Europe Faces New Wave Of Oil Refinery Extinctions
Indian Hotels jumped 3.3 percent yesterday in Mumbai to 50.30 rupees, while EIH rose 0.2 percent to 54.60 rupees. No Scope Indian Hotels reported its first annual loss since at least 1997 in the year ended March 31 as sales growth slowed to the least in three years, according to data compiled by Bloomberg. EIH had its smallest profit since 2005. I dont see any scope for room-rate increases over the next couple of years, said Sumant Kumar, an analyst with Elara Securities (India) Pvt. in Mumbai . Theres an oversupply in this space and demand is not picking up as corporate side expenditure is muted given the economic scenario. Indias $1.8 trillion economy expanded 5 percent last fiscal year, the slowest pace since 2003, as companies and businesses curtailed travel budgets. Occupancy rate at luxury hotels fell to 59.9 percent in the year through March 2012 from 73.8 percent in 2006, according to data provided by the Federation of Hotel and Restaurant Associations of India . Slowing economic growth hasnt discouraged the operators from betting on Indias potential. Accor, which has started a three-year reorganization plan that includes increasing its focus on emerging markets, is betting on Indias middle class, which is forecast to add the equivalent of more than the entire population of Germany in less than a decade. Middle Class Between 2010 and 2021, Indias emerging middle class — who earn as much as $5,550 a year — will swell by 100 million to 570 million, PricewaterhouseCoopers estimated in June 2012. Paris-based Accor , which has 23 percent of its hotels in Asia, considers India as one of its three strongest growing markets over the longer term after China and Indonesia , Issenberg said. More than half the hotels it will build will be in Asia, he said. Hotels are a consumer item, its a discretionary spend, Issenberg said. As the middle class continues to grow in Asia, travel will continue to grow and grow faster than GDP. Nakul Anand, chief executive of ITCs hospitality business, said in July that the operator is developing at least 18 projects. Indian Hotels opened two new hotels since April, adding 175 rooms, according to an Aug.
Europe’s Top Hotel Says Glut to Thwart Revival: Corporate India
The loser is Europe. It has to be. There is no consolidation going on and no great consolidation hope,” Torbjorn Tornqvist, chief executive officer of trading house Gunvor told the Oil & Money conference this month. Diesel imports from Russia, Asia and the U.S. Gulf Coast reached a record 4 million tonnes in September, according to traders. “The trend of U.S. exporting products is going to continue, you’re going to see diesel coming from the United States to Europe for the foreseeable future,” the head of Glencore’s oil division Alex Beard said this month. 2013 may go down as one of the weakest in recent decades, as refining margins in the third and fourth quarter plummeted due to high crude costs and weak product demand. Total, Europe’s biggest refiner, said refining margins in the region had dropped to a near four-year low of $10.6 per tonne in the third quarter. Other than the old, simple East European refineries, plants in coastal areas such as Italy that are easily accessible for importing remain the most vulnerable. This year was set to go down as one of the worst for the European refining industry, with refinery utilisation slipping down to around 78 percent in 2013, according to JBC. The path taken by the Mantua refinery is not new. Last year, TotalErg, a joint venture between France’s Total and Italian refiner ERG, converted its 90,000 bpd refinery outside Rome to a storage hub. Reflecting the region’s changing realities, the Fiumicino terminal receives around 100,000 tonnes of diesel per month from India’s Reliance Industries, which operates the world’s largest refining complex, according to trading sources.
Optimism over Europe may be overdone
Jonathan Eyal, Europe Correspondent The Straits Times Friday, Oct 18, 2013 John Paulson is not a man easily ignored – the hedge fund manager became a billionaire after accurately predicting the 2007 US sub-prime mortgage crash. So, when Mr Paulson recently announced that he was taking “a substantial stake” in – of all things – Greek banks, the global investment community rushed to the only obvious conclusion: if Greece, the weakest economy in the euro zone single currency market, is now praised by Mr Paulson for being run by a “very favourable, pro-business government”, then Europe’s long drawn-out financial crisis must surely be over. In similar vein, Mr Carsten Brzeski, chief economist at the ING bank giant, predicted in a note to clients: “Germany’s economy staged an impressive growth comeback in the second quarter, which should be sufficient to have pushed the entire euro zone out of the recession.” The belief that Europe has emerged from its deepest recession since World War II is certainly growing. But optimism can be overdone. First, it’s worth remembering that most of the upbeat talk is not about truly good statistics, but about less bad ones. So, Spain’s gross domestic product appears to be heading for a drop of “only 0.1 per cent for the rest of this year” – this is hailed by European officials as proof that the recession is “bottoming out”. Secondly, anyone who lives or travels through Europe is likely to have a less sanguine outlook than upbeat business analysts. Most tourists visiting Spain are impressed by its beauty and its still passable transport infrastructure – a legacy of the boom years of the 1990s. But the palm-fringed coastal towns of the Costa del Sol on the Mediterranean are dotted with abandoned construction sites, with holiday homes nobody wants, even though asking prices have halved. Many of these sites are now inhabited by gypsy migrants from Eastern Europe. Outside Atocha railway station in Madrid, the pride of Spain’s high-speed train system, hundreds of youngsters sleep rough. The station’s toilet operator, a company which goes by the splendid name of “2theloo” recently announced that it would charge for its facilities, partly in order to keep street tramps out.