Kuwait

Petrodollar rush may disappoint Western financiers

20 Sep 2022

In prior energy booms, like in the 1970s, the proceeds wound up in U.S. banks and bonds. OPEC’s $907 bln haul in 2022 is smaller, and winners like Saudi Arabia need cash to pivot away from oil. Bankers may not see a developed world equities and debt bonanza on the same scale.

Danish shipping raid heralds consolidation wave

27 Apr 2021

DSV Panalpina is loading Kuwait’s Agility into its hold in return for $4.1 bln in new shares. With its flotilla of medium-sized players, the global freight sector is ripe for M&A. Disruption from the pandemic and recent Suez blockage present a window for bigger players to pounce.

Corona Capital: Cirque du Soleil, Airlines, France

27 Mar 2020

Concise views on the pandemic’s corporate and financial fallout: Cirque du Soleil may leave TPG sunburnt. Airlines get a sweet bailout. And France joins the campaign against dividends.

Bush paid history’s economic dividends forward

1 Dec 2018

During the 41st U.S. president's one term, Soviet communism fell and Iraq's invasion of Kuwait was foiled. The "kinder, gentler" Bush was the last of a Washington breed that sought compromise. He put country over party. His successors reaped, and then squandered, the benefits.

Aston Martin can race Ferrari in IPO test

9 Apr 2018

James Bond’s carmaker is eyeing a listing six years after an emergency pit stop. Rich margins and racy growth make it a close match for the prancing horse, justifying a $7bln valuation, and sixfold return for rescuer Andrea Bonomi. But Ferrari’s scarcity premium could be dented.

Hurricane Harvey darkens forecast for OPEC cuts

1 Sep 2017

The oil cartel’s lower output was finally reviving prices before a storm knocked out around a third of U.S. refineries and dented demand. A glut of crude building up in tankers could force producers to rein in output even longer if they want to tilt the market in their favour.

Viewsroom: Corporate America dumps CEO president

17 Aug 2017

Donald Trump’s inflammatory comments about white supremacists have lost him the support and advice of business leaders, leaving him increasingly isolated and ineffectual. Qatar’s stake in the LSE may prompt Saudi Aramco to shun the exchange for its IPO. Plus: M&A for the MAGA era.

Oil markets too calm over Qatar ultimatum

23 Jun 2017

Doha’s Gulf neighbours have imposed a 10-day deadline to comply with demands including reparations, closing Al Jazeera and regular inspections. Markets have assumed the standoff won’t turn violent and impact oil supply from the region. That assumption is looking less secure.

Only Russia can make OPEC great again

23 May 2017

Moscow is giving the cartel more pricing clout. A mooted deal to extend output cuts and drain global crude stockpiles can only succeed with the continued support of the world’s biggest crude producer. With U.S. drillers recovering, it may be time to make the alliance permanent.

Private equity gives ageing North Sea oil new life

31 Jan 2017

Shell's $3.8 bln sale of North Sea fields to upstart Chrysaor gives a glimpse into the declining region's future. Lower prices make the remote province less appealing for energy majors but generous tax allowances offer private equity returns above 20 percent.

Kuwait’s strength could be a weakness

17 Jan 2017

The oil-rich sheikhdom is planning its first dollar debt sale. It should be a hit: Kuwait has a good fiscal record and vast foreign assets. Yet other Gulf states are weaker, raising the risk of devaluations or euro zone-style bailouts. The strongest may end up bearing the burden.

Kuwait oil selloff success depends on reserves

12 Jul 2016

A plan to follow Saudi Arabia by partially privatising its state-run oil industry could make sense for OPEC's fifth-largest producer. An IPO would generate needed billions for the government. Maximising proceeds, though, will mean ceding control of the crude still in the ground.

Outcomes diverge in Severn Trent spat

10 Jun 2013

The UK utility rightly snubbed a third approach at 5.3 bln stg after suitor LongRiver added a small sweetener. Its shares are pricing in a higher chance of deal failure. While LongRiver’s hardball tactics are risky, an agreement is possible. A compromise on dividends could help.

Wave of liquidity engulfs Severn Trent water

14 May 2013

For years bid talk has surrounded the UK’s last listed water utilities. Severn Trent is now in play. A bid could top $14 bln with debt, at 35 pct above the group’s regulated value. That would be rich. Regulation may get tighter. But debt is cheap and funds are eager for yield.

UBS royal pickle reveals Gulf M&A minefield

21 Jun 2012

The Swiss bank is fighting a claim that it failed to pay a Kuwaiti sheikh for advising on an $11 bln deal. Even if UBS suffers no lasting damage from the spat, it has exposed the extent to which big banks fall over themselves when schmoozing Gulf royals to win scarce business.

Oil price band of comfort is precariously narrow

10 May 2012

It only takes a $20-a-barrel swing to move markets from fretting about the release of emergency reserves to worrying about top producers falling into fiscal deficits. Hard-to-cut higher spending by a growing number of big exporters may make the concerns permanent.

Kuwait Airways sale may not be a runway success

2 Aug 2011

The state of Kuwait wants to offload a 35 pct stake in its national carrier to a strategic partner. But the airline has been in the red for two decades, the asking price is lofty and bidders risk political pitfalls. Plans for a regional rail link don’t help the business case.