. West Texas Intermediate (WTI) crude settled at $65.63 a barrel, down 6 cents.
U.S. crude inventories fell by 8 million barrels in the most recent week, exceeding expectations for a 2.3 million-barrel drop, the Energy Information Administration said. Exports rose to 4.1 million bpd, the most since March of last year, and refining output was at its highest since that month as well.
Wednesday, 5 May 2021
Mideast Stocks: Banks, petrochemicals weigh on #Saudi; Agility boosts #Kuwait | ZAWYA MENA Edition
Mideast Stocks: Banks, petrochemicals weigh on Saudi; Agility boosts Kuwait | ZAWYA MENA Edition
Saudi Arabian stocks closed lower on Wednesday, hit by losses in banking and petrochemical stocks, while the Kuwaiti index outperformed the Gulf region.
Other major Gulf markets were largely muted.
Saudi Arabia's benchmark index fell 0.7%, with Al Rajhi Bank losing 0.7% and chemical maker Saudi Basic Industries retreating 1.2%.
Saudi Electricity declined 3.6% after the company said net loss attributable to common shares for first quarter amounted to 200 million riyals ($53.33 million). Saudi Telecom shed 1.1% as it traded ex-dividend.
Kuwait's premier index rose 1.1% buoyed by shares of Agility Public Warehousing Company, which soared 11.6%, in its third straight day of gains.
Agility has reaped more than 40% since Tuesday last week, when it agreed to sell its logistics unit to DSV Panalpina in an all-share deal worth $4.1 billion.
Dubai's index was up 0.2%, with Dubai Islamic Bank and courier firm Aramex adding 0.9% and 1.5%, respectively.
Dubai's tourism chief on Tuesday said he was very optimistic that business and leisure travellers would return this year, although the pandemic made it difficult to predict exactly how many.
Dubai, a trade and tourism hub which has kept its borders open since reopening last July, saw 1.26 million visitors in the first quarter, while last year the number of visitors slumped 67% to 5.5 million.
The Abu Dhabi index closed flat. Emirates Telecommunications Group shed 0.5%, while Aldar Properties gained 0.6%.
Waha Capital jumped 4.3% after reporting a first-quarter profit of 111 million dirhams ($30.22 million), compared with a loss of 294 million dirhams a year earlier.
Qatar's index was flat. Industries Qatar dropped 0.8% and Qatar Navigation climbed 1.7%.
Saudi Arabian stocks closed lower on Wednesday, hit by losses in banking and petrochemical stocks, while the Kuwaiti index outperformed the Gulf region.
Other major Gulf markets were largely muted.
Saudi Arabia's benchmark index fell 0.7%, with Al Rajhi Bank losing 0.7% and chemical maker Saudi Basic Industries retreating 1.2%.
Saudi Electricity declined 3.6% after the company said net loss attributable to common shares for first quarter amounted to 200 million riyals ($53.33 million). Saudi Telecom shed 1.1% as it traded ex-dividend.
Kuwait's premier index rose 1.1% buoyed by shares of Agility Public Warehousing Company, which soared 11.6%, in its third straight day of gains.
Agility has reaped more than 40% since Tuesday last week, when it agreed to sell its logistics unit to DSV Panalpina in an all-share deal worth $4.1 billion.
Dubai's index was up 0.2%, with Dubai Islamic Bank and courier firm Aramex adding 0.9% and 1.5%, respectively.
Dubai's tourism chief on Tuesday said he was very optimistic that business and leisure travellers would return this year, although the pandemic made it difficult to predict exactly how many.
Dubai, a trade and tourism hub which has kept its borders open since reopening last July, saw 1.26 million visitors in the first quarter, while last year the number of visitors slumped 67% to 5.5 million.
The Abu Dhabi index closed flat. Emirates Telecommunications Group shed 0.5%, while Aldar Properties gained 0.6%.
Waha Capital jumped 4.3% after reporting a first-quarter profit of 111 million dirhams ($30.22 million), compared with a loss of 294 million dirhams a year earlier.
Qatar's index was flat. Industries Qatar dropped 0.8% and Qatar Navigation climbed 1.7%.
OCI confirms potential #AbuDhabi listing for fertilizer JV with ADNOC | ZAWYA MENA Edition
OCI confirms potential Abu Dhabi listing for fertilizer JV with ADNOC | ZAWYA MENA Edition
Fertiglobe, a fertilizer joint venture between chemical producer OCI and Abu Dhabi National Oil Company (ADNOC), has started preparing for a potential initial public offering in Abu Dhabi, OCI said in a stock exchange disclosure on Wednesday.
Fertiglobe, 58% owned by OCI and 42% by ADNOC, could be valued between $5 and $5.5 billion, two sources familiar with the deal said.
Reuters sources said last month that ADNOC and OCI were likely to pick First Abu Dhabi Bank, HSBC and Citigroup to work on the public-share sale of their fertiliser joint venture.
Headquartered in Abu Dhabi, Fertiglobe was formed in 2019 after OCI and ADNOC combined their ammonia and urea assets.
Egyptian billionaire Nassef Sawiris, who controls Euronext-listed OCI, is also chief executive of Fertiglobe. Sultan Ahmed Al Jaber, who is chief executive at ADNOC, is chairman of the board at Fertiglobe.
OCI said in its filing Fertiglobe's adjusted EBITDA increased 105% in the first quarter from a year earlier and by 56% compared to the fourth quarter, as its competitive position improved significantly with European gas prices normalising at higher levels. "We continue to benefit from our fixed gas price agreements at Fertiglobe, in light of higher spot gas pricing in other regions and its correlation with product pricing," OCI said.
ADNOC also confirmed it is exploring a potential listing of Fertiglobe. "As ADNOC continues to deliver on its 2030 growth strategy, we will continue to evaluate investment and partnership opportunities that create value and drive sustainable growth for Abu Dhabi and the UAE," the spokesman said in an email.
Fertiglobe, a fertilizer joint venture between chemical producer OCI and Abu Dhabi National Oil Company (ADNOC), has started preparing for a potential initial public offering in Abu Dhabi, OCI said in a stock exchange disclosure on Wednesday.
Fertiglobe, 58% owned by OCI and 42% by ADNOC, could be valued between $5 and $5.5 billion, two sources familiar with the deal said.
Reuters sources said last month that ADNOC and OCI were likely to pick First Abu Dhabi Bank, HSBC and Citigroup to work on the public-share sale of their fertiliser joint venture.
Headquartered in Abu Dhabi, Fertiglobe was formed in 2019 after OCI and ADNOC combined their ammonia and urea assets.
Egyptian billionaire Nassef Sawiris, who controls Euronext-listed OCI, is also chief executive of Fertiglobe. Sultan Ahmed Al Jaber, who is chief executive at ADNOC, is chairman of the board at Fertiglobe.
OCI said in its filing Fertiglobe's adjusted EBITDA increased 105% in the first quarter from a year earlier and by 56% compared to the fourth quarter, as its competitive position improved significantly with European gas prices normalising at higher levels. "We continue to benefit from our fixed gas price agreements at Fertiglobe, in light of higher spot gas pricing in other regions and its correlation with product pricing," OCI said.
ADNOC also confirmed it is exploring a potential listing of Fertiglobe. "As ADNOC continues to deliver on its 2030 growth strategy, we will continue to evaluate investment and partnership opportunities that create value and drive sustainable growth for Abu Dhabi and the UAE," the spokesman said in an email.
Taqa swings to profit in first quarter on higher oil prices and economic recovery | The National
Taqa swings to profit in first quarter on higher oil prices and economic recovery | The National
Abu Dhabi National Energy Company, also known as Taqa, swung to a Dh1.4 billion ($390 million) profit in the first quarter after posting a Dh596 million loss in the same period a year earlier, boosted by higher oil prices and an economic rebound from the Covid-19 pandemic.
Group revenue was 3.4 per cent higher at Dh10.3bn in the first quarter. Capital expenditure increased 18 per cent to Dh1.3bn, recovering from a period of low-spend due to the pandemic, which resulted in projects being postponed.
"Looking forward, the conditions are more optimistic as we see the demand for utilities and commodities bounce back after the universal challenges brought on from the pandemic," said Jasim Thabet, Taqa group chief executive and managing director.
The company declared an interim cash dividend of Dh618m for the first quarter.
Taqa's earnings before interest, tax, depreciation and amortisation rose 12 per cent, due to higher revenue, lower operating expenses and higher income from associates.
Taqa, which also operates oil and gas assets, reached average production volumes of 120 million barrels of oil equivalent per day, supported by higher production in Europe.
Abu Dhabi National Energy Company, also known as Taqa, swung to a Dh1.4 billion ($390 million) profit in the first quarter after posting a Dh596 million loss in the same period a year earlier, boosted by higher oil prices and an economic rebound from the Covid-19 pandemic.
Group revenue was 3.4 per cent higher at Dh10.3bn in the first quarter. Capital expenditure increased 18 per cent to Dh1.3bn, recovering from a period of low-spend due to the pandemic, which resulted in projects being postponed.
"Looking forward, the conditions are more optimistic as we see the demand for utilities and commodities bounce back after the universal challenges brought on from the pandemic," said Jasim Thabet, Taqa group chief executive and managing director.
The company declared an interim cash dividend of Dh618m for the first quarter.
Taqa's earnings before interest, tax, depreciation and amortisation rose 12 per cent, due to higher revenue, lower operating expenses and higher income from associates.
Taqa, which also operates oil and gas assets, reached average production volumes of 120 million barrels of oil equivalent per day, supported by higher production in Europe.
Plane lessor DAE confident of market recovery despite slide in Q1 profit | The National
Plane lessor DAE confident of market recovery despite slide in Q1 profit | The National
Dubai Aerospace Enterprise (DAE), one of the world's biggest plane lessors, said a faster pace of vaccination roll-out over the next six months will boost air travel growth, after it posted a decline in first-quarter profit.
Profit for the period fell to $8.3m in the first three months of 2021, from $76.7m in the same period last year, DAE said in a statement on Wednesday. Adjusted profit for the period stood at $24.4m after adding back one-off debt redemption costs.
Total revenue for the first quarter dropped to $307.5m, compared to $352m in the same quarter in 2020.
"We remain confident that deployment of vaccines in the next six months will be faster and more broad-based than it has been, and this will form the foundation for the next leg-up in international, regional and domestic air travel growth," Firoz Tarapore, chief executive of DAE, said.
Dubai Aerospace Enterprise (DAE), one of the world's biggest plane lessors, said a faster pace of vaccination roll-out over the next six months will boost air travel growth, after it posted a decline in first-quarter profit.
Profit for the period fell to $8.3m in the first three months of 2021, from $76.7m in the same period last year, DAE said in a statement on Wednesday. Adjusted profit for the period stood at $24.4m after adding back one-off debt redemption costs.
Total revenue for the first quarter dropped to $307.5m, compared to $352m in the same quarter in 2020.
"We remain confident that deployment of vaccines in the next six months will be faster and more broad-based than it has been, and this will form the foundation for the next leg-up in international, regional and domestic air travel growth," Firoz Tarapore, chief executive of DAE, said.
#UAE shakes up residency rules by offering passports to wealthy expats | Financial Times
UAE shakes up residency rules by offering passports to wealthy expats | Financial Times
Airline bosses, tech entrepreneurs and a former Real Madrid footballer are among those to be granted United Arab Emirates nationality, as the Gulf state revamps the long-established relationship with its wealthy expatriate workers.
The issuing of passports to dozens of foreigners in recent months is a significant change from the UAE’s traditional way of treating expats, who have been encouraged to leave the territory when their work ended.
Now the government, boosted by the success of its Covid-19 vaccination programme, hopes to convince more wealthy incomers to stay in an effort to boost domestic spending and sustain property prices.
“We want people to call Abu Dhabi home,” said Mohammed Al Shorafa Al Hammadi, chair of the UAE capital’s department of economic development. “The right perception is that you’re not here for the short-term, you’re here to grow and live . . . through retirement.”
The first batch to be awarded passports includes Sir Tim Clark, the veteran president of Dubai’s Emirates airline, and Tony Douglas, chief executive of Abu Dhabi’s Etihad Airways, according to people briefed on the decision. Michel Salgado, the Spanish footballer who runs a soccer club in Dubai, has also received a passport. They all declined to comment.
Others include the founders of two successful UAE start-ups: Careem, a ride-hailing app bought by Uber, and Souq.com, an ecommerce group acquired by Amazon. They all declined to comment.
The issuing of passports to dozens of foreigners in recent months is a significant change from the UAE’s traditional way of treating expats, who have been encouraged to leave the territory when their work ended.
Now the government, boosted by the success of its Covid-19 vaccination programme, hopes to convince more wealthy incomers to stay in an effort to boost domestic spending and sustain property prices.
“We want people to call Abu Dhabi home,” said Mohammed Al Shorafa Al Hammadi, chair of the UAE capital’s department of economic development. “The right perception is that you’re not here for the short-term, you’re here to grow and live . . . through retirement.”
The first batch to be awarded passports includes Sir Tim Clark, the veteran president of Dubai’s Emirates airline, and Tony Douglas, chief executive of Abu Dhabi’s Etihad Airways, according to people briefed on the decision. Michel Salgado, the Spanish footballer who runs a soccer club in Dubai, has also received a passport. They all declined to comment.
Others include the founders of two successful UAE start-ups: Careem, a ride-hailing app bought by Uber, and Souq.com, an ecommerce group acquired by Amazon. They all declined to comment.
Moody's affirms #UAE's Aa2 rating; maintains stable outlook | ZAWYA MENA Edition
Moody's affirms UAE's Aa2 rating; maintains stable outlook | ZAWYA MENA Edition
Moody's Investors Service has affirmed the Aa2 long-term issuer rating of the UAE Government and maintained outlook at stable.
The agency said the rating affirmation is supported by the relatively muted impact of the pandemic on the federal government's fiscal strength, in part the result of an effective government policy response to the pandemic.
While limited transparency and geopolitical risks constrain creditworthiness, the UAE's rating is supported by Moody's assumption of unconditional support from Abu Dhabi for the federal government, Moody’s said in a note.
The stable outlook reflects broadly balanced risks, consistent with the stable outlook on the Abu Dhabi sovereign rating.
The country’s progress on vaccination roll-out, among the best in the world, should support the economic recovery, limiting the impact of the pandemic on the UAE's credit metrics, “although the pace of the recovery in key sectors will vary, with trade and potentially tourism likely to recover before air passenger transportation.”
Moody's Investors Service has affirmed the Aa2 long-term issuer rating of the UAE Government and maintained outlook at stable.
The agency said the rating affirmation is supported by the relatively muted impact of the pandemic on the federal government's fiscal strength, in part the result of an effective government policy response to the pandemic.
While limited transparency and geopolitical risks constrain creditworthiness, the UAE's rating is supported by Moody's assumption of unconditional support from Abu Dhabi for the federal government, Moody’s said in a note.
The stable outlook reflects broadly balanced risks, consistent with the stable outlook on the Abu Dhabi sovereign rating.
The country’s progress on vaccination roll-out, among the best in the world, should support the economic recovery, limiting the impact of the pandemic on the UAE's credit metrics, “although the pace of the recovery in key sectors will vary, with trade and potentially tourism likely to recover before air passenger transportation.”
Bahrain May Follow Gulf States by Selling Oil, Pipeline Assets - Bloomberg video
Bahrain May Follow Gulf States by Selling Oil, Pipeline Assets - Bloomberg
Bahrain said it may follow other oil-rich states in the Persian Gulf by selling energy assets.
“We’ve got a lot of infrastructure assets that can easily be” structured for private-equity funding, Oil Minister Mohammed bin Khalifa Al Khalifa said in an interview with Bloomberg Television.
A pipeline connecting the island-nation to Saudi Arabia would be “ideal” for a private-equity deal, he said. Other infrastructure that could attract investment include a liquefied natural gas import ship and upstream assets, he said.
In recent weeks, Saudi Arabia, the United Arab Emirates, Qatar, Oman and Kuwait have all accelerated multi-billion-dollar plans to sell energy assets or issue bonds off the back of them.
Last month, state firm Saudi Aramco said a U.S.-led group would invest $12.4 billion in its oil pipelines. It’s may offer a stake in its natural-gas network next. Abu Dhabi’s Adnoc, meanwhile, is planning initial public offerings of drilling and fertilizer units, after raising around $15 billion in the past year from deals involving its gas pipelines and real estate.
Bahrain is one of the Gulf’s smallest energy producers. It pumps about 50,000 barrels a day of crude from its only wholly owned fields and shares a deposit with Saudi Arabia that produces roughly 150,000 barrels a day.
Bahrain said it may follow other oil-rich states in the Persian Gulf by selling energy assets.
“We’ve got a lot of infrastructure assets that can easily be” structured for private-equity funding, Oil Minister Mohammed bin Khalifa Al Khalifa said in an interview with Bloomberg Television.
A pipeline connecting the island-nation to Saudi Arabia would be “ideal” for a private-equity deal, he said. Other infrastructure that could attract investment include a liquefied natural gas import ship and upstream assets, he said.
In recent weeks, Saudi Arabia, the United Arab Emirates, Qatar, Oman and Kuwait have all accelerated multi-billion-dollar plans to sell energy assets or issue bonds off the back of them.
Bahrain is one of the Gulf’s smallest energy producers. It pumps about 50,000 barrels a day of crude from its only wholly owned fields and shares a deposit with Saudi Arabia that produces roughly 150,000 barrels a day.
Oil prices gain after steep drop in U.S. crude inventories | Reuters
Oil prices gain after steep drop in U.S. crude inventories | Reuters
Oil prices rose for a third day on Wednesday after industry data indicated U.S. crude inventories fell much more than expected last week, reinforcing bullish views on fuel demand in the world's largest economy.
U.S. West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.7%, to $66.12 a barrel at 0704 GMT. Prices climbed as to high as $66.58, the most since March 8.
Brent crude futures were up 49 cents, or 0.7%, at $69.37 a barrel after touching a more than seven-week high of $69.78 earlier in the session.
Both benchmark contracts rose nearly 2% on Tuesday.
Oil prices rose for a third day on Wednesday after industry data indicated U.S. crude inventories fell much more than expected last week, reinforcing bullish views on fuel demand in the world's largest economy.
U.S. West Texas Intermediate (WTI) crude futures rose 43 cents, or 0.7%, to $66.12 a barrel at 0704 GMT. Prices climbed as to high as $66.58, the most since March 8.
Brent crude futures were up 49 cents, or 0.7%, at $69.37 a barrel after touching a more than seven-week high of $69.78 earlier in the session.
Both benchmark contracts rose nearly 2% on Tuesday.
MIDEAST STOCKS Most Gulf markets muted, #Saudi stocks gain on upbeat heavyweight earnings | Reuters
MIDEAST STOCKS Most Gulf markets muted, Saudi stocks gain on upbeat heavyweight earnings | Reuters
Major Gulf stock markets were little changed in early trade on Wednesday, with Saudi Arabian shares edging up on upbeat corporate earnings by heavyweights.
Saudi Arabia's benchmark index (.TASI) was trading nearly 0.1% higher in early trade.
The Saudi National Bank (1180.SE) was up 0.6%, while Saudi Aramco (2222.SE) added 0.1%, extending gains from Tuesday after the state oil producer reported 30% increase in quarterly profit. read more
Arriyadh Development (4150.SE) jumped 4.6% as its first-quarter profit more than tripled from a year ago.
However, Saudi market gains were capped by a 0.5% slip in Saudi Telecom (7010.SE), which traded ex-dividend.
Dubai's benchmark index (.DFMGI) edged up 0.2%. Dubai Islamic Bank (DISB.DU) gained 0.2%, while the blue-chip developer Emaar Properties (EMAR.DU) was down 0.3%.
Ajman Bank (AJBNK.DU) rose as much as 2.4% after it posted higher first-quarter profit.
Dubai's tourism chief on Tuesday said he was very optimistic that business and leisure travellers would return this year, though the pandemic made it difficult to predict exactly how many. read more
Dubai, a trade and tourism hub which has kept its borders open since reopening last July, saw 1.26 million visitors in the first quarter, while last year the number of visitors fell 67% to 5.5 million.
The Abu Dhabi index (.ADI) was flat. Emirates Telecommunications Group (ETISALAT.AD) lost 0.1%, while Waha Capital jumped 3.5% after reporting first-quarter profit of 111 million dirhams ($30.22 million), compared with a 297 million dirhams loss for a year earlier.
Abu Dhabi National Energy Company (TAQA.AD) gained 0.7% as it posted 1.4 billin dirhams profit in the first quarer.
Qatari index (.QSI) was up 0.1%. Qatar National Bank (QNBK.QA) and Qatar Islamic Bank (QISB.QA) both gained 0.2%.
Major Gulf stock markets were little changed in early trade on Wednesday, with Saudi Arabian shares edging up on upbeat corporate earnings by heavyweights.
Saudi Arabia's benchmark index (.TASI) was trading nearly 0.1% higher in early trade.
The Saudi National Bank (1180.SE) was up 0.6%, while Saudi Aramco (2222.SE) added 0.1%, extending gains from Tuesday after the state oil producer reported 30% increase in quarterly profit. read more
Arriyadh Development (4150.SE) jumped 4.6% as its first-quarter profit more than tripled from a year ago.
However, Saudi market gains were capped by a 0.5% slip in Saudi Telecom (7010.SE), which traded ex-dividend.
Dubai's benchmark index (.DFMGI) edged up 0.2%. Dubai Islamic Bank (DISB.DU) gained 0.2%, while the blue-chip developer Emaar Properties (EMAR.DU) was down 0.3%.
Ajman Bank (AJBNK.DU) rose as much as 2.4% after it posted higher first-quarter profit.
Dubai's tourism chief on Tuesday said he was very optimistic that business and leisure travellers would return this year, though the pandemic made it difficult to predict exactly how many. read more
Dubai, a trade and tourism hub which has kept its borders open since reopening last July, saw 1.26 million visitors in the first quarter, while last year the number of visitors fell 67% to 5.5 million.
The Abu Dhabi index (.ADI) was flat. Emirates Telecommunications Group (ETISALAT.AD) lost 0.1%, while Waha Capital jumped 3.5% after reporting first-quarter profit of 111 million dirhams ($30.22 million), compared with a 297 million dirhams loss for a year earlier.
Abu Dhabi National Energy Company (TAQA.AD) gained 0.7% as it posted 1.4 billin dirhams profit in the first quarer.
Qatari index (.QSI) was up 0.1%. Qatar National Bank (QNBK.QA) and Qatar Islamic Bank (QISB.QA) both gained 0.2%.