Oman Air seeks oneworld alliance membership

Oman Air seeks oneworld alliance membership
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Updated 26 September 2021

Oman Air seeks oneworld alliance membership

Oman Air seeks oneworld alliance membership

DUBAI: State-owned Oman Air announced on Sunday its intention to apply to join the oneworld global airline alliance and said it had asked fellow Gulf carrier and member Qatar Airways to help it.

Oman Air said it had approached Qatar Airways, whose chief executive Akbar Al-Baker is the chairman of the airline group, for guidance in making its application.

“As the industry recovers from COVID, airline alliances are going to be more important than ever,” the airline said in an emailed statement to Reuters.

“This will provide us with excellent global connectivity, a seamless travel experience and more valuable loyalty offerings for our guests.”

A oneworld spokesman said the alliance was at any time in talks with prospective members but that it did not comment on specific airlines.

“As airlines recover from COVID-19, alliances will become more important by providing global connectivity, as airlines reshape their networks, many with reduced fleets when compared to their pre-COVID size,” the onewolrd spokesman said.

A Qatar Airways spokesperson earlier referred comment to oneworld.

There are 14 airlines in the oneworld alliance, including Qantas, American Airlines and British Airways.

Qatar Airways holds direct and indirect stakes in three oneworld members, including British Airways and Cathay Pacific.


LNG demand to rise 25-50% by 2030, fastest growing hydrocarbon: Morgan Stanley

LNG demand to rise 25-50% by 2030, fastest growing hydrocarbon: Morgan Stanley
Liquefied natural gas (LNG) tanks stand at a terminal in Takaishi City, Osaka, Japan. Getty Images
Updated 17 sec ago

LNG demand to rise 25-50% by 2030, fastest growing hydrocarbon: Morgan Stanley

LNG demand to rise 25-50% by 2030, fastest growing hydrocarbon: Morgan Stanley
  • While higher gas prices are likely to underpin further investment in LNG, supply will be slower to respond than in previous cycles

Demand for liquefied natural gas (LNG) is expected to rise by 25 to 50 percent by 2030, making it the fastest growing hydrocarbon over the next decade, analysts from Morgan Stanley Research said in a note on Monday.


Morgan Stanley has raised its long-term LNG price outlook to $10 per million British thermal units (mmBtu), expecting spot prices of the super-chilled fuel to average 40% higher over the next decade, versus the past five years.


Asian spot LNG prices hit a record above $56 mmBtu earlier this month as surging demand ahead of the northern hemisphere winter spurred by an economic rebound from the pandemic outstripped supply.


Morgan Stanley said at least 73 million tonnes per annum (mtpa) of new projects are needed to meet LNG demand by 2030. This will require an additional $65 billion of new projects, on top of the $200 billion of projects already under construction which were sanctioned since 2019.


"Contrary to investor expectations, the world is going to need more LNG in the initial phase of the energy transition," the analysts said.


"Competing technologies for natural gas are not being developed fast enough, and there are significant benefits in reducing coal consumption while greener fuels are commercialised."


Projects with lower emission intensity will be more sought after and are more likely to progress, they said.


While higher gas prices are likely to underpin further investment in LNG, supply will be slower to respond than in previous cycles, the analysts said.


"This will be driven by uncertainty over medium-term demand along with more capital discipline from the industry, including diversification into greener energies," they said.


"We think investor sentiment towards LNG-focused companies is likely to increase given better prices and returns expectations."


LNG demand will outpace growth in other hydrocarbons over the next 10 to 15 years, they said, adding that oil demand is expected to grow in line with recent averages while coal demand is expected to be flat.


Asia, where coal makes up a high proportion of the energy mix, will be the key driver for LNG demand growth led by China and India as well as Taiwan, Thailand, Bangladesh, Indonesia and Malaysia, they added.


Volvo Cars gives itself $18bn price tag as cuts IPO size

Volvo Cars gives itself $18bn price tag as cuts IPO size
Getty Images
Updated 35 min 3 sec ago

Volvo Cars gives itself $18bn price tag as cuts IPO size

Volvo Cars gives itself $18bn price tag as cuts IPO size
  • "Now we'll have a smaller share listed, which is somewhat unfortunate"

Volvo Cars shrank its initial public offering on Monday, pricing it at the bottom of a previously announced range and valuing the Geely-owned business at just over $18 billion.


European and U.S. IPO markets have been hit by cancellations as inflation and global supply chain crunches have increased stock market volatility, while many more companies are reported to have pushed back plans rather than risk U-turns.


Volvo Cars, which had previously said its IPO would be priced within a range of 53 crowns ($6.2) to 68 crowns per share, said it was now opting for 53 crowns.


Carmakers have been hurt by production disruptions due to a semiconductor shortage, with several cutting production targets and shutting factories on concerns it will run well into 2022.


At the current price, Volvo Cars would be valued at just over $18 billion, well below the $23 billion it had expected at the top of the IPO pricing range.


Volvo Cars said it plans to raise around 20 billion Swedish crowns ($2.3 billion), down a fifth from its previous target.


CEO Hakan Samuelsson said he was "totally convinced" this would be enough, while the price should not be seen as negative.


"We have been listening to the market, humbly," he told news agency TT.


Political tension between Beijing and Stockholm persist after Sweden banned Huawei from its 5G networks and Swedish companies like Ericsson have lost business in China.


Geely, which paid Ford $1.8 billion for Volvo Cars in 2010, would not exercise an over-allotment option, while the amended offering would result in a free float of 16 percent to 17.9 percent.


Handelsbanken analyst Hampus Engellau said Volvo Cars had been careful to get secure all institutional Swedish investors.


"I would rather have seen a bigger share of the company listed to get a larger owner base and a liquid share... now we'll have a smaller share listed, which is somewhat unfortunate," he said.


Volvo Cars said the first day of trading on Nasdaq Stockholm was expected on Oct. 29, a day later than previously announced. 

 

 

 

 

 


Apicorp plans another debt issuance in 2022 as it expands renewable portfolio, CEO says 

Apicorp plans another debt issuance in 2022 as it expands renewable portfolio, CEO says 
Updated 10 min 50 sec ago

Apicorp plans another debt issuance in 2022 as it expands renewable portfolio, CEO says 

Apicorp plans another debt issuance in 2022 as it expands renewable portfolio, CEO says 

RIYADH: Apicorp, the Arab multilateral energy investment bank, is planning to issue green bonds or sukuk as early as next year to support plans to grow its renewable energy assets by $1 billion by 2023.

The company, which just finished an issuance of $750 million in green bonds, is traditionally known for its financing of oil, natural gas, and downstream projects.

The Saudi Arabia-based bank is now becoming very aggressive in building a sustainable and renewable portfolio after it increased its funding for green projects by a staggering 500 percent over the last five years, Ahmed Ali Attiga, chief executive officer, told Arab News in an interview. 

"Now we have around 15 percent of our total portfolio in green and non-conventional and renewable assets, up by 500 percent over the past five, six years," he added.

In spite of its green plan, Apicorp is still planning to issue sukuk or bonds as early as Spring 2022 to finance its conventional and non-conventional projects, he added.


Footwear maker Allbirds targets over $2bn valuation in U.S. IPO

Footwear maker Allbirds targets over $2bn valuation in U.S. IPO
Getty Images
Updated 44 min 51 sec ago

Footwear maker Allbirds targets over $2bn valuation in U.S. IPO

Footwear maker Allbirds targets over $2bn valuation in U.S. IPO
  • Allbirds said it expects higher expenses to drive up net losses to about $15 million to $18 million in the three months ended Sept. 30

Sustainable footwear maker Allbirds Inc said on Monday it was targeting a fully diluted valuation of as much as $2.2 billion in its initial public offering in the United States.


The company, backed by asset manager Franklin Templeton, said it is offering 19.2 million shares priced between $12 and $14 each, along with the selling stockholders. At the top end of that range, the IPO would fetch about $269 million.


Allbirds said it expects higher expenses to drive up net losses to about $15 million to $18 million in the three months ended Sept. 30, compared to a loss of nearly $7 million a year earlier.


The wool footwear maker is among several companies that have tapped investor interest in sustainable or environmentally friendly goods. In May, Oprah Winfrey-backed vegan milk maker Oatly Group AB and Jessica Alba's consumer goods company Honest Co listed their shares.


Allbirds, which is also backed by Oscar-winning actor Leonardo DiCaprio, uses a plant-based alternative to leather for its shoes.

It has also partnered with Adidas to create a range of sustainable sneakers.


Morgan Stanley, J.P. Morgan and BofA Securities are the lead underwriters for the offering. 


LNG demand to rise 25-50% by 2030: Morgan Stanley

LNG demand to rise 25-50% by 2030: Morgan Stanley
Updated 46 min 54 sec ago

LNG demand to rise 25-50% by 2030: Morgan Stanley

LNG demand to rise 25-50% by 2030: Morgan Stanley

SINGAPORE: Demand for liquefied natural gas is expected to rise by 25 to 50 percent by 2030, making it the fastest growing hydrocarbon over the next decade, analysts from Morgan Stanley Research said in a note on Monday.

Morgan Stanley has raised its long-term LNG price outlook to $10 per million British thermal units (mmBtu), expecting spot prices of the super-chilled fuel to average 40 percent higher over the next decade, versus the past five years.

Asian spot LNG prices hit a record above $56 mmBtu earlier this month as surging demand ahead of the northern hemisphere winter spurred by an economic rebound from the pandemic outstripped supply.

Morgan Stanley said at least 73 million tons per annum (mtpa) of new projects are needed to meet LNG demand by 2030. This will require an additional $65 billion of new projects, on top of the $200 billion of projects already under construction which were sanctioned since 2019.

“Contrary to investor expectations, the world is going to need more LNG in the initial phase of the energy transition,” the analysts said.

“Competing technologies for natural gas are not being developed fast enough, and there are significant benefits in reducing coal consumption while greener fuels are commercialized.”

Projects with lower emission intensity will be more sought after and are more likely to progress, they said.

While higher gas prices are likely to underpin further investment in LNG, supply will be slower to respond than in previous cycles, the analysts said.