Eni and Algeria’s Sonatrach sign $1.4bn oil deal

Eni and Algeria’s Sonatrach sign $1.4bn oil deal
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Updated 15 December 2021

Eni and Algeria’s Sonatrach sign $1.4bn oil deal

Eni and Algeria’s Sonatrach sign $1.4bn oil deal
  • It is their first contract since a hydrocarbons law was passed in 2019 to make the market more attractive for foreign investors

Algeria’s state oil firm Sonatrach signed a $1.4 billion exploration and production deal on Tuesday with Italian major Eni, alongside an agreement on renewables.


Under the main deal, they will produce 45,000 barrels of oil equivalent per day from a rich onshore field in the Berkine basin, where the two companies have operated together since 2013.


It is their first contract since a hydrocarbons law was passed in 2019 to make the market more attractive for foreign investors — but which sparked opposition from Algerians, who said it would flog the nation’s wealth to multinationals.


Sonatrach said in a press release carried by official news agency APS that the deal was “another milestone that strengthens the traditional relationship between the two partners.”


Sonatrach chief Toufik Hakkar and his Eni counterpart Claudio Descalzi also signed a cooperation agreement on alternative energy technologies including solar energy, lithium production, bio-fuels and hydrogen, it added.


Eni has operated in Algeria since 1981 and is Sonatrach’s main foreign partner in the oil and gas sector.


The two firms jointly operate the TransMed pipeline that exports Algerian gas to Italy via Tunisia, with a capacity of some 32 million cubic meters per year — four times that of the Medgaz pipeline to Spain.


Algeria, Africa’s biggest gas exporter, earns some 90 percent of its state revenues from hydrocarbons.


TASI starts higher as new earnings reports boost investors’ sentiment: Opening bell

TASI starts higher as new earnings reports boost investors’ sentiment: Opening bell
Updated 16 sec ago

TASI starts higher as new earnings reports boost investors’ sentiment: Opening bell

TASI starts higher as new earnings reports boost investors’ sentiment: Opening bell

RIYADH: Saudi Arabia’s benchmark index started the week’s final session higher as investors took comfort in the release of new earnings reports.

TAS edged up 0.14 percent to 12,664, while the parallel Nomu market started almost flat at 21,513, as of 10:06 a.m. Saudi time.

The Kingdom’s largest valued bank Al Rajhi rose 0.56 percent, while The Saudi National Bank, the country's largest lender, increased 0.14 percent.

Among the Kingdom's leading information technology firms, Elm and Al Moammar Information Systems Co. declined 0.52 percent and 0.74 percent, respectively.

Red Sea International Co. dropped 0.42 percent, after it secured financing from SABB worth SR35 million.

Taiba Investments Co. rose 0.66 percent, after it turned into a profit of SR55 million ($15 million) in the first half, wiping out losses of SR14.8 million from the same period last year.

Abdullah Al Othaim Markets Co. dropped 2.05 percent, despite reporting a 31 percent increase in profits for the first half of the year to SR138 million.

Sadr Logistics Co. declined 0.57 percent, after it turned into losses of SR3 million during the first six months of 2022.


Here’s what you need to know before Tadawul trading on Thursday

Here’s what you need to know before Tadawul trading on Thursday
Updated 56 min 8 sec ago

Here’s what you need to know before Tadawul trading on Thursday

Here’s what you need to know before Tadawul trading on Thursday

RIYADH: Saudi stocks jumped on Wednesday, thanks to strong first-half earnings despite mixed results from the insurance and cement sectors.

TASI the main index added 0.8 percent to 12,646, while the parallel Nomu market lost 2.3 percent to 21,533, as information technology consulting firm Saudi Networkers Services Co. made a weak stock market debut.

Gulf peers advanced in line with the Kingdom's main benchmark index, led by a 1.8 percent jump for the Qatari bourse.

Dubai and Abu Dhabi gained 1.3 and 0.7 percent, respectively, followed by Kuwait and Bahrain. While the Omani index edged 0.1 percent lower.

Elsewhere, Egypt’s EGX30 soared 2.2 percent after the country’s president accepted the resignation of central bank governor Tarek Amer, the presidential office said.

In energy trading, Brent crude traded at $93.7 a barrel, while US West Texas Intermediate slipped to $88.08 a barrel as of 9:14 a.m. Saudi time on Thursday.

Stock news

Abdullah Al Othaim Markets Co. reported a higher profit of SR138 million ($37 million) for the first half of 2022, on the back of sales growth

Malath Cooperative Insurance Co. posted a 216 percent higher net loss before Zakat of SR25 million for the first half of 2022

Taiba Investments Co. was back to a profit of SR55 million in the first half of 2022 as hospitality sales rose post the pandemic

Red Sea International Co. secured SR35 million worth of financing from SABB 

CHUBB Arabia Cooperative Insurance Co.'s half-year profit before Zakat declined 54.8 percent to SR3 million

Gulf General Cooperative Insurance Co.’s losses narrowed by 20 percent to SR35 million in the first half of 2022

SABB Takaful issued its board’s circular regarding the offer document for the merger with Walaa Cooperative Insurance Co.

National Gas and Industrialization Co. announced it is studying the feasibility of partnering with UK’s Aburi Composites and Front End Co. to operate a joint composite cylinder factory

Naba Alsaha’s initial public offering for listing on Nomu was concluded with 531 percent coverage

Andalus Property Co. appointed Mashal Ibrahim Abuneef as its acting CEO effective Sep. 1

Tabuk Agricultural Development Co. signed a contract to sell its industrial potatoes to Wafrah for Industry and Development Co. for SR4.3 million

Calendar

August 18, 2022

Rawasi Albina Investment Co. will start trading its shares on Nomu


Taiba Investments returns to profits of $15m on pandemic recovery in H1

Taiba Investments returns to profits of $15m on pandemic recovery in H1
Updated 18 August 2022

Taiba Investments returns to profits of $15m on pandemic recovery in H1

Taiba Investments returns to profits of $15m on pandemic recovery in H1

RIYADH: Taiba Investments Co. has turned into a profit of SR55 million ($15 million) in the first half of the year, wiping out losses of SR14.8 million from the same period last year.

The results are primarily due to the gradual recovery of Taiba’s activities from the COVID 19 pandemic, it said in a bourse filing.

Its revenues soared 103 percent to SR134 million during the first six months of 2022.

Ramadan and the Hajj season contributed to increased hospitality revenues and improved lease performance for the company's properties during the period, it said.

Listed in the Saudi main index, Taiba Investments Co. specializes in investing in real estate, tourism, maintenance, operations, industry, mining, agriculture, and trade.


Saudi retailer Al Othaim Markets’ profit jumps 31% to $37m as sales soar in H1

Saudi retailer Al Othaim Markets’ profit jumps 31% to $37m as sales soar in H1
Updated 18 August 2022

Saudi retailer Al Othaim Markets’ profit jumps 31% to $37m as sales soar in H1

Saudi retailer Al Othaim Markets’ profit jumps 31% to $37m as sales soar in H1

RIYADH: Abdullah Al-Othaim Markets Co. reported a higher profit of SR138 million ($37 million) for the first half of 2022 on the back of sales growth.

Owing to an 11 percent rise in revenue to SR4.7 billion, profit surged 31 percent from SR106 million in the same period last year, according to a bourse filing.

The retail major noted that its share in the profit of its associate Gulf Flour Milling Co. boosted this period’s results, as it was not recorded in the prior year.

However, it incurred higher costs from opening new stores and enhancing competencies in senior positions, in addition to the fact that profits from its mall unit, Abdullah Al-Othaim Investment Co., were derecognized.

In a separate filing, the retailer declared a dividend payout for the first half of the year amounting to SR180 million, representing SR2 per share, to be paid in September.


Dubai sees air travel surge, expects World Cup boost

Dubai sees air travel surge, expects World Cup boost
Updated 17 August 2022

Dubai sees air travel surge, expects World Cup boost

Dubai sees air travel surge, expects World Cup boost
  • The airport handled 160 percent more traffic over the past six months compared to the same period last year

DUBAI: Dubai International Airport saw a surge in passengers over the first half of 2022 as pandemic restrictions eased and the upcoming FIFA World Cup in Qatar will further boost traffic to the city-state’s second airfield, its chief executive said Wednesday.

Paul Griffiths, who oversees the world’s busiest airport for international travel, told The Associated Press that the airport handled 160 percent more traffic over the past six months compared to the same period last year, part of an air travel rebound around the world.

The nearly 28 million people who traveled through the airport over the past six months represent some 70 percent of the airport’s pre-pandemic levels, even as Dubai’s key source market of China remains closed due to severe pandemic restrictions. Griffiths said he expects the airport’s traffic to return to pre-pandemic levels by the end of next year.

“It’s a very, very welcome surge of traffic,” Griffiths said.

The first World Cup in the Middle East, he added, will send foreign soccer fans flocking to Al-Maktoum International Airport at Dubai World Central, or DWC. From there, they will travel daily to Qatar, a tiny neighbor that faces a hotel squeeze.

“We’ve actually seen a huge demand at DWC for slot filings for airlines wanting to operate a shuttle service,” he said. “I think the city has a lot to offer and a lot to gain from the World Cup.”

Among the airlines buying extra slots to shuttle soccer fans to the tournament from DWC are Qatar Airways, low-cost carrier FlyDubai and budget airline Wizz Air Abu Dhabi, he said.

During the first half of 2022, Dubai International Airport dealt with nearly 56 percent more flights than the same period in 2021, when contagious coronavirus variants clobbered the industry.

Now, in a sign of the health of the industry, Emirates said on Wednesday that it would pour billions of dollars into retrofitting much of its Airbus A380 and Boeing 777 fleet. At the height of the pandemic, the airline received a $4 billion government bailout.