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ACWA Power reports a $5.8m loss in its first quarterly earning after IPO

ACWA Power reports a $5.8m loss in its first quarterly earning after IPO
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Updated 10 November 2021
Fahad Abuljadayel

ACWA Power reports a $5.8m loss in its first quarterly earning after IPO

ACWA Power reports a $5.8m loss in its first quarterly earning after IPO
Updated 10 November 2021
Fahad Abuljadayel

RIYADH: Saudi energy company, ACWA Power, reported a SR21.8 million ($5.8 million) loss in its first quarterly earnings results after it went public.

The Riyadh-based company said that the loss in the third quarter was mainly due to IPO-related issues and payments as well as the depreciation of two of their oil-fired assets in Saudi Arabia.

The company, in which the Public Investment Fund owns a sizable stake of 44 percent, made a profit of SR541 million in the same quarter a year ago, it said in a filing today. 

The net profit of the first nine months of this year also went down by half to SR434 million.ACWA Power's shares went down by 2.8 percent this morning following the announcement.

ACWA Power CEO Paddy Padmanathan comments on the results

“Our results for the third quarter demonstrate that we are on track towards achieving our business and financial targets as set forth in our Prospectus for the fiscal year 2021. This also provides us with a solid basis for growth, which is our top priority following ACWA Power’s landmark listing on the Saudi Stock Exchange, which was oversubscribed by an overall factor of 250 times. As a Saudi flagbearer and a national champion, the trust of our shareholders in our ability to be a force for greater good for people not just here in the Kingdom but around the world is our greatest motivation and inspiration. We will live up to this trust through continued ingenuity and excellence in everything we do as we fulfil our mission to deliver power and water reliably and responsibly, at low cost to communities worldwide.”

“The earning announcement may give different indications, speculators can exploit it, and this is normal due to the different goals to traders, but as an investor in the stock, you should read the details of the announcement to understand the earnings results better and make the picture clear to you” Mohammed Al Suwayed, CEO of Razeen Capital.

“The process of investing in the Saudi stock market is becoming more sophisticated and investors should seek proper advise to make better investment decisions” he added.

 

Topics: ACWA Power Saudi Arabia

Saudi sovereign wealth fund considers new hydrogen company; raising stake in energy firm ACWA Power to 70 percent

Saudi sovereign wealth fund considers new hydrogen company; raising stake in energy firm ACWA Power to 70 percent
Updated 13 sec ago
Jana Salloum

Saudi sovereign wealth fund considers new hydrogen company; raising stake in energy firm ACWA Power to 70 percent

Saudi sovereign wealth fund considers new hydrogen company; raising stake in energy firm ACWA Power to 70 percent
Updated 13 sec ago
Jana Salloum

RIYADH: Saudi Arabia’s Public Investment Fund considers raising its stake in the listed energy firm ACWA Power to 70 percent as the fund plans to develop 70 percent of renewable energy targets under vision 2030.

Speaking in a regional forum on ESG organized by the Future Investment Initiative in London, the governor Yasir Al-Rumayyan said the sovereign wealth fund is now establishing a new hydrogen company and it will be like a mediator in many of the PIF’s initiatives.

The fund owns companies that are already developing hydrogen such as NEOM and Aramco. 

Topics: PIF Aramco ACWA Power NEOM

PIF governor and BlackRock’s CEO leads discussions on ESG in emerging markets in FII’s first regional summit

PIF governor and BlackRock’s CEO leads discussions on ESG in emerging markets in FII’s first regional summit
Updated 19 min 5 sec ago
Arab News

PIF governor and BlackRock’s CEO leads discussions on ESG in emerging markets in FII’s first regional summit

PIF governor and BlackRock’s CEO leads discussions on ESG in emerging markets in FII’s first regional summit
Updated 19 min 5 sec ago
Arab News

RIYADH: The Future Investment Initiative Foundation will host its first ever regional summit on Friday, in Rosewood London, England, entitled Inclusive Environmental, Social and Corporate Governance in Emerging Markets.

The most prominent participants in the event include the FII Chairman and Governor of the Public Investment Fund, Yasser Al-Rumayyan, Egypt’s Minister of Environment, Yasmine Fouad and Blackrock CEO Larry Fink.

The summit will bring together international investors, world leaders, thought leaders, policy makers, global CEOs, and chiefs of sustainability to discuss and shape the future of ESG, particularly in emerging markets.

“The planet has major problems with climate, with destruction of nature, peace and security. But we also have tremendous resources, including our common humanity,” Executive Director of the FII Institute, Richard Attias said.

“We believe that ESG is an important tool to bring us together and channel capital to meet these challenges,” he said.

Using ESG standards to make investment decisions is a global boom, with assets expected to reach $53 trillion, about a third of global assets under management, by 2025, a statement showed.

Still, the lack of a framework for the effective implementation of ESG in emerging economies represent a stumbling block for investors. 

The FII says it will finally have the tool needed to develop sustainable investment strategies in these markets, through its proprietary measurement framework, developed in collaboration with investors, global companies, and FII’s strategic partners.

The Foundation works to impact humanity across four focus areas: artificial intelligence, robotics, education, health care, and sustainability.

The event is part of a series of events hosted by the Foundation, which will culminate in the sixth edition of the annual FII Forum in Riyadh, Saudi Arabia, in October.

 

The PIF view

The PIF understands that being engaged in ESG is the right thing to do, Rania Nashar, head of compliance and governance at the fund, told the conference.

PIF companies are announcing emission reductions but it's not only about the destination, it is about the journey, she added.

“We approach the ESG through multiple aspects. Through creating platforms, sponsoring events and launching initiatives,” she said.

Topics: FII Institute

China’s April Saudi oil imports soar 38 percent on year, Russian oil up 4 percent

China’s April Saudi oil imports soar 38 percent on year, Russian oil up 4 percent
Shutterstock
Updated 20 May 2022

China’s April Saudi oil imports soar 38 percent on year, Russian oil up 4 percent

China’s April Saudi oil imports soar 38 percent on year, Russian oil up 4 percent
Updated 20 May 2022

China’s crude oil imports from top supplier Saudi Arabia soared 38 percent in April from a year earlier, hitting the highest monthly volume since May 2020, according to Reuters’ calculations based on official Chinese customs data.

Saudi shipments amounted to 8.93 million tons last month, equivalent to 2.17 million barrels per day, according to data from the Chinese General Administration of Customs.

The hefty purchases, with trades completed mostly in February, compare with 1.61 million bpd in March and 1.57 million bpd a year earlier.

Imports from second-largest supplier Russia rose a more modest 4 percent last month from a year earlier, with cargoes booked before western governments toughened sanctions over Russia’s invasion of Ukraine in late February.

Russian oil arrivals in April totalled 6.55 million tons, or 1.59 million bpd, data showed, up slightly from 1.5 million bpd in March and 1.53 million bpd a year earlier.

China’s overall crude oil imports last month rose nearly 7 percent on the year, its first rise in three months, although widespread COVID-19 lockdowns crimped fuel demand and dampened refinery output.

Friday’s data showed zero imports in April from Iran. However, customs next month is likely to report for May the import of nearly 2 million barrels of Iranian oil that was being discharged this week into a reserve base in south China.

Despite US sanctions on Iran, China has kept taking Iranian oil passed off as supplies from other countries. The import levels are roughly equivalent to 7 percent of China’s total crude oil imports.

Iranian oil, often priced lower than competing grades, have squeezed out rival supplies such as from Brazil and West Africa.

Customs reported zero imports from Venezuela, as state oil firms shunned purchases since late 2019 for fear of falling afoul of secondary US sanctions.

Imports from Malaysia, often used as a transfer point in the last two years for oil originating from Iran and Venezuela, jumped 84 percent on year to 2.165 million tons, the second highest on record.

Topics: #saudiarabia oil and gas #china

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Saudi tourism ministry signs deals to boost localization program

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RIYADH: Saudi Arabia’s Ministry of Tourism has signed two agreements to enhance joint cooperation and support training and localization programs to qualify those wishing to work in the hospitality sector.
The move, which aims to support workers in the food, beverage and accommodation sectors, in support of achieving the Kingdom’s’ tourism human capacity development strategy.
Bandar bin Mohammed Al-Safir, director general of training and localization at the ministry, stressed that these two agreements aim to develop human resources in the tourism sector through quality training programs that will contribute to developing localized skills in the tourism sector.
Under the two agreements, which were signed with Kempinski Al-Othman Hotel and Carlton Al-Moaibed Hotel, the ministry will support dualifying Saudi nationals in the tourism sector within the “Your Future has Arrived” initiative.

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Venture capital and microfinance firms should focus on startups, says Al Ahli Holding Group CEO

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Updated 20 May 2022
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DUBAI: Mohamed Khammas, CEO of Al Ahli Holding Group, said that startup businesses are an excellent opportunity for investment in venture capital funds and microfinance banks.

During an interview with Arab News at the Top CEO event in Dubai, Khammas Mohamed Khammas, CEO of Al Ahli Holding Group, highlighted that startups are a good investment idea because the “ticket size is smaller, and the product ranges are higher.”

Khammas pointed out the risks that arise for startups are not in their early stages but rather when they become successful.

“The challenge is not when they’re trying to have a major impact on the economy; the problems occur when they become successful. All of those are calculated risks,” he said.

Khammas continued to add that regardless of these risks, investing in new, innovative startups is “absolutely the best opportunity.”

Also, during his talk at the event, Khammas  urged banks to fund new and innovative products and ideas in the area after he shed light on how banks are hesitant to invest in creative ideas.

Topics: TOPCEO2022

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