UAE oil trader GP Global files complaints over employee fraud

GP Global rejected market rumors over its finances as ‘blatant lies.’ (Shutterstock)
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Updated 31 July 2020

UAE oil trader GP Global files complaints over employee fraud

  • ‘A few employees have colluded with external entities using the coronavirus lockdown to defraud the company and its customers.’

SINGAPORE: UAE-based oil trader GP Global has uncovered fraud within the company and filed criminal complaints against some of its employees, its legal representative said in a letter to the company’s clients on its behalf.
“A few employees have colluded with external entities using the coronavirus (lockdown) and work from home arrangement to defraud the company and its customers,” Arun Abraham, legal consultant and partner at UAE-based Salam Advocates & Legal Consultants said in the letter reviewed by Reuters.
Salam Advocates were advising GP Global on “the internal investigation that was underway,” Abraham said, confirming that the letter had been sent out to some of GP Global’s clients last week.
Based on preliminary investigations, “criminal complaints have been filed against few employees in Sharjah and Fujairah,” Abraham said in the letter.
The internal investigations revealed that “the fraudsters manipulated records that switched the cargo under the custodianship of GP with those goods financed by various banks and under CMA (collateral management agreement),” according to the letter.
A detailed investigation is continuing on the methods of the fraud, “the individuals and entities involved, and the impact of the fraud” on GP’s business, the company’s letter said.
GP Global, a supplier of marine fuels worldwide with offices in Europe, Asia and the US, did not immediately respond to a request for comment.
On July 20, GP Global said that it had undertaken a “financial restructuring exercise” after it failed to “get full support from a few financial institutions recently.”
GP Global had also said that recent market rumors questioning the company’s financial condition were “blatant lies” being spread by “vested interests” and assured stakeholders its business was operating normally.

Aramco profits fall in tough quarter, but sees partial recovery from COVID-19 impact

Updated 09 August 2020

Aramco profits fall in tough quarter, but sees partial recovery from COVID-19 impact

  • Aramco see’s “partial recovery” from pandemic impact
  • Aramco president says company remains resilient

DUBAI: Saudi Aramco, the world’s biggest oil company, reported a net income of $6.57bn for the second quarter of 2020, the period which witnessed the most volatile oil market conditions for many decades.

The result, announced to the Tadawul stock exchange in Riyadh where the shares are listed, compared with income of $24.7 bn last year.

Amin Nasser, president and chief executive, said: “Despite COVID-19 bringing the world to a standstill, Aramco kept going. We have proven our financial resilience and operational reliability, setting a record in our business operations, while at the same time taking steps to ensure the health and safety of our people.”

Aramco’s dividend - a big attraction for the investors who bought into the world’s biggest initial public offering last year - will remain as pledged, Nasser added. Cash flow in the quarter amounted to $6.106 bn.

““Strong headwinds from reduced demand and lower oil prices are reflected in our second quarter results. Yet we delivered solid earnings because of our low production costs, unique scale, agile workforce, and unrivalled financial and operational strength. This helped us deliver on our plan to maintain a second quarter dividend of $18.75 billion to be paid in the third quarter,” he said.

Aramco said the loss was “mainly reflecting the impact of lower crude oil prices and declining refining and chemicals margins, partly offset by a decrease in production royalties resulting from lower crude oil prices and a decrease in the royalty rate from 20 per cent to 15 per cent, lower income taxes and zakat as a result of lower earnings, and higher other income related to sales for gas products.”

Sales and revenue in the period - which saw oil prices collapse on “Black Monday” in April - fell 57 per cent to $32.861 bn from the comparable period last year. 

Nasser said he was cautiously optimistic that the world economy was slowly recovering from the depths of the pandemic lockdowns.

“We are seeing a partial recovery in the energy market as countries around the world take steps to ease restrictions and reboot their economies. Meanwhile, we continue to place people’s safety first and have adapted to the new normal, implementing wide-ranging precautions to limit the spread of COVID-19 wherever we operate.

“We are determined to emerge from the pandemic stronger and will continue making progress on our long-term strategic journey, through ongoing investments in our business – which has one of the lowest upstream carbon footprints in the world,” he added.

Aramco expects capital expenditure to be at the lower end of the $25bn to $30bn range it has already indicated for this year.