CFC posts KD 6m in 9-month prof­its

Kuwait Times - - BUSINESS -

KUWAIT: The Com­mer­cial Fa­cil­i­ties Com­pany (CFC) said yes­ter­day that its net prof­its reached KD six mil­lion ($19.7 mil­lion), 12 fils per share, in first nine months of 2015, com­pared to KD 9.1 mil­lion same pe­riod in in 2014. To­tal share­hold­ers’ eq­uity reached KD 165.5 mil­lion in the first nine months of 2015, com­pared to KD 168.1 mil­lion the same pe­riod last year, CFC said in state­ment posted on Kuwait Stock Ex­change (KSE) web­site. Over­all as­sets reached KD 321 mil­lion, to­tal li­a­bil­i­ties amounted to KD 155. 4 mil­lion in the first nine months of 2015, com­pared to KD 122 mil­lion in the same pe­riod last year. The com­pany was founded in 1977 and was listed in the KSE in 1984, with a paid-up cap­i­tal of KD 53.6 mil­lion.

In­ter­na­tional oil prices re­mained rel­a­tively range-bound dur­ing Oc­to­ber. On av­er­age, ICE Brent, the global bench­mark crude, traded within the $48-50.0 per bar­rel (bbl) band for the sec­ond month in a row, while West Texas In­ter­me­di­ate (WTI), the US marker, set­tled within the $45-47/bbl range dur­ing the month. Both crudes closed the month just over a dol­lar higher than they started, with Brent set­tling at $49.5/bbl and WTI at $46.6/bbl.

Nev­er­the­less, con­cerns over bur­geon­ing crude oil sup­plies and surg­ing crude and re­fined prod­ucts stock con­tin­ued to weigh heav­ily on oil mar­kets in Oc­to­ber. De­spite a brief rally around the 6th of the month, when ICE Brent and NYMEX WTI hit $53.1/bbl and $49.6/bbl, re­spec­tively, on lower ex­pec­ta­tions of US out­put and fore­casts that the oil mar­ket could re­bal­ance in 2016, oil mar­ket fun­da­men­tals re­mained weak. OECD com­mer­cial oil in­ven­to­ries con­tin­ued to swell amid higher re­fin­ery runs, reach­ing 2.9 bil­lion bar­rels in Au­gust, ac­cord­ing to data re­leased by the In­ter­na­tional En­ergy Agency (IEA).

Crude oil stocks in par­tic­u­lar re­main at record lev­els, while global in­ven­to­ries of re­fined prod­ucts, such as diesel, stand close to max­i­mum stor­age ca­pac­ity. The in­cen­tive for con­tin­ued stock builds is, there­fore, likely to de­cline, putting fur­ther pres­sure on crude prices. And while the on­set of the autumn re­fin­ery main­te­nance sea­son should see pres­sure on stock lev­els of re­fined prod­ucts ease, lower re­fin­ery runs could see crude in­ven­to­ries fill up once more, com­pound­ing the bear­ish out­look for oil prices.

Con­sen­sus fore­casts for oil prices over the next few years have been low­ered, echo­ing the trend in the fu­tures mar­ket. With Brent cur­rently av­er­ag­ing $55.9/bbl for the year as a whole, most an­a­lysts ex­pect the oil price to re­main at the lower end of the $54-$64.0/bbl range next year be­fore ris­ing slowly to­wards the up­per limit in 2017 as the de­mand­sup­ply mis­match be­gins to un­wind more sig­nif­i­cantly. In­deed, af­ter ac­count­ing for a pro­jected slow­down in de­mand growth next year and the po­ten­tial ar­rival of ad­di­tional bar­rels of oil from Iran once sanc­tions are lifted, the IEA pre­dicts that equi­lib­rium would be re­stored later than the pre­vi­ous fore­cast of 4Q2016. In­form­ing its de­ci­sion to re­vise its es­ti­mate of global de­mand

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