UK regulator investigating Carillion statements

Carillion shares have lost 90 percent of their value since the profit warning on July 10. The building and services company’s market capitalization stands at about £70 million, according to Thomson Reuters data. (Reuters)
Updated 03 January 2018
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UK regulator investigating Carillion statements

BENGALURU: Britain’s Financial Conduct Authority (FCA) is investigating statements made by Carillion over seven months up to and including a profit warning last July, the struggling building and services company said on Wednesday.
Carillion, which is involved in major infrastructure projects for the British and other governments, has been fighting for its survival after costly contract delays and a downturn in new business. In November it issued its third profit warning in five months.
The investigation by the markets watchdog concerns “the timeliness and content of announcements made by Carillion between December 7, 2016 and July 10, 2017,” the company said in a brief statement to the London Stock Exchange.
Carillion said it was cooperating fully with the FCA.
In the period under review, Carillion released a full-year trading update, its 2016 results, an annual general meeting statement and a 2017 first-half trading update. Its shares fell more than 54 percent over the seven months.
The company announced on July 10 it would undertake a review of its business, suspended its dividend, announced divestments and said it expected overall performance to be below management’s previous expectations.
Carillion also said then that Richard Howson would step down as chief executive and named Keith Cochrane as interim CEO.
Analysts estimate the company is also grappling with debt including provisions, pensions and accounts payable of about £1.5 billion (SR7.55 billion).
Carillion shares have lost 90 percent of their value since the profit warning on July 10. Carillion’s market capitalization stands at about £70 million, according to Thomson Reuters data.
Carillion and FCA declined to provide any additional details on the investigation.
Carillion last month moved forward the start date for new chief executive Andrew Davies forward to January 22 from April 2.
Davies, head of family-owned builder Wates Group and formerly with defense company BAE Systems, will replace interim CEO Cochrane.


Iraqi oil minister expects prices to rise over time

Updated 10 December 2018
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Iraqi oil minister expects prices to rise over time

  • Ghadhban said the recent fall in Iraqi exports was due to weather conditions
  • “Our goal is to reach an export capacity of 6.5 million barrels per day but over several stages,” he said

BAGHDAD: Iraqi Oil Minister Thamer Ghadhban said on Monday he expected the fall in oil prices to stop and for prices to rise over time, adding that if OPEC had not cut production, prices would have dropped to $45-50 per barrel.
Speaking at a ministry event in Baghdad, Ghadhban said the recent fall in Iraqi exports was not due to technical reasons, as Iraqi oil fields have high capacity, but rather because of weather conditions.
“Our goal is to reach an export capacity of 6.5 million barrels per day but over several stages,” he said.
Speaking about the recent Kirkuk oil deal with the semi-autonomous Kurdistan Regional Government (KRG), Ghadhban said state oil marketer SOMO had received preferential prices, albeit for low quantities.
Iraq last month restarted exports of Kirkuk oil, halted a year ago due to a standoff between the central government and the KRG, after a new government in Baghdad agreed a tentative deal with Irbil.