Economy
UAE Energy Trader to Restructure Finances Following Oil’s Crash

(Bloomberg) — A United Arab Emirates-based energy trader is seeking to restructure its finances after the coronavirus pandemic sent oil prices tumbling and lenders withheld credit lines.
GP Global Group started the restructuring effort as the virus swept through economies around the world, a company spokesperson said. The move reflects months of turmoil in crude markets as a 35% slump in prices this year plunged producers and traders into crisis.
GP Global, which changed its name from Gulf Petrochem Group in 2018, has been “targeted by vested interests” spreading rumors about its financial standing, the spokesperson said. “A few financial institutions” have declined to provide credit for some trades, forcing it to look for alternative funds.
The company, which has offices in Dubai, operates a tank farm at regional trading hub Fujairah, with 412,000 cubic meters of capacity to store and blend fuels. It also has a 200,000-cubic-meter storage terminal and a 9,000-barrel-a day refinery at the port of Hamriyah in the UAE emirate of Sharjah.
Both storage terminals at Fujairah and Hamriyah continue to operate normally, the spokesperson said.
Though cash is tight, many of GP’s peers are in a similar position and the company is confident of attracting new investment, according to the spokesperson, who said the restructuring should be completed in the next few months.
Several trading houses have been in the spotlight after oil plummeted this year, prompting banks to reduce credit lines and look more cautiously on financing commodity trades. Two Singapore traders failed earlier in 2020 amid allegations they hid losses or used the same cargoes as collateral for different loans.
-
Bahrain2 months ago
SPIEF 2025 focused on global and regional economic processes, market transformation, new tech, investment climate, financial policy and people
-
Banking & Finance2 months ago
National Finance Reinforces Position as Partner for Growth, Offers a Comprehensive Product Suite to Support Customer Ambitions
-
OER Magazines2 months ago
OER, June 25
-
Energy2 months ago
Russian Energy Week from October 15-17, 2025 offers alternative formats of cooperation
-
Technology2 months ago
SPIEF 2025 showcases cutting-edge technologies and digital innovation through its Innovation Space initiative
-
OER Magazines4 weeks ago
OER, July 25
-
Energy2 months ago
The year 2025 is a special year for Oman and Russia as it marks 40 years of diplomatic relations between the two countries says HE Sergey Tsivilyov, Energy Minister of Russia
-
Education1 month ago
Russia offers diverse tourism and education opportunities: Sofia Malyavina