Commerzbank in deb Exploration spending to hit

Document Sample
Commerzbank in deb Exploration spending to hit Powered By Docstoc
					16     Gulf Daily News Tuesday, 6th December 2011

  Chartered Insurance
     Institute (CII)

  Tel: 1781 5555

DP World eyes 
$850 million 
DUBAI: DP World, the world’s
                                                                                                         PARIS: The leaders of France and                International Monetary Fund or some          euro countries as an im
third-largest port operator, will                                                                        Germany called forcefully yester-               combination.                                 save the currency. The
invest $850 million over the next                                                                        day for a new European Union                       “Our wish is to go on a forced march      will get what they wa
three years to create additional                                                                         treaty that would automatically                 towards re-establishing confidence           in Brussels on Friday
capacity at one of its key ports                                                                         punish euro countries if they vio-              in the euro zone,” French President          could doom the euro.
in the UAE, the company said                                                                                                                             Nicolas Sarkozy said at a Press con-           There is a risk that im
yesterday.                                                                                               late existing limits on overspend-              ference alongside German Chancellor          proposals won’t move
   The expansion of the Jebel                                                                            ing.                                            Angela Merkel. “We don’t have time.          markets or the most h
Ali port will create an addi-                                                                               Implementing treaty changes could            We are conscious of the gravity of the       countries like Italy an
tional capacity of four million                                                                          take months, but a commitment to                situation and the responsibility that        need help to keep the
TEU, or twenty-foot equivalent                                                                           tighter co-ordination could open                rests on our shoulders.”                     the cost of their borrow
container unit, taking the total                                                                         the way for further emergency aid                  Investors viewed the proposal for           Sarkozy said he and
capacity of the port to 19m TEU                                                                          from the European Central Bank, the             a closer fiscal union among the 17           prefer that the treaty b

                                                                                                         Centrica signs
by 2014.
   The operator said the invest-
ment will be financed from
existing cash resources and
   The company, one of the more

                                                                                                         Qatar accord
profitable assets of debt-laden
Dubai World, warned of tough
conditions for its customers in
2012 but said it would achieve
growth of more than seven per
cent.                                                                                                    LONDON: British utility Centrica has signed a memorandum of
   DP World has been push-                                                                               understanding to look at joint investment opportunities with Qatar
ing forward with growth into        n An HSBC branch in London. The bank yesterday said it will          Petroleum, two weeks after announcing a billion pound deal to buy a
Europe and earlier the company      cut 330 jobs in Britain due to “the very challenging economic        string of assets from Norwegian group Statoil.
said it would go ahead with         environment”. The news came on the same day that Britain’s              Centrica said yesterday investment targets will include new or
the construction of its London      financial regulator said it had fined HSBC £10.5 million ($16.4m)    existing projects in upstream oil and gas, including LNG, gas stor-
                                    after one of its subsidiaries missold financial retail products to
Gateway deep-sea container                                     elderly clients.                          age as well as combined-cycle gas turbine generation assets and
port.                                                                                                    downstream opportunities. The news comes as the company tar-
                                                                                                         gets growing production by 50 per cent to 75 million barrels of oil
                                                                                                                                              equivalent annually in the next

                                                                                                          Dubai firm                          three to five years, prompting
                                                                                                                                              speculation more deals as big as
                                                                                                                                              the one with Statoil could be in

                                                                                                          posts profit                        the offing.
                                                                                                                                                 Centrica had earlier said it
                                                                                                                                              would invest in its upstream oil
                                                                                                           of $143m                           and gas business to strengthen its
                                                                                                                                              energy hedge.
                                                                                                                                                 RBC analyst John Mush, who
                                                                                                         DUBAI: Nakheel, the Dubai-owned earlier said additional acquisi-
                                                                                                         developer whose extravagant tions the size of the Statoil deal
                                                                                                         projects spurred the emirate’s cannot be ruled out, warned that

                                                                                                         debt crisis, yesterday reported a further upstream investment
                                                                                                         first-half net profit, as it handed would increase the company’s
                                                                                                         over projects stalled in the after- exposure to gas prices.
                                                                                                         math of the property bust.              “This increased exposure will
                                                                                                            Nakheel, which built man-made increase volatility and reduce
                                                                                                         islands shaped like palms and a multiples investors are willing to
                                                                                                         map of the world, said it had profit pay for Centrica,” he said.                FRANKFURT:             Commerzb
                                                                                                         of 526 million dirhams ($143.2m)        Yesterday’s       agreement,            moved to fend off government in
                                                                                                         in the six months to June. It gave inked at the World Petroleum                 yesterday, saying it would buy
                                                                                                         no comparison for 2010.              Conference in Doha, follows                million euros ($806m) in cut-pr
                                                                                                            The developer’s chairman said the long-term LNG contract                     a bid to shore up its capital.
                                                                                                         in September that Nakheel earned Centrica signed with the emirate                 The partly state-owned ba
                                                                                                         860m dirhams in profits in 2010.     earlier this year.                         received an 18.2-billion-euro
                                                                                                            Nakheel completed a $16 billion      Qatar Petroleum International           the wake of Lehman Brothers’ c
                                                                                                         debt restructuring earlier this year is the international investment            believed to need some 5bn euro
                                                                                                         and is now wholly-owned by the arm of Qatar Petroleum, while                    2012 to meet new capital rule
                                                                                                         Dubai government, as arranged Centrica owns Britain’s larg-                     said.
                                                                                                         under former parent Dubai est household energy supplier,                          Commerzbank’s announceme
                                                                                                         World’s own restructuring.           British Gas. “The partnership              Germany, which holds 25 per
                                                                                                            Revenues stood at 1.5bn dirhams, will enable us to develop energy            moved to reinstate a state rescu
                                                                                                         mainly driven by the handover investments that will boost the                   banks, sources in the governme
                                                                                                         of development properties in a long-term security of the UK’s                   ruling coalition said yesterday.
                                                                                                         number of Nakheel projects, it said. gas supply,” Centrica chief exec-            Analysts were sceptical that
                                                                                                            The company also credited its utive Sam Laidlaw said.

                                                                                                                                                   Exploration sp
                                                                                                         retail and leasing businesses for prof-
                                                                                                         it growth. Cost cuts helped reduce
                                                                                                         overhead by 131m dirhams com-
                                                                                                         pared to the same period in 2010.
                                                                                                            “The company has remobilised
                                                                                                         a number of its construction sites
                                                                                                         where work is progressing as per          LONDON: Global energy exploration               (up 8pc year-on-year),” th
                                                                                                         its business plan,” it said.              and production (E&P) spending will                 But it noted: “This com
                                                                                                            The Dubai government has               reach the record high level of $598 bil-        tional spending growth o
                                                                                                         given as much as $8.71bn to sup-          lion in 2012 helped by high oil prices,         and spending increases in
                                                                                                         port the indebted developer which         Barclays Capital said yesterday, with the       of 31pc.” E&P spending
                                                                                                         announced in August.                      potential for more spending if higher oil       is mainly being driven by
                                                                                                            Dubai’s property boom ended            prices are sustained.                           ing markets. Barclays sa
                                                                                                         in 2008, with home prices plunging           The level is an increase of 10 per cent      were sustained at the cur
                                                                                                         by about 60 per cent forcing many         from $544bn this year, BarCap analysts          could be “considerable u
                                                                                                         developers to abandon projects.           said in an equity research note.                forecast. E&P spending
                                                                                                            Some of Nakheel’s ambitious               “The acceleration in worldwide spend-        rise most meaningfully in
                                                                                                         projects like Palm Jebel Ali, anoth-      ing is expected to be led by increased          Africa, Europe, the Mi
                                                                                                         er palm-shaped island stretching          expenditures internationally (up 11pc), in      Russia, BarCap said. Ca
                                                                                                         into the sea, are yet to be complete.     addition to solid growth in North America       seen rising 21pc in Latin

Shared By: