Air Arabia posts first-quarter net profit despite Covid-19 pandemic | The National

Air Arabia posts first-quarter net profit despite Covid-19 pandemic | The National

Middle East budget carrier Air Arabia recorded a 52 per cent drop in first quarter profit as revenue fell amid tight restrictions on air travel due to the Covid-19 pandemic.

Net profit fell to Dh34 million in the first three months of 2021, compared to Dh71m in the same period last year, Air Arabia said in a statement on Sunday. First quarter revenue declined 37 per cent year-on-year to Dh572m.

"We are proud that Air Arabia managed to post another profitable quarter despite the continued impact of the Covid-19 pandemic on the aviation industry worldwide," Sheikh Abdullah Al Thani, chairman of Air Arabia, said.

"Although the tightened restrictions on air travel continued in first quarter of this year, the gradual resumption to selected destinations combined with cost control measures ... helped to deliver profitability during the first quarter of this year”.

The UAE's only listed airline carried more than 1.3 million passengers in the first three months of this year across its five hubs, down from 2.4 million passengers in the same quarter a year ago.

Emaar Malls reports Dh318 million Q1 2021 net profits, up 169% year on year | Retail – Gulf News

Emaar Malls reports Dh318 million Q1 2021 net profits, up 169% year on year | Retail – Gulf News

Emaar Malls recorded an increase in net profit by 169 per cent to Dh318 million ($ 87 million) during the first quarter of 2021, compared to the net profit of Dh118 million ($ 32 million), during the last-quarter of 2020.

Revenue for the first three months of 2021 amounted to Dh901 million.

Emaar Mall’s ecommerce fashion and lifestyle platform, Namshi, a wholly owned subsidiary, recorded sales of Dh258 million ($ 70 million) for Q1 2021. Namshi’s strong performance is credited to its persistent growth in Saudi Arabia, Kuwait and other GCC countries along with its launch in Qatar in early 2021. Additionally, 117 new brands were launched in Q1 2021, leaving consumers spoilt for choice.

With the worldwide economy and retail industry being impacted by the effects of the Covid-19 pandemic, Emaar Malls recorded healthy profit margins for Q1 2021, and is witnessing continual recovery across its business units.

Etisalat raises $1.2bn through bond sale | The National

Etisalat raises $1.2bn through bond sale | The National

Abu Dhabi-based telecoms operator Etisalat raised €1 billion ($1.21bn) through the issue of new, euro-denominated bonds, the company said on Sunday.

The UAE’s biggest telecoms operator issued €500 million of seven-year and €500m of 12-year bonds under its existing $10bn Euro Medium Term Note programme, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares trade. The proceeds will be used to repay a €1.2 billion bond that matures in June, it added.

“The bonds issuance was completed after conducting roadshows with international investors on 4 and 5 May,” Etisalat said.

The dual-tranche issue was more than six times oversubscribed, it added.

The seven-year tranche offers an annual interest rate of 0.4 per cent, while the 12-year tranche has a coupon rate of 1 per cent.

MIDEAST STOCKS #AbuDhabi outperforms as most Gulf markets gain | Reuters

MIDEAST STOCKS Abu Dhabi outperforms as most Gulf markets gain | Reuters

The Abu Dhabi stock market ended higher on Sunday, outperforming other Gulf markets, while the Dubai index was supported by gains in its property shares.

In Abu Dhabi, the benchmark (.ADI) advanced 1.1%, with First Abu Dhabi Bank (FAB.AD), the country's largest lender, rising 1.1%, whereas International Holding (IHC.AD) closed 3.6% higher, extending gains for a fourth consecutive session.

Last week, the aquaculture firm posted 1.5 billion dirhams ($408.41 million) of profit in the first quarter, up from 112.2 million dirhams a year earlier.

The company's board also approved acquiring a stake in four companies through its units.

Elsewhere, telecoms firm Etisalat (ETISALAT.AD) added 0.5%.

The Abu Dhabi-based telecoms operator Etisalat is set to raise 1 billion euros ($1.22 billion) in dual-tranche bonds on Thursday, Reuters reported, citing a document from one of the banks leading the deal.

Dubai's main share index (.DFMGI) finished 0.8% higher, led by a 2.3% leap in Emaar Properties (EMAR.DU), Dubai's biggest developer, while its shopping centre unit Emaar Malls (EMAA.DU) added 1.6%.

Dubai's tourism chief last week said he was very optimistic business and leisure travellers would return this year, though the pandemic made it difficult to predict exactly how many. read more

In Qatar, the index (.QSI) reversed earlier losses to close 0.4% higher, with Commercial Bank (COMB.QA) rising 3.1%.

Saudi Arabia's benchmark index (.TASI) concluded flat, as gains in property shares were countered by declines in fnancials.

Outside the Gulf, Egypt's blue-chip index (.EGX30) was up 0.5%, helped by a 0.8% rise in top lender Commercial International Bank Egypt (COMI.CA).

Foreign investors were net buyers on Sunday, helping the main index rise for the third straight session.

#Dubai Shares Gain Amid Property Recovery Optimism: Inside EM - Bloomberg

Dubai Shares Gain Amid Property Recovery Optimism: Inside EM - Bloomberg

Stocks in Dubai were among the biggest gainers across the Middle East amid optimism that Emaar Properties PJSC earnings may point to a wider recovery in the emirate.

The Dubai Financial Market General Index jumped 0.8% as Emaar advanced as much as 2.8%, the biggest gain on the gauge in point terms. Qatar’s main index rose 0.4%, even after the country’s finance minister was ordered detained Thursday.

Growing confidence Gulf states are on the cusp of an economic rebound is stoking speculation that property developers will be the biggest beneficiaries. Emaar Properties, which is due to release earnings results in coming days, said last month first-quarter property sales more than doubled from the same period last year. Its malls unit on Sunday reported first-quarter net income that beat the average analyst estimate.

“The focus will be on Emaar’s results in Dubai to see the impact of stabilizing real-estate prices on the emirate’s largest developer and bellwether stock,” said Hasnain Malik, the head of research at Tellimer in Dubai.

Equity markets elsewhere in the region were also buoyed by expectations governments and central banks around the world will keep stimulus in place for the time being. U.S. stocks rose Friday, with the S&P 500 Index hitting a record, even after a much weaker-than-expected jobs report.

Gauges in Abu Dhabi, Kuwait, Bahrain, Egypt and Israel gained, while Saudi Arabian and Omani shares were little changed.

While the jobs report reaffirmed the outlook for loose policy in the U.S., regional markets are digesting an order for the arrest of Qatar’s finance minister as well as earnings misses versus expectations, Malik wrote in emailed comments.

Markets in Saudi Arabia, Dubai and Egypt were among those trading at lower-than-average volume on Sunday. Investors are less likely to build positions ahead of the long Eid holiday, Divye Arora, a portfolio manager at Daman Investments said by phone.

MIDDLE EASTERN MARKETS:

• Dubai Financial Market General Index rises for a third session
• Emaar Properties +2.3%; Dubai Islamic Bank +1.1%; Damac Properties +3.3%
• Abu Dhabi’s ADX General Index closes 1.1% higher
• Arkan Building Materials rises 15%
• Qatar Exchange Index rises 0.4%
• Commercial Bank of Qatar +3.1%; Qatar Insurance +3.2%; Mesaieed Petrochemical +1.7%
• Doha Bank gains 10%, trading limit up
• The bank is the “least expensive bank in Qatar and we are seeing some opportunistic buying in the name,” Saugata Sarkar, head of research at QNB Financial Services writes in an email
• NOTE: Qatar’s prosecutor ordered the arrest of Finance Minister Ali Sharif Al-Emadi to question him over alleged abuse of power and misuse of public funds
• Al-Emadi was removed from post and Ali Al-Kuwari, the Trade and Industry minister, was named as acting finance minister
• Saudi Arabia’s Tadawul All Share Index little-changed after rising as much as 0.4%
• Kuwait’s Premier Market Index jumps 0.2%, up for a sixth day
• “The major contributor to the recent rally in Kuwait Premier Markets has been the surge in Agility’s shares” following a $4.1 billion deal with DSV Panalpina, says M.R. Raghu, CEO, Marmore Mena Intelligence
• “In addition, shares of Islamic banks such as KFH and Boubyan Bank have been rallying on the back of strong earnings in recent quarters,” he writes in an email

#AbuDhabi's ADNOC invites banks to pitch for bookrunner roles for drilling unit IPO-sources | Reuters

Abu Dhabi's ADNOC invites banks to pitch for bookrunner roles for drilling unit IPO-sources | Reuters

Abu Dhabi National Oil Co (ADNOC) has invited investment banks to pitch for bookrunner roles for the initial public offering of its drilling unit, two sources told Reuters on Sunday.

The oil giant invited a handful of international and local banks to take part in the process of the public share sale of ADNOC Drilling, which is due later this month, they said.

ADNOC is planning to take the unit public in the third quarter, they added. One of the sources previously said ADNOC could raise at least $1 billion from the share sale. read more

ADNOC, which supplies nearly 3% of global oil demand, declined to comment when contacted by Reuters on Sunday.

ADNOC Drilling owns and operates a large fleet of rigs, including 75 onshore rigs, 20 offshore jackup rigs, and 11 well water rigs, according to its website.

The drilling business is critical for ADNOC’s upstream operations, helping the oil company reach its production targets.

ADNOC Chief Executive Sultan al-Jaber has been chief architect of the transformation strategy the company embarked on more than four years ago, building an investment team to monetise assets and raise funds from international private equity groups.

It is also planning to float Fertiglobe, a fertiliser joint venture with Dutch-listed chemical producer OCI (OCI.AS) later this year.

#UAE energy firm Dana Gas moving ahead with expansion plans, posts 41% rise in net profit | ZAWYA MENA Edition

UAE energy firm Dana Gas moving ahead with expansion plans, posts 41% rise in net profit | ZAWYA MENA Edition

Abu Dhabi-listed energy firm Dana Gas is committed to go ahead with its plan to boost its output capacity in the Kurdish region, chief executive officer Patrick Allman-Ward said on Sunday.

Dana reported a strong performance for the first three months of the year, with net profits rising by 41 percent to $24 million, compared to $17 million during the same period last year.

The company attributed the increase in net profit to improved revenues from higher production in the Kurdistan Region of Iraq (KRI), as well as a reduction in finance cost due to lower borrowings in the first quarter of 2021. 

“Dana Gas has delivered a strong quarter with robust operational performance, continuing the positive momentum from the previous period. In the KRI, we are moving ahead without expansion plans to significantly boost production,” the CEO said.

Dana Gas is looking to increase production output in the KRI from 440 million standard cubic feet per day (mmscf/d) to 690 mmscf/d by April 2023.

The energy firm, through the consortium Pearl Petroleum, and its partner Crescent Petroleum, has announced the resumption of the expansion project at the Khor Mor field in KRI.

The KM250 project, which involves a further investment by Pearl of $600 million, was earlier put on hold due to the coronavirus pandemic.

“[The project] is now on track for a new target start date of April 2023, after [an] agreement to lift the force majeure,” Dana Gas said.

“This will contribute positively to our top and bottom line,” Dana said.

#AbuDhabi ADQ Offers to Form Steel, Building Materials Giant - Bloomberg

Abu Dhabi ADQ Offers to Form Steel, Building Materials Giant - Bloomberg

Abu Dhabi is seeking to create the largest steel and building materials company in the United Arab Emirates.

ADQ, one of Abu Dhabi’s three sovereign wealth funds, plans to combine Emirates Steel Industries PJSC with Arkan Building Materials Co. and form an entity with total assets of about 13 billion dirhams ($3.54 billion). Arkan shares surged as much as 10% in Abu Dhabi.

Abu Dhabi has been merging some companies as it looks to bolster the economy and diversify from hydrocarbon production. Since being founded in 2018, ADQ grew quickly to join the ranks of the world’s top 20 sovereign funds and is now the UAE capital’s third-largest after Abu Dhabi Investment Authority and Mubadala Investment Co.

The wealth fund is betting that the combined group will be well placed to capitalize on an economic recovery as well as an acceleration in infrastructure projects on the back of government stimulus programs.

As part of the offer, Arkan will issue a convertible instrument to ADQ-controlled Senaat, which owns Emirates Steel. The deal values Arkan at 1.4 billion dirhams and Senaat will own about 87.5% of the combined group post completion, the companies said on Sunday.

“It would mark the first time that investors will have access to a steel producer on a UAE public market, which is expected to have a positive impact on overall demand and liquidity for the combined group’s shares,” Senaat said in a statement.

Details of the offer:

• Conversion price is 0.798 dirham per Arkan share, the same as the stock’s close on Thursday
• Arkan shares have doubled from a July 2020 low
• Rothschild & Co. is the financial adviser to Senaat and its shareholder
• If Arkan board recommends the offer, the transaction could close during the second half

MIDEAST STOCKS #AbuDhabi leads most major Gulf markets higher in early trade | Reuters

MIDEAST STOCKS Abu Dhabi leads most major Gulf markets higher in early trade | Reuters

Most major Gulf stock markets rose in early trade on Sunday, with aquaculture firm International Holding continuing to support the Abu Dhabi index.

The index (.ADI) increased 0.7%, with First Abu Dhabi Bank (FAB.AD), the country's largest lender, rising 0.7%, whereas International Holding (IHC.AD) climbed over 1%, on track to extend gains for a fourth consecutive session.

International Holding posted 1.5 billion dirhams ($408.4 million) of profit in the first quarter compared with 112.2 million dirhams a year earlier.

The company's board also approved acquiring stake in four companies through its units.

Elsewhere, telecoms firm Etisalat (ETISALAT.AD) was up 0.5%.

The Abu Dhabi-based telecoms operator Etisalat is set to raise 1 billion euros ($1.22 billion) in dual-tranche bonds on Thursday, Reuters reported, citing a document from one of the banks leading the deal.

Saudi Arabia's benchmark index (.TASI) added 0.3%, with Jabal Omar Development (4250.SE), one of Saudi Arabia's largest listed property developers, rebounding over 3%.

In the previous session, the developer retreated following a news report saying that the kingdom is considering barring overseas pilgrims from the annual haj for the second year running as COVID-19 cases rise globally and worries grow about the emergence of new variants. read more

In Dubai, the main share index (.DFMGI) rose 0.7%, buoyed by gains in property shares. Emaar Properties (EMAR.DU), Dubai's biggest developer, advanced 1.8%, while its shopping centre unit Emaar Malls (EMAA.DU) traded 2.6% higher.

Dubai's tourism chief last week said he was very optimistic business and leisure travellers would return this year, though the pandemic made it difficult to predict exactly how many. read more

In Qatar, the benchmark (.QSI) eased 0.1%, hit by a 0.8% fall in petrochemical firm Industries Qatar (IQCD.QA).