Moody's changes global energy outlook from stable to positive

Moody's changes global energy outlook from stable to positive
(Shutterstock)
Short Url
Updated 19 November 2021

Moody's changes global energy outlook from stable to positive

Moody's changes global energy outlook from stable to positive

RIYADH: US Moody's Investors Service has changed its outlook for Global Energy to stable from positive, based on its expectation that the pace of improvement in fundamental conditions across the industry will ease over the next 12-18 months, according to a statement.

Moody's stable global outlook stems from the earnings directions for the exploration and production and integrated oil sectors, which dominate the Global Energy industry and which will be little changed in 2022, after delivering a strong rebound in earnings, according to Moody's.

Producers will maintain earnings above 2019 levels, supported by the ongoing recovery in global oil demand, gradual supply growth, and a manageable cost environment. 

Many producers that did not invest sufficiently in 2020-21 will seek to boost capital budgets to stabilize production and stave off potential declines in volumes.

The Oil Field Services and Drilling  sector will benefit in 2022 from significant cash flow momentum and is poised to increase aggregate cash flow by more than 10 percent in 2022 from 2021 levels, the New York-based company said.

Refining and Marketing companies' free cash flow will continue to improve their financial strength as demand and earnings increase through 2022, with fuel consumption returning to pre-crisis levels.

Moody's would change its global sector outlook to positive if it expects consolidated global EBITDA (earnings before interest taxes depreciation and amortization) growth to accelerate to more than 5 percent over the next 12-18 months, and to negative if it expects that consolidated EBITDA will decline more than 5 percent. 

An interruption in the recovery in demand, a widespread recession, or other factors that contribute to declining oil and gas prices, would lead to stable outlooks, according to Moody's.

Climate change poses an increasing longer-term risk for the Global Energy industry from energy transition, greater regulation, and reduced investor demand.

 


Gulf countries to establish integrated industrial strategy: Bahraini minister

Gulf countries to establish integrated industrial strategy: Bahraini minister
Updated 13 sec ago

Gulf countries to establish integrated industrial strategy: Bahraini minister

Gulf countries to establish integrated industrial strategy: Bahraini minister

Countries in the Gulf Cooperation Council (GCC) are planning to set up an integrated industrial strategy, Bahraini Minister of Industry, Commerce and Tourism Zayed Alzayani said.

This will be done by creating a unified “Gulf strategy for industry,” Asharq Al-Awsat reported, citing him.

The Gulf countries are also trying to increase dependence on each other instead of importing raw materials from abroad, which Alzayani said could create jobs, diversify economies, and expand their exporting values. 

He added the region is heading towards the formation of a customs and economic union by 2025, and the integrated industrial system will help the Gulf to stand among global conglomerates as a single bloc.

When combined, Gulf countries are the 12th largest economy globally, the minister said, adding their aim to be among the top 10 biggest economies in the world.

 


Lebanon launches second licensing round for 8 offshore oil, gas blocks 

Lebanon launches second licensing round for 8 offshore oil, gas blocks 
Image: Shutterstock
Updated 24 min 10 sec ago

Lebanon launches second licensing round for 8 offshore oil, gas blocks 

Lebanon launches second licensing round for 8 offshore oil, gas blocks 
  • The US is mediating between Lebanon and Israel, who are technically at war, to resolve the dispute

RIYADH: Lebanon has launched the second licensing round for eight offshore oil and gas blocks after two years of delay.

The government had agreed to launch the second round in April 2019 but it was postponed due to the pandemic, Bloomberg reported.

The US is mediating between Lebanon and Israel, who are technically at war, to resolve the dispute over about 860 square kilometers of water.

The deadline for applications is June 15, according to the Lebanese Petroleum Administration.


Doha Bank looks to borrow a 3-year $350m loan

Doha Bank looks to borrow a 3-year $350m loan
Updated 33 min 27 sec ago

Doha Bank looks to borrow a 3-year $350m loan

Doha Bank looks to borrow a 3-year $350m loan
  • Banks that finance more than $100 million will receive an interest rate of 108 basis points on the total tranche

RIYADH: Doha Bank, one of the largest commercial banks in Qatar in terms of assets, is looking for a 3-year loan of $350 million, following a financing it obtained earlier this year.

The loan also includes a one-year extension option and an interest rate of about 85 basis points above LIBOR, a global benchmark interest rate, Alarabiya reported.

Banks that finance more than $100 million will receive an interest rate of 108 basis points on the total tranche.

Those offering to lend less than $100 million will receive a total interest rate of 106 basis points.


Chinese NetEase’s music business raises $422m in Hong Kong IPO 

Chinese NetEase’s music business raises $422m in Hong Kong IPO 
Image: Shutterstock
Updated 52 min 52 sec ago

Chinese NetEase’s music business raises $422m in Hong Kong IPO 

Chinese NetEase’s music business raises $422m in Hong Kong IPO 
  • The listing comes as China tightens up control over its data

Chinese gaming giant NetEase’s music streaming platform, Cloud Village has raised $422 million in its Hong Kong initial public offering.

The company priced its shares at HK$205 ($26.30), to start trading on Dec. 2, Bloomberg reported.

The listing comes as China tightens up control over its data, by issuing a draft law that requires Hong Kong IPO candidates to do a cybersecurity review. 

The music streaming platform, founded in 2013, generates most of its revenue through subscriptions, virtual gifting and advertising, providing online karaoke, live-streaming and lyrics sharing.

Bank of America Corp., China International Capital Corp. and Credit Suisse Group AG are joint sponsors for the offering.


Egypt’s tourism investments to grow 64% to $540m: minister

Egypt’s tourism investments to grow 64% to $540m: minister
Updated 28 November 2021

Egypt’s tourism investments to grow 64% to $540m: minister

Egypt’s tourism investments to grow 64% to $540m: minister
  • Minister Hala El-Said estimated investments will reach around 8.5 billion Egyptian pounds ($540 million)

Egypt’s minister of planning and economic development expects investments in the tourism and antiquities sector to rise 64 percent in the fiscal year 2021/22. 

Hala El-Said estimated investments will reach around 8.5 billion Egyptian pounds ($540 million) up from 5.2 billion Egyptian pounds in the fiscal year 2020/21.

The tourism sector occupies a special significance for the Egyptian economy due to its high growth rates and its large sectoral contribution to the country’s GDP growth, the minister said. 

The ministry’s report included the tourism sector’s targets in the 2021/22 plan. 

The sector’s production level is expected to reach about 120 billion Egyptian pounds at current prices, compared to 93 billion Egyptian pounds during 2020/21, a growth rate of nearly 29 percent. 

It is aimed to extend the tourism sector’s GDP share to 91.4 billion Egyptian pounds in the next fiscal year, compared to 69.5 billion Egyptian pounds in the previous year.