Page 13 - MEOG Week 40

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The office, located in Burj Ahmed, will enhance cooperation on future projects, following the success of Petrofac and KPC’s partnership in executing major projects in Kuwait. It will complement Petrofac’s existing office in Ahmadi City, which has supported the management of all Petrofac projects in Kuwait since opening in 2000.
Ayman Asfari, Petrofac Group Chief Executive, said: “We are delighted to open Petrofac’s new office in Kuwait. The country plays a major role in the Middle East’s oil and gas industry, implementing some of the most complex energy projects in the region. Our continued focus is on investing in Kuwait and building capacity for the future to ensure that we are part of the country’s fabric for many years to come.”
Mohammed Al-Mutairi, Country Chair, Kuwait, said:
“The opening of Petrofac’s new office
in Kuwait reflects the importance of the Kuwaiti oil and gas market and energy sector and affirms Petrofac’s commitment as an important and economic partner for Kuwaiti oil and gas projects.”
In June this year, Petrofac appointed Mohammed Al-Mutairi as head of the company’s office in Kuwait, in recognition of Petrofac’s many large projects and activities in the country and the strategic importance of Kuwait for the company.
The opening of the office is aligned to Petrofac’s ongoing role in the development of Kuwait’s oil and gas infrastructure and the increasing demand the company sees in helping customers expand their production and exploration operations.
PetroFaC
Fitch downgrades Aramco to ‘A’ with stable outlook, after attacks on oil facilities
Fitch on Monday downgraded Saudi Aramco by one notch after attacks last month on two
production facilities, putting the rating of the state-owned oil giant at par with the one of Saudi Arabia, which the agency downgraded on Sept. 30.
Aramco – the world’s largest oil company and the most profitable – obtained its first credit rating of A+ by Fitch in April ahead of its inaugural public bond issue.
Fitch said at the time that the company had a higher “standalone credit profile” equivalent to AA+’, but that its rating was “capped by
that of Saudi Arabia in view of strong linkage between the state and the sovereign”.
The downgrade by one notch, from A+
to A, but a stable outlook followed the Sept. 14 attacks on Aramco’s oil installations, Fitch said, adding the “downgrade also took into account rising geopolitical tensions in the region, but also the country’s continued fiscal deficit, among other factors”.
The downgrade, which comes as Aramco is pressing ahead with plans to launch an initial public offering (IPO) as early as this year. Investors look at credit ratings as one of the metrics used to establish the risk profile of governments and companies.
“The IPO itself is unlikely to have any major effect on Saudi Aramco’s financial position,” Fitch said.
Fitch said Aramco’s Standalone Credit Profile (SCP) is unchanged at ‘aa+’.
“We estimate the accident will not have a material impact on Saudi Aramco’s full-year operational and financial performance,” it said.
Saudi Aramco has committed to increase its dividend payments to at least $75 billion per year in 2020 and beyond.
“Our financial modelling shows that the company should have capacity to maintain this level of dividends while being in line with our guidance for the ‘aa+’ SCP under our current price deck assumptions,” Fitch said.
The IPO is the centrepiece of Saudi Crown Prince Mohammed bin Salman’s plans to attract foreign capital and wean off the largest Arab economy away from oil revenues.
Aramco has approached sovereign funds in countries on friendly terms with Saudi Arabia and wealthy Saudi families to build an investor
base to achieve the $2 trillion valuation targeted by Crown Prince Mohammed bin Salman.
But the Sept. 14 strikes that knocked out more than half the production of the world’s top oil exporting nation have cast doubts on the timing of the process and the company’s valuation.
Riyadh blamed adversary Iran for the attacks, a charge Tehran denies.
Fitch on Sept. 30 downgraded Saudi Arabia’s credit rating to A from A+, citing rising geopolitical and military tensions in the Gulf following the attacks and a deterioration of the kingdom’s fiscal position.
“Although oil production was restored fully by end-September, we believe that there is a risk of further attacks on Saudi Arabia, which could result in economic damage,” the agency said at the time.
The Saudi finance ministry said then it was disappointed by the “swift” downgrade and urged Fitch to reconsider it, arguing the move did not reflect the kingdom’s response to the Sept. 14 attack or its capacity to handle adversity.
reuters
TAQA completes a $500mn
senior unsecured 30-year
bond issuance
Abu Dhabi national Energy Company (TAQA) completed a $500mn senior unsecured 30-year bond issuance. The bond offers both a coupon and re-offer yield
to maturity of 4%, the company said in a regulatory statement filed with the bourse.
Established in 2005, TAQA is an integrated energy and water player operating in 11 countries. The company assets in power generation, water desalination, oil and gas exploration and production, pipelines and gas storage were valued at AED104.5bn at the end of 2016.
The company is majority state-owned with the Abu Dhabi government holding 75.2% equity share and the remainder being held by public shareholders. It is listed on Abu Dhabi Securities Exchange.
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Week 40 08•October•2019
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