Kuwait's emir appoints KIA board for four years - KUNA | Reuters
Kuwait’s emir on Saturday issued a decree appointing the Kuwait Investment Authority’s (KIA) board of directors for four years, the state news agency (KUNA) reported.
The Gulf state’s sovereign wealth fund board consists of Khaled Al-Fadhel, Meshaal Jaber Al-Sabah, Fahad M Al-Rashed, Faisal Al-Hamad and Ghanem Suleiman Saqr Al-Ghunaiman, KUNA added.
The move was approved by Kuwait’s cabinet on Monday, the newspaper al-Qabas said.
KIA’s previous board tenure expired in April and sources have previously said the delay in appointing new board members was the result of political deadlock.
Saturday 7 August 2021
#Kuwait Posts Record $36 Billion Deficit on Oil Price Drop, Virus - Bloomberg
Kuwait Posts Record $36 Billion Deficit on Oil Price Drop, Virus - Bloomberg
Kuwait’s budget deficit swelled to a record in the year through March as oil prices plunged and the coronavirus pandemic negatively impacted the economy.
The gap climbed 175% to 10.8 billion dinars ($36 billion) in the last fiscal year, compared with a year earlier, the Finance Ministry said in a statement on Saturday.
The OPEC member has been battling to reduce its deficit due to its dependence on oil revenues, and high spending on civil servant wages and subsidies. Ongoing political squabbles have prevented the government from passing laws to allow it to borrow and withdraw as much as 5 billion dinars a year from the Future Generations Fund -- a $700 billion savings pot designed for life after oil. The country hasn’t been to the market since a debut Eurobond in 2017.
Lawmakers have said the government should better manage its finances and fight corruption before resorting to debt.
Last month Kuwait was downgraded by S&P Global Ratings for a second time in less than two years. The rating agency said the downgrade reflects “the persistent lack of a comprehensive funding strategy despite the central government’s ongoing sizable deficits.”
Kuwait’s government projects a cumulative budget deficit of 55.4 billion dinars in the five fiscal years ending March 31, 2025.
Other Highlights
Kuwait’s budget deficit swelled to a record in the year through March as oil prices plunged and the coronavirus pandemic negatively impacted the economy.
The gap climbed 175% to 10.8 billion dinars ($36 billion) in the last fiscal year, compared with a year earlier, the Finance Ministry said in a statement on Saturday.
The OPEC member has been battling to reduce its deficit due to its dependence on oil revenues, and high spending on civil servant wages and subsidies. Ongoing political squabbles have prevented the government from passing laws to allow it to borrow and withdraw as much as 5 billion dinars a year from the Future Generations Fund -- a $700 billion savings pot designed for life after oil. The country hasn’t been to the market since a debut Eurobond in 2017.
Lawmakers have said the government should better manage its finances and fight corruption before resorting to debt.
Last month Kuwait was downgraded by S&P Global Ratings for a second time in less than two years. The rating agency said the downgrade reflects “the persistent lack of a comprehensive funding strategy despite the central government’s ongoing sizable deficits.”
Kuwait’s government projects a cumulative budget deficit of 55.4 billion dinars in the five fiscal years ending March 31, 2025.
Other Highlights
- Income for the year through March fell 39% to 10.5 billion dinars, while spending rose 0.7% to 21.3 billion, the finance ministry said.
- Salaries and subsidies in the 2020-21 fiscal year accounted for 73% of spending, while 9% of expenses was on capital expenditure and infrastructure. The average price of Kuwaiti crude in the period was $42.4 a barrel.
- Non-oil revenue fell 6.5% to 1.7 billion dinars in the period.
- A 10% transfer of total revenues to the FGF didn’t take place in line with a law passed by parliament in 2020 to halt such transfers in years of deficit.
- The current fiscal year’s deficit starting April 1 is projected at 12.1 billion dinars, with spending and revenue forecast at 23 billion and 10.9 billion, respectively. Wages and subsidies account for 71.6% of the budget, while capital expenditure stands at 15% of total spending.
Analysts predict tripling of #Saudi Aramco profit as upstream earnings increase
Analysts predict tripling of Saudi Aramco profit as upstream earnings increase
Saudi Aramco will post a second-quarter profit of $24.7 billion, a year-on-year increase of more than 250 percent as the price of crude surged from the pandemic-hit lows of last year, analysts said before it reports financial results this Sunday.
Bank of America predicts a net profit of $24 billion in the second quarter, up 16 percent from the previous three months. JPMorgan estimates $23.7 billion, while Alrajhi Capital is expecting Aramco to report $25.3 billion.
“Against a positively trending demand/price backdrop, we expect a robust quarterly net income print from Aramco,” JPMorgan analyst Christian Malek wrote in a report to investors.
All eyes will be on the size of Aramco’s dividend, which it maintained at $75 billion last year even as demand for crude and related products collapsed amid the COVID-19 pandemic.
Saudi Aramco will post a second-quarter profit of $24.7 billion, a year-on-year increase of more than 250 percent as the price of crude surged from the pandemic-hit lows of last year, analysts said before it reports financial results this Sunday.
Bank of America predicts a net profit of $24 billion in the second quarter, up 16 percent from the previous three months. JPMorgan estimates $23.7 billion, while Alrajhi Capital is expecting Aramco to report $25.3 billion.
“Against a positively trending demand/price backdrop, we expect a robust quarterly net income print from Aramco,” JPMorgan analyst Christian Malek wrote in a report to investors.
All eyes will be on the size of Aramco’s dividend, which it maintained at $75 billion last year even as demand for crude and related products collapsed amid the COVID-19 pandemic.
Analysis: Winter is coming: temperature extremes fuel global gas rally | Reuters
Analysis: Winter is coming: temperature extremes fuel global gas rally | Reuters
Global gas prices are expected to break records this winter as a hot northern hemisphere summer leaves inventories low in key markets, just as green energy drives ramp up in new regions.
Benchmark Dutch natural gas prices in northwest Europe have surged 80% in the past three months to all-time highs, while spot liquefied natural gas (LNG) in Asia is at an eight-year seasonal high, Reuters data showed.
Traders are betting that average winter prices will surpass last year's peaks, when a deep freeze across north Asia sent LNG soaring more than 200% to record highs.
"Storage levels are quite low in many places as a hot summer has meant that there has not been much chance to replenish stocks, so this could be bullish for winter, especially if it's going to be freezing again," a Singapore-based trader said.
The average price for a December LNG derivatives contract in Northeast Asia is about $17.65 per mmBtu, and around $17.80 per mmBtu for January, a Singapore-based industry source said.
Global gas prices are expected to break records this winter as a hot northern hemisphere summer leaves inventories low in key markets, just as green energy drives ramp up in new regions.
Benchmark Dutch natural gas prices in northwest Europe have surged 80% in the past three months to all-time highs, while spot liquefied natural gas (LNG) in Asia is at an eight-year seasonal high, Reuters data showed.
Traders are betting that average winter prices will surpass last year's peaks, when a deep freeze across north Asia sent LNG soaring more than 200% to record highs.
"Storage levels are quite low in many places as a hot summer has meant that there has not been much chance to replenish stocks, so this could be bullish for winter, especially if it's going to be freezing again," a Singapore-based trader said.
The average price for a December LNG derivatives contract in Northeast Asia is about $17.65 per mmBtu, and around $17.80 per mmBtu for January, a Singapore-based industry source said.
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