Kuwait expects oil exporters to agree on mechanism to monitor supply

OPEC and allied non-OPEC exporters would review their crude output at a meeting in Algeria next month. (Reuters)
Updated 22 August 2018
0

Kuwait expects oil exporters to agree on mechanism to monitor supply

  • OPEC and allied non-OPEC exporters would review their crude output at a meeting in Algeria next month
  • Oil markets should remain stable until the end of the year

KUWAIT: OPEC and other oil exporting producers are expected to agree on a mechanism to monitor their crude production before the end of the year, Kuwaiti Oil Minister Bakhit Al-Rashidi said on Wednesday.

A committee set up by the Organization of the Petroleum Exporting Countries and allied non-OPEC exporters would review their crude output at a meeting in Algeria next month, he told reporters while touring an electricity station.

“The production numbers of OPEC and (countries) outside OPEC will be reviewed at the meeting in Algeria, and before the end of the current year, there will be an agreement on a mechanism to monitor output next year,” he said.

Oil markets should “remain stable” until the end of the year, he added.

The committee that will meet in Algeria on Sept.23, known as the JMCC, is chaired by Saudi Arabia and includes OPEC members Algeria, Kuwait, United Arab Emirates and Venezuela, as well as non-OPEC members Oman and Russia.

Iran asked to attend the meeting to defend its market share which could be impacted by US sanctions due to take effect on its oil industry in November. After months of underproduction aimed at bolstering crude prics, OPEC agreed with Russia and other oil producing allies to raise output from July. Saudi Arabia said the deal allowed countries able to produce more to meet the group’s overall conformity level, meaning some members, such as itself, could make up for shortfalls elsewhere. Iran, which faces US sanctions, disagreed and criticized Saudi plans to boost output above targeted levels.


Lufthansa announces overhaul of budget carrier Eurowings

Updated 24 June 2019
0

Lufthansa announces overhaul of budget carrier Eurowings

  • Lufthansa cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16
  • Eurowings’ long-haul business would be managed by Lufthansa in the future

BERLIN: Lufthansa on Monday announced a turnaround plan for Eurowings in which the budget carrier will focus on short-haul flights and seek a 15 percent cut in costs by 2022 in the hope of returning to profit.
The German airline cited falling revenues at Eurowings as a major reason for its warning on full-year profits on June 16. Eurowings’ revenue was also forecast to fall sharply in the second quarter.
Lufthansa said its Eurowings fleet would be standardized on the Airbus A320 family and it would seek to boost productivity at Eurowings by limiting itself in Germany to one air operator’s certificate.
Brussels Airlines — the Belgian national flag carrier which Lufthansa took control of in 2016 — would not be integrated into Eurowings, Lufthansa said. A turnaround plan for Brussels Airlines will be announced in the third quarter.
Lufthansa also said it would start pegging its dividend payout ratio to net profit in the future to give the group more flexibility. It would pay out a regular dividend of 20 percent-40 percent of net profit, adjusted for one-off gains and losses.
Lufthansa said Eurowings’ long-haul business would be managed by Lufthansa in the future.
Carsten Spohr, Chief Executive Officer of Lufthansa, said Monday’s announcements sent “a clear signal that this company cares about its shareholders and tries to create value for them.”
Lufthansa said its Network Airlines — made up of Lufthansa, Swiss and Austrian Airlines — would aim to use innovations in sales and distribution to make a contribution to increasing unit revenues by 3 percent by 2022.
Network Airlines will aim to reduce unit costs continuously by 1 to 2 percent annually, the airline said.