Boj Holds Its Policy, Cuts GDP Outlook Airbus Q1 Net Plunges 50% to $453

AIR POCKETS | Page 3 SHOCK MOVE | Page 9 Airbus Q1 net BoJ holds its plunges 50% policy, cuts to $453mn GDP outlook Friday, April 29, 2016 Rajab 22, 1437 AH GT EXCLUSIVE: Page 12 Harrods provides GULF TIMES unique showcase for Dubai Creek BUSINESS Harbour project MPHC net profit surges Aamal Company posts 83% in first quarter to 34% jump in its Q1 net QR212.4mn Mesaieed Petrochemical Holding Company (MPHC)- the umbrella entity for QChem, QChem II and Qatar Vinyl Company - has reported an 83% jump year-on-year in net profit to QR212.4mn in the first three months of this year. The year-on-year increase profi t to QR153.7mn was due to increased sales volumes and other income, said a spokesman amal Company has reported ues to evolve and diversify, Aamal is of the company, a subsidiary of Qatar a 34% growth year-on-year uniquely well placed to reap signifi - Petroleum. Ain net profi t to QR153.7mn cant upside through its strong and MPHC is one of the region’s on a 7% growth in group revenue to well-established businesses across premier diversified petrochemical QR679.6mn during January-March the economic spectrum, allied to conglomerates with interests in the this year. its ability to act quickly should production of olefins, polyolefins, “2016 has started very well for new and considered opportunities alpha olefins and chlor-alkali products. us, continuing on from the excel- present themselves,” he said. The groups’ profit was also aided lent set of results that we reported Reported earnings per share grew by the recognition of a tax refund for the full year 2015 back in Febru- 31% to QR0.21 during the review of about QR20mn for the quarter ary. The fi rst three months of this period. in review. The group continued year has seen a near 7% rise in rev- Net capital investment expendi- to benefit from the supply of enues, which when combined with ture rose to QR46.3mn, refl ecting competitively priced ethane feedstock an expansion in operating margins, the fl eet expansion at the Aamal and fuel gas under long-term supply has led to a rise in total net profi ts of Maritime Transportation Services agreements. more than one third,” Aamal Com- subsidiary and Phase 2 of the rede- “This contracting arrangement is an pany chairman Sheikh Faisal bin velopment of the City Center Doha important value driver for the group Qassim al-Thani said. shopping mall. profitability in a challenging market Highlighting that its fi nancial “Aamal has always been at the condition,” the spokesman said. gearing (net debt to net debt plus forefront of Qatar’s development, The closing cash position after the equity) reduced further to 2.5% helping to drive change as the first three months of operations and (against 3.8% as on December 31, country continues its rapid mod- after distribution of the previous 2015), he said it refl ects the strong ernisation...Furthermore, strong year’s dividend of QR879.4mn was a free cash fl ow generation, which is a foundations have been laid for the robust QR432.2mn as on March 31, testimony to the focus it has put on company to evaluate new commer- 2016. generating positive returns on the cial opportunities often quicker Total assets stood at QR13.7bn, capital deployed, thereby helping than its competitors, which gives comprising current assets of to sustain its profi table growth and it a key advantage,” according to QR0.55bn and non-current assets create shareholder value. Aamal vice chairman Sheikh Mo- of QR13.16bn for the quarter ended “This low gearing also means hamed bin Faisal al-Thani. March 31, 2016 compared to a total of that we can move swiftly should we Aamal managing director Tarek QR14.3bn as on December 31, 2015. identify suitable commercial op- M El Sayed said the company’s di- The company’s earnings-per-share portunities that we would like to versifi cation across key growth stood at QR0.17 at the end of March exploit,” Sheikh Faisal added. markets has enabled it to meet the 31, 2016 compared to QR0.09 in the In the first quarter, Aamal growing demand for increasingly previous year period. continued to grow its operations sophisticated and specialised prod- through organic means, includ- ucts and services MPHC is one of the region’s ing investing to expand the bulk “ As such, I believe Aamal pro- top diversifi ed petrochemical carrying capacity at Aamal Mari- vides an ideal entry point for in- conglomerates with interests time Transportation Services vestors wishing to gain a broad and in the production of olefi ns, through the acquisition of a sec- balanced exposure to Qatar’s eco- polyolefi ns, alpha olefi ns and ond vessel. nomic growth and development,” chlor-alkali products “As the Qatari economy contin- he added. Sheikh Faisal: Strong free cash flow generation. VW to strengthen cooperation with Qatar Mideast funds cut cash as markets fi nd fl oors Reuters said Mohammed Ali Yasin, managing “This upcoming supply would Dubai director at Abu Dhabi’s NBAD Securi- put pressure on secondary market ties. spreads and we expect wider GCC The poll, conducted over the past spreads over the next few months,” iddle East fund managers are 10 days, found that of 14 leading fund Eljamal said. “We are currently un- reducing their cash holdings managers, 36% expected to increase derweight GCC credit, and are look- Mand building back long po- their allocations to Middle East equi- ing to increase our exposure through sitions in equities and fi xed income ties over the next three months and new issuances as spreads adjust because of signs that markets have that 29% anticipated a reduction. wider.” bottomed out, a monthly Reuters poll Last month, only 7% expected to The poll showed the UAE was still shows. raise their equity allocations and 14% the most popular stock market among During the previous six months, to cut them. funds because of its diversifi ed econ- many managers retreated into cash In fi xed income, 29% now expect to omy, but sentiment was mixed to- because of sliding oil prices, the threat increase their allocations and none to wards Saudi Arabia after it unveiled of US interest rate hikes and a looming reduce them. Last month, the fi gures a reform package designed to cut its economic slowdown in the Gulf. were 29% and 14%. dependence on oil. While these concerns have not dis- The rebound of oil prices, as well as Thirty-six percent of managers appeared, they have eased somewhat. economic reform and austerity plans now expect to increase their Saudi Brent crude oil has risen above $47 announced by Saudi Arabia and oth- equity allocations and 21% to reduce per barrel to its highest level this year, er Gulf Cooperation Council (GCC) them; last month, the fi gures were the US Federal Reserve has signalled states, have made investors more 21% and 7%. caution on monetary tightening, and comfortable with regional credits. Some funds said they were look- fi rst-quarter corporate earnings in Some funds, however, are expecting ing for gains in healthcare, real estate Saudi Arabia and other Gulf countries a big increase of bond supply in the development and tourism, sectors the have not been as bad as some inves- region as governments fi nance budget Saudi government has been trying to A new e-Golf vehicle of German car maker Volkswagen is seen in one of the twin car towers at the Volkswagen tors feared. defi cits caused by low oil prices. This stimulate. factory during a visit on the sidelines of the company’s annual press conference yesterday in Wolfsburg, northern This appears to be encouraging would push yields up further, provid- “During this transitional period Germany. Volkswagen will strengthen cooperation with Qatar, its third-largest shareholder, chief executive off icer funds to return to the markets gradu- ing entry points for investors. there will certainly be winners and Matthias Mueller said, as Europe’s biggest carmaker strives to reposition its business. “In future there will be closer ally, although they still expect diffi - Mohammed Eljamal, managing di- losers, and we are aiming to take ad- cooperation in diff erent areas,” Mueller told Reuters TV after the carmaker’s earnings press conference yesterday. cult times for economies in the Gulf rector of Abu Dhabi’s Waha Capital, vantage of the winners,” said Akber The Qatar Investment Authority (QIA) holds a 17% stake in Volkswagen (VW) and two seats on its supervisory board. and Egypt this year. said that he expected to see about Khan, director of asset management “I very much welcome the role of Qatar,” Mueller said, adding VW’s top management was in “very constructive” talks “Q2/2016 will be a more stable $40bn to $50bn of issuance from GCC at Qatar’s Al Rayan Investment, with the QIA. quarter compared to Q1/2016, and the corporates and sovereigns over the though he did not specify the sectors volatility will subside signifi cantly,” next 12 months. on which he was bullish. Gulf Times 2 Friday, April 29, 2016 BUSINESS UN blacklists tanker with ‘illicit’ Libyan crude Bloomberg eastern Libya’s Hariga port after the UN’s website. It said the ship The National Oil Corp’s lead- dan, he said, without disclosing tanker that rebels tried to ship puted cargo poses “a downside Dubai loading 650,000 barrels of crude “may have been sold recently to ership in Tripoli, recognised by the amount. from central Libya. The ship was risk” to Libya’s crude exports.

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