Saudi Arabia’s Oil Revenue Surges Ahead of OPEC+ Meeting: Chart - Bloomberg
Petrodollars are once again flowing in for Saudi Arabia. The kingdom is earning more money from oil exports than at any time since 2018, as the global economic recovery and OPEC+ production cuts boost prices. The producers’ cartel meets on Monday and has signaled it will continue with a gradual easing of those output curbs, though, with Brent crude near $80 a barrel, some traders and even the White House are putting pressure on it to move faster.
MIDEAST STOCKS Most Gulf bourses fall; Abu Dhabi gains | Reuters
Most stock markets in the Gulf closed lower on Sunday, with the Saudi index ending five sessions of gains, although the Abu Dhabi index bucked the trend to finish higher.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, weighed down by a 3.3% fall in Saudi Telecom Company (STC) (7010.SE).
The Public Investment Fund, Saudi Arabia's sovereign wealth fund, is considering selling part of its 70% stake in STC while retaining majority ownership, the state fund said on Thursday. read more
In Abu Dhabi, the index (.ADI) gained 0.3%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) rising 1.2%.
Elsewhere, shares of ADNOC Drilling (ADNOCDRILL.AD) jumped more than 28% as the unit of Abu Dhabi oil giant ADNOC started trading on Sunday after its $1.1 billion initial public offering (IPO), the largest ever on the Abu Dhabi stock market. read more
The IPO is the latest move by Gulf oil giants ADNOC and Saudi Aramco (2222.SE) to raise cash from outside investors as they try to diversify sources of income in their oil-dependent economies.
Dubai's main share index (.DFMGI) fell 0.4%, dragged down by a 2% slide in blue-chip developer Emaar Properties (EMAR.DU) and a 2.1% decline in Emaar Development (EMAARDEV.DU).
Dubai ports giant DP World sees no early end to disruptions in global supply chains that have set off delays at ports and logistics hubs around the world, its chairman said on Friday. read more
The disruptions, a result of pandemic lockdowns and an unexpectedly rapid recovery in demand, have also led to shipping container shortages and skyrocketing freight rates.
The Qatari benchmark (.QSI) eased 0.2%, with Qatar National Bank (QNBK.QA) losing 0.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 1.4%, with falls in most of its component stocks, including Commercial International Bank Egypt (COMI.CA), which was down 2%.
Abu Dhabi Wealth Fund ADQ Takes 50% Stake in IHC’s Eltizam - Bloomberg
Abu Dhabi sovereign wealth fund ADQ will take a 50% stake in International Holding Co. unit Eltizam Asset Management.
IHC issued shares worth 111.6 million dirhams ($30.4 million) in Eltizam to ADQ as part of the deal, according to a statement filed to the stock exchange on Sunday. Bloomberg reported details of the deal earlier.
United Arab Emirates national security adviser, Sheikh Tahnoon bin Zayed Al Nahyan, is chairman of both ADQ and IHC. IHC has been involved in numerous deals this year, with its assets ballooning to 58 billion dirhams in the second quarter, up 444% from the same period a year ago.
IHC shares have nearly quadrupled over the past year, making it the second-largest listed company in the UAE. Alpha Dhabi Holding PJSC, an IHC unit, is the biggest.
Qatar Places $760 Million Order for Liquid-Gas Ships With China - Bloomberg
Qatar ordered four new liquefied natural gas tankers worth more than 2.8 billion rials ($762 million) from a Chinese shipbuilder, as demand for the fuel booms.
State energy firm Qatar Petroleum said Sunday the vessels will be built by Hudong-Zhonghua Shipbuilding Group Co., a subsidiary of China State Shipbuilding Corp.
It’s the first time QP has ordered LNG carriers from China. The ships are the first batch of bookings for the company’s North Field expansion project, which will see it spend almost $30 billion to increase its production capacity by more than 50%.
Demand for LNG -- of which Qatar is the world’s biggest exporter -- is projected to rise strongly in the coming decades as countries cut their use of dirtier fossil fuels such as coal and oil.
The global LNG market’s tightened significantly in recent weeks due to shortages of gas and coal in parts of Europe and Asia. Qatar’s energy minister, Saad Al-Kaabi, said last month that demand was “huge” and “we can’t cater for everyone.”
UAE to start marketing first federal dollar bond this week - sources | Reuters
The United Arab Emirates government is expected to begin marketing its first bond as a federation as soon as this week, a transaction denominated in U.S. dollars, four sources familiar with the matter said on Sunday.
The UAE federal government has never issued bonds before, although several of the seven emirates that it comprises have, including the capital Abu Dhabi and commerce hub Dubai.
Banks advising the government on the fundraising exercise include Citi (C.N), HSBC (HSBA.L), First Abu Dhabi Bank (FAB.AD), JPMorgan (JPM.N), Standard Chartered (STAN.L) and BofA Securities (BAC.N), two of the sources said.
The UAE government media office and finance ministry did not immediately respond to emailed requests for comment from Reuters.
Saudi court issues final order on AHAB ending 12-year debt dispute | Reuters
A Saudi court on Sunday issued a final order on the restructuring of the Algosaibi family's conglomerate AHAB, putting a formal end to one of Saudi Arabia's largest and longest debt disputes.
AHAB filed for a financial restructuring in 2019 under the framework of Saudi Arabia's bankruptcy law, introduced the previous year to make the kingdom more investor-friendly.
The Dammam commercial court on Sunday issued the final ratification order for the AHAB restructuring, which is now unappealable, Simon Charlton, chief restructuring officer at AHAB, told Reuters.
"The company will now take steps to begin lifting the restrictions over assets and begin liquidating assets to be able to make distributions to its approved creditors," he said.
OPEC+ Should Worry About Oil Shortfalls Not Surpluses - Bloomberg
The oil producer group known as OPEC+ keeps trumpeting its flexible approach to balancing the global oil market. As prices test $80 a barrel, that flexibility needs to include raising the amount of oil they plan to pump in the coming months.
Oil ministers from the Organization of Petroleum Exporting Countries and their allies are due to meet via video conference on Monday, when they will agree on their production target for November. The group has already put in place a program of increases that will see them raise their combined target by 400,000 barrels a day each month until they have restored all the supply they cut last year.
But they need to do more to exercise that flexibility they keep touting. Their own analysts, who presented their findings to the group’s technical committee last week, see global stockpiles continuing to be drawn down over the next two months, before a swing in the opposite direction early next year.
Petrofac considers refinancing as faces possible $240 million bribery fine | Reuters
British oil services group Petrofac said it is looking at refinancing options including debt and fresh equity as it faces a possible $240 million fine from a London court.
Petrofac decided to plead guilty to seven charges after a four-year Serious Fraud Office (SFO) investigation into allegations it had failed to prevent bribery in Iraq, Saudi Arabia and the UAE between 2012 and 2015.
“The Joint Submission to the Court by the Company and the SFO details a potential penalty of $240 million prior to the application of any adjustment to the level of fine,” Petrofac said in a statement released late on Friday.
“The Company has made a submission to the Court for a substantial reduction based on alternative approaches to sentencing and its ability to pay,” it added.
Qatar's economy grows 4% in Q2 boosted by non-hydrocarbon activities | Reuters
Qatar's economy grew 4% year-on-year in the second quarter, according to official preliminary estimates, fuelled mainly by the non-hydrocarbon sector.
On a quarterly basis, however, gross domestic product (GDP) based on constant prices decreased 0.3%, the Gulf state's statistics authority said on Sunday.
Mining and quarrying GDP expanded 0.7% year-on-year in the second quarter, while non-mining and quarrying activities posted a 6.2% growth.
Accommodation and food service activities saw the biggest annual jump, growing 41%, reflecting the low base last year because of coronavirus-related restrictions.
Transportation and storage activities followed, with a 26.9% growth, while manufacturing grew 13.4%.
Qatar, a major liquefied natural gas (LNG) producer, posted a surplus of about $1 billion in the second quarter, the finance ministry said in August, citing higher than budgeted oil prices.
In January it reached a breakthrough on a three-year old dispute with Saudi Arabia and three other Arab countries that had imposed a diplomatic, trade and travel embargo.
Adnoc Drilling Jumps 33% After Pulling Off Biggest Abu Dhabi IPO - Bloomberg
Abu Dhabi National Oil Co.’s drilling unit rose as much 33% on its trading debut, after raising 4.05 billion dirhams ($1.1 billion) in the emirate’s biggest ever listing.
Adnoc Drilling shares jumped to 3.05 dirhams on Sunday, trading above the 2.30 offer price. The company is now worth about 48 billion dirhams, making it the ninth most valuable listed firm in the United Arab Emirates, data compiled by Bloomberg show.
Adnoc Drilling had boosted the offer size in September and drew $34 billion in total orders amid a surge in demand for IPOs in the Middle East, where Abu Dhabi is catching up with regional leader Saudi Arabia.
The emirate’s efforts to boost its local exchange seem to be paying off with a clutch of offerings set to raise billions of dollars. Adnoc is also planning to list its fertilizer joint venture as soon as October.
Abu Dhabi, which holds most of the oil in the United Arab Emirates, is using its energy assets to draw in global investors along with their funds and expertise as the nation puts cash into efforts to diversify the economy.
The latest listing comes as commodity prices soar, with oil trading at a three-year high. Adnoc Drilling is the largest national drilling firm in the Middle East by fleet size, with 96 owned rigs.
MIDEAST STOCKS Major Gulf bourses mixed in early trade | Reuters
Major stock markets in the Gulf traded mixed early on Sunday, with the Saudi index on course to end five sessions of gains.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, hit by a 3.2% fall in Saudi Telecom Company (STC) shares (7010.SE) and a 0.3% decrease in Al Rajhi Bank (1120.SE).
Saudi Arabia's Public Investment Fund, the country's sovereign wealth fund, is considering selling part of its 70% stake in STC while retaining majority ownership, the state fund said on Thursday. read more
In Abu Dhabi, the index (.ADI) edged up 0.1%, helped by a 0.9% gain in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
Elsewhere, shares of ADNOC Drilling (ADNOCDRILL.AD) jumped more than 30% as the unit of Abu Dhabi oil giant ADNOC started trading on Sunday after its $1.1 billion initial public offering (IPO), the largest ever on the Abu Dhabi stock market. read more
The IPO is the latest move by Gulf oil giants ADNOC and Saudi Aramco (2222.SE) to raise cash from outside investors as they try to diversify sources of income in their oil-dependent economies.
Dubai's main share index (.DFMGI) dropped 0.6%, with blue-chip developer Emaar Properties (EMAR.DU) falling 1.7% and Emirates NBD Bank (ENBD.DU) down 0.7%.
The United Arab Emirates is set for a gradual economic recovery, thanks in part to its strong response to the coronavirus crisis and a rebound in tourism, the International Monetary Fund said, but the risk of a pandemic resurgence clouds the outlook. read more
The Gulf's second largest economy suffered a deep recession last year as curbs against the pandemic hurt vital sectors such as trade and tourism, while record low oil prices weighed on petroleum revenues.
Also, Dubai ports giant DP World sees no early end to disruptions in global supply chains that have resulted in delays at ports and logistics hubs around the world, its chairman said on Friday. read more
The Qatari index (.QSI) added 0.5%, led by a 1.6% rise in Industries Qatar (IQCD.QA).
