Huawei ‘too close’ to Chinese government to be trusted

A number of countries have also blocked Huawei from working on their mobile networks and companies have stepped back from the firm following the US ban, citing legal requirements. (File/AFP)
Updated 01 June 2019

Huawei ‘too close’ to Chinese government to be trusted

  • The US Commerce Department last month placed Huawei on an “entity list” on grounds of national security
  • The US has long voiced suspicions that Huawei is controlled by the Chinese government and thus a global security threat

SINGAPORE: Telecommunications giant Huawei is “too close” to the Chinese government, making it difficult to trust the company at the heart of an escalating trade war between Washington and Beijing, the US defense chief said Saturday.
Acting Secretary of Defense Patrick Shanahan’s comments came amid a wave of controversy over the Chinese firm, which has been hit by allegations of espionage and faces a US ban.
“The integration of civilian businesses with the military is too close. China has national policies and laws where data is required to be shared,” Shanahan told a defense and security conference in Singapore.
“When I look at that situation, it’s too much risk... You can’t trust those networks are going to be protected.”
The US Commerce Department last month placed Huawei on an “entity list” on grounds of national security, a move that curbs its access to US-made components it needs for its equipment. A 90-day reprieve was later issued.
A number of countries have also blocked Huawei from working on their mobile networks and companies have stepped back from the firm following the US ban, citing legal requirements.
Concerns about Huawei have escalated as the company has risen to become the world leader in telecom networking equipment and one of the top smartphone manufacturers alongside Samsung and Apple.
The US has long voiced suspicions that Huawei is controlled by the Chinese government and thus a global security threat — charges strongly denied by the firm and Beijing.
Founder Ren Zhengfei is a former soldier in China’s People’s Liberation Army.


Gulf Marine CEO quits after review sparks profit warning

Updated 22 August 2019

Gulf Marine CEO quits after review sparks profit warning

  • Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence

DUBAI: Gulf Marine Services said on Wednesday Chief Executive Officer Duncan Anderson has resigned as the oilfield industry contractor warned a reassessment of its ships and contracts showed profit would fall this year, kicking its shares 12 percent down.

The Abu Dhabi-based offshore services specialist said a review by new finance chief Stephen Kersley of its large E-class vessels operating in Northwest Europe and the Middle East pointed to 2019 core earnings of between $45 million and $48 million, below $58 million that it reported last year.

A source familiar with the matter told Reuters that Anderson, who has served as CEO for 12 years, was asked to step down. Anderson could not be reached for comment.

The company, which in the past predominantly operated in the UAE, expanded operations and deployed large vessels in the North Sea and Saudi Arabia nine years ago and listed its shares in London in 2014.

Tensions in the Arabian Gulf, a worrisome global growth outlook and uncertainty over oil prices have recently dampened investor confidence.

The North Sea has seen a revival in production in recent years due to new fields coming on line and improved performance by operators following the 2014 oil price collapse.

Still, the basin’s production is expected to decline over the next decade, according to Britain’s Oil and Gas Authority.

“(The CFO’s) review has coincided with a pause in renewables-related self-propelled self-elevating support vessels activity in the North Sea, which will impact several of the higher day-rate E-Class vessels,” Investec wrote in a note.

Gulf Marine appointed industry veteran Kersley as chief financial officer in late May as it sought to halt a slide which has seen the company’s shares fall nearly 80 percent last year and another 23 percent so far this year.

The company said market conditions remained challenging and that it was still in talks with its financial advisors regarding a new capital structure.

“Management, the new board and the group’s advisors, have been in negotiation with the group’s banks on resetting its capital structure and progress has been made,” it said in a statement.

Last year, Gulf Marine said contracts were delayed into 2019 as the company was seen to be in breach of certain banking covenants at the end of 2018.

The company said it was still in talks with its banks and individual lenders with hopes of getting a waiver or an agreement to amend the concerned covenants.