UAE's Al Mazrouei Downplays Need for Further Oil Output Cuts in Short-Term - Bloomberg
A key OPEC+ minister played down the need for further cuts to balance supply and demand, weeks after the organization shocked the oil market by announcing a round of large output reductions.
“I’m not that worried about the very, very short term,” Suhail Al Mazrouei, the energy minister for the United Arab Emirates, told reporters in Abu Dhabi Tuesday. “Let’s wait. This is not a prediction that I can give now or a decision, this is a collective decision,” on whether further OPEC+ supply adjustments are needed, he said.
OPEC and its allies are currently proceeding with preparations for an in-person meeting at its Vienna headquarters next month. The UAE is the third-biggest producer within group.
Crude has retreated more than 9% this year, with futures whipsawed by the Federal Reserve’s monetary-tightening campaign, concerns of a US recession, and countervailing hopes for a resurgence in Chinese demand. The decline in prices has come despite last month’s surprise production cut by the Organization of Petroleum Exporting Countries and its allies including Russia.
Al Mazrouei warned that the bigger risk to supply was the weak level of investment over the coming years. “If we don’t see companies and countries investing, we could see a shortage in the future,” he said.
Tuesday 9 May 2023
Aramco bolsters #Saudi index; #Dubai eases | Reuters
Aramco bolsters Saudi index; Dubai eases | Reuters
Stock markets in the Gulf ended mixed on Tuesday, with Aramco's quarterly earnings lifting the Saudi index, while lower oil prices weighed on the sentiment.
Saudi Arabia's benchmark index (.TASI) rose 0.4%, buoyed by a 3.2% jump in oil behemoth Saudi Aramco (2222.SE) after its first-quarter earnings beat market expectations, despite falling 19% over last year.
Net profit was 3.75% higher than in the fourth quarter, and the company said it would pay $19.5 billion in dividends for the first quarter.
Aramco was looking at introducing performance-linked dividends, in addition to its base distribution, CEO Amin Nasser said in a statement.
Among other gainers, National Shipping Company of Saudi Arabia (4030.SE) advanced 2.6%, after reporting a steep rise in its quarterly profit.
Dubai's main share index (.DFMGI) fell 0.3%, hit by a 1.8% fall in Emirates Central Cooling Systems Corporation (EMPOWER.DU), while Aramex (ARMX.DU) slid 4.6% as the logistics firm is slated to report its first-quarter earnings.
In Abu Dhabi, the index (.FTFADGI) finished flat.
The Abu Dhabi bourse saw more downward pressures with some companies missing earnings estimates and oil prices returning to the downside, said Farah Mourad, senior market analyst at XTB MENA.
Oil prices — a key catalyst for the Gulf's financial markets — fell, relinquishing some of the strong gains of the previous two sessions with the market cautious ahead of U.S. inflation figures, which will be key to the Federal Reserve's next interest rate decision.
The Qatari index (.QSI) reversed early losses to close 0.3% higher, with Islamic lender Masraf Al Rayan (MARK.QA) advancing 3.4%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 1.8%, as most of its constituents were in the negative territory, including top lender Commercial International Bank (COMI.CA), which was down 2.1%.
According to Mourad, the Egyptian bourse continued to see a strong selling trend from international investors as sentiment remains cautious.
"At the same time, local investors continue to support the market but the main index could find some resistance near its last peak."
Stock markets in the Gulf ended mixed on Tuesday, with Aramco's quarterly earnings lifting the Saudi index, while lower oil prices weighed on the sentiment.
Saudi Arabia's benchmark index (.TASI) rose 0.4%, buoyed by a 3.2% jump in oil behemoth Saudi Aramco (2222.SE) after its first-quarter earnings beat market expectations, despite falling 19% over last year.
Net profit was 3.75% higher than in the fourth quarter, and the company said it would pay $19.5 billion in dividends for the first quarter.
Aramco was looking at introducing performance-linked dividends, in addition to its base distribution, CEO Amin Nasser said in a statement.
Among other gainers, National Shipping Company of Saudi Arabia (4030.SE) advanced 2.6%, after reporting a steep rise in its quarterly profit.
Dubai's main share index (.DFMGI) fell 0.3%, hit by a 1.8% fall in Emirates Central Cooling Systems Corporation (EMPOWER.DU), while Aramex (ARMX.DU) slid 4.6% as the logistics firm is slated to report its first-quarter earnings.
In Abu Dhabi, the index (.FTFADGI) finished flat.
The Abu Dhabi bourse saw more downward pressures with some companies missing earnings estimates and oil prices returning to the downside, said Farah Mourad, senior market analyst at XTB MENA.
Oil prices — a key catalyst for the Gulf's financial markets — fell, relinquishing some of the strong gains of the previous two sessions with the market cautious ahead of U.S. inflation figures, which will be key to the Federal Reserve's next interest rate decision.
The Qatari index (.QSI) reversed early losses to close 0.3% higher, with Islamic lender Masraf Al Rayan (MARK.QA) advancing 3.4%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 1.8%, as most of its constituents were in the negative territory, including top lender Commercial International Bank (COMI.CA), which was down 2.1%.
According to Mourad, the Egyptian bourse continued to see a strong selling trend from international investors as sentiment remains cautious.
"At the same time, local investors continue to support the market but the main index could find some resistance near its last peak."
Olam Agri's Singapore- #Saudi $1 bln dual listing may launch as early as June - sources | Reuters
Olam Agri's Singapore-Saudi $1 bln dual listing may launch as early as June - sources | Reuters
Agri-food giant Olam Group (OLAG.SI) aims to launch in June the dual initial public offering (IPO) of its agricultural unit that could raise up to $1 billion in Singapore and Saudi Arabia, two sources with knowledge of the matter said.
The IPO, the first of such a dual listing in the world, is subject to regulatory approval, one of the sources added.
The sources could not be named as the information was not yet public.
Most of the IPO's processes have been completed, ranging from hosting global roadshows to getting indicative commitments from anchor investors, one of the sources added.
Olam declined to comment.
The dual IPO on the stock exchanges of Singapore and Saudi Arabia would make Olam Agri the first company to list in both countries and also the first non-Gulf Cooperation Council incorporated business to list in Saudi Arabia.
Agri-food giant Olam Group (OLAG.SI) aims to launch in June the dual initial public offering (IPO) of its agricultural unit that could raise up to $1 billion in Singapore and Saudi Arabia, two sources with knowledge of the matter said.
The IPO, the first of such a dual listing in the world, is subject to regulatory approval, one of the sources added.
The sources could not be named as the information was not yet public.
Most of the IPO's processes have been completed, ranging from hosting global roadshows to getting indicative commitments from anchor investors, one of the sources added.
Olam declined to comment.
The dual IPO on the stock exchanges of Singapore and Saudi Arabia would make Olam Agri the first company to list in both countries and also the first non-Gulf Cooperation Council incorporated business to list in Saudi Arabia.
#Dubai DXB airport Q1 passenger traffic reaches 96% of pre-pandemic level | Reuters
Dubai DXB airport Q1 passenger traffic reaches 96% of pre-pandemic level | Reuters
Dubai's main airport registered a 55.8% increase in passenger traffic in the first quarter of this year compared to last year, reaching 95.6% of 2019 pre-pandemic levels, operator Dubai Airports said on Tuesday.
Dubai International Airport (DXB), the world's busiest international hub, welcomed around 21.3 million passengers in the first three months of 2023, Dubai Airports said.
Dubai International registered 66 million passengers in 2022.
Dubai's main airport registered a 55.8% increase in passenger traffic in the first quarter of this year compared to last year, reaching 95.6% of 2019 pre-pandemic levels, operator Dubai Airports said on Tuesday.
Dubai International Airport (DXB), the world's busiest international hub, welcomed around 21.3 million passengers in the first three months of 2023, Dubai Airports said.
Dubai International registered 66 million passengers in 2022.
DBS Is Reviewing an Expansion in #Dubai, CEO Piyush Gupta Says - Bloomberg
DBS Is Reviewing an Expansion in Dubai, CEO Piyush Gupta Says - Bloomberg
DBS Group Holdings Ltd. is considering an expansion in Dubai, making Southeast Asia’s biggest lender the latest financial firm to explore scaling up in the Middle Eastern business hub.
“We’re revisiting the thesis that there is real opportunity to do more stuff out of Dubai and this region,” Chief Executive Officer Piyush Gupta said Tuesday in an interview with Yousef Gamal El-Din at the Dubai FinTech Summit. The Singapore-based lender’s presence in the region is limited and “there’s an opportunity to scale it up,” he said.
Gupta’s remarks underscore the growing importance of Dubai, which is emerging as a favored destination for hedge funds and financial firms, drawn by its ease of doing business, tax-free status and its allure as a nexus for global travel.
Hubs like Dubai can act as a neutral player in a multipolar world, being able to intermediate flows from the West and the East, Gupta said.
DBS Group Holdings Ltd. is considering an expansion in Dubai, making Southeast Asia’s biggest lender the latest financial firm to explore scaling up in the Middle Eastern business hub.
“We’re revisiting the thesis that there is real opportunity to do more stuff out of Dubai and this region,” Chief Executive Officer Piyush Gupta said Tuesday in an interview with Yousef Gamal El-Din at the Dubai FinTech Summit. The Singapore-based lender’s presence in the region is limited and “there’s an opportunity to scale it up,” he said.
Gupta’s remarks underscore the growing importance of Dubai, which is emerging as a favored destination for hedge funds and financial firms, drawn by its ease of doing business, tax-free status and its allure as a nexus for global travel.
Hubs like Dubai can act as a neutral player in a multipolar world, being able to intermediate flows from the West and the East, Gupta said.
#Saudi Aramco Looks to Boost Dividend, Triggering Stock Surge - Bloomberg
Saudi Aramco Looks to Boost Dividend, Triggering Stock Surge - Bloomberg
Aramco will introduce an additional dividend, potentially boosting payouts for Saudi Arabia’s government by billions of dollars just as weaker oil prices edge the state’s budget into a deficit.
The stock surged as much as 7.2% in early trading, before trimming gains to 3.7%, still taking it to the highest level since September.
The new dividend will be “in the amount of 50%-70%” of Saudi Aramco’s annual free cash flow, net of the base payout and other amounts including external investments, the world’s largest energy company said on Tuesday, shortly before it released earnings. The amount will be “determined with the annual results.”
The state-controlled company made a net profit of $31.9 billion for the first quarter, slightly below analysts’ expectations and down 19% from a year earlier. Free cashflow was $30.9 billion and the dividend was maintained at $19.5 billion.
The Saudi Arabian government owns 90% of Aramco’s stock directly, with a further 8% held by the sovereign wealth fund. The shares have climbed 16% this year in Riyadh, outperforming those of Western Big Oil rivals such as Shell Plc and Exxon Mobil Corp.
Aramco will introduce an additional dividend, potentially boosting payouts for Saudi Arabia’s government by billions of dollars just as weaker oil prices edge the state’s budget into a deficit.
The stock surged as much as 7.2% in early trading, before trimming gains to 3.7%, still taking it to the highest level since September.
The new dividend will be “in the amount of 50%-70%” of Saudi Aramco’s annual free cash flow, net of the base payout and other amounts including external investments, the world’s largest energy company said on Tuesday, shortly before it released earnings. The amount will be “determined with the annual results.”
The state-controlled company made a net profit of $31.9 billion for the first quarter, slightly below analysts’ expectations and down 19% from a year earlier. Free cashflow was $30.9 billion and the dividend was maintained at $19.5 billion.
The Saudi Arabian government owns 90% of Aramco’s stock directly, with a further 8% held by the sovereign wealth fund. The shares have climbed 16% this year in Riyadh, outperforming those of Western Big Oil rivals such as Shell Plc and Exxon Mobil Corp.
Lower oil prices push #Saudi oil giant Aramco's first quarter profit down 19% | Reuters
Lower oil prices push Saudi oil giant Aramco's first quarter profit down 19% | Reuters
Saudi oil giant Aramco's (2222.SE) first quarter net profit dropped 19% from a year earlier to 119.54 billion riyals ($31.88 billion), it said on Tuesday, due to lower crude prices.
Profit still beat analysts' median forecast of $30.8 billion, according to Refinitiv data, and Aramco said the decline was partially offset by lower taxes including in the zakat Islamic tax and a rise in finance and other income.
Net profit was 3.75% higher than in the fourth quarter.
The world's top oil exporter made a record profit of over $161 billion for 2022 on higher energy prices and production.
Last month, Saudi Arabia and other OPEC+ producers announced surprise oil production cuts from May, initially driving up prices, but global economic uncertainty and an unclear demand outlook continue to weigh on prices.
Crude petroleum and natural gas contributed 32.7% of Saudi Arabia's gross domestic product last year, with petroleum refining making up another 6%.
Saudi oil giant Aramco's (2222.SE) first quarter net profit dropped 19% from a year earlier to 119.54 billion riyals ($31.88 billion), it said on Tuesday, due to lower crude prices.
Profit still beat analysts' median forecast of $30.8 billion, according to Refinitiv data, and Aramco said the decline was partially offset by lower taxes including in the zakat Islamic tax and a rise in finance and other income.
Net profit was 3.75% higher than in the fourth quarter.
The world's top oil exporter made a record profit of over $161 billion for 2022 on higher energy prices and production.
Last month, Saudi Arabia and other OPEC+ producers announced surprise oil production cuts from May, initially driving up prices, but global economic uncertainty and an unclear demand outlook continue to weigh on prices.
Crude petroleum and natural gas contributed 32.7% of Saudi Arabia's gross domestic product last year, with petroleum refining making up another 6%.
Aramco lifts #Saudi index; #AbuDhabi, #Qatar fall | Reuters
Aramco lifts Saudi index; Abu Dhabi, Qatar fall | Reuters
Major stock markets in the Gulf were mixed in early on Tuesday, with Aramco's quarterly earnings lifting the Saudi index, while the Qatari and Abu Dhabi bourses tracked oil prices lower.
Saudi Arabia's benchmark index (.TASI) rose 0.5%, buoyed by a 4% jump in oil behemoth Saudi Aramco (2222.SE) after its first quarter earnings beat market expectations, despite falling 19% over last year.
Net profit was 3.75% higher than in the fourth quarter, and the company said it will pay $19.5 billion in dividends for the first-quarter.
Among other gainers, National Shipping Company of Saudi Arabia (4030.SE) advanced 2.6% after reporting a steep rise in quarterly profit.
Dubai's main share index (.DFMGI) rose 0.4%, with budget airliner Air Arabia (AIRA.DU) putting on more than 2% a day after reporting a sharp increase in quarterly profit.
Dubai's main airport registered a 55.8% increase in passenger traffic in the first quarter of this year compared to last year, reaching 95.6% of 2019 pre-pandemic levels, operator Dubai Airports said on Tuesday.
In Abu Dhabi, the index (.FTFADGI) fell 0.2%, hit by a 1.3% fall in in Alpha Dhabi Holding (ALPHADHABI.AD).
Oil prices - a key catalyst for the Gulf's financial markets - fell relinquishing some of the strong gains of the previous two sessions with the market cautious ahead of U.S. inflation figures for April, which will be key to the Federal Reserve's next interest rate decision.
In Qatar, the index (.QSI) eased 0.1%, on course to snap a 9-day winning streak, weighed down by a 1.2% decline in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
Major stock markets in the Gulf were mixed in early on Tuesday, with Aramco's quarterly earnings lifting the Saudi index, while the Qatari and Abu Dhabi bourses tracked oil prices lower.
Saudi Arabia's benchmark index (.TASI) rose 0.5%, buoyed by a 4% jump in oil behemoth Saudi Aramco (2222.SE) after its first quarter earnings beat market expectations, despite falling 19% over last year.
Net profit was 3.75% higher than in the fourth quarter, and the company said it will pay $19.5 billion in dividends for the first-quarter.
Among other gainers, National Shipping Company of Saudi Arabia (4030.SE) advanced 2.6% after reporting a steep rise in quarterly profit.
Dubai's main share index (.DFMGI) rose 0.4%, with budget airliner Air Arabia (AIRA.DU) putting on more than 2% a day after reporting a sharp increase in quarterly profit.
Dubai's main airport registered a 55.8% increase in passenger traffic in the first quarter of this year compared to last year, reaching 95.6% of 2019 pre-pandemic levels, operator Dubai Airports said on Tuesday.
In Abu Dhabi, the index (.FTFADGI) fell 0.2%, hit by a 1.3% fall in in Alpha Dhabi Holding (ALPHADHABI.AD).
Oil prices - a key catalyst for the Gulf's financial markets - fell relinquishing some of the strong gains of the previous two sessions with the market cautious ahead of U.S. inflation figures for April, which will be key to the Federal Reserve's next interest rate decision.
In Qatar, the index (.QSI) eased 0.1%, on course to snap a 9-day winning streak, weighed down by a 1.2% decline in the Gulf's biggest lender Qatar National Bank (QNBK.QA).