Philips, Al Faisaliah in 50-50 JV

Updated 01 October 2012
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Philips, Al Faisaliah in 50-50 JV

RIYADH: Royal Philips Electronics and Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group, signed an agreement yesterday to set up a 50-50 joint venture to sell Philips health care solutions and services across the Kingdom.
Prince Mohammed bin Khaled Al-Abdullah Al-Faisal, president and chief executive officer of the Al Faisaliah Group and Philips Chief Executive Officer Frans van Houten signed the deal.
The proposed transaction is subject to governmental approval and certain contractual and other closing conditions, and is expected to close in the first half of 2013. Financial details of the agreement were not disclosed.
The joint venture will combine Philips' strong health care portfolio, including medical imaging systems, patient monitoring devices and clinical information solutions, with FMS' recognized knowledge of the market requirements and strong position in Saudi Arabia, the largest economy in the Middle East by GDP.
The Saudi Arabian health care market is estimated to grow by 8 percent annually between 2013 and 2017, driven by targeted government spending on health services and hospital infrastructure.
"Through the partnership between Philips and Al Faisaliah Medical Systems, we combine Philips' clinical expertise and innovations, with Al Faisaliah Medical Systems' thorough knowledge of local customer needs and requirements supported with our talented staff and strong infrastructure," Prince Mohammed bin Khaled said.
"We expect that the joint venture (JV) will contribute to new levels of health care services for the people of Saudi Arabia."
Over the past 35 years, we have been working diligently on developing and investing extensively in health solutions and systems through Al Faisaliah Medical Systems, the prince said, adding that by partnering Phillips and Al Faisaliah Medical Systems, the two parties combine the strength of scientific research and innovations that Philips represents.
"By partnering with Al Faisaliah Medical Systems in a joint venture, Philips can accelerate its growth in the important Saudi Arabian market for health care products, services and solutions," said Houten. "We have built a strong and trusted relationship with FMS over the past 40 years, and with this joint venture we are now taking the next step to address important health care opportunities in a growth market."
The joint venture with FMS builds on Philips' ambition to better serve the needs of local markets and respond to the specific health care needs of the population in Saudi Arabia.
In addition, the joint venture will facilitate a focus on developing the next generation of skilled Saudi health care professionals through dedicated education and training programs.
Royal Philips Electronics is a diversified health and well-being company focused on improving people's lives through meaningful innovation in the areas of health care, consumer lifestyle and lighting.
Headquartered in the Netherlands, Philips posted 2011 sales of 22.6 billion euros and employs approximately 122,000 employees with sales and services in more than 100 countries. The company is a leader in cardiac care, acute care and home health care, energy efficient lighting solutions and new lighting applications, as well as male shaving and grooming, home and portable entertainment, and oral health care.
Al Faisaliah Medical Systems (FMS), a subsidiary of Al Faisaliah Group Holding Co., was founded in 1973 and based in Saudi Arabia with a vision to be the leading health care solution provider in the Middle East.
It is currently operating in 6 Gulf and Levant countries with 19 offices throughout the region and over 700 employees. FMS is a major player in offering optimized wide range of services, providing planning, identification, supply, management, and design services to any health care structure in any country through continuous collaboration and partnership with international health care leaders.
FMS' mission is to serve the health care community by offering innovative and quality solutions and services at competitive values to customers, and to leverage the quality of health care services in the region by being trendsetters and making the new de-facto standards. Through its patented CardioSpace program FMS dominates the market in turnkey cardiology projects in Saudi Arabia.


Oil extends 7% slump from previous day

Updated 26 min 25 sec ago
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Oil extends 7% slump from previous day

  • Oil markets are being pressured from two sides: a surge in supply and increasing concerns about an economic slowdown
  • OPEC has been making increasingly frequent public statements that it would start withholding crude in 2019

SINGAPORE: Oil markets slipped again on Wednesday, extending losses from a 7 percent plunge the previous session as surging supply and the specter of faltering demand scared off investors.
US West Texas Intermediate (WTI) crude oil futures were at $55.50 per barrel at 0514 GMT, down 19 cents from their last settlement.
International benchmark Brent crude oil futures were down 22 cents at $65.25 per barrel.
Crude oil has lost over a quarter of its value since early October in what has become one of the biggest declines since prices collapsed in 2014.
The slump in spot prices has turned the entire forward curve for crude oil upside down.
Spot prices in September were significantly higher than those for later delivery, a structure known as backwardation that implies a tight market as it is unattractive to put oil into storage.
By mid-November, the curve had flipped into contango, when crude prices for immediate delivery are cheaper than those for later dispatch. That implies an oversupplied market as it makes it attractive to store oil for later sale.
Oil markets are being pressured from two sides: a surge in supply and increasing concerns about an economic slowdown.
US crude oil output from its seven major shale basins is expected to hit a record of 7.94 million barrels per day (bpd) in December, the US Department of Energy’s Energy Information Administration (EIA) said on Tuesday.
That surge in onshore output has helped overall US crude production hit a record 11.6 million bpd, making the United States the world’s biggest oil producer ahead of Russia and Saudi Arabia.
Most analysts expect US output to climb above 12 million bpd within the first half of 2019.
“This will, in our view, cap any upside above $85 per barrel (for oil prices),” said Jon Andersson, head of commodities at Vontobel Asset Management.
The surge in US production is contributing to rising stockpiles.
US crude stocks climbed by 7.8 million barrels in the week ending Nov. 2 to 432 million as refineries cut output, data from industry group the American Petroleum Institute showed on Tuesday.
The producer group Organization of the Petroleum Exporting Countries (OPEC) has been watching the jump in supply and price slump with concern.
OPEC has been making increasingly frequent public statements that it would start withholding crude in 2019 to tighten supply and prop up prices.
“OPEC and Russia are under pressure to reduce current production levels, which is a decision that we expect to be taken at the next OPEC meeting on Dec. 6,” said Andersson.
That puts OPEC on a collision course with US President Donald Trump, who publicly supports low oil prices and who has called on OPEC not to cut production.