Global shipping outlook turns stable from positive

Global shipping outlook turns stable from positive
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Updated 06 December 2021

Global shipping outlook turns stable from positive

Global shipping outlook turns stable from positive
  • Industry earnings will be considerably higher than pre-COVID-19 levels during the next 12 months

RIYADH: As demand slightly outstrips supply, Moody’s Investors Service has changed the outlook for the global shipping industry to stable from positive for the next 12 to 18 months.

A report issued on Monday said the change is driven by tough comparisons with the very strong cash flows generated this year rather than a deteriorating business environment. It predicted business and financial conditions to remain solid, but are unlikely to get better than they already are today.

“Earnings for container and dry bulk carriers are at record levels; however, we expect earnings to fall from their 2021 peak but remain high,” said Daniel Harlid, a vice president — senior analyst at Moody’s and the author of the report. 

“Still, limited deliveries of new vessels next year will help keep freight rates at elevated levels.”

According to the report, demand for goods and commodities remain high and will stay robust in 2022. Growth rates have most likely peaked and will start to decelerate next year. Record high profitability and cash flow generation have been used to pay down debt.

Capital spending of shipping companies will continue to increase. Therefore, Moody’s expects orders for newer and more energy-efficient ships to continue to be a theme during 2022, as shipping companies prepare for stricter environmental regulations that will gradually be phased in from 2023.


Here’s what you need to know as Tadawul wraps up the trading week

Here’s what you need to know as Tadawul wraps up the trading week
Updated 15 sec ago

Here’s what you need to know as Tadawul wraps up the trading week

Here’s what you need to know as Tadawul wraps up the trading week

RIYADH: Saudi Arabia’s main stock market notched its second day of gains on Wednesday, after listed companies concluded a strong earnings season.

TASI surged 2.3 percent to close at 12,588, whereas the parallel market Nomu slipped 1 percent to 22,020.

TASI led the gains in the Gulf, followed by Abu Dhabi’s stock market with a 0.9 percent gain and Kuwait’s BKP, up 0.6 percent.

Stock exchanges of Qatar and Bahrain edged 0.1 percent lower, while those of Dubai and Oman ended almost flat.

Elsewhere in the Middle East, the Egyptian blue-chip index EGX30 dropped 1.6 percent.

Oil prices rose on Thursday, with Brent crude trading at $114.29 a barrel and US West Texas Intermediate reaching $110.69 a barrel as of 9:14 a.m. Saudi time.

Stock news

Saudi Reinsurance Co. obtained approval from the Saudi central bank to raise capital from SR891 million ($238 million) to SR1.34 billion

Maharah Human Resources’ unit Growth Avenue Investment Co. closed a deal to acquire 40 percent of the shares in Salis for Trading & Marketing

Naqi Water Co. got the Capital Market Authority’s approval for an initial public offering of a 30 percent stake on the Saudi Exchange

Saudia Dairy and Foodstuff Co.’s board recommended a dividend payout of SR3 per share for the second half of the fiscal year ended March 31, 2022

Academy of Learning Co. and Keir International Co. received the CMA’s approval for direct listing on the parallel Nomu market

Batic Real Estate Co., a unit of Batic Investments and Logistics Co., obtained a loan valued at SR200 million to finance potential investments

Ataa Educational Co. got CMA’s nod to increase capital to SR421 million in order to fully acquire Naba’a Educational Co.’s shares

Salama Cooperative Insurance Co. submitted a filing to the CMA, seeking to reduce capital by 60 percent to SR100 million

Calendar

May 26, 2022

National Environmental Recycling Co., better known as Tadweeer, will start trading on the parallel market Nomu

End of Ladun Investment Co.’s IPO book-building

May 30, 2022

Close of Anaam International Holding Group’s rights trading

May 31, 2022

End of Retal Urban Development Co.’s IPO book-building

June 2, 2022

Close of Anaam International Holding Group’s new shares subscription 


Saudi Maharah’s unit acquires 40% stake in digital marketing firm Salis

Saudi Maharah’s unit acquires 40% stake in digital marketing firm Salis
Updated 8 min 18 sec ago

Saudi Maharah’s unit acquires 40% stake in digital marketing firm Salis

Saudi Maharah’s unit acquires 40% stake in digital marketing firm Salis

RIYADH: Growth Avenue Investment Co., a unit of Maharah Human Resources Co., has finalized a deal to acquire 40 percent of the shares in Salis for Trading & Marketing.

Riyadh-based digital marketing firm Salis owns Soror application, which is an on-demand home services application.

The two parties completed the due diligence process and signed a sales and purchase agreement, Maharah said in a bourse filing without disclosing the value of the transaction.

Subject to approval by Saudi Arabia’s General Authority for Competition, the deal comes as GAC is expanding its reach through a number of acquisitions.

Most recently, it signed an agreement to buy a 40 percent stake in Saudi Medical Systems Co., after taking a majority stake of 85 percent in Alshifa Al Arabia Medical Co. last year.


Oil Updates — Crude firms on tight supply; US Oil investors back energy transition plans; Leuna reducing Russian crude intake

Oil Updates — Crude firms on tight supply; US Oil investors back energy transition plans; Leuna reducing Russian crude intake
Updated 40 min 6 sec ago

Oil Updates — Crude firms on tight supply; US Oil investors back energy transition plans; Leuna reducing Russian crude intake

Oil Updates — Crude firms on tight supply; US Oil investors back energy transition plans; Leuna reducing Russian crude intake

RIYADH: Oil prices rose on Thursday, extending a cautious rally this week on signs of tight supply while the EU wrangles with Hungary over plans to ban imports from Russia, the world’s second-largest crude exporter, after it invaded Ukraine.

Brent crude futures for July settlement gained 40 cents, or 0.35 percent, to $114.43 a barrel at 0412 GMT.

US West Texas Intermediate crude futures for July delivery climbed 55 cents, or 0.5 percent, to $110.88 a barrel.

US Oil investors back energy transition plans at shareholder meetings

Shareholders of Exxon Mobil Corp. and Chevron Corp. on Wednesday voted in favor of the energy transition strategies proposed by the two largest US oil producers, following similar support of European oil firms’ climate plans.

Major oil producers this year flipped the script and won over investors with recent steps to minimize carbon emissions and as worries over energy security and fuel prices overshadowed environmental concerns at this year’s meetings.

Thirty three percent of Chevron shareholders and 28 percent of Exxon’s voted in favor of climate proposals filed by activist group Follow This at their annual shareholder meetings on Wednesday.

Chevron holders voted against a proposal for more stringent action on addressing emissions from consumers burning its fuels, known as scope 3.

At Exxon, results marked a major shift from a year-ago when activist investors secured three seats on its board, a governance landmark. 

The company has since allocated $2.5 billion per year for projects to minimize its emissions.

“One third is a shareholder rebellion,” said Follow This founder Mark van Baal, referring to the Chevron vote. 

“Together with these investors, we have to convince the other investors to vote in favor of Paris alignment as well.” 

Total’s German Leuna refinery reducing Russian crude intake

French oil major TotalEnergies’ Leuna refinery in eastern Germany is reducing its intake of Russian crude oil via the Druzhba pipeline as it has started working on a supply solution via the Polish port of Gdansk, CEO Patrick Pouyanne told shareholders in Paris on Wednesday.

Druzhba feeds not just Leuna but also the PCK Schwedt refinery, majority-owned by Russia’s Rosneft.

Poyanne said Russian oil use in May had fallen to filling 555,000 tons of refinery capacity at the plant, down from 900,000 tons last October, and 800,000 tons in February.

“In December 2022, we will have 450,0000 tons left from the contracts that we have to honor — unless sanctions are taken in the meantime — and it will be zero from 2023 onwards,” said Poyanne.

(With input from Reuters) 


Ataa Educational to increase capital to $112m for acquiring Naba'a

Ataa Educational to increase capital to $112m for acquiring Naba'a
Updated 26 May 2022

Ataa Educational to increase capital to $112m for acquiring Naba'a

Ataa Educational to increase capital to $112m for acquiring Naba'a

RIYADH: Saudi Ataa Educational Co. has received approval from the Capital Market Authority to increase its capital to SR420 million ($112 million) for the acquisition of Naba'a Educational Co.

The company will issue more than 2 million ordinary shares to acquire Naba'a through its fully-owned subsidiary, Arabian Educational and Training Group, according to a bourse filing.

The Riyadh-based educational company provides educational services for students inside the Kingdom.


Saudi Aramco shows interest in buying Valvoline's commercial unit: sources

Saudi Aramco shows interest in buying Valvoline's commercial unit: sources
Updated 26 May 2022

Saudi Aramco shows interest in buying Valvoline's commercial unit: sources

Saudi Aramco shows interest in buying Valvoline's commercial unit: sources
  • Revenue from Valvoline's global products unit accounted for about 59 percent of its overall sales in 2021

Oil giant Saudi Aramco has approached motor oil and lubricant maker Valvoline Inc to buy its segment that caters to commercial customers, sources familiar with the matter told Reuters on Wednesday.

Valvoline, which is valued at $5.4 billion as of Tuesday's closing price, had last year decided to separate its retail services and global products division, following a strategic review.

Revenue from Valvoline's global products unit accounted for about 59 percent of its overall sales in 2021.

The division also sells some "Do-It-Yourself" products to consumers.

The company said no decision has been taken even as it continues to work on the separation process.

Aramco did not immediately respond to a request for comment.

Shares of Valvoline, which have lost 20 percent of their value so far this year, rose 11.2 percent at $33.07 after the Wall Street Journal first reported that Aramco had approached the Lexington, Kentucky-based company with a takeover deal.

Valvoline is also the world's top supplier of battery fluids to electric vehicle makers and makes as well as supplies oil and lubricants used in commercial vehicles and industrial equipment.

The deal talks between the two companies are in an early stage and there were no guarantees the two sides would reach an agreement, the Journal report said.