Amen to that: Norway's wealth fund boss preaches sustainable finance in church | Reuters
Nicolai Tangen broke new ground as the head of Norway's $1.3 trillion sovereign wealth fund on Tuesday by preaching on the virtues of sustainable capitalism in a church.
"Capitalism is undergoing an incredible transformation, at the fastest pace I have seen in my life," Tangen told around 170 people gathered at the 19th century neo-Gothic Trinity Church in Arendal, southern Norway.
"Shareholders have more influence than ever before on how to run companies, annual general meetings see many more debates especially on executive pay, and climate change is discussed with more and more companies," said the former hedge fund manager, who became the fund's CEO a year ago.
The fund pools the state's oil revenues and invests them abroad. It has an ethical mandate and does not invest in firms deemed unethical, such as tobacco producers.
Wednesday 18 August 2021
Oil skids for fifth day on COVID surge, worries about more supply | Reuters
Oil skids for fifth day on COVID surge, worries about more supply | Reuters
Crude prices fell for a fifth day on Wednesday, as investors remain worried about the outlook for fuel demand as COVID-19 cases surge worldwide just as more supply reaches the market from large global producers, including the United States.
Oil benchmarks have been under pressure for the last few weeks due to the rise in infections caused by the Delta variant of the coronavirus worldwide. Several countries have re-introduced travel restrictions and air traffic has softened in recent weeks. read more
Minutes of the U.S. Federal reserve's July 27-28 policy meeting showed officials noted the spread of the Delta variant could temporarily delay the full reopening of the economy, and restrain the jobs market. read more
Brent crude ended down 80 cents, or 1.2%, at $68.23 a barrel. The global benchmark has lost 11% in the last 13 trading days dating to the end of July. U.S. crude futures settled down $1.13, or 1.7%, to $65.46 a barrel.
U.S. crude inventories fell 3.2 million barrels last week to 435.5 million barrels, their lowest since January 2020, according to U.S. Energy Department figures.
Crude prices fell for a fifth day on Wednesday, as investors remain worried about the outlook for fuel demand as COVID-19 cases surge worldwide just as more supply reaches the market from large global producers, including the United States.
Oil benchmarks have been under pressure for the last few weeks due to the rise in infections caused by the Delta variant of the coronavirus worldwide. Several countries have re-introduced travel restrictions and air traffic has softened in recent weeks. read more
Minutes of the U.S. Federal reserve's July 27-28 policy meeting showed officials noted the spread of the Delta variant could temporarily delay the full reopening of the economy, and restrain the jobs market. read more
Brent crude ended down 80 cents, or 1.2%, at $68.23 a barrel. The global benchmark has lost 11% in the last 13 trading days dating to the end of July. U.S. crude futures settled down $1.13, or 1.7%, to $65.46 a barrel.
U.S. crude inventories fell 3.2 million barrels last week to 435.5 million barrels, their lowest since January 2020, according to U.S. Energy Department figures.
UPDATE 3-Norway wealth fund earned $111 bln in H1 but warns of inflation risk | Reuters
UPDATE 3-Norway wealth fund earned $111 bln in H1 but warns of inflation risk | Reuters
Norway’s $1.4 trillion sovereign wealth fund, the world’s largest, posted a 9.4% return on investment for the first half of the year on Wednesday but warned that signs of inflation seen worldwide could lead to unprecedented losses.
The fund’s handsome return was driven by a sharp rise in global equities, particularly energy, finance and tech stocks, earning it 990 billion crowns ($111 billion) in the January-June period.
That was 0.28 percentage point higher than the fund’s benchmark index - and equivalent to a little over $20,000 for every Norwegian man, woman and child.
But the fund, which holds stakes in over 9,100 companies worldwide, is concerned that signs of inflation observed in things such as wages, freight rates or raw materials, will lead to much higher interest rates worldwide.
Norway’s $1.4 trillion sovereign wealth fund, the world’s largest, posted a 9.4% return on investment for the first half of the year on Wednesday but warned that signs of inflation seen worldwide could lead to unprecedented losses.
The fund’s handsome return was driven by a sharp rise in global equities, particularly energy, finance and tech stocks, earning it 990 billion crowns ($111 billion) in the January-June period.
That was 0.28 percentage point higher than the fund’s benchmark index - and equivalent to a little over $20,000 for every Norwegian man, woman and child.
But the fund, which holds stakes in over 9,100 companies worldwide, is concerned that signs of inflation observed in things such as wages, freight rates or raw materials, will lead to much higher interest rates worldwide.
Oil Climbs After Four-Day Slump With U.S. Stockpiles in Focus - Bloomberg
Oil Climbs After Four-Day Slump With U.S. Stockpiles in Focus - Bloomberg
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#Dubai contractor Drake & Scull reports $21.2mln net profit for H1 2021 | ZAWYA MENA Edition
Dubai contractor Drake & Scull reports $21.2mln net profit for H1 2021 | ZAWYA MENA Edition
Dubai-listed contractor Drake & Scull International (DSI) has reported a net profit of 78 million dirhams ($21.2 million) for the first half of 2021.
The company’s revenue increased to 82 million dirhams from 78 million dirhams for the same period in 2020, a statement to the Dubai Financial Market (DFM) said on Wednesday.
As of June this year, accumulated losses amounted to 4.82 billion dirhams, compared to 4.9 billion dirhams at the end of December 2020.
The losses have been attributed to, among others, the work in progress and contract receivables in the company’s legacy projects in Oman, Egypt, Jordan, India and the UAE.
Dubai-listed contractor Drake & Scull International (DSI) has reported a net profit of 78 million dirhams ($21.2 million) for the first half of 2021.
The company’s revenue increased to 82 million dirhams from 78 million dirhams for the same period in 2020, a statement to the Dubai Financial Market (DFM) said on Wednesday.
As of June this year, accumulated losses amounted to 4.82 billion dirhams, compared to 4.9 billion dirhams at the end of December 2020.
The losses have been attributed to, among others, the work in progress and contract receivables in the company’s legacy projects in Oman, Egypt, Jordan, India and the UAE.
MIDEAST STOCKS Major Gulf markets end mixed on concerns over spread of Delta variant | Reuters
MIDEAST STOCKS Major Gulf markets end mixed on concerns over spread of Delta variant | Reuters
Major stock markets in the Gulf ended mixed on Wednesday amid concerns about the economic impact of the ongoing spread of the Delta variant of the coronavirus.
"GCC stock markets' performances were mixed as the global uncertainties about an economic slowdown and the worries about the COVID-19 expansion start taking over in the region," said Daniel Takieddine, senior market analyst at FXPrimus.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, with Saudi Telecom Company (7010.SE) declining 2.2% and petrochemical maker Saudi Basic Industries Corp (2010.SE).
Among other decliners, Gulf Union Alahlia Cooperative Insurance (8120.SE) slid 6.6% to become the heaviest faller on the index, after it reported a quarterly net loss of 46.8 million riyals ($12.48 million).
The pandemic has returned to the front line as new shutdowns are feared and booster vaccine shots are being discussed more widely, added Takieddine.
On the other hand, Oil prices steadied after four days of declines, with investors still worried about the outlook for fuel demand as the use of rail, air and other forms of transport is constrained by surging COVID-19 cases worldwide.
In Abu Dhabi, the index (.ADI) fell 0.5%, dragged down by a 2.5% fall in Emirates Telecommunications Group (Etisalat) (ETISALAT.AD).
On Tuesday, Etisalat gained 2.4% after signing an agreement to take an additional stake in Maroc Telecom Group for about $505 million.
Dubai's main share index (.DFMGI) reversed early losses to close 0.9% higher, boosted by a 1.7% rise in blue-chip developer Emaar Properties (EMAR.DU).
However, Dubai-based district cooling firm Tabreed (TABR.DU) retreated 1%, extending losses from the previous session.
Tabreed divested its stake in joint venture firm Qatar Cool through a sale to United Development Company (UDC) (UDCD.QA), the company said in a statement on Tuesday. read more
Back in Qatar, UDC finished 1% higher.
The Qatari benchmark (.QSI) lost 0.1%, with Qatar National Bank (QNBK.QA), the Gulf's largest lender, rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.3%, as most of the stocks on the index were in negative territory including Fawry for Banking Technology and Electronic (FWRY.CA), which was down 3.4%.
Major stock markets in the Gulf ended mixed on Wednesday amid concerns about the economic impact of the ongoing spread of the Delta variant of the coronavirus.
"GCC stock markets' performances were mixed as the global uncertainties about an economic slowdown and the worries about the COVID-19 expansion start taking over in the region," said Daniel Takieddine, senior market analyst at FXPrimus.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, with Saudi Telecom Company (7010.SE) declining 2.2% and petrochemical maker Saudi Basic Industries Corp (2010.SE).
Among other decliners, Gulf Union Alahlia Cooperative Insurance (8120.SE) slid 6.6% to become the heaviest faller on the index, after it reported a quarterly net loss of 46.8 million riyals ($12.48 million).
The pandemic has returned to the front line as new shutdowns are feared and booster vaccine shots are being discussed more widely, added Takieddine.
On the other hand, Oil prices steadied after four days of declines, with investors still worried about the outlook for fuel demand as the use of rail, air and other forms of transport is constrained by surging COVID-19 cases worldwide.
In Abu Dhabi, the index (.ADI) fell 0.5%, dragged down by a 2.5% fall in Emirates Telecommunications Group (Etisalat) (ETISALAT.AD).
On Tuesday, Etisalat gained 2.4% after signing an agreement to take an additional stake in Maroc Telecom Group for about $505 million.
Dubai's main share index (.DFMGI) reversed early losses to close 0.9% higher, boosted by a 1.7% rise in blue-chip developer Emaar Properties (EMAR.DU).
However, Dubai-based district cooling firm Tabreed (TABR.DU) retreated 1%, extending losses from the previous session.
Tabreed divested its stake in joint venture firm Qatar Cool through a sale to United Development Company (UDC) (UDCD.QA), the company said in a statement on Tuesday. read more
Back in Qatar, UDC finished 1% higher.
The Qatari benchmark (.QSI) lost 0.1%, with Qatar National Bank (QNBK.QA), the Gulf's largest lender, rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.3%, as most of the stocks on the index were in negative territory including Fawry for Banking Technology and Electronic (FWRY.CA), which was down 3.4%.
Column: Coronavirus flare-ups delay full oil demand recovery: Kemp | Reuters
Column: Coronavirus flare-ups delay full oil demand recovery: Kemp | Reuters
U.S. petroleum consumption has recovered to pre-pandemic levels, but there has been a marked shift from consumer-facing sectors towards industry and freight transportation, mirroring the uneven economic recovery.
The total volume of petroleum products supplied to domestic customers climbed to 20.1 million barrels per day (bpd) in May, according to the Energy Information Administration (“Petroleum supply monthly”, EIA, July 30).
Volumes were down by less than 300,000 bpd (1.4%) from the same month in 2019, before the COVID-19 pandemic, and were actually 200,000 bpd (1.1%) above the pre-pandemic five-year average for 2015-2019.
But continued strong growth in consumption of hydrocarbon gas liquids (HGLs), mostly used in petrochemicals and other industries, has masked an incomplete recovery in fuels supplied to end-users.
U.S. petroleum consumption has recovered to pre-pandemic levels, but there has been a marked shift from consumer-facing sectors towards industry and freight transportation, mirroring the uneven economic recovery.
The total volume of petroleum products supplied to domestic customers climbed to 20.1 million barrels per day (bpd) in May, according to the Energy Information Administration (“Petroleum supply monthly”, EIA, July 30).
Volumes were down by less than 300,000 bpd (1.4%) from the same month in 2019, before the COVID-19 pandemic, and were actually 200,000 bpd (1.1%) above the pre-pandemic five-year average for 2015-2019.
But continued strong growth in consumption of hydrocarbon gas liquids (HGLs), mostly used in petrochemicals and other industries, has masked an incomplete recovery in fuels supplied to end-users.
40 people jailed, fined Dh860m for fraud and money laundering in #AbuDhabi | Crime – Gulf News
40 people jailed, fined Dh860m for fraud and money laundering in Abu Dhabi | Crime – Gulf News
At least forty defendants of different nationalities were sentenced to prison terms, ranging between 5 and 10 years and a fine of about 860 million dirhams in total for fraud and money laundering, the Abu Dhabi Criminal Court has ruled.
Twenty-three defendants were handed down 10 years in prison and Dh10 million fine each, 11 others got seven-year prison and Dh10 million fine each, while another convict was jailed five years and fined Dh10 million.
The court also sentenced five defendants to six months in prison and a fine of Dh20,000 each. The court also ordered confiscation of all funds and proceeds of the crime and deportation of 23 foreign convicts after serving their terms.
At least forty defendants of different nationalities were sentenced to prison terms, ranging between 5 and 10 years and a fine of about 860 million dirhams in total for fraud and money laundering, the Abu Dhabi Criminal Court has ruled.
Twenty-three defendants were handed down 10 years in prison and Dh10 million fine each, 11 others got seven-year prison and Dh10 million fine each, while another convict was jailed five years and fined Dh10 million.
The court also sentenced five defendants to six months in prison and a fine of Dh20,000 each. The court also ordered confiscation of all funds and proceeds of the crime and deportation of 23 foreign convicts after serving their terms.
#Qatar banks’ first-half 2021 net profit returns to pre-pandemic levels | Banking – Gulf News
Qatar banks’ first-half 2021 net profit returns to pre-pandemic levels | Banking – Gulf News
Eight leading Qatari banks reported an aggregate net profit of QAR11.8 billion ($3.2 billion), up 12 per cent from the year-earlier and 1 per cent higher than in the first half of 2019.
The rise in earnings were largely driven by an increase in both net interest and non-interest income.
Growth in net profit was consistent across the banks and largely driven by an increase in both net interest and non-interest income, according to rating agency Moody’s.
Loan-loss provisions remained elevated while costs were broadly flat. The recovery of oil prices and the resolution of Qatar’s diplomatic dispute with some of its neighbours are expected to support the banks’ full-year performance in 2021.
“We expect bottom-line profitability to remain stable in the second half of the year and relatively strong compared with regional peers,” said Nitish Bhojnagarwala, Vice President and Senior Credit Analyst at Moody’s.
Eight leading Qatari banks reported an aggregate net profit of QAR11.8 billion ($3.2 billion), up 12 per cent from the year-earlier and 1 per cent higher than in the first half of 2019.
The rise in earnings were largely driven by an increase in both net interest and non-interest income.
Growth in net profit was consistent across the banks and largely driven by an increase in both net interest and non-interest income, according to rating agency Moody’s.
Loan-loss provisions remained elevated while costs were broadly flat. The recovery of oil prices and the resolution of Qatar’s diplomatic dispute with some of its neighbours are expected to support the banks’ full-year performance in 2021.
“We expect bottom-line profitability to remain stable in the second half of the year and relatively strong compared with regional peers,” said Nitish Bhojnagarwala, Vice President and Senior Credit Analyst at Moody’s.
#UAE reinforces commitment to combat money laundering and terrorist financing
UAE reinforces commitment to combat money laundering and terrorist financing
The UAE’s Ministry of Economy on Tuesday reaffirmed its commitment to fighting money laundering and the financing of terrorism and illegal organisations, in line with its aim of fully complying with the International Financial Action Task Force obligations.
The private sector is a strategic partner in achieving the country's goals including compliance with regulation and supervision of the Designated Non-Financial Businesses and Professions, the ministry said in a statement on Tuesday.
DNFBPs include professions outside the financial services sector that have higher anti-money laundering and combating the financing of terrorism (AML/CFT) exposure.
“We count on the partnership and cooperation of the DNFBPs to achieve the highest levels of oversight and compliance and contribute towards protecting these sectors’ investments from money laundering risks,” Mohamed Al Janahi, head of AML Supervision at the Ministry of Economy, said.
The UAE’s Ministry of Economy on Tuesday reaffirmed its commitment to fighting money laundering and the financing of terrorism and illegal organisations, in line with its aim of fully complying with the International Financial Action Task Force obligations.
The private sector is a strategic partner in achieving the country's goals including compliance with regulation and supervision of the Designated Non-Financial Businesses and Professions, the ministry said in a statement on Tuesday.
DNFBPs include professions outside the financial services sector that have higher anti-money laundering and combating the financing of terrorism (AML/CFT) exposure.
“We count on the partnership and cooperation of the DNFBPs to achieve the highest levels of oversight and compliance and contribute towards protecting these sectors’ investments from money laundering risks,” Mohamed Al Janahi, head of AML Supervision at the Ministry of Economy, said.
Rasmada's Taqi on #Kuwait's Cut in Government Spending - Bloomberg video
Rasmada's Taqi on Kuwait's Cut in Government Spending - Bloomberg
Ali Taqi, Rasmada Investment Bank Head of Equities, discusses Kuwait's cuts in government spending. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
From Woodside to Aramco, Big Oil’s Next Merger Mania Has an Eye on Its Demise - Bloomberg
From Woodside to Aramco, Big Oil’s Next Merger Mania Has an Eye on Its Demise - Bloomberg
Is a barren year for oil industry deal activity finally coming to an end?
So far there’s been $86 billion of takeovers announced, pending or completed, according to data compiled by Bloomberg. If things continue at those rates through December, it will be one of the most lackluster years for energy deal-making in two decades.
Hope is on the horizon. Saudi Arabian Oil Co. is finally growing close to an equity swap with Reliance Industries Ltd. after years of gestation, people with knowledge of the matter told Bloomberg this week. Meanwhile, BHP Group announced plans Tuesday to merge its oil and gas business with Woodside Petroleum Ltd. in a share-based deal that would see the mining company quit the petroleum sector and roughly double Woodside’s output. With the first valued at an estimated $20 billion to $25 billion and the latter worth about $15 billion at Woodside’s current share price, that would instantly increase the year’s tally by almost half.
Don’t take that for a sign that animal spirits are picking up in the industry. Although crude prices touched a three-year high last month and cash is once again flowing freely, this wave of deal activity doesn’t suggest an industry gearing up for a rally in demand.
Is a barren year for oil industry deal activity finally coming to an end?
So far there’s been $86 billion of takeovers announced, pending or completed, according to data compiled by Bloomberg. If things continue at those rates through December, it will be one of the most lackluster years for energy deal-making in two decades.
Don’t take that for a sign that animal spirits are picking up in the industry. Although crude prices touched a three-year high last month and cash is once again flowing freely, this wave of deal activity doesn’t suggest an industry gearing up for a rally in demand.
#Israel's El Al Airlines Q2 loss narrows, seeks more state aid | Reuters
Israel's El Al Airlines Q2 loss narrows, seeks more state aid | Reuters
Israeli airline El Al (ELAL.TA) on Wednesday called for more financial aid from the government to help it weather the effects of the Delta variant as it posted a narrower quarterly net loss than the year ago period on an improvement in air travel.
El Al, which has new ownership and management, has reported losses for three years and racked up debt to renew its fleet which has reached 45 planes at an average of 10 years old.
It was hit hard after suspending scheduled passenger flights in March 2020 at the outset of the COVID-19 health crisis when Israel, like other countries, closed its borders to most foreigners, compounding its financial woes.
In the April-June quarter, El Al laid off 1,900 employees, nearly one-third of its staff, as part of a recovery plan mandated by the government to receive a $210 million bailout package.
Israeli airline El Al (ELAL.TA) on Wednesday called for more financial aid from the government to help it weather the effects of the Delta variant as it posted a narrower quarterly net loss than the year ago period on an improvement in air travel.
El Al, which has new ownership and management, has reported losses for three years and racked up debt to renew its fleet which has reached 45 planes at an average of 10 years old.
It was hit hard after suspending scheduled passenger flights in March 2020 at the outset of the COVID-19 health crisis when Israel, like other countries, closed its borders to most foreigners, compounding its financial woes.
In the April-June quarter, El Al laid off 1,900 employees, nearly one-third of its staff, as part of a recovery plan mandated by the government to receive a $210 million bailout package.
#Dubai's Network International H1 revenue up a forecast-beating 16.5% | Reuters
Dubai's Network International H1 revenue up a forecast-beating 16.5% | Reuters
Dubai-based payments processor Network International (NETW.L) on Wednesday beat expectations with a 16.5% rise in first-half revenue as its merchant solutions business and main markets continued to recover from the pandemic.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 17.2% to $60.4 million in the period ended June 30 on revenue of $156.4 million, Network International said in a regulatory filing on the London Stock Exchange.
The results showed stronger-than-expected revenue growth in its merchant solutions business, which provides services and solutions that allow merchants to accept card or digital payments from consumers.
"We are seeing a recovery from COVID-19, with the majority of KPIs (key performance indicators) now ahead of pre-pandemic levels, including the signing of new merchant and bank customers," CEO Nandan Mer said.
"We are particularly focused on accelerating growth in our merchant solutions business," he said.
The company expects revenue this year to be slightly higher than 2019 given an ongoing recovery from the pandemic, it said.
Dubai-based payments processor Network International (NETW.L) on Wednesday beat expectations with a 16.5% rise in first-half revenue as its merchant solutions business and main markets continued to recover from the pandemic.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 17.2% to $60.4 million in the period ended June 30 on revenue of $156.4 million, Network International said in a regulatory filing on the London Stock Exchange.
The results showed stronger-than-expected revenue growth in its merchant solutions business, which provides services and solutions that allow merchants to accept card or digital payments from consumers.
"We are seeing a recovery from COVID-19, with the majority of KPIs (key performance indicators) now ahead of pre-pandemic levels, including the signing of new merchant and bank customers," CEO Nandan Mer said.
"We are particularly focused on accelerating growth in our merchant solutions business," he said.
The company expects revenue this year to be slightly higher than 2019 given an ongoing recovery from the pandemic, it said.
#Dubai real estate: Apartment, villa prices and rents surge as demand recovers | ZAWYA MENA Edition
Dubai real estate: Apartment, villa prices and rents surge as demand recovers | ZAWYA MENA Edition
Dubai villa prices surged as much as 27 percent in the second quarter of 2021 as the UAE real estate sector continued its path to recovery.
According to property management firm, Asteco’s latest report, Jumeirah Park saw the highest rise in sales price increase - 27 percent from Q1 to Q2 2021. This was followed by the Springs, which saw an increase of 24 percent and Dubai Hills Estate, where prices rose by 19 percent.
Dubai apartment sales prices also increased across the board, with the Palm Jumeirah seeing the highest increase from Q1 to Q2 - 13 percent - followed by Business Bay at 12 percent and Jumeirah Lakes Towers (JLT) at 10 percent.
As the trend towards larger spaces continued, Arabian Ranches villa rental prices also increased by 19 percent, followed by Dubai Sports City at 14 percent and Dubai Hills Estate at 13 percent.
Dubai villa prices surged as much as 27 percent in the second quarter of 2021 as the UAE real estate sector continued its path to recovery.
According to property management firm, Asteco’s latest report, Jumeirah Park saw the highest rise in sales price increase - 27 percent from Q1 to Q2 2021. This was followed by the Springs, which saw an increase of 24 percent and Dubai Hills Estate, where prices rose by 19 percent.
Dubai apartment sales prices also increased across the board, with the Palm Jumeirah seeing the highest increase from Q1 to Q2 - 13 percent - followed by Business Bay at 12 percent and Jumeirah Lakes Towers (JLT) at 10 percent.
As the trend towards larger spaces continued, Arabian Ranches villa rental prices also increased by 19 percent, followed by Dubai Sports City at 14 percent and Dubai Hills Estate at 13 percent.
#UAE's #Fujairah Oil Terminal secures $280mln refinancing | ZAWYA MENA Edition
UAE's Fujairah Oil Terminal secures $280mln refinancing | ZAWYA MENA Edition
Energy infrastructure investment firm Prostar Capital has completed a refinancing for its company Fujairah Oil Terminal (FOT), in the UAE.
The new $280 million debt facility will replace the existing senior debt as well as create a capital expenditure facility to fund the connection of the terminal to the Very Large Crude Carrier (VLCC) jetty and Abu Dhabi Crude Oil pipeline, which delivers Abu Dhabi's Murban crude to Fujairah, Prostar said in a statement Wednesday.
FOT is a 7.4 million-barrel bulk liquid storage terminal located in Fujairah, a major strategic energy trading center and one of the largest bunkering ports in the world.
FOT is the top ranked independent facility in the port, contributing 29 percent of 2020 throughput and representing about 12 percent of the Fujairah storage market, according to Prostar.
Steve Bickerton, Senior Managing Director at Prostar Capital and Chairman of FOT said: “Not only have we secured more favourable terms and increased liquidity, but also the capital to fund a major VLCC expansion project that will improve operational efficiency and help the facility build on its loyal customer base for years to come.”
Once completed, the planned capital project will connect the terminal’s crude oil tanks to the Fujairah’s VLCC loading facility and the ADCOP pipeline. The improvements will increase FOT’s competitiveness, expand its customer base, and improve operating efficiency. It will also allow the terminal to leverage the expected growth in crude trading in the region, complemented by the recent launch of the world’s first Murban futures contract, which requires physical delivery in Fujairah.
Abu Dhabi National Oil Co. which began trading the Murban contract in March this year on ICE Futures Abu Dhabi uses Fujairah's terminal for delivery of the contract.
A group of leading regional banks, comprising First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Commercial Bank of Dubai, provided the new debt facilities.
Energy infrastructure investment firm Prostar Capital has completed a refinancing for its company Fujairah Oil Terminal (FOT), in the UAE.
The new $280 million debt facility will replace the existing senior debt as well as create a capital expenditure facility to fund the connection of the terminal to the Very Large Crude Carrier (VLCC) jetty and Abu Dhabi Crude Oil pipeline, which delivers Abu Dhabi's Murban crude to Fujairah, Prostar said in a statement Wednesday.
FOT is a 7.4 million-barrel bulk liquid storage terminal located in Fujairah, a major strategic energy trading center and one of the largest bunkering ports in the world.
FOT is the top ranked independent facility in the port, contributing 29 percent of 2020 throughput and representing about 12 percent of the Fujairah storage market, according to Prostar.
Steve Bickerton, Senior Managing Director at Prostar Capital and Chairman of FOT said: “Not only have we secured more favourable terms and increased liquidity, but also the capital to fund a major VLCC expansion project that will improve operational efficiency and help the facility build on its loyal customer base for years to come.”
Once completed, the planned capital project will connect the terminal’s crude oil tanks to the Fujairah’s VLCC loading facility and the ADCOP pipeline. The improvements will increase FOT’s competitiveness, expand its customer base, and improve operating efficiency. It will also allow the terminal to leverage the expected growth in crude trading in the region, complemented by the recent launch of the world’s first Murban futures contract, which requires physical delivery in Fujairah.
Abu Dhabi National Oil Co. which began trading the Murban contract in March this year on ICE Futures Abu Dhabi uses Fujairah's terminal for delivery of the contract.
A group of leading regional banks, comprising First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Commercial Bank of Dubai, provided the new debt facilities.
Oil steadies, Delta outbreaks cloud demand prospects | Reuters
Oil steadies, Delta outbreaks cloud demand prospects | Reuters
Oil prices steadied on Wednesday after four days of declines with investors still worried about the outlook for fuel demand as the use of rail, air and other forms of transport remained constrained amid surging COVID-19 cases worldwide.
After flitting around Tuesday's close in Asian morning trade, Brent crude was up 56 cents or 0.8% at $69.59 a barrel by 0649 GMT. U.S. oil gained 50 cents or 0.8% to $67.09 a barrel.
"In the short-term, the oil market may be volatile with frequent pull-backs as crude prices are beginning to struggle as demand in Europe and India faces headwinds," said Avtar Sandu, senior manager, commodities at Phillip Futures in Singapore.
India, the world's third-biggest crude importer, also started sales of oil to state-run refiners from its Strategic Petroleum Reserve (SPR), putting in practice a new policy to commercialize federal storage by leasing out space. read more
Oil prices steadied on Wednesday after four days of declines with investors still worried about the outlook for fuel demand as the use of rail, air and other forms of transport remained constrained amid surging COVID-19 cases worldwide.
After flitting around Tuesday's close in Asian morning trade, Brent crude was up 56 cents or 0.8% at $69.59 a barrel by 0649 GMT. U.S. oil gained 50 cents or 0.8% to $67.09 a barrel.
"In the short-term, the oil market may be volatile with frequent pull-backs as crude prices are beginning to struggle as demand in Europe and India faces headwinds," said Avtar Sandu, senior manager, commodities at Phillip Futures in Singapore.
India, the world's third-biggest crude importer, also started sales of oil to state-run refiners from its Strategic Petroleum Reserve (SPR), putting in practice a new policy to commercialize federal storage by leasing out space. read more
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