Attracting Saudi Aramco IPO still ‘a focus’ for London exchange

LSE said operating profit for last year rose to £626 million. (Reuters)
Updated 02 March 2018
0

Attracting Saudi Aramco IPO still ‘a focus’ for London exchange

LONDON: London Stock Exchange Group emerged from what was a troubling 2017 with a 47 percent profit jump despite turgid markets, helping to ease lingering concern over management upheaval and its aborted Deutsche Boerse merger.
The exchange also said that hosting an expected initial public offering of part of Saudi Aramco remains “a focus.”
The company has come under fire from activist investor TCI over the departure of CEO Xavier Rolet in the wake of the collapsed Deutsche Boerse deal but was able to offer a more upbeat message on Friday with full-year results buoyed by record volumes across multiple clearing services and company flotations that hit a three-year high.
Though interim chief David Warren ruled himself out as permanent CEO, the company said it had made “good progress” in its search from a “strong field of high-quality candidates.”
Without a permanent chief executive LSE could be more vulnerable to a potential takeover. TCI, which holds a 5.17 percent stake in LSE, has predicted a 15 billion pound ($20.7 billion) bid for the group from transatlantic rivals ICE and CME Group.
In a conference call with reporters, Warren declined to comment on takeover bids but said that LSE was confident in its standalone prospects.
“I have strong ambition ... to continue in this interim role as the search goes on. (Beyond that) I remain firmly committed to remaining as CFO,” he added.
Warren declined to comment on a timeline for any appointment and did not say whether LSE had spoken to TCI about candidates.
TCI had sought the removal of chairman Donald Brydon over the handling of Rolet’s departure. The former CEO stepped down in November after nearly a decade in the role, during which he transformed the company with a string of deals, lifting its market value from less than £1 billion ($1.4 billion) to almost £14 billion.
Whoever takes over as CEO will be charged with leading LSE’s efforts to woo oil giant Saudi Aramco to London for what is widely expected to be the world’s largest initial public offering.
“It’s very much in our interest to do this. I think there is a lot about London which is very, very attractive ... It certainly has been a focus and continues to be,” Warren said.


‘Get prices down’ Trump tells OPEC

Updated 20 September 2018
0

‘Get prices down’ Trump tells OPEC

  • Trump highlights US security role in region
  • Comments come ahead of oil producers meeting in Algeria

LONDON: US president Donald Trump urged OPEC to lower crude prices on Thursday while reminding Mideast oil exporters of US security support.
He made his remarks on Twitter ahead of a keenly awaited meeting of OPEC countries and its allies in Algiers this weekend as pressure mounts on them to prevent a spike in prices caused by the reimposition of oil sanctions on Iran.
“We protect the countries of the Middle East, they would not be safe for very long without us, and yet they continue to push for higher and higher oil prices!” he tweeted.
“We will remember. The OPEC monopoly must get prices down now!”
Despite the threat, the group and its allies are unlikely to agree to an official increase in output, Reuters reported on Thursday, citing OPEC sources.
In June they agreed to increase production by about one million barrels per day (bpd). That decision was was spurred by a recovery in oil prices, in part caused by OPEC and its partners agreeing to lower production since 2017.
Known as OPEC+, the group of oil producers which includes Russia are due to meet on Sunday in Algiers to look at how to allocate the additional one million bpd within its quote a framework.
OPEC sources told Reuters that there was no immediate plan for any official action as such a move would require OPEC to hold what it calls an extraordinary meeting, which is not on the table.
Oil prices slipped after Trumps remarks, with Brent crude shedding 40 cents to $79 a barrel in early afternoon trade in London while US light crude was unchanged at about $71.12.
Brent had been trading at around $80 on expectations that global supplies would come under pressure from the introduction of US sanctions on Iranian crude exports on Nov. 4.
Some countries has already started to halt imports from Tehran ahead of that deadline, leading analysts to speculate about how much spare capacity there is in the Middle East to compensate for the loss of Iranian exports as well as how much of that spare capacity can be easily brought online after years of under-investment in the industry.
Analysts expect oil to trend higher and through the $80 barrier as the deadline for US sanctions approaches.
“Brent is definitely fighting the $80 line, wanting to break above,” said SEB Markets chief commodities analyst Bjarne Schieldrop, Reuters reported. “But this is likely going to break very soon.”