Weak ruble boosts Gazprom profits

Weak ruble boosts Gazprom profits
Updated 10 August 2015

Weak ruble boosts Gazprom profits

Weak ruble boosts Gazprom profits

MOSCOW: Russian gas giant Gazprom said its net profit surged 71 percent in the first quarter as a weak ruble compensated for declining sales and lower energy prices.
The net profit of 382 billion rubles ($5.9 billion) compared with 223 billion rubles in the first quarter of 2014, the company said in a statement.
Gazprom acknowledged that the result was partly attributable to the “increase in average prices in ruble terms.”
Most of Gazprom’s costs are in the battered Russian currency, while most of its revenues are in dollars or euros.
The ruble lost nearly half its value in 2014 but slightly recovered after energy prices stabilized. A recent slump in energy prices, however, last week saw the Russian currency hit its weakest level against the dollar since February.
The profit figure exceeded analysts’ predictions averaging 347 billion rubles for the January-to-March period, Interfax news agency reported.
But while sales revenues were up, Gazprom’s operating profits dropped by 3.0 percent to 459 billion rubles and sales volume was down 10 percent to 132.3 billion of cubic meters (bcm).
Russia’s economy has slumped into recession on the back of lower oil prices and Western sanctions over the Ukraine crisis.
The country’s economy ministry said last month it expected Gazprom’s production to drop to 414 billion bcm this year, which would be an all-time low.
Gazprom has recently encountered difficulties with some of its partners, including conflict-hit Ukraine.
In June, Kiev suspended purchases of Russian gas from the company in the latest pricing dispute.
Gazprom was also accused by its Turkmen counterpart last month of being “insolvent” and of refusing to pay for gas supplied by the isolated Central Asian state.


RAK Ceramics Saudi business booms on anti-dumping move

RAK Ceramics Saudi business booms on anti-dumping move
Updated 49 min 38 sec ago

RAK Ceramics Saudi business booms on anti-dumping move

RAK Ceramics Saudi business booms on anti-dumping move
  • Net profit rose to 60.6 million dirhams compared to 25.7 million dirhams in the year earlier period

DUBAI: RAK Ceramics, one of the world’s largest tile makers, reported a jump in Saudi sales as it benefited from anti-dumping measures on imports from China and India in the Kingdom.
The company’s wider business surpassed pre-pandemic levels in the first quarter, as it recorded its strongest start to a year since 2016.
“Looking ahead for the remainder of 2021, our priority will be to invest in brand equity, grow our business in Saudi Arabia and protect our market share in the UAE and Bangladesh,” said CEO Abdallah Massaad.
Net profit rose to 60.6 million dirhams compared to 25.7 million dirhams in the year earlier period.
Total gross profit margin also reached an all-time high of 35 percent driven by an increase in revenue, an improvement in efficiencies and the optimization of production lines. Total revenues were also at a five-year high, rising almost 22 percent to reach 722.8 million dirhams.
Revenue growth was strongest in Saudi Arabia where sales jumped by 78.5 percent, followed by India with sales growth of 67 percent.
“In Saudi Arabia, the Company’s strategy continues to yield results,” the company said in a statement. “The imposition of anti-dumping duties on tiles from India and China in the Kingdom initially led to an increase in demand for RAK Ceramics’ products. Capitalizing on this demand, the company invested in differentiated tiles and new showrooms, developing significant brand equity in the market,” it said.
In the UAE, despite the impact of COVID-19, workforce was not reduced, and production reached the highest level in five years due to increased demand from Saudi Arabia, it said.


Emaar Malls Q1 profit falls 16% but sees retail on recovery path

Emaar Malls Q1 profit falls 16% but sees retail on recovery path
Updated 57 min 41 sec ago

Emaar Malls Q1 profit falls 16% but sees retail on recovery path

Emaar Malls Q1 profit falls 16% but sees retail on recovery path
  • Profits improved on a quarter-on-quarter basis as net income gained 169 percent from the previous three month period

DUBAI: Dubai operator Emaar Malls said first quarter profit fell 16 percent from a year earlier to 318 million dirhams ($86.6 million).

However the company behind the world's most visited shopping mall highlighted a recovery in the retail sector.
Profits improved on a quarter-on-quarter basis as net income gained 169 percent from the previous three month period.
The retail group said that its e-commerce subsidiary Namshi recorded sales of 258 million dirhams, as it continues to grow in other Gulf markets such Saudi Arabia, Kuwait, and Qatar
The operator has also focused on expansions and new developments to buffer the blow of the pandemic, Emaar boss Mohamed Alabbar said in a statement.
“We are committed to delivering transformational retail and entertainment experiences that exceed expectations of constantly evolving customer demands,” he said.
The retail and entertainment sector in Dubai has been seeing positive signs of recovery as the emirate embarks on a massive vaccine program which has helped to buoy consumer confidence.
Emaar expanded its Dubai Mall Village in February, bringing in 21 new sports and lifestyle stores with an additional gross leasable area of 79,000 square feet.
It also partnered with Time Out Group to open the region’s first Time Out Market in the emirate’s downtown area.
A new mall – Dubai Hills Mall – is in the works, the Dubai Financial Market filing said. It will have a gross leasable area of 2 million square feet that will feature about 600 shops. It will open in the second half of the year.
Tenant rental performance improved over the period with overall occupancy at 91 percent.


Saudi property liquidity higher ahead of Eid

Saudi property liquidity higher ahead of Eid
Updated 10 May 2021

Saudi property liquidity higher ahead of Eid

Saudi property liquidity higher ahead of Eid
  • The market primarily benefited from a 15.6 percent weekly increase in the value of the commercial sector deals

RIYADH: The Saudi real estate market recorded a 6.2 percent rise in weekly activity to reach SR4.1 billion ($1 billion) after earlier declines.
The market primarily benefited from a 15.6 percent weekly increase in the value of the commercial sector deals, to just under SR1.2 billion by the end of last week, Al Eqtisadiah reported.
Housing sector deals recorded a 2.8 percent weekly increase to nearly SR2.6 billion.
Agricultural and industrial deals also increased by 2.3 percent to SR344 million.
The number of real estate transactions gained 1.4 percent to 5,600, the newspaper reported.



 


Riyadh to get ten BinDawood superstores over five years

Riyadh to get ten BinDawood superstores over five years
Updated 10 May 2021

Riyadh to get ten BinDawood superstores over five years

Riyadh to get ten BinDawood superstores over five years
  • The company said it would open the branches over five years from 2022 to 2027

DUBAI: BinDawood Superstores said it would open ten new branches in Riyadh as the retailer expands its footprint in the Kingdom.
The company, a unit of BinDawood Holding, said in a stock exchange statement that it would open the branches over five years from 2022 to 2027.
BinDawood Holding on Monday said first-quarter profit fell by more than half to SR62.1 million ($16.5 million) compared to a year earlier.

Revenues declined by a fifth to SR1.12 billion because of “non-recurring pantry buying” at the start of the pandemic when consumers stocked up on purchases.

That rush was not repeated in the first quarter of this year.

“It has been a tough start to the year as the local Saudi grocery retail market continues to remain subdued.It is heartening to see some green shoots of recovery but overall, we see a return to pre-COVID sales only in the second half of 2021,” said Ahmad AR. BinDawood, CEO of BinDawood Holding.
However the group remains cautiously optimistic as its sales in Makkah and Madinah pick up and are expected to benefit from the gradual return of pilgrims to the Kingdom.
At the same time it has been able to reduce its costs associated with COVID-19, it said.
BinDawood said the company’s store opening program would result in more jobs for Saudis in the supermarket sector.


Oil gains after cyberattack forces closure of US fuel ‘jugular’ pipeline

Oil gains after cyberattack forces closure of US fuel ‘jugular’ pipeline
Updated 10 May 2021

Oil gains after cyberattack forces closure of US fuel ‘jugular’ pipeline

Oil gains after cyberattack forces closure of US fuel ‘jugular’ pipeline
  • Pipeline moves 2.5 million bpd of gasoline and other fuels
  • Network is source of nearly half of the US East Coast’s fuel

TOKYO: Crude prices rose on Monday after a major cyberattack forced the shutdown of critical fuel supply pipelines in the United States and highlighted the fragility of its oil infrastructure.
Brent crude was up by 38 cents, or 0.6 percent, at $68.66 a barrel by 0443 GMT, having risen by l.5 percent last week. US West Texas Intermediate futures rose by 34 cents, or 0.5 percent, at $65.24 a barrel, after gaining more than 2 percent last week.
Signaling the seriousness of the situation, the White House was working closely with Colonial Pipeline to help it recover from the ransomware attack, which forced the biggest US fuel pipeline operator to shut a network supplying populous eastern states.
“The major takeaway is the bad guys are very adept at finding new ways to penetrate infrastructure,” Andrew Lipow, president of Lipow Oil Associates told Reuters. “Infrastructure has not developed defenses that can offset all the different ways that malware can infect one’s system.”
Colonial’s network is the source of nearly half of the US East Coast’s fuel supply, transporting 2.5 million barrels per day of gasoline and other fuels, and the company had to shut all its pipelines after the cyberattack on Friday, which involved ransomware.
US gasoline prices jumped nearly 2 percent on Monday, while heating oil was up by more than 1 percent.
It was not clear who carried out the attack, but sources told Reuters the hackers were likely a professional cybercriminal group.
Colonial said on Sunday its main fuel lines remain offline but some smaller lines between terminals and delivery points are now operational. It didn’t say when the network might return to full operational capacity.
A prolonged shutdown of the line, described as the “jugular of infrastructure” in the United States by one analyst, would cause retail prices to spike at gasoline pumps ahead of peak summer driving season, a potential blow to US consumers and the economy.
“The big unknown is how long the shutdown will last, but clearly the longer it goes on, the more bullish it will be for refined product prices,” ING Economics said in a note.
The attack has prompted calls from American lawmakers to strengthen protections for critical US energy infrastructure from hacking attacks.
The Department of Energy said it was monitoring potential impacts to the nation’s energy supply, while the US Cybersecurity and Infrastructure Security Agency and the Transportation Security Administration told Reuters they were working on the situation.