As Singapore works to overcome Covid-19, another burning existential crisis looms — climate change.
In the last few months alone, Singapore has broken at least...
Positioned for Market Recovery Maintained Healthy Balance SheetHONG KONG, April 29, 2021 /PRNewswire/ -- MGM China Holdings Limited ("MGM China" or the "Company"; SEHK Stock Code: 2282) today announced the selected unaudited financial data of the Company and its subsidiaries (the "Group") for the three months ended March 31, 2021 (the "Period").Macau was still under the severe impact of COVID-19 pandemic in the first quarter this year. China, the major source of Macau's travelers, was under travel ban in the first two months that the government asked people to stay at where they were, until March when the pandemic situation stabilized. Travel sentiment then started to improve along with modest relaxation of local restrictions in Macau.First-quarter market-wide gross gaming revenue (GGR) declined by 22% year-over-year, narrowed from a 70% year-on-year decline in the previous quarter. While market-wide GGR in the first quarter improved sequentially by 8% compared to the fourth quarter, Macau's business volumes remained well below pre-COVID levels. MGM China once again outperformed the market's pace of recovery. Our first quarter GGR recovered to approximately 40% of pre-pandemic fourth quarter 2019 levels, compared to market's recovery of 33%. It is evident that our strength in premium mass is positioning us well as the market gradually turns the corner. In the first quarter, MGM China recorded total revenue of HK$2.3 billion, up by 9% from a year ago. The Group had turnaround with adjusted EBITDA of HK$84 million, versus negative adjusted EBITDA of HK$123 million a year ago. As a leading gaming property on the Peninsula, MGM MACAU recorded revenue of HK$1.3 billion, up by 17% from a year ago. It recorded adjusted EBITDA of HK$170 million, grew by 398% year-on-year. Occupancy was 81% compared to 44% a year ago. For the Period, MGM COTAI recorded revenue of HK$981 million (20Q1: HK$984 million) and negative adjusted EBITDA of HK$86 million, narrowed from negative adjusted EBITDA of HK$157 million same period a year ago. Occupancy was 47% compared to 33% in previous year. Market share of MGM China rose to 11.5% for the Period from 8.7% a year ago. The Group maintained a healthy financial position. As of March 31, 2021, the Group had total liquidity of approximately HK$14.3 billion, comprised of cash and cash equivalent and undrawn revolver.The Group believes the rate of market recovery to be gradual and driven by premium mass market segment, which MGM China is well positioned for. The recovery rate will also remain heavily dependent on broader sentiment as well as the pace of vaccination rollouts throughout the region, which would ultimately lead to the easing of travel restrictions, nucleic acid testing requirements and other bottlenecks currently impacting the marketplace. The opening of Macau-Hong Kong is also another important variable in Macau recovery. Hubert Wang, President & Chief Operating Officer of MGM China said: "MGM China is confident in Macau's longer-term growth prospects and will continue to invest in strengthening our market position. Construction of the additional suites in the South Tower of MGM COTAI is underway and on track to open in the summer. We are also organizing themed property attractions to drive visitation.
"We will continue our effort and strategy in diversification, along with our meaningful entertainment assets and niche in art and culture. We are committed to help Macau to develop into a world's tourism destination," said Hubert Wang.About MGM China Holdings LimitedMGM China Holdings Limited (HKEx: 2282) is a leading developer, owner and operator of gaming and lodging resorts in the Greater China region. We are the holding company of MGM Grand Paradise, SA which holds one of the six gaming concessions/sub-concessions to run casino games in Macau. MGM Grand Paradise, SA owns and operates MGM MACAU, the award-winning premium integrated resort located on the Macau Peninsula and MGM COTAI, a contemporary luxury integrated resort in Cotai, which opened in early 2018 and more than doubles our presence in Macau. MGM China is majority owned by MGM Resorts International (NYSE: MGM) one of the world's leading global hospitality companies, operating a portfolio of destination resort brands including Bellagio, MGM Grand, Mandalay Bay and The Mirage. For more information about MGM Resorts International, visit the Company's website at www.mgmresorts.com.
Website: www.mgmchinaholdings.comSOURCE MGM China
NEW YORK, Nov. 3, 2020 /PRNewswire/ -- The impact of the US elections on commodities remains uncertain, in that a re-election of President Donald Trump would likely mean a continuation of easing regulatory constraints on the oil and natural gas industries, while a Joe Biden election victory would most likely increase regulation and encourage growth in renewables, according to the Platts Analytics US Election analysis released by S&P Global Platts ("Platts"), the leading independent provider of information and benchmark prices for the commodities and energy markets.
However, in the short term it will be the likelihood of stronger economic growth and a more positive outlook on global trade under a Biden administration that could lend support to energy prices. But under such a scenario, offsets could include the potential return to the negotiating table on the Iranian nuclear deal and growing humanitarian issues in Venezuela, with any early return of oil supply from either country weighing heavily on energy prices.
An Election win by either candidate points to large rollback of agriculture sector subsidies.
Political polls overwhelmingly tilt towards a Biden victory, along with Republicans losing their majority in the US Senate. In the US House of Representatives, the Democrats are expected to extend their majority by perhaps six seats. Despite the overwhelming poll data, S&P Global Platts Analytics still believes there remains a large degree of uncertainty regarding the outcomes. Below find a brief look at some of the implications of the outcome of the US Elections:
If a Trump Re-Election:
Under Trump we can expect a continuation of Trump's trademark style of one-off transactional diplomacy, treating allies and adversaries no differently, while Biden would look to heal relationships and strengthen trade partnerships. Significant progress has been made in the Phase 1 China-US trade deal despite the 2020 commitments not being met (with agricultural goods ramping up) in part amidst weaker prices. The shortfalls in purchases are expected to be rolled over into the 2021 commitments supporting energy and agricultural commodities.
Under Trump energy policy is likely to remain supportive of the energy industry, encouraging US exports and loosening regulatory constraints, while Biden will pursue Obama-era policies, with tighter regulation on pipeline, flaring and fracking especially on federal lands.
If a Biden Victory:
Under Biden we expect faster economic growth, higher employment, acceleration of inflation, a weaker dollar, and smaller deficit supported by the assumption of a greater degree of stimulus to support growth, less restrictive assumptions on immigration, stronger healthcare programs, and support for a higher minimum wage.
Tax policies and perceived subsidies to the energy industry could come under renewed scrutiny under Biden. Provisions such as the master limited partnership structure, depletion allowance, intangible drilling costs, and section 199 domestic manufacturing deduction could be reduced. Such actions, along with still weak energy prices for both oil, gas, and coal, would further hinder the recovery path for the energy industry.
Under Biden the renewables industry will see a more favorable environment and a return to the Paris Accord commitments, which will accelerate investment in solar wind and storage, impacting fossil fuel demand in thermal power generation.
SEE SIDE-BY-SIDE OUTLOOK COMPARISONS
US Foreign Policy – Energy impact
Likely to focus immediately on repairing relationships with allies and bringing them onboard on various foreign policy initiatives including Iran, Venezuela, China, and Russia. A return of Iranian barrels is more likely under Biden, although we do not expect a meaningful return before 2022.
Exports of LNG and crude will be pushed as a trade balancing mechanism in Asia and Europe.
Multilateral approach to trade and other global partnerships, with less friction with a host of key trading partners (Latin America, EU, China).
Subsidies and tax changes will be deployed to promote fossil fuel development; and
Regulatory focus will tighten and favor oil and gas majors over independents, given additional costs involved in limiting flaring and venting from both fields and pipelines.
Remaining federal incentives to promote renewables will be cut back or eliminated altogether.
Policy will shift towards additional deployments of renewables and batteries at the expense of fossil fuels in power generation.
The near-term impact on US oil and gas supply is largely limited regardless of election result, as significant permits and drilled but uncompleted wells, or DUCs, provide a cushion in the event of a ban on new federal drilling permits.
Drilling on federals lands will be reviewed along with current oil and gas tax provisions, with rollback of Obama-era methane regulations, or even the implementation of tighter regulations on existing, not just new, (stripper) wells.
A second Trump administration is likely to maintain the status quo in terms of oil and gas tax provisions, so as not to create further headwinds for an industry already struggling from weak commodity prices.
Near-term impact on US oil and gas supply is largely limited regardless of the election result, as significant permits and DUCs provide a cushion in the event of a ban on new federal drilling permits.
A return of Iranian barrels is not out of the realm of possibility but risks of missteps and tensions in the Middle East are heightened.
Increased underlying cost of US natural gas (and therefore raising the cost of US LNG) through a number of likely executive orders, which would be aimed at lowering methane emissions and banning new oil and gas leasing on public lands.
Reduced risks that federal regulations will start to assess full life-cycle costs, which would include upstream carbon emissions and methane leakage associated with new LNG export projects.
Risk of additional trade tensions with key Asian demand countries, namely China, which could impact ethane, LPG, ethylene and polyethylene trade.
Midstream sector investment moves toward CO2, H2, but construction would likely occur after the upcoming term. US ethylene cracker investment Wave 3 would be at risk.
Wave 3 of US ethylene units would likely proceed. Thus, anticipate no change to potential relaxation of regulations on single-use plastics and recycling.
Single-use plastics and recycling would move to the fore, with potential for more regulations on single-use plastics and encouraging of recycling.
Renewables & Climate
The opportunity to defend reversals of Obama policies in court.
Re-engagement with Paris Climate Accord. However, comprehensive climate proposals (including targeting decarbonized power sector by 2035) depend on US Senate makeup and the relative importance of other (non-energy) policy priorities.
Likely means imposed Section 201 tariffs on imported solar module tariffs in 2018, as well as work to extend and even increase the magnitude of those tariffs.
Work to reverse the Trump administration's rollback of Obama-era regulations (Congressional Review Act could give quick wins). The EPA would approve California waiver, allowing it to set tougher-than-federal clean air standards -- which other states can then follow to set vehicle policy.
Continued slow-walking of offshore wind permitting; potential use of CFIUS rules to block offshore wind deals involving foreign state-owned companies (Equinor, Orsted, etc.)
The extension of Wind Production Tax Credit and Solar Investment Tax Credit, continued support of CCUS-- which have historically been bipartisan.
About S&P Global PlattsAt S&P Global Platts, we provide the insights; you make better informed trading and business decisions with confidence. We're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to our expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping.
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SOURCE S&P Global Platts