Dubai theme park operator DXB Entertainments narrows losses

The entrance to LegoLand at Dubai Parks & Resorts. (Supplied)
Updated 06 November 2018
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Dubai theme park operator DXB Entertainments narrows losses

  • Park attracts 501,394 visits in the third quarter
  • Still faces headwinds of tough tourism market

LONDON: Dubai theme park operator DXB Entertainments (DXBE) has posted a loss of 81 million dirhams ($22 million) for the third quarter as the company continues to battles headwinds in the tourism sector since the opening of its flagship theme park in late 2016.
The loss was an improvement on the 105 million dirhams earnings before interest, taxes and amortization (EBITDA) loss the company reported in the third quarter of 2017, according to the filing on the Dubai stock exchange.
The company’s main asset — Dubai Parks and Resorts — which features attractions inspired by “The Hunger Games” film as well as Bollywood Parks and Legoland, opened the first phase of the park in 2016.
Visitor numbers have grown since then reaching 501,394 in the third quarter, a 5 percent increase on the same quarter last year. Year-to-date more than 1.9 million people have visited the park, an increase of 33 percent on the previous year.
Revenue however has slipped in the third quarter, reaching 103 million dirhams compared to 115 million dirhams in the same time period in 2017.
The third quarter is typically considered a slower period of growth due to the heat of the summer season putting off visitors.
DXBE is aiming to increase the number of international visitors to its parks, launching a number of joint advertising campaigns with Dubai’s flagship airline Emirates and Dubai Airports in the last quarter, according to its statement.
Mohamed Almulla, CEO and managing director, DXBE, said in a statement that the company would also be revising its pricing structure to increase admissions revenue.
“Increasing in-park spend is an additional revenue driver which we are focused on through a review of merchandise and F&B options offered in the parks,” he said.
He said that the business would continue “to focus on reaching EBITDA breakeven and we have achieved 51 percent improvement during the first nine months of 2018."


Global oil market faces surplus throughout 2019 as demand growth slows

Updated 26 min 31 sec ago
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Global oil market faces surplus throughout 2019 as demand growth slows

  • Output around the world has swelled since the middle of the year
  • The agency raised its forecast for oil output growth from countries outside OPEC

LONDON: Global oil supply will outpace demand throughout 2019, as a relentless rise in output swamps growth in consumption that is at risk from a slowing economy, the International Energy Agency said on Wednesday.
In its monthly report the Paris-based IEA left its forecast for global demand growth for 2018 and 2019 unchanged from last month at 1.3 million barrels per day (bpd) and 1.4 million bpd, respectively, but cut its forecast for non-OECD demand growth, the engine of expansion in world oil consumption.
For the first half of 2019, based on its outlook for non-OPEC production and global demand, and assuming flat OPEC production, the IEA said the implied stock build is 2 million bpd.
Output around the world has swelled since the middle of the year, while an escalating trade dispute between the United States and China threatens global economic growth.
On Wednesday, three sources familiar with the matter told Reuters that OPEC and its partners are discussing a proposal to cut oil output by up to 1.4 million bpd for 2019 to avert an oversupply that would weaken prices.
Since early October, the oil price has fallen by a quarter to below $70 a barrel, its lowest in eight months, which may protect demand to an extent, the IEA said.
“While slower economic growth in some countries reduces the outlook for oil demand, a significant downward revision to our price assumption is supportive,” it added.
The agency raised its forecast for oil output growth from countries outside the Organization of the Petroleum Exporting Countries to 2.4 million bpd this year and 1.9 million bpd next year, versus its previous estimate of 2.2 million bpd and 1.8 million bpd, respectively.
The United States will lead output growth. The IEA estimates total US oil supply will rise by 2.1 million bpd this year and another 1.3 million bpd in 2019, from a current record of more than 11 million bpd.
OPEC crude output rose by 200,000 bpd in October to 32.99 million bpd, up 240,000 bpd on a year ago, as losses of 400,000 bpd from Iran and 600,000 bpd from Venezuela were easily offset by increases from others, such as Saudi Arabia or the United Arab Emirates.
“Next year, there is expected to be even less need for OPEC oil due to relentless growth in non-OPEC supply,” the IEA said, adding that it had cut its forecast for demand for OPEC crude by 300,000 bpd to 31.3 million bpd in 2019.
Inventories of oil in OECD countries rose by 12.1 million barrels in September to 2.875 billion barrels, the IEA said, adding that for the third quarter as a whole, stocks rose 58.1 million barrels, or at a rate of 630,000 bpd, the biggest increase since 2015.