Arabtec unit wins Emaar Downtown Dubai tower

Updated 22 November 2017
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Arabtec unit wins Emaar Downtown Dubai tower

LONDON: The UAE-based contractor Arabtec’s wholly-owned subsidiary Target Engineering Construction has won a 950 million dirhams ($258.6 million) contract for the second phase of an Emaar residential development in Downtown Dubai.
The Forte project is a two-tower development with apartments set to look over Dubai Opera, the 2,000-seat performing arts centre. It is due to be completed by December 2019, according to Emaar. The contract scope includes the construction of the podium and two towers of 67 and 46 floors.
Target was previously awarded a 196 million dirhams contract for phase 1 of the project in September. The scope of this award included the construction of five basements for the towers.
The phase 2 contract award follows Arabtec’s third quarter results released on Nov. 8, with the Dubai-listed company posting a net profit of 75 million dirhams for the first nine months of the year. This compared to a net loss of 458 million dirhams a year earlier.
Arabtec secured two other major contracts in the third quarter alongside the first phase of Forte, including a 628 million dirhams contract to build 1,296 villas at Akoya Oxygen in Dubai from property developer Damac and a 363 million dirhams contract to build Dubai South Mall, awarded by Emaar.
Mohammad Kamal, executive director, equity research at Arqaam Capital said that while Arabtec’s third-quarter results and new contract awards demonstrated a “solid earnings trajectory”, he remained “cautiously optimistic” due to the volume of overdue receivables and legacy claims still on the builder’s books.
He said the company’s earnings have only just began a “long process of recovery.”


Oil prices rise on signs Iranian oil exports are falling further

Updated 16 October 2018
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Oil prices rise on signs Iranian oil exports are falling further

SEOUL: Oil prices dipped on Tuesday amid expectations of an increase in US crude inventories, but signs of a fall in Iranian oil exports this month kept losses in check.
International benchmark Brent crude for December delivery had fallen 6 cents, or 0.07 percent, to $80.72 per barrel by 0654 GMT.
US West Texas Intermediate crude for November delivery was down 14 cents at $71.64 a barrel.
US crude stockpiles were forecast to have risen last week for the fourth straight week, by about 1.1 million barrels, according to a Reuters poll ahead of reports from the American Petroleum Institute (API) and the US Department of Energy’s Energy Information Administration (EIA).
The API’s data is due at 4:30pm EDT on Tuesday, and the EIA report will be released at 10:30am EDT on Wednesday.
“Uncertainties will remain until Nov. 4 when it would be clear whether the United States would want to cut Iran oil exports to zero or grant waivers,” said Vincent Hwang, commodity analyst at NH Investment & Securities in Seoul.
“Brent prices are likely stay in the range of $80 a barrel or slightly higher, while WTI prices are likely to be $70-$75 a barrel,” Hwang added.
In the first two week of October, Iran exported 1.33 million barrels per day (bpd) of crude to countries including India, China and Turkey, according to Refinitiv Eikon data. That was down from 1.6 million bpd during the same period in September.
The October exports are a sharp drop from the 2.5 million bpd in April US before US President Donald Trump withdrew from a multilateral nuclear deal with Iran in May and ordered the re-imposition of economic sanctions on the country, the data showed.
The sanctions will come into force on November 4. The US special envoy for Iran said on Monday that the US is still aiming to cut Iran’s oil sales to zero.
Meanwhile, OPEC Secretary General Mohammad Barkindo said on Tuesday that global spare oil capacity was shrinking, adding that producers and companies should increase their production capacities and invest more to meet current demand.
With the world’s only sizable spare oil output capacity, Saudi Arabia is expected to export more to offset the loss of Iranian oil supply from the sanctions.
Saudi Arabia’s Energy Minister Khalid Al-Falih said on Monday at a conference in New Delhi that the kingdom is committed to meeting India’s rising oil demand and is the “shock absorber” for supply disruptions in the oil market.