China Oil Futures Are Here: What You Need to Know
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CHINA MOVE | Page 3 Q1 HIT | Page 10 First steps to Barclays to pay for oil in pay $2bn yuan in 2018 fi ne in US Friday, March 30, 2018 Rajab 13, 1439 AH LOSING MOMENTUM: Page 12 Consumer spend GULF TIMES up slightly in US; jobless claims BUSINESS at 45-year low Banks, industrials help QSE-listed firms enhance 2017 profitability By Santhosh V Perumal in the corresponding period of the The sector, whose share was 55% in listed entities, witnessed its net profit profitability, saw its index shrink 15.85% listed companies, recorded a 18.16% Business Reporter previous year. The Qatar Index, the the overall net profitability, witnessed drop 3.71% to QR3.98bn compared to year-to-date ended December 31, 2017. shrinkage in cumulative net profit to headline index of the bourse, fell more its index trim 7.9% year-to-date ended more than 25% slump a year ago. However, the insurance sector, which QR1.53bn against a 17.27% fall in the than 18% year-to-date ended December December 31, 2017. The sector, which constituted 10% of has five listed companies, reported previous year. The improved earnings performance 31, 2017. The industrials sector, which has nine the overall net profitability, witnessed the maximum decline of 39.83% in The sector, which contributed about 4% of the banking and industry helped The listed companies’ net profit listed constituents, saw its cumulative its index register a 14.66% shrinkage cumulative net profit to QR0.84bn in to the overall net profitability, saw its Qatar Stock Exchange-listed companies cumulated at QR38.56bn during 2017 net profit grow 5.99% to QR7.43bn year-to-date ended December 31, 2017. 2017 compared to 36.42% decline in index maximum fall 30.6% year-to-date enhance their net profitability during against QR38.14bn in 2016. At present, against a 25.43% plunge in the previous The consumer goods and services the 2016. ended December 2017. 2017, notwithstanding the economic the bourse has 45 listed entities. year. sector, which has nine listed entities, The sector, which contributed more The telecom sector’s (Ooredoo) blockade imposed by the siege The banking and financial services The sector, which contributed about witnessed a 5.54% slump in cumulative than 2% to the overall net profitability cumulative net profit shrank 10.31% to countries. sector, which has 13 listed constituents, 19% to the overall net profitability of net profit to QR1.94bn in January- of the listed companies, saw its index QR1.97bn in January-December this The QSE-listed firms’ 2017 net profit saw a 6.6% expansion in cumulative the listed companies, saw its index tank December 2017 against a 9.75% fall a plummet 21.54% during January- year compared to a 3.51% expansion in showed a more than 1% growth year- net profit to QR21.06bn compared to a 20.77% in January-December 2017. year ago. The sector, which contributed December last year. 2016. The sector index had fallen 8.9% on-year compared to a 12% plunge 1.55% decline in 2016. The real estate segment, which has four more than 5% to the overall net The transport sector, which has three year-to-date in December 31, 2017. Oil seen rising in 2018 as Opec wages tug-of-war Qatar posts 2% real with US shale fi rms Reuters London growth in Q4 on il prices are likely to rise this year thanks to supply dis- ruptions and an Opec-led deal to limit production, but Odoubts over the future of compliance with the multilat- eral agreement and rising US production could stem the upward momentum, a Reuters poll showed yesterday. A survey of 31 economists and analysts polled by Reuters showed Brent crude would average nearly $64 a barrel in 2018, versus $63 forecast in the February survey, but below the $67.18 non-hydrocarbons average for the benchmark so far in 2018. Brent prices have risen 4% this year, supported by a deal be- By Santhosh V Perumal Qatar’s GDP is estimated to have grown tween the Organization of the Petroleum Exporting Countries Business Reporter 9.4% and 5.7% year-on-year and quarter- and non-Opec producers led by Russia to curb output by about on-quarter respectively. The hydrocar- 1.8mn bpd through 2018. bons saw 15.2% and 7.1% surge on yearly The price briefl y rose above $70 a barrel this week, supported 4% expansion in non-hydrocar- and quarterly basis and non-hydrocarbons by tension in the Middle East and declining output in Venezuela, bons completely masked the mar- 6.7% and 5% respectively. one of the group’s largest producers, where economic crisis has A ginal 0.4% dip in hydrocarbons, The yearly nominal growth in the non- cut production to its lowest in nearly 30 years. thus helping Qatar register an healthy mining sector during Q4, 2017 was mainly A sustained drawdown in US inventories also helped push the about 2% year-on-year real growth in the due to the manufacturing sector, which price up towards $70, a peak last seen in December 2014. fourth quarter (Q4) of 2017, according to witnessed a 21.9% surge, followed by con- “We view it rather unlikely that Opec will exit already by mid- the offi cial fi gures. struction (17.4%), utilities (6.9%), trans- year. However, talking about a possible extension of the deal be- The country’s gross domestic product, port and storage (6.6%), wholesale and yond 2018, we are rather sceptical,” Hannes Loacker of Raiff eis- or GDP, at constant prices (base year 2013) retail trade (1.1%) and fi nance and insur- en Capital Management said. “We see a big challenge in bringing fell 2.3% compared to the third quarter of ance (0.5%); even as accommodation and in Russia once more. Without Russian participation, the will of 2017 despite stronger non-hydrocarbons; catering growth shrank 6.2%, information some other Opec members may also be abating somewhat.” said the fi gures released by the Ministry and communication 3.2% and real estate Saudi Arabia and Russia are working on a long-term pact that of Development Planning and Statistics People take part in the Qatar National Day celebrations in Doha on December 18, 2017. 3%. could extend controls over world crude supplies by major ex- (MDPS). Qatar’s year-on-year growth trajectory during Q4 indicates the inherent buoyancy in the On a quarterly basis, the transport and porters for many years. Qatar’s year-on-year growth trajectory economy in spite of the blockade imposed by the siege countries. storage grew 7.3%, construction (7.1%), “Even if Opec compliance with pledged supply remains el- during Q4 indicates the inherent buoyan- wholesale and retail trade (6.9%), manu- evated through the balance of 2018, the explosive growth in US cy in the economy in spite of the blockade On a quarterly basis, mining and quar- communication 2.9%, utilities 1.9% and facturing (6.2%), fi nance and insurance shale oil supply accompanied by growth in crude oil export imposed by the siege countries. rying sector is estimated to have deceler- accommodation and catering 1.7%. (6%), accommodation and catering (1.2%) capacity will likely tip the balance towards lower oil prices in the A self-imposed moratorium on new ated 6.4%; whereas non-hydrocarbons On a quarterly basis, the fi nance and in- and real estate (0.9%). Nevertheless, there second half,” BNP Paribas analyst Harry Tchilinguirian said. projects in the North Oil Field until the rose 1.6% during Q4, 2017, MDPS said. surance sector is estimated to have grown was a 22.1% fall in the growth of utilities Analysts expect US production to grow by at least 1mn bpd second quarter of 2017 and the oil produc- Within non-hydrocarbons, the con- 6.4%, wholesale and retail trade (6.2%), and 1.2% in information and communica- this year. US output now stands at nearly 10.4mn bpd, taking it ing and exporting countries’ deal had re- struction sector’s real growth year-on- transport and storage (4.4%), accom- tion. past top exporter Saudi Arabia and within reach of biggest pro- strained the growth of hydrocarbon output, year is estimated to be 14.2%, manufactur- modation and catering (3.9%); where- The import duties, on real terms, are es- ducer Russia. resulting in an estimated overall real GDP ing (6.2%), fi nance and insurance (5.9%), as utilities’ growth plummeted 22.1%, timated to have grown 14.3% and 27.5% on “The balance between strong production growth in the US, on growth of 2.1% in 2017, the International real estate (3.9%) and transport and stor- manufacturing 2.7% and information and yearly and quarterly basis respectively. On the one hand, and continued restraint by Opec and Russia, on Monetary Fund had recently said after its age (0.8%); while that of wholesale and communication 1.1%. nominal terms, their growth is forecasted the other, remains the key factor on the supply side,” said Cailin recent Article IV consultation with Qatar. retail trade shrank 3.6%, information and On a nominal basis (at current prices), at 16.5% and 28.2% respectively. Birch, an analyst at the Economist Intelligence Unit. Canadian Business Council Qatar registered with QFC The recently-established Canadian Seetharaman, Doha Bank Group chief Business Council Qatar (CBCQ) has executive officer. CBCQ board of been registered with the Qatar Financial directors’ secretary and CNA-Q chair, Centre (QFC).