SHB’s net profit up 12.8%

Updated 10 July 2013
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SHB’s net profit up 12.8%

DUBAI: Saudi Hollandi Bank (SHB), Saudi Arabia's eighth-largest listed bank, said yesterday its second-quarter net profit rose 12.8 percent on the back of higher operating income, beating analysts' forecasts.
The lender made a net profit of SR 374.8 million ($ 99.9 million) in the three months to June 30, compared with SR 332.3 million riyals in the corresponding quarter of 2012, it said in a bourse filing.
Five analysts surveyed by Reuters had forecast the bank would post, on average, a net profit of SR 346.4 million for the quarter.
The profit jump was boosted by a 25 percent year-on-year hike in second-quarter operating income, which was recorded as SR 693.7 million this year.
Meanwhile, profit from special commissions in the second quarter grew 19.8 percent over the same three months of 2012 to SR 411.8 million.
Net profit for the first six months of 2013 was SR 721 million, up 15.8 percent on the same period of last year, it said in the statement.
Saudi Hollandi's loans portfolio stood at SR 52 billion at the end of June, 24.1 percent higher than the same point of 2012.
Due to its robust loan growth from lending to small and medium-sized enterprises, Saudi Hollandi's loan book should grow significantly in 2013, Global Investment House said in a June 17 note.
Its deposit base gained 23.4 percent to SR 61.3 billion at the end of June 2013.


Shell, Exxon not to seek compensation for end of Dutch gas field production

Updated 17 min 33 sec ago
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Shell, Exxon not to seek compensation for end of Dutch gas field production

AMSTERDAM: Energy companies Royal Dutch Shell and Exxon Mobil will not submit a claim for missed revenue due to the Dutch government's decision to halt gas production at the Groningen field by 2030, the Dutch ministry of Economic Affairs said on Monday.
"A lot of gas will be left in the ground," Economy minister Eric Wiebes said at the presentation of his deal with the oil majors responsible for extracting Groningen gas.
"That gas is the property of the oil companies, but they will not submit a claim and the government is not required to compensate them."
The Dutch government in March said it would end gas production at the Groningen field by the end of the next decade, in an effort to stop a string of relatively small, but damaging earthquakes caused by gas extraction.
This will leave around 450 billion cubic meters (bcm) of gas in the ground, Wiebes said, with an estimated value of approximately €70 billion ($81.5 billion).
The decision to halt Groningen production forced the government to broker a new deal with Shell and Exxon Mobil, whose 50-50 joint venture NAM is responsible for the field.
NAM will be required to pump as much gas as the government says is needed in the coming years. In return, it will see its share of the revenue from Groningen rise from 10 to 27 percent, Wiebes said, starting this year.
As part of the deal, NAM will also contribute a total of €500 million to strengthen the economy in the Groningen region.