Dubai Port Operator DP World to Return to Full State Ownership

General view of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, UAE, December 27, 2018. (Reuters)
General view of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, UAE, December 27, 2018. (Reuters)
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Dubai Port Operator DP World to Return to Full State Ownership

General view of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, UAE, December 27, 2018. (Reuters)
General view of a stock yard of DP World's fully automated Terminal 2 at Jebel Ali Port in Dubai, UAE, December 27, 2018. (Reuters)

Dubai port and logistics giant DP World said on Monday it would return to full state ownership and delist from the Nasdaq Dubai, in a deal worth some $2.7 billion.

State-owned parent company Port and Free Zone World has offered to acquire the 19.55 percent of DP World's shares currently traded on the Nasdaq Dubai stock exchange, DP World said in a statement, according to AFP.

Returning to full ownership by the emirate of Dubai would free the firm from the demand for short-term returns in the public market.

"The global ports and logistics industry has been undergoing a significant transition," said Sultan Ahmed bin Sulayem, DP World's chairman and CEO.

The move will "enable the company to focus on implementing our mid-to-long-term strategy to build the world's leading logistics provider" backed by a global network including ports, economic zones, industrial parks and inland transportation, he said.

The parent company offered to buy each share of DP World for $16.75 -- a premium of around 29 percent on the market closing price of $13 per share on Sunday, the statement said.

The new deal puts the market value of DP World, which operates some 78 ports and terminals in 40 countries, at just under $14 billion.

DP World listed part of its equity on the Nasdaq Dubai in 2007 and made another listing on the London Stock Exchange in 2011 before withdrawing less than four years later, citing weak trading volumes.



US Crude Oil Inventories Fell by 3.2 Million Barrels, More Than Expected

Storage tanks are seen at Marathon Petroleum's Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB) gasoline, CARB diesel fuel, and other petroleum products, in Carson, California, US, March 11, 2022. Reuters 
Storage tanks are seen at Marathon Petroleum's Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB) gasoline, CARB diesel fuel, and other petroleum products, in Carson, California, US, March 11, 2022. Reuters 
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US Crude Oil Inventories Fell by 3.2 Million Barrels, More Than Expected

Storage tanks are seen at Marathon Petroleum's Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB) gasoline, CARB diesel fuel, and other petroleum products, in Carson, California, US, March 11, 2022. Reuters 
Storage tanks are seen at Marathon Petroleum's Los Angeles Refinery, which processes domestic & imported crude oil into California Air Resources Board (CARB) gasoline, CARB diesel fuel, and other petroleum products, in Carson, California, US, March 11, 2022. Reuters 

US crude oil and gasoline inventories fell last week, buoyed by stronger demand and exports, while distillate stockpiles rose, the US Energy Information Administration (EIA) said on Wednesday.

Crude inventories fell by 3.2 million barrels to 419 million barrels in the week ended July 18, the EIA said, double analysts' expectations in a Reuters poll for a 1.6 million-barrel draw.

Crude stocks at the Cushing, Oklahoma, delivery hub rose by 455,000 barrels in the week, the EIA said.

Refinery crude runs rose by 87,000 barrels per day and refinery utilization rates rose by 1.6 percentage points.

Gasoline stocks fell by 1.7 million barrels last week to 231.1 million barrels, the EIA said, also nearly double expectations for a 908,000-barrel draw.

Distillate stockpiles, which include diesel and heating oil, rose by 2.9 million barrels in the week to 109.9 million barrels, the data showed, versus forecasts for a 1.1 million-barrel drop.

US crude exports were up by 337,000 barrels per day (bpd) to 3.86 million bpd, while net US crude imports fell last week by 740,000 barrels per day, the EIA said.