{"id":80986,"date":"2024-09-12T00:00:00","date_gmt":"2024-09-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2024\/09\/12\/today-blackrock-buys-into-saudi-bahraini-crude-pipeline-ad-ports-spends-big-on-equipment-for-african-ports\/"},"modified":"2024-09-12T00:00:00","modified_gmt":"2024-09-12T00:00:00","slug":"today-blackrock-buys-into-saudi-bahraini-crude-pipeline-ad-ports-spends-big-on-equipment-for-african-ports","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2024\/09\/12\/today-blackrock-buys-into-saudi-bahraini-crude-pipeline-ad-ports-spends-big-on-equipment-for-african-ports\/","title":{"rendered":"TODAY: BlackRock buys into Saudi-Bahraini crude pipeline + AD Ports spends big on equipment for African ports"},"content":{"rendered":"

Good morning, friends. <\/strong>We have a round robin of news updates from various subsectors of the industry across the region this morning, with some M&A and trade updates from Saudi and the UAE. But first, there\u2019s a spot of oil disruption emerging across the Atlantic this morning\u2026<\/p>\n

THE BIG STORY ABROAD- Hurricane Francine makes landfall in Louisiana, disrupting oil and gas industry: <\/strong>Nearly 39% of crude oil production and 49% of natural gas output<\/a> in the Gulf of Mexico shut down yesterday ahead of Hurricane Francine slamming into the Louisiana coast yesterday evening. The Category 2 storm knocked out electricity to 250k homes along with fear of flooding. Offshore producers have shut in nearly 675k barrels per day of oil and 907 mn cubic feet of natural gas production, the US Bureau of Safety and Environmental Enforcement said in a statement. Shutting down operations will suspend nearly 15% of US domestic oil production and 2% of natural gas output.<\/p>\n

MARKET REAX- <\/strong>Oil prices jumped up by over 2% <\/strong>yesterday driven by worries over impacted US output<\/strong>, Reuters<\/a> reports. Brent crude futures rose USD 0.40 in early morning trading selling at USD 71.01 a barrel at 03.30 GMT, while US West Texas Intermediate (WTI) climbed USD 0.32 to trade at USD 67.63. Both contracts rose by over USD 1, over 2%, yesterday as offshore platforms and refinery operations shuttered due to the incoming hurricane.<\/p>\n

Hurricane coverage is grabbing a lot of ink in international press:<\/strong> Reuters<\/a> | AP<\/a> | Bloomberg<\/a> | The New York Times<\/a> | BBC<\/a> | The Independent<\/a> <\/p>\n

WATCH THIS SPACE-<\/p>\n

#1- NMDC Energy\u2019s shares opened at AED 3.35 on its trading debut on the ADX <\/strong>yesterday<\/strong>, up 20% from the final set price of AED 2.8. Shares closed at AED 3.02, up 7.86%. The IPO raised AED 3.22 bn<\/a> after receiving more than AED 88 bn in orders, with the order book 31x oversubscribed \u2014 excluding cornerstone investors.<\/p>\n

This marks the largest IPO of the year in the UAE<\/strong>, with edtech firm Alef Education\u2019s IPO following closely, raising AED 1.89 bn<\/a> but seeing a lackluster debut, with shares falling 18% on its first day of trading. Alef\u2019s shares were trading at AED 1.17 as of yesterday \u2014 down 13% YTD.<\/p>\n

<\/a> #2- Emirati flag carrier Etihad Airways\u2019s IPO will likely take place no sooner than in 2025<\/strong>, Reuters<\/a> reports, citing two sources with knowledge of the matter. The ADQ-owned airline looks to demonstrate a strong performance to its investors in its 2024 financial results before making moves, one source reports. Regional geopolitical tensions and uncertainty are weighing on timing, a second source adds. <\/p>\n

Gearing up:<\/strong> Etihad Airways reportedly tapped Abu Dhabi Commercial Bank, Bank of America, BNP Paribas, and Morgan Stanley in May<\/a> to serve as joint bookrunners for its upcoming initial public offering. The wealth fund previously chose Citigroup, HSBC, First Abu Dhabi Bank as advisors for the IPO, and appointed Rothschild & Co. as independent financial advisor.<\/p>\n

<\/a> #3- <\/strong>Egypt reveals big plans for Alexandria\u2019s Dekheila Port:<\/strong> Egypt is gearing to announce two public-partnership projects (PPP) for a multipurpose and a dry bulk terminal at El Dekheila Port in Alexandria valued at USD 320 mn (c. EGP 15.49 bn), Zawya Projects<\/a> reports, citing comments made by the Egyptian Finance Ministry\u2019s PPP unit Atter Hannoura at a PPP forum in Dubai. The investment for the multipurpose terminal is estimated to carry a USD 225 mn ticket, while USD 95 mn will be earmarked for building the dry port which will boast a 1.1k meter berth with a 15 meter depth, and a 300k sqm storage area. <\/p>\n

What\u2019s next?<\/strong> The government is currently negotiating with international financial firms to fund the feasibility study for the two projects. No timeline has been disclosed, but Hannoura said both projects are part of a larger pipeline slated to be tendered within the next 12-18 months. <\/p>\n

<\/a>#4- China wants to expedite freetrade talks: <\/strong>China\u2019s Premier Li Qiang called for freetrade talks with the GCC, including Saudi, to be expedited during his visit to Riyadh, Reuters<\/a> reports. Meeting with GCC Secretary General Jasem al-Budaiwi, Li emphasized the need to revive the long-stalled negotiations, which have been ongoing for nearly 20 years.<\/p>\n

The caveat: <\/strong>The Kingdom expressed concerns over the potential influx of cheaper Chinese imports stifling domestic manufacturers.<\/p>\n

SPEAKING OF CHINA- Crown Prince Mohammed bin Salman met with the Chinese prime<\/strong> minister to discuss investment, trade, and energy cooperation<\/strong>, SPA<\/a> reports. The Chinese official landed in Riyadh on Tuesday to chair the Chinese-Saudi Joint Committee meeting and will visit the UAE too, according to the Chinese Foreign Affairs Ministry<\/a>.<\/p>\n

#5- The US Federal Aviation Administration (FAA) will lift its <\/strong>production cap<\/a><\/strong> on Boeing\u2019s <\/strong>737 Max aircrafts only if the manufacturer's safety review process proves adequate<\/strong>, Reuters<\/a> reports, citing comments made by FAA Administrator Mike Whitaker at an industry conference. \u201cWe need to make sure the safety metrics are exactly where they need to be to grow,\u201d Whitaker said. The administration is slated to hold quarterly meetings with Boeing\u2019s new CEO Kelly Ortberg starting this month.<\/p>\n

Background: <\/strong>The administration capped Boeing\u2019s 737 Max production at 38 aircrafts per month, following an incident when a panel flew off mid-flight<\/a> on a 737 Max 9 in January. The FAA also gave Boeing 90 days<\/a> to come up with a plan to improve quality control, which the aviation giant delivered in late May.<\/p>\n

ICYMI- <\/strong>Boeing pushed back a major production goal<\/a> for its best-selling 737 Max planes by six months this week. Boeing's updated master schedule for its 737 suppliers now aims for a monthly MAX production rate of 42 by March 2025.<\/p>\n

#6- <\/strong>France, Germany, and the UK are canceling bilateral air services agreements with <\/strong>Iran over its export of ballistic missiles to Russia<\/strong>, according to a joint statement<\/a>. US Secretary of State Antony Blinken has said that Iran sent ballistic missiles to Russia<\/a> to use in its war on Ukraine. \u201cThis act is an escalation by both Iran and Russia, and is a direct threat to European security,\u201d the statement said. \u201cToday, alongside our international partners, we are calling out this behavior and its attempts to undermine global security,\u201d Reuters<\/a> reports, citing UK Foreign Minister David Lammy as saying. The UK had imposed sanctions back in June on Russian cargo ships<\/a> used for shipping military supplies from Iran to Russia. <\/p>\n

#7- Electric and hydrogen fuel truck prices need to fall by up to 50% before becoming <\/strong>viable <\/strong>alternatives to diesel<\/strong>, Reuters<\/a> reports, citing a study by consultancy firm McKinsey. The EU\u2019s electric and hydrogen heavy freight vehicle share needs to reach 40% of new sales by 2030 to meet the bloc\u2019s carbon reduction targets, but is currently less than 2%, the study showed. <\/p>\n

Production costs are an obstacle:<\/strong> Emissions-free trucks are currently 2.5-3x more expensive to produce than diesel trucks, which deters logistics firms from deploying them, the study showed. It estimates that electric truck prices should not be more than 30% higher than traditional vehicles, with a sought cut in production costs only achieved through technological developments in batteries. <\/p>\n

But it won\u2019t be easy: <\/strong>Chinese truck makers produce cheaper products and have a 20% share of the bus market in the EU, adding another layer of difficulty to the EU\u2019s carbon reduction goals. <\/p>\n

\n

DATA POINT- <\/p>\n

DIEZ delivers robust 1H 2024 performance:<\/strong> The Dubai Integrated Economic Zones Authority (DIEZ) recorded a 18% y-o-y boost in net income and a 12% increase in revenues in 1H 2024, according to a statement<\/a>. The firm attributed the growth to high occupancy rates and solid performances across business sectors. <\/p>\n

<\/a> <\/p>\n

Headlining the EnterpriseAM Finance Forum: <\/strong>We\u2019ll be joined for the first time on stage by a senior government official, who\u2019s joining us to outline a vision for where we\u2019re going as a community and as an economy. The keynote interview will get underway at 9am sharp, and you won\u2019t want to miss our exclusive networking breakfast from 8am.<\/p>\n

Among the topics on the agenda:<\/strong><\/p>\n