Gulf Air striving to reach profitability

Gulf Air, Bahrain's national carrier, said yesterday that all options were being considered to make it profitable after a newspaper reported that the airline may be dissolved or sold. "At this stage a range of strategic options are being considered," a spokeswoman for the airline said in an emailed response to questions on the future of the carrier. She said that Gulf Air, its shareholder Mumtalakat — Bahrain's sovereign wealth fund — and the government were all working towards addressing the airline's loss-making position, but declined to go into specifics. Bahrain's Gulf Daily News reported that the government is considering options including dissolving or downsizing the airline, or selling it and creating a new national carrier at the cost of 460 million dinars (Dh4.48 billion).

Majid Al Futtaim Holding

Majid Al Futtaim Holding, or MAF, will be conducting a series of fixed-income investor meetings in the UAE, Asia and Europe starting next week, and may subsequently issue an Islamic bond, or sukuk, depending on market conditions, a banker familiar with the matter said yesterday. The meetings will begin on January 29 and the sukuk could be issued under MAF's recently established $1-billion (Dh3.67 billion) trust certificate issuance programme, the banker, who declined to be identified, told Zawya Dow Jones. Abu Dhabi Islamic Bank, Dubai Islamic Bank, HSBC and Standard Chartered Bank will be arranging meetings on the company's behalf, the banker added. MAF, a privately-owned property, hospitality and retail group active in the Middle East and North Africa region, said on Monday that group revenues in 2011 grew 10 per cent year-on-year to Dh18.7 billion, while earnings before interest, tax, depreciation and amortization rose 18 per cent over the same period to Dh2.7 billion. It had over Dh35 billion in assets at the end of December.

Saudi Aramco

State oil giant Saudi Aram-co has agreed to buy at least three-four cargoes of gasoline per month in a term agreement for delivery between February to June, trade and industry sources said yesterday. "Aramco is still in the market," one industry source said. Aramco could end up buying more, another trader said, depending on the price. "We're hearing they could go up to six per month if they can get a good price," he said. BP, Gunvor and another oil major were among Aramco's suppliers for the term contract, trading sources said.

Orascom Telecom

Orascom Telecom Holding's global depositary receipts had their price estimate cut 14 per cent at UBS to reflect the demerger of Orascom Telecom Media and Technology Holding. "The shares' value is effectively driven directly by the value realised in Algeria," analyst Alex Wright wrote in a note to clients.

— Compiled from staff reports and agencies