Abu Dhabi’s ADNOC weighs IPO of logistics and services unit next year: sources

Abu Dhabi’s ADNOC weighs IPO of logistics and services unit next year: sources
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Updated 21 November 2021

Abu Dhabi’s ADNOC weighs IPO of logistics and services unit next year: sources

Abu Dhabi’s ADNOC weighs IPO of logistics and services unit next year: sources
  • Gulf oil producers are looking at sales of stakes in energy assets

State oil firm Abu Dhabi National Oil Company (ADNOC) is weighing an initial public offering (IPO) of its marine services, logistics and shipping arm next year, two sources familiar with the matter told Reuters.


ADNOC Logistics & Services (ADNOC L&S) has been selected for a potential float in Abu Dhabi in 2022, said the sources, declining to be named as the matter is not public.


A deal could follow after testing investor appetite and market conditions, they said.


ADNOC declined to comment when contacted by Reuters on Sunday.


Gulf oil producers are looking at sales of stakes in energy assets, capitalizing on a rebound in crude prices to attract foreign investors.


ADNOC, which supplies nearly 3 percent of global oil demand, is seeking to extract value from businesses it owns and divest assets seen as non-core businesses.


It is also taking advantage of a rally on the Abu Dhabi equities index, which is up about 65 percent this year, the best-performing market in the Gulf region.


ADNOC in September offered an 11 percent stake in its drilling business, which raised more than $1.1 billion from investors. ADNOC and chemicals firm OCI raised $795 million in October through the public share sale of its fertilizer venture Fertiglobe.


ADNOC L&S delivers crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers.


It was created in 2016 following a merger between Abu Dhabi National Tanker Co, Petroleum Services Co. and Abu Dhabi Petroleum Ports Operating Co.


The unit has a fleet of over 240 owned and chartered vessels, which include tankers and very large crude carriers. It is also the only licensed operator to service all petroleum ports in Abu Dhabi.


The business is an essential unit of ADNOC, which is seeking to boost its crude oil production capacity to 5 million barrels per day by 2030.


The unit also operates feeder vessels that transport cargo on behalf of ADNOC and other customers. Shipping rates for cargo have soared in the past year as the coronavirus pandemic created bottlenecks and disrupted supply chains. 

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Iconic London store Fortnum & Mason looking to expand into Qatar in time for World Cup

Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, wants to expand into Qatar. (Shutterstock)
Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, wants to expand into Qatar. (Shutterstock)
Updated 26 January 2022

Iconic London store Fortnum & Mason looking to expand into Qatar in time for World Cup

Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, wants to expand into Qatar. (Shutterstock)
  • 315-year-old store counts Queen Elizabeth and Prince Charles among its customers

LONDON: One of London’s most popular department stores is in talks to open a branch in Qatar ahead of this winter’s FIFA World Cup, according to a Sky News report.

Fortnum & Mason, an upmarket shop in Piccadilly that counts Queen Elizabeth II and Prince Charles among its customers, is believed to be discussing a franchise opportunity with partners in the country.

The company’s chief executive, Tom Athron, wants to continue the brand expansion which took place under his predecessor, Ewan Venters, which included a first outlet in the Gulf, in Dubai, which closed in 2017.

The 315-year-old store, which is owned by a branch of the Weston family, already has a store in Hong Kong, and partnerships in Australia and Japan.

“As part of our strategy, we are exploring opportunities to expand both online and internationally, the Gulf being a region we’d like to look at again,” a spokesman for Fortnum & Mason said.

Fortnum’s business was hit badly during the early stages of the COVID-19 pandemic, but has seen strong growth in its online business, and the firm hopes expanding into Qatar ahead of the World Cup in November could raise the brand’s global profile.


US car makers and medical suppliers warn chip shortage will last for more than six months

US car makers and medical suppliers warn chip shortage will last for more than six months
Updated 26 January 2022

US car makers and medical suppliers warn chip shortage will last for more than six months

US car makers and medical suppliers warn chip shortage will last for more than six months

RIYADH: US businesses are worried that the global semiconductor supply shortage is set to last for at least six more months, according to report put together by the country's Department of Commerce.

The White House was urged to push ahead with a $52 billion plan previously submitted to Congress to stimulate semiconductor makers and encourage them to build factories in the US, Bloomberg reported.

The report, released on Tuesday, was based on information taken from more than 150 companies in the semiconductors supply chain, and stated that the global shortage of chips will persist until the second half of 2022 as: “there is a significant, persistent mismatch in supply and demand for chips.”

The most affected industries by the shortage include automakers, consumer electronic, medical devices, broadband, and auto industries.

Even though the government does not have many alternatives in hand to solve the current issue, US officials will focus on resolving bottlenecks in those supply chains, and investigate claims of chips price gouging for some types of semiconductors, the report said.

Average inventory level fell from 40 days to fewer than 5 days, resulting in no room for error, Commerce Secretary Gina Raimondo said in a briefing with reporters discussing the findings of the report. The median demand for chips was 17 percent higher in 2021 than in 2019, coupled with disproportionate increases in supply.

Disruption in the supply of semiconductors, which plays a key factor in determining the country’s inflation level, could threaten to help swing Congress to Republican control in November’s midterm elections.

Many firms have been recently expanding their operations in the US, with Intel Corp. announcing it is building the world’s biggest silicon-manufacturing site in Columbus, Ohio, worth $20 billion, and expected to become operational in 2025.


Saudi, Iraq electrical connection to generate 1GW of power

Saudi, Iraq electrical connection to generate 1GW of power
Updated 26 January 2022

Saudi, Iraq electrical connection to generate 1GW of power

Saudi, Iraq electrical connection to generate 1GW of power

RIYADH: Saudi Energy Minister Prince Abdulaziz bin Salman announced that the electrical connection between Saudi Arabia and Iraq will generate one gigawatt of power initially, according to the Iraqi News Agency.

This comes after Iraq has signed a memorandum of understanding regarding the matter with the Saudi side.

Nevertheless, “the Iraqi-Saudi cooperation is not limited to the electrical connection only, but rather it is the beginning of a joint collective action,” Iraqi News Agency reported, citing the Prince.

Bilateral models need to be further developed and strengthened on a regional and Arab scale, he added.


Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on

Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on
Updated 26 January 2022

Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on

Lebanon’s new electricity deal with Syria and Jordan is a long way from being switched on

Plagued by constant power shortages, Lebanon’s new agreement with Jordan and Syria could be seen as a turning point for the energy-poor nation.

Yet the deal — which will see electricity flow from Syria — will not provide an immediate solution to the country’s energy problems, according to Lebanese oil and gas expert Laury Hatayan.

Speaking to Arab News, Hatayan says there are still plenty of hurdles to jump before the agreement — brokered by the US and expected to be partially financed by the World Bank — begins to help the country with its power outages.

“The deal doesn’t mean Lebanon will be provided with electricity tomorrow, as we are hearing that the World Bank has conditioned finalizing the arrangement on reforms to the electricity sector,” Hatayan said.   

The deal would supply Lebanon with 700 Megawatts of electricity in total: 250MW from Jordan and 450MW from Egypt.

With the Iraqi fuel supplies that have already kicked in and future supply by Egypt, Lebanon will be able to get a total of 10 hours of electricity per day.

This much-needed boost does not come without strings attached, according to Marc Ayoub, energy researcher and program coordinator at the American University of Beirut’s Issam Fares Institute.

“The World Bank is asking for a comprehensive reform plan of the electricity sector including loss reductions, improving bill collection and increasing electricity tariffs,” he said.

The World Bank’s regional director, Saroj Kumar Jha, has said that the exact amount of financing has not yet been determined, but the government’s initial request was $250 million, he told L’Orient Today.

Lebanon will also have to conduct repairs to the Lebanese side of a pipeline needed to import gas from Egypt, at a cost of $1million.

Additionally, Jordanian electricity to Lebanon will come at a cost of $200 million a year. 

Other hurdles are political in nature, such as US sanctions on Syria. Washington has so far ensured regional players that the deal does not fall under the Caesar Act sanctions or other US sanctions on Syria because the Syrian government will not receive any financial compensation but will be paid in kind.   

“The Egyptians are keen on getting guarantees against the Cesar Act. The Jordanians are not as wary given their strategic relations with the US,” adds Hatayan.

The deal and any electricity reforms must be approved by Parliament, which is known for its inefficiency and dissensions. 

The announcement by former PM Saad Hariri of his plan to retire from political life has cast doubt as to the fate of his current political bloc. Hariri heads the Future movement, the biggest Sunni bloc in parliament.

“For now, no reforms mean no money and deals can remain just deals (without being implemented),” highlights Hatayan.

If financing is finally secured Ayoub believes that Jordanian electricity is expected to flow to Lebanon by April or May.


Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom

Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom
Updated 26 January 2022

Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom

Saudi Petrochem 2021 profits jump almost fivefold amid sector-wide boom

RIYADH: Saudi-listed National Petrochemical Co., better known as Petrochem, saw its profits surge almost fivefold in 2021.

As the Kingdom’s chemical sector grew, profits of the homegrown firm hit SR1.4 billion ($370 million), compared to SR230 million a year earlier.

The company attributed the hike in profits to higher product prices and drops in Zakat expenses, according to a bourse filing.

On a wider scale, data by Gastat earlier showed that outgoing chemical shipments picked up pace significantly, prompting Saudi non-oil exports growth to hit an annual rate of 26.1 percent in November.

Established in 2008, Petrochem operates in the Kingdom’s petrochemical sector. It owns 65 percent of Saudi Polymer Co., located in Jubail Industrial City.