Flydubai narrows H1 loss but warns of pressure from MAX grounding

Flydubai narrows H1 loss but warns of pressure from MAX grounding
A Boeing 737 MAX aircraft bearing the logo of Flydubai is parked at a Boeing production facility in Washington. (Reuters/File)
Updated 01 October 2019

Flydubai narrows H1 loss but warns of pressure from MAX grounding

Flydubai narrows H1 loss but warns of pressure from MAX grounding
  • Flydubai is one of the world’s biggest MAX customers with 14 planes from an order of 250

DUBAI: Flydubai warned on Monday of significant financial pressure from the unprecedented grounding of the Boeing 737 MAX as it reported a 196.7 million dirhams ($53.6 million) first-half loss.

The Dubai state-owned airline, one of the world’s biggest MAX customers with 14 planes from an order of 250, said it expected its fleet to shrink this year as it was unable to replace older aircraft.

Flydubai has largely stood by Boeing, which is facing one of the worst crises in its history, though the airline’s chairman said in April it could order jets from rival Airbus as replacements.

“We are in ongoing discussions with Boeing, as our long-standing partner, to resolve the unprecedented nature of this grounding and the significant impact it has had on our business and growth strategy,” CEO Ghaith Al-Ghaith said in a statement.

The airline expects to have a fleet of 43 aircraft by the end of the year, fewer than the 62 it thought it would have prior to the grounding. Boeing’s top-selling jet was grounded worldwide in March following two fatal crashes in Ethiopia and Indonesia that killed 346 people within a span of five months.

Flydubai’s first-half loss was narrower than the 316.8 million dirhams it lost a year earlier, while the number of passengers carried was down 7.5 percent to 5 million.

The airline had previously said it expected to return to profitability this year after losing 160 million dirhams in 2018.

A cost efficiency program introduced at the start of the year had offset some of the impact of the MAX grounding, although it would not be able to fully cover it, it said.

“If the grounding continues until the end of the year, we expect our performance to continue to be impacted,” Ghaith said.

Flydubai said it had seen strong demand on its network at the start of the year.


Smugglers post gold from Dubai to India hidden in Tang

Smugglers post gold from Dubai to India hidden in Tang
Updated 28 min 39 sec ago

Smugglers post gold from Dubai to India hidden in Tang

Smugglers post gold from Dubai to India hidden in Tang
  • It is the latest ruse by smugglers trying to avoid hefty import duties for the precious metal by employing increasingly intriguing methods

DUBAI: Indian customs have foiled an attempt to post gold from Dubai disguised in containers of the popular Tang drink.

After sieving the contents of the drink mix, Chennai customs officials discovered it had been mixed with gold granules, according to a statement from the Commissioner of Customs at Chennai International Airport.
Officials probing the racket found that the address of the receiver had been misused.
It is the latest ruse by smugglers trying to avoid hefty import duties for the precious metal by employing increasingly intriguing methods.
Earlier this year officials at Chennai airport also nabbed two men trying to smuggle gold through the airport underneath their wigs.
The hapless pair were nabbed after their unusual hairstyles caught the attention of officials.

They were found to be carrying two gold paste packets weighing almost 700 g


UK-based tower operator to acquire Omantel sites in $575m deal

UK-based tower operator to acquire Omantel sites in $575m deal
Updated 11 May 2021

UK-based tower operator to acquire Omantel sites in $575m deal

UK-based tower operator to acquire Omantel sites in $575m deal
  • The move signals Helios Towers’ entry to the Middle East market as a major tower infrastructure provider

DUBAI: British telecommunications company Helios Towers has signed a deal with Omantel to acquire 2,890 sites for $575 million from the sultanate’s largest mobile network operator.
The move signals Helios Towers’ entry to the Middle East market as a major tower infrastructure provider.
The deal is expected to bring in a $59 million bump in revenues in the first full year of operations.
It also involves a $35 million plan to add 300 new build-to-suit sites over the next seven years.
“We view Oman as a very attractive and supportive market for foreign investments, with strong growth and exciting future prospects,” the UK-based company’s chief Kash Pandya said in a statement.
He said the acquisition strengthens its business through “further hard-currency revenues and diversification” in what the CEO described as the fastest growing markets in the region.
“We look forward to working with Omantel and the other MNOs over the coming years to further develop next generation mobile infrastructure solutions and services in Oman,” he added.
The partnership reflects Oman’s FDI aspirations, Omantel CEO Tala Said Al-Mamari said, adding it will create jobs and opportunities in the country.
“This move also allows the monetization of our towers at attractive valuation levels, de-lever our balance sheet, and will accelerate network development in next generation advanced technologies,” he noted.
He said it would allow Omantel’s management to focus on innovation and product development while outsourcing infrastructure management to an independent firm.
The transaction will close by the end of 2021, and the long-term partnership will last for an initial period of 15 years.


Arab world renewables growth slows in 2020

Arab world renewables growth slows in 2020
Updated 11 May 2021

Arab world renewables growth slows in 2020

Arab world renewables growth slows in 2020
  • Total renewables capacity stood at 24,224 MW last year

DUBAI: The Middle East saw a 5 percent increase in its renewable energy capacity in 2020, as the region’s push to go greener stalled.
Total renewables capacity stood at 24,224 MW last year, according to a report by the Abu Dhabi-based International Renewable Energy Agency (IRENA).
Growth in the sector slowed from the 13 percent increase in renewables capacity achieved between 2018 and 2019, as the COVID-19 pandemic took a toll on projects in the pipeline.
Still, the targets set by countries in the region could translate into a combined 80 GW of renewable capacity by 2030, IRENA said.
The global agency said the regional renewables push goes hand-in-hand with the Middle East’s ambition to diversify its economy, with projects typically bringing other economic benefits.
“The region recognizes the socio-economic benefits of renewable energy deployment, which is perceived as an opportunity for industrial diversification, new value-chain activities and technology transfer,” IRENA said.
The UAE has grown its renewable energy capacity from just 13MW in 2011 to 2,540 MW capacity in 2020. Saudi Arabia’s capacity also grew significantly over nine years – starting at only 3MW and increasing to 413 MW last year.


Indian oil refiners cut output, imports as pandemic hits demand

Indian oil refiners cut output, imports as pandemic hits demand
Updated 11 May 2021

Indian oil refiners cut output, imports as pandemic hits demand

Indian oil refiners cut output, imports as pandemic hits demand
  • IOC’s refineries at 95 percent of their capacity in late April
  • Several Indian states remain under lockdown

NEW DELHI: India’s top oil refiners are reducing processing runs and crude imports as the surging COVID-19 pandemic has cut fuel consumption, leading to higher product stockpiles at the plants, company officials told Reuters on Tuesday.
Indian Oil Corp, the country’s biggest refiner, has reduced runs to an average of between 85 percent and 88 percent of processing capacity, a company official said, adding runs could be cut further as some plants are facing problems storing refined oil products.
IOC’s refineries were operating at about 95 percent of their capacity in late April.
“We do not anticipate that our crude processing would be reduced to last year’s level of 65 percent-70 percent as inter-state vehicle movement is still there ... (the) economy is functioning,” he said.
Several states across India are under lockdown as the coronavirus crisis showed scant sign of easing on Tuesday, with a seven-day average of new cases at a record high, although the government of India, the world’s third largest oil importer and consumer, has not implemented a full lockdown.
State-run Bharat Petroleum Corp. has cut its crude imports by 1 million barrels in May and will reduce purchases by 2 million barrels in June, a company official said.
M.K. Surana, chairman of Hindustan Petroleum Corp, expects India’s fuel consumption in May to fall by 5 percent from April as the impact on driving and industrial production is not as severe as last year.
“This time it is not a full lockdown like last time,” he said.
“Sales in April was about 90 percent of March and we expect May could be about 5 percent lower than April.”


Sea and space in demand as UAE property buyer mix changes says Aldar boss

Sea and space in demand as UAE property buyer mix changes says Aldar boss
Updated 11 May 2021

Sea and space in demand as UAE property buyer mix changes says Aldar boss

Sea and space in demand as UAE property buyer mix changes says Aldar boss
  • Aldar said on Monday it had achieved property sales of above 1 billion dirhams for the third consecutive quarter

DUBAI: UAE property buyers are seeking bigger villas and seafront locations as the post-pandemic real estate market puts a premium on space, according to the CEO of Abu Dhabi’s biggest developer.

Aldar Group CEO Talal Al-Dhiyebi also revealed a rapidly changing mix of investors acquiring the developer’s units with the number of Indian expatriate and female investors rising sharply.
Aldar on Monday reported an 80 percent jump in first quarter profit from a year earlier to 544 million dirhams ($148 million), beating analyst expectations.
“The story in Abu Dhabi and Dubai post-pandemic has been very similar where people are moving to prime sea-facing properties. After the lockdowns in Europe and the sub-continent we saw a strong push of people moving in,” said Al-Dhiyebi in an interview with Bloomberg TV on Tuesday. “Our Indian buyers are now our second strongest buyers for the first time in Abu Dhabi. What is also interesting is that it is the first time we have crossed 30 percent female investors in off-plan sales since our inception. So the dynamics have changed. People are looking for opportunities. That has resulted in price increases in those prime and horizontal developments and we expect that to continue until the end of 2021.”
His remarks and the company’s underlying performance are the latest indicator of a shift in sentiment toward some segments of the UAE property market, despite a large overhang of completed and soon-to-be-completed new homes.
Aldar said on Monday it had achieved property sales of above 1 billion dirhams for the third consecutive quarter with its development business reporting a 47 percent year-on-year increase in revenues.