Qatar Posts 90%-Plus LNG Liquefaction Rates in 2019, Says
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TROUBLES AHEAD | Page 3 China’s April exports rebound but outlook remains grim Friday, May 8, 2020 Ramadan 15, 1441 AH ACTING AS NECESSARY: Page 8 GULF TIMES BoE: More stimulus possible in June as BUSINESS UK economy craters QFB income rises 7% to QR34.2mn in Q1 Qatar posts 90%-plus Qatar First Bank posted a profit of QR12.3mn in the first three months of this year, QFB said yesterday. In the same period last year QFB had registered a profit of QR3.2mn. LNG liquefaction rates “However, in line with the accounting standards and best practices in place by regional and international banks, and in view of the global macroeconomic conditions, one-time reserve in 2019, says IGU provisions have been made in order to confront the risks By Pratap John pinned by the expectation of of the Covid-19 crisis. This re- Business Editor growing LNG demand globally, sulted in a recoded net loss creating the need for additional of QR191.6mn, arising from liquefaction capacity. This will making these Covid-19 con- atar is among the LNG also lead to competition to se- servative provisions, which exporting countries that cure EPC capacity, as project amounted to QR203.9mn,” QFB is currently working on Qhave achieved utilisation developers aim to enter the mar- QFB said. developing new products and rates of more than 90% in lique- ket by the mid-2020s in order to Additionally, in line with exploring good investment faction capacity in 2019. capture growing demand. bank’s adopted strat- opportunities In all, 10 of the total 22 LNG However, as the global LNG egy on cost efficiency, total exporting countries achieved market gets increasingly com- expenses were decreased by 15% to QR22.9mn compared to same this utilisation rate, the Interna- petitive and shorter-term con- period of 2019. tional Gas Union (IGU) has said tracts or spot deliveries become Setting aside Covid-19 “negative” impact, total income also increased in a report. more common over time, LNG by 7% to QR34.2mn. Global liquefaction capacity projects are taking more invest- QFB chairman Sheikh Faisal bin Thani al-Thani said, “Despite the reached 430.5mn tonnes at the ment risks, taking FIDs without bank’s good operational performance over the first quarter where the end of 2019 and the utilisation securing a significant number overall adopted strategy objectives were realised, the unexpected rate was on average 81.4%. of long-term SPAs. Golden Pass crisis of the Covid-19 had a significant negative impact on the an- Numerous factors affect the LNG moved forward with FID in nounced results. utilisation of LNG facilities glo- 2019, without announcing any “It entailed one-off provisions in line with the best practices in place bally, it said. Feed gas availability long-term offtake contracts. by regional and international banks, however, the good operational is one of the most common fac- Ocean LNG, a joint venture results is a clear indication of the success of the new strategy and its tors limiting the output capacity established by Qatar Petroleum profitability even in light of these unfavorable and unprecedented of existing LNG facilities. This file photo taken on February 6, 2017 shows the Ras Laffan Industrial City, Qatar’s principal site for and ExxonMobil, is responsi- macroeconomic conditions. The success of the strategy invites us to Indonesia’s Bontang LNG un- production of liquefied natural gas and gas-to-liquids, some 80km north of Doha. Qatar is among the ble for marketing the produced adopt an optimistic outlook for the bank and its business model.” derwent a production downturn LNG exporting countries that have achieved utilisation rates of more than 90% in liquefaction capacity in LNG. The sanctioning of LNG Furthermore, fee income from structured products has increased by due to declining gas resources 2019, according to the IGU. Canada in 2018 was on a similar 27% compared with the same period of 2019. QFB will continue to from the Mahakam block, the basis and the project was fully harness the opportunities created through revised strategy where the IGU said in its “2020 World LNG lisation of a few LNG facilities. Technical challenges affect a prolonged shutdown in mid- equity financed, rather than debt key priority will be sustainable organic growth of the bank’s customer report”. Idku LNG reached full export ca- the utilisation of existing LNG January 2019 due to mechani- financing backed by long-term base of high net worth individuals, institutional investors and govern- The utilisation of Algeria’s pacity in December 2019 for the facilities as well, it said. cal issues. Unexpected technical offtake agreements. ment related entities, the bank said. LNG export facilities sustained first time in six years, owing to In June 2019, Pluto LNG ex- problems can also lead to shorter Arctic LNG 2 reached FID The bank said it is currently working on developing new products low levels, partly due to declin- gas production from new fields perienced technical problems (several-day) shutdowns, al- with an expectation of equity and exploring good investment opportunities. It also aims to enhance ing output from the large gas coming online. related to its mixed refrigerant though the potential impact on partners’ offtaking LNG produc- product portfolio and diversify investment options it offers to custom- field Hassi R’Mel and delayed Atlantic LNG in Trinidad and compressor upon restart from utilisation can sometimes be tion proportionate to their own- ers. It extremely exercise due diligence to assess, review and analyse new field development in the Tobago registered 91.1% utilisa- turnaround maintenance, lead- offset by production creep ership stakes, and the project any variables that arise from changing macroeconomic conditions in southwest region. In contrast, tion in 2019 after a period of de- ing to an unplanned outage of According to the IGU, the may market a significant portion order to achieve discounted acquisitions of assets as good opportuni- debottlenecking of upstream gas cline, thanks to the ramp-up of the facility. record volume of sanctioned of production via spot deliveries, ties are usually availed in times of crisis. supplies have increased the uti- new fields. Gorgon LNG Train 3 suffered liquefaction projects is under- the IGU noted. Bank brokerages account for 46% of QSE trade turnover in April Qatar shares edge higher to By Santhosh V Perumal year to QR15.5bn in the first four months of Business Reporter this year. The deals through it were down 3.45% to 483,566 as on April 30, 2020. settle near the 8,800 level Dlala Brokerage, a stock broking business The commercial banks’ brokerage arm of Dlala Holding, accounted for 9.35% businesses accounted for more than 46% of trade turnover (QR4.75bn), which rose By Santhosh V Perumal telecom (0.8%), banks and financial services entially to QR19.56mn against QR31.76mn on of the trade turnover on the Qatar Stock 14.18% year-on-year during January-April Business Reporter (0.3%), consumer goods and services (0.23%) and Wednesday. Exchange (QSE) in April this year, according 2020. The deals through it increased 31.2% industrials (0.09%); whereas insurance was down Arab institutions had no major exposure com- to the bourse’s data. to 90,578 as on April 30, 2019. 0.11%. pared with net buyers of QR0.06mn the previous The QNB subsidiary QNBFS’ trade turnover Qatar Securities accounted for 8.53% of he Qatar Stock Exchange yesterday gained Major gainers included Gulf Warehousing, Mi- day. amounted to QR15.25bn, which constituted trade turnover (QR4.34bn), which saw a 40 points to settle a tad below 8,800 levels laha, Nakilat, United Development Company, Total trade volumes fell 43% to 215mn shares, 29.99% of the total traded value in January- 6.87% slump on a yearly basis. The deals Tmainly on buying interests in transport and Qatar National Cement, Mesaieed Petrochemi- value by 36% to QR331.51mn and transactions by April; gaining 18.03% year-on-year. The through it however expanded 55.88% to real estate equities. cal Holding, Qamco, Widam Food, Qatar Islamic 27% to 10,239. transactions more than tripled to 268,413 at 113,015 at the end of April 30, 2020. Foreign funds were seen bullish as the 20-stock Bank, QIIB and Al Khaliji; even as Ezdan, Qatar The telecom sector reported a 52% plunge in the end of April 30, 2020. Islamic Securities’ market share was 3.02% Qatar Index settled 0.46% higher at 8,799.3 points, German Company for Medical Devices, Qatari In- trade volume to 2.87mn equities, 52% in value to CBQFS, the stock broking arm of of trade turnover (QR1.53bn), growing although it touched a high of 8,842 points intraday. vestors Group, Al Khaleej Takaful and Gulf Inter- QR8.06mn and 36% in deals to 604. Commercial Bank, accounted for 11.45% of 75.86% year-on-year in the review period. The weakened net selling pressure by foreign national Services were among the losers. The real estate sector’s trade volume plum- trade turnover (QR5.82bn), which however The deals by the brokerage shot up 36.67% individuals also had its impact on the bourse, Foreign institutions turned net buyers to the meted 52% to 77.03mn stocks, value by 49% to saw a yearly 6.88% decline. But it witnessed to 27,977 until April 30, 2020. whose year-to-date losses were at 15.6%. Market tune of QR4.77mn against net sellers of QR50.4mn QR73.56mn and transactions by 36% to 1,752. a 69.87% growth in transactions to 187,453 The Gulf Investments Group’s share stood capitalisation saw QR88mn, or 0.18%, increase on Wednesday.