Saudi Almunajem food co. appoints HSBC Saudi Arabia for its IPO

Saudi Almunajem food co. appoints HSBC Saudi Arabia for its IPO
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Updated 11 November 2021

Saudi Almunajem food co. appoints HSBC Saudi Arabia for its IPO

Saudi Almunajem food co. appoints HSBC Saudi Arabia for its IPO

RIYADH: Saudi Almunajem Foods Co. appointed HSBC Saudi Arabia as a financial advisor, bookrunner, lead manager, and underwriter for its potential initial public offering of 30 percent of its shares, or 18 million, on Saudi stock exchange Tadawul, it said today in a filing.

Almunajem Foods, which specializes in the import, marketing, and distribution of frozen, chilled, and dried food, announced on November 7 the completion of its expansion of a factory in Jeddah, in response to the growth of demand for meat and poultry in Saudi Arabia.

Almunajem imports more than 250,000 metric ton per year of food from over 60 international well-known food producers, it said.

The company is laying down three main pillars of growth to enhance profits and revenues, the CEO of the AlMunajim food company said in an interview with Alarabiya.

The first pillar is to expand the range of new products, the second is to improve sales channels and enhance the company's presence in the food sector in Saudi Arabia and the third pillar includes the integration of products by exploring new opportunities.

Thamer Abanumai indicated that the company hoped that by offering its shares in the Saudi market it would institutionalize the company, enhance its value and its brands, and diversify sources of funding for future growth and expansion.

He explained that the food sector in the Kingdom is burgeoning, with the pace of growth expected to increase due to economic diversification and incentives by the government with the support of initiatives such as the Quality of Life Initiative, promoting tourism, Hajj and Umrah programs, and localizing jobs.

 He expected the company's business to continue to grow in the coming years by 4.6 percent to reach a value of SR272 billion ($72.5 billion) in 2024.

The company currently has a sales value of SR2.5 billion ($666 million) annually, he added.

“We acted quickly and expanded our meat factory in Jeddah. The strong, long-term fundamentals in place in local food consumption are expected to outstrip demand, and our expansion will help fill some of that shortfall.” CEO of Almunajem, Thamer Bin Abdulaziz Abanumay said in a statement on November 7.


Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo
Updated 12 sec ago

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

RIYADH: Oil prices eased on Tuesday as Hungary resisted an EU push for a ban on Russian oil imports, a move that would tighten global supply, and as investors took profits following a recent rally.

Brent crude futures fell 22 cents, or 0.2 percent, to $114.02 a barrel by 0327 GMT, while US West Texas Intermediate crude futures slid 35 cents, or 0.3 percent, to $113.85 a barrel. 

Both benchmarks had gained more than 2 percent on Monday, following a 4 percent jump on Friday.

Equinor, Exxon agree to expand Brazil oil operations

Equinor and Exxon Mobil Corp. have taken the first steps to expand an $8-billion oil development off Brazil’s coast, the Norwegian oil producer told Reuters.

The firms want to boost future production from the Bacalhau oil field, Equinor’s largest project outside of Norway with more than 1 billion barrels of oil, the company said.

A second drilling rig and a second floating production platform are being considered for the next phase along with a more than 100-mile-long gas pipeline, three people close to the discussions said.

For Exxon, Bacalhau could provide its first barrel of oil from offshore Brazil, one of its top growth prospects, and a new supply of oil from lower carbon operations. First oil is due in 2024 from the venture’s 220,000 barrels per day production vessel.

EU fails to persuade Hungary to sign up for Russian oil embargo

EU foreign ministers failed on Monday in their effort to pressure Hungary to lift its veto of a proposed oil embargo on Russia, with Lithuania saying the bloc was being “held hostage by one member state.”

The ban on crude imports proposed by the European Commission in early May would be its harshest sanction yet in response to Moscow’s Feb. 24 invasion of Ukraine and includes carve-outs for EU states most dependent on Russian oil.

Germany, the EU’s biggest economy and a major buyer of Russian energy, said it wanted a deal to authorize the oil embargo, which it suggested could last for years.

As expected, the ministers failed to reach a deal on Monday, EU foreign policy chief Josep Borrell said after the meeting, with ambassadors now charged to negotiate an agreement.

“Unhappily, it has not been possible to reach an agreement today,” Borrell told reporters, saying Hungary set out its argument based on economic, not political, concerns.

Some diplomats now point to a May 30-31 summit as the moment for agreement on a phased ban on Russian oil, probably over six months, with a longer transition period for Hungary, Slovakia and the Czech Republic.

“I am confident that we will find agreement in the coming days,” German Foreign Minister Annalena Baerbock said.

(With input from Reuters)  


TAQA and RG to explore opportunities for geothermal projects in Saudi Arabia

TAQA and RG to explore opportunities for geothermal projects in Saudi Arabia
Updated 20 min 51 sec ago

TAQA and RG to explore opportunities for geothermal projects in Saudi Arabia

TAQA and RG to explore opportunities for geothermal projects in Saudi Arabia

RIYADH: The Industrialization and Energy Services Company, also known as TAQA, has formed a strategic alliance with Iceland’s Reykjavik Geothermal to explore and identify opportunities for geothermal projects in Saudi Arabia. 

The alliance will also see both companies working together on geothermal projects such as designing, drilling, constructing, monitoring, and managing geothermal wells. 

The strategic alliance was announced during PetroEnvironmnet Conference and exhibition 2022 on May 17. 

“Partnering with RG, the best in class and internationally recognized company in the geothermal, baseload and clean/renewable energy fields is an important step to realizing TAQA2021 strategy,” said Khalid Nouh, CEO of TAQA. 

RG CEO Magnús Ásbjörnsson said: “We first came to the Kingdom over a decade ago with a vision of bringing clean, reliable baseload energy to the Kingdom, and in TAQA we have found a partner that aligns with our vision.”

Founded in 2008, Reykjavik Geothermal currently has seven projects — two in construction and five in development, with offices in the US and Ethiopia. 

According to the company website, its mission is to generate clean and dependable geothermal energy around the world.


Oil rises on EU’s Russian oil ban effort, demand hopes

Oil rises on EU’s Russian oil ban effort, demand hopes
Updated 27 min 18 sec ago

Oil rises on EU’s Russian oil ban effort, demand hopes

Oil rises on EU’s Russian oil ban effort, demand hopes

LONDON: Oil hit its highest in seven weeks on Tuesday, supported by the European Union’s ongoing push for a ban on Russian oil imports that would tighten supply and as investors focused on higher demand from an easing of China’s COVID lockdowns.

EU foreign ministers failed on Monday in their effort to pressure Hungary to lift its veto on the proposed oil embargo. But some diplomats now point to a May 30-31 summit as the moment for agreement on a phased ban on Russian oil.

Brent crude rose as high as $115.50, its highest since March 28, and by 1024 GMT was up $1.16, or 1 percent, to $115.40. US West Texas Intermediate (WTI) crude gained 78 cents, or 0.7 percent, to $114.98.

“Oil prices have remained near multi-week highs this week, supported by surging gasoline and distillate prices in the US, and fears around an EU ban on Russian oil imports remaining in play,” said Jeffrey Halley, analyst at brokerage OANDA.

Crude has surged in 2022, with Brent hitting $139, its highest since 2008, in early March as Russia’s invasion of Ukraine exacerbated supply concerns.

Oil also gained support from hopes of demand recovery in China as it looks to ease COVID restrictions, analysts said, and from rising geopolitical tension between the EU and Russia following Sweden and Finland’s moves to join NATO.

Shanghai on Tuesday achieved the long-awaited milestone of three consecutive days with no new COVID-19 cases outside quarantine zones and set out on Monday its clearest timetable yet for exiting a lockdown now in its seventh week.

Also in focus are potential further declines in US fuel inventories. Weekly inventory reports are expected to show a rise in crude stocks and declines in inventories of distillates and gasoline.

The first report, from the American Petroleum Institute is due at 2030 GMT. (Additional reporting by Isabel Kua in Singapore and Yuka Obayashi in Tokyo Editing by Jason Neely and Mark Potter)

 


China In-Focus — Stocks rise; COVID-19 affects Beijing’s retail industry

China In-Focus — Stocks rise; COVID-19 affects Beijing’s retail industry
Updated 33 min 19 sec ago

China In-Focus — Stocks rise; COVID-19 affects Beijing’s retail industry

China In-Focus — Stocks rise; COVID-19 affects Beijing’s retail industry

BEIJING: Emerging market stocks jumped on Tuesday, helped by a rise in Chinese shares on hopes Beijing will ease its tech sector crackdown, while currencies inched up on weakness in the dollar and strong data from Central European economies.

MSCI’s index of emerging market stocks rose 2 percent, while its currencies counterpart added 0.5 percent.

Mainland China’s CSI300 Index gained 1.3 percent, while Hong Kong’s Hang Seng Index climbed 3.1 percent. 

Beijing’s retail, industry upended by COVID-19 restrictions

The economy of China’s capital Beijing took a hit in April as authorities wrestled with a new COVID-19 outbreak, telling residents to avoid going out or work from home and halting many businesses.

Retail sales in the city of nearly 22 million people, a key gauge of consumption, shrank 16.05 percent in April from a year earlier, according to Reuters calculations based on January-April data released by the city’s statistics bureau on Tuesday, outpacing the nation’s 11.1 percent contraction.

Industrial output fell 3.3 percent in the first four months, compared with a 7.2 percent growth in the first quarter, the biggest cumulative drop since July 2020. The city’s statistics bureau did not publish data for April or offer comparative figures.

Property sales in Beijing nosedived by 25.83 percent last month, further pummeling an already struggling sector, despite more policy easing steps aimed at reviving what has traditionally been a key pillar of China’s economy.

Fixed-asset investment grew 8.9 percent in the first four months, slower than the 10.3 percent gain in January-March.

China’s revenue from government land sales down

China’s government land sales revenue fell 29.8 percent in January-April from a year earlier to 1.5012 trillion yuan ($222.04 billion), finance ministry data showed on Tuesday, down from a 27.4 percent slump in the first quarter.

For April, revenue from government land sales fell 37.88 percent from a year earlier, the fastest pace since January-February 2020, according to Reuters calculations based on the ministry’s data.

That was sharply wider than a 22.84 percent fall in March.


Russian crude production plunges by nearly 9 percent in April, OPEC+ data shows

Russian crude production plunges by nearly 9 percent in April, OPEC+ data shows
Updated 44 min 31 sec ago

Russian crude production plunges by nearly 9 percent in April, OPEC+ data shows

Russian crude production plunges by nearly 9 percent in April, OPEC+ data shows

LONDON: Russian crude output fell by nearly 9 percent to 9.16 million barrels per day (bpd) compared with March levels, according to assessments by OPEC+ secondary sources, an internal report seen by Reuters on Tuesday showed.

This meant that Russia last month produced 1.28 million bpd below the levels required in an oil production cut agreement between the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+.

Overall, OPEC+ produced 2.6 million bpd below its targets in April, the data showed.