RIYADH: The Public Investment Fund (PIF), the Saudi Arabian sovereign wealth fund, is potentially looking at a windfall profit on its investment in Uber Technologies, the American ride-hailing company, it emerged at the Future Investment Initiative in Riyadh.
Lubna Olayan, head of the Olayan Group conglomerate, highlighted a potential doubling in the value of PIF’s stake in Uber if the San Francisco firm goes ahead with an initial public offering next year.
Speaking on a panel entitled “Can global investment inspire a collective vision of the future,” she remarked that PIF first invested $3.5 billion in Uber in 2016 when it was valued at approximately $60 billion.
“Now the forecast valuations for the IPO are around $120 billion. Congratulations,” she said to Yasir Al-Rumayyan, managing director of PIF.
Al-Rumayyan replied: “Uber is creating lots of jobs in Saudi Arabia and making life easier for drivers, customers and shareholders.”
PIF’s profit on any Uber IPO could be even bigger, because the Saudi organization is a major investor in the SoftBank Vision Fund, which is also holds a sizeable chunk of Uber shares from a later round of fundraising.
Al-Rumayyan told the forum that PIF’s holdings are on track to be valued at $400 billion by 2020, and $2 trillion by 2030. By then, he said, PIF’s portfolio would be split 50-50 between domestic and global investments. About 10 percent of PIF’s funds are currently invested outside Saudi Arabia.
Al-Rumayyan said it was not true that all of PIF’s investments went into high-tech assets, pointing to its 50 percent stake of a $40 billion infrastructure fund in partnership with US group Blackstone, and the hotel chain Accor.
In Saudi Arabia, PIF wants to broaden its investment in the economy, especially in the tourism and entertainment sectors. “We did not have these interests before and we want to enhance these sectors,” Al-Rumayyan said.
Saudi Arabia’s PIF could see big profit on Uber stake, Future Investment Initiative forum hears
Saudi Arabia’s PIF could see big profit on Uber stake, Future Investment Initiative forum hears
- Lubna Olayan, head of the Olayan Group conglomerate, highlighted a potential doubling in the value of PIF’s stake in Uber
- Saudi Arabian sovereign wealth fund is potentially looking at a windfall profit on its investment in Uber Technologies
Global oil, gas shipping costs surge as Iran vows to close Strait of Hormuz
- Mideast-China VLCC rate exceeds $400,000/day
- Atlantic, Pacific LNG freight rates jump more than 40 percent
- South Korea maritime ministry tells shippers to refrain from operating in the Mideast
SINGAPORE: Global oil and gas shipping rates soared, with supertanker costs in the Middle East hitting all-time highs, as the US-Iran conflict intensified after Tehran targeted ships passing through the Strait of Hormuz, according to shipping data and industry sources on Tuesday.
Shipping through the Strait of Hormuz between Iran and Oman, which carries around one-fifth of oil consumed globally as well as large quantities of liquefied natural gas, has ground to a near halt after vessels in the area were hit as Iran retaliated to US and Israeli strikes.
The disruption and fears of prolonged closure have caused oil and European natural gas prices to jump, with Brent crude futures up nearly 10 percent this week as the conflict triggered multiple oil and gas shutdowns in the Middle East.
The benchmark freight rate for the very large crude carriers used to ship 2 million barrels of oil from the Middle East to China, also known as TD3, rose to an all-time high of W419 on the Worldscale industry measure used to calculate freight rates, on Monday, or $423,736 per day, LSEG data showed.
The rate doubled from Friday, extending gains from a six-year high last week, after the US and Israel attacked Iran and killed its Supreme Leader Ayatollah Khamenei on Saturday.
In retaliation, Iran has struck Gulf countries, prompting precautionary shutdowns at oil and gas facilities across the Middle East.
An Iranian Revolutionary Guards senior official said on Monday that the Strait of Hormuz is closed and Iran will fire on any ship trying to pass, Iranian media reported. The US military’s Central Command said the Strait is not closed despite the Iranian statements, Fox News reported.
LNG shipping rates jump
Still, daily freight rates for LNG tankers jumped more than 40 percent on Monday after Qatar halted its production.
Atlantic rates rose to $61,500 per day on Monday, up 43 percent, or $18,750, from Friday, according to Spark Commodities, a pricing assessment agency for LNG shipping.
Pacific rates rose to $41,000 per day, up 45 percent, or $12,750, from Friday.
Fraser Carson, principal analyst for global LNG at energy consultancy Wood Mackenzie, said spot daily LNG shipping rates could rise above $100,000 this week on tight supply.
“Vessel availability for the rest of March is considered weak as cargo operators try to work through the backlog created by weather disruptions during February,” he said.
“There will be very strong competition for any available vessels,” he added.
Until safe passage through the Strait of Hormuz can be assured, shipping will remain idle, Carson said.
An oil shipbroker who declined to be named due to company policy said it is very difficult to assess shipping rates in the Gulf as several shipowners have suspended operations indefinitely.
South Korean shipping firm Hyundai Glovis said on Tuesday it is preparing contingency plans including securing alternative routes and ports in response to the Middle East conflict.
South Korea’s maritime ministry has issued a notice to South Korean shippers with vessels sailing in the Middle East, asking them to refrain from business operations in the region, an official told Reuters on Tuesday.
The ministry is holding a meeting to discuss further safety measures following Iran’s threat to attack any ship passing through the Strait of Hormuz, the official added.
