Page 11 - MEOG Week 30

MEOG PriCes MEOG
Date
WTI (US$)
ICE Brent (US$)
DME Oman (US$)
OPEC Basket (US$)
23 July
56.77
63.83
63.30
63.92
24 July
55.88
63.18
62.88
64.58
25 July
56.02
63.39
63.90
64.55
26 July
56.20
63.46
64.00
64.02
29 July
56.87
63.71
64.20
63.79
P o L i C y
Kuwait’s budget deficit
narrows to $11bn on oil
price, revenues
Kuwait’s budget de cit narrowed to KD3.35 billion ($11 billion) in the last scal year, down 31 percent from a year earlier on higher-than-anticipated crude prices and a rise in non-oil revenue, the Finance Ministry said on Monday.
e shortfall last year was Kuwait’s h consecutive de cit.
Revenue in the year ended March 31 rose to KD20.56 billion, while spending increased 13.5 percent to KD21.85 billion, the ministry said in a statement.
Non-oil revenue jumped 24 percent to KD2.13 billion while oil revenue rose 29 percent to KD18.4 billion, it added.
Non-oil revenue grew for the second consecutive year, while capital expenditure remained at 14 percent and is expected to reach 17 percent during the current scal year to stimulate economic growth, said Finance Minister Nayef Al-Hajraf.
Wages and subsidies accounted for 75 percent of all spending, the statement said, adding that the budget gap will be nanced by withdrawals from the state’s treasury. arabian business
neWs in brieF
C o m P a n i e s
Total plans $5 billion of
asset sales to future-proof
business
French energy giant total will sell about $5 billion (£4.01 billion) of assets, mostly from its exploration and production business as it sharpens its focus on low-breakeven projects that can weather weak oil prices, it said on ursday.
e announcement followed a 19% drop in second-quarter adjusted net pro t to $2.9 billion, which it attributed to unfavourable market factors including low oil prices, sharp declines in gas and sliding re ning margins.
Chief Executive Patrick Pouyanne pointed to continuing volatility in markets.
ough Brent crude averaged $69 a barrel in the second quarter, up 9% on the previous three months, natural gas prices fell 36% in Europe and 26% in Asia, he said.
e company has been on an acquisitions spree as Pouyanne has overseen its expansion in gas and electricity in particular and said it is now preparing for the future by focusing on core strengths in the gas and deep o shore segments.
ough gas prices tumbled, total said operating cash ow before working capital changes in its gas, renewables and power business surged 42% thanks to 8% production growth and a 10% increase in lique ed natural
gas (LNG) sales.
total’s Paris-listed shares were down 1.6%
by 1405 GMt.
total said its strategy would be
complemented by the sale of assets that only break even at high oil and gas prices, such as the recent disposal of mature assets in the British North Sea.
Its organic pre-dividend breakeven is below $25 a barrel, while the organic post- dividend breakeven - which would allow it to pay dividends and carry out investments – is below $50 a barrel.
“ is active portfolio management policy will continue with the sale of $5 billion in assets over the 2019-20 period, the majority coming from Exploration and Production,” Pouyanne said.
Pouyanne told analysts that $3 billion
of the divestment would come from the exploration and production segment, with
the company also reducing its stake in some renewable energy projects. He declined to give details.
e quarterly results were in line with market expectations, analysts said.
“ e announcement of the asset sales may help to o set some uncertainty around the recent growth and M&A strategy, demonstrating some ongoing discipline around the balance sheet and upstream portfolio,” said Henry tarr, an analyst at Barenberg, which rates total a “buy”.
total’s 2019 organic investment target was held at about $14 billion and Pouyanne said the company would provide an update in September on its capital investment guidance
Week 30 30•July•2019
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