Oil prices rose slightly in thin Asian trade on Thursday, pausing from a six-day losing streak fed by mounting concerns that more aggressive interest rate increases by central banks could pressure economic growth and fuel demand.
Brent crude futures rose 32 cents or 40 percent to $80.92 per barrel. West Texas Intermediate crude futures rose 35 cents, or 0.47 percent, to $74.30 a barrel.
ADNOC looks to raise up to $2 billion from IPO of gas unit
Abu Dhabi National Oil Co. said on Thursday it has set a price range for an initial public offering of its gas unit that could raise up to $2 billion and give ADNOC Gas an equity valuation of $47 billion to $50.8 billion.
The price range for the unit it created in November by combining its gas processing arm and its liquefied natural gas subsidiary was set at 2.25 dirhams ($0.6126) to 2.43 dirhams per share, the company said in a statement.
Cornerstone investors Abu Dhabi Pension Fund, Alpha Wave Ventures II, IHC Capital Holding, OneIM Fund I, and entities ultimately controlled by ADQ and the Emirates Investment Authority have made a combined commitment of around $850 million, it added.
ADNOC is selling roughly 3 billion shares in its gas business, equivalent to about 4 percent of its issued share capital.
At the top of the range, ADNOC would raise roughly $2 billion from the sale, according to Reuters calculations.
The final offer price is expected to be announced on March 3, while listing and trading are expected to commence on March 13, the company said.
ADNOC is sharpening its focus on the gas market as Europe seeks to replace all Russian energy imports as early as mid-2024 after gradual supply cuts since Western sanctions were imposed on the country over its invasion of Ukraine.
APA beats quarterly profit estimates on higher crude prices
US oil producer APA Corp. on Wednesday posted a quarterly profit that topped Wall Street expectations, as higher demand amid tight supplies boosted crude prices.
APA said its total production for the October-December quarter rose 7 percent to 414,435 barrels of oil equivalent per day, while average oil prices climbed to $86.17 per barrel from $78.52.
The company reiterated its full-year 2023 upstream capital budget of $2 billion to $2.1 billion and expects adjusted barrels of oil equivalent growth of 4 percent to 5 percent, and oil growth of more than 10 percent in the year.
“This year our emphasis will be on higher-margin oil development,” APA CEO John Christmann said in a statement.
The Houston, Texas-based firm reported an adjusted profit of $1.48 per share for the three months that ended on Dec.31, compared with the average analyst estimate of $1.29 per share, according to Refinitiv IBES data.