Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales

Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales
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Updated 20 January 2022

Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales

Profits of Saudi-based SADAFCO drop 28.6% as pandemic hits sales

RIYADH: Saudia Dairy and Foodstuff Co., or SADAFCO, reported a 28.6 percent decline in profit during the nine months ending Dec. 31, 2021. 

Profits dropped to SR146 million ($38.9million), compared to SR205 million in the corresponding period a year earlier, the company announced in a bourse statement.

SADAFCO attributed the lower profit figures to lower sales volumes driven by the pandemic, an increase from 5 percent to 15 percent in VAT, and higher material and logistics costs.

The financial statements of the company indicated a healthy cash flow, with a strong cash position of SR679 million.

SADACFO’s share price edged down by 0.12 percent in today’s session to close at SR167.

Earlier, the company’s board recommended cash dividends at SR3 per share for the first half of the fiscal year ended Mar. 31, 2022.

Jeddah-based SADAFCO operates sales and distribution depots in 24 locations across Saudi Arabia, Bahrain, Qatar, Jordan, and Kuwait. Its products are also exported to several countries in the MENA region.

 


Indonesia’s president, Elon Musk in talks for investments in the Asian country: NRG matters

Indonesia’s president, Elon Musk in talks for investments in the Asian country: NRG matters
Updated 14 sec ago

Indonesia’s president, Elon Musk in talks for investments in the Asian country: NRG matters

Indonesia’s president, Elon Musk in talks for investments in the Asian country: NRG matters

RIYADH: Indonesia’s president is in talks with Tesla CEO Elon Musk regarding various investments in the country. Protestors in Suffolk disapprove the building of a nuclear power station, fearing disruptions across various sectors. Elsewhere, the UK chancellor is set to impose taxes on energy giants to shield consumers. Meanwhile, Saudi Aramco plans to create long-term shareholder value through highlighting the firm’s low upstream carbon intensity. Other firms such as the UK’s Foresight Group Holdings Ltd. and HydrogenOne Capital Growth Plc are acquiring stakes in a Germany-based hydrogen utility. Additionally, the ESG Niche is expected to jump 2,000 percent.

Looking at the bigger picture: 

·      Indonesia’s President Joko Widodo has met Tesla CEO Elon Musk to discuss potential investments in the Asian country’s nickel industry as well as the supply of batteries for electric vehicles, Reuters reported, citing the government.

This comes as Tesla representatives were visiting Indonesia last week to attend meetings regarding a battery-related investment, according to individuals familiar with the matter.

·      Hundreds of protestors gathered in Suffolk on Sunday to voice their objections regarding the construction of the Sizewell C nuclear power station, Bloomberg reported. 

Protesters are arguing that the building of the nuclear power station will cause complications in terms of transport, water supply, biodiversity, and coastal erosion.

·      The UK’s Chancellor of the Exchequer Rishi Sunak will soon impose windfall taxes on energy giants to cushion households from rallying costs of living, Bloomberg reported, citing shadow secretary of state for climate change and net zero Ed Miliband.

·      The Environmental, Social, and Governance Niche has been forecasted to grow by 2,000 percent as some of the UK’s most prominent fund managers jump into it with new funds and investment products, Bloomberg reported.

This comes as asset management firm Schroders and insurance firm Aviva among others aim to take advantage of and profit from the increasing demand for biodiversity-focused investment products.

Through a micro-lens: 

·      Saudi Arabian public petroleum and natural gas company Aramco is planning on creating long-term shareholder value by hammering on low upstream carbon intensity, low lifting costs, and integrated downstream business, Reuters reported, citing the firm’s CEO. 

·      UK-based capital market firms Foresight Group Holdings Ltd. and HydrogenOne Capital Growth Plc have acquired stakes in German hydrogen utility HH2E AG in addition to co-investing in energy projects, Bloomberg reported. 

This comes as the firms aim to help the new company develop green energy projects in Germany and prosper altogether.  


US battery maker Dragonfly Energy to go public in SPAC deal valued at $500m

US battery maker Dragonfly Energy to go public in SPAC deal valued at $500m
Updated 2 min 20 sec ago

US battery maker Dragonfly Energy to go public in SPAC deal valued at $500m

US battery maker Dragonfly Energy to go public in SPAC deal valued at $500m

RIYADH: Battery maker Dragonfly Energy Corp. is going public in a transaction with a blank-check company valuing it at $500 million, including its debts, Bloomberg reported quoting people familiar with the matter.

According to these people, who wished to stay anonymous, the agreement with Chardan NexTech Acquisition 2 Corp. is being financed through $128 million in the special purpose acquisition, along with $230 million in additional financing.

The sources added that the combined company will be called Dragonfly Energy, and will be listed on the Nasdaq exchange under the symbol DFLI.

Dragonfly, based in Reno, Nevada, makes lithium-ion storage batteries, which are non-toxic and replace lead-acid batteries, according to its website.

In 2021, the company generated $78 million in revenue.

Chardan inked this deal with Dragonfly Energy at a time when several top banks including Goldman Sachs and Bank of America have decided to stop helping SPACs to find companies to buy.
 


African central banks halt interest rates for two weeks to support recovery

African central banks halt interest rates for two weeks to support recovery
Updated 27 min 48 sec ago

African central banks halt interest rates for two weeks to support recovery

African central banks halt interest rates for two weeks to support recovery

RIYADH: Central banks in five of eight major African nations will most likely hold interest rates in the next two weeks, Bloomberg has reported. 

According to Tatonga Rusike, an economist at the Bank of America, countries like Kenya, Zambia and Angola where inflation is slowing or within target may leave interest rates unchanged to support the recovering economy. 

On the other hand, countries like South Africa that are more connected with the global markets through asset flows and commodity prices may most likely hike the interest rates, stated Rusike. 

Several factors, including the ongoing war between Russia and Ukraine and the rising COVID-19 cases in China, have clouded the outlook for Africa’s post-pandemic recovery. 

Now, African policymakers should also consider portfolio outflows and exchange-rate weakness in emerging markets as they work on interest rate decisions this month.


Aramco shares see second straight day of gains thanks to record Q1 profit

Aramco shares see second straight day of gains thanks to record Q1 profit
Updated 29 min 38 sec ago

Aramco shares see second straight day of gains thanks to record Q1 profit

Aramco shares see second straight day of gains thanks to record Q1 profit
  • Aramco has recently been in a race with Apple Inc. for the world’s top-valued firm spot

RIYADH: Shares in the world’s largest oil producer Saudi Aramco saw their second straight day of gains on Monday, rising 1.42 percent so far, a day after the giant posted record quarterly earnings.

Aramco’s profit was up 82 percent in the first quarter of 2022 to SR148 billion ($40 billion), beating analysts' forecasts with the highest quarterly profit since it joined the Saudi Exchange.

In response to the results, shares soared 4.2 percent last session and extended gains to SR42.95 as of 1:22 p.m. Saudi time, Monday 16 May .

Aramco has recently been in a race with Apple Inc. for the world’s top-valued firm spot.

With the tech major being pressured by rising inflation, strong oil prices drove state-owned Aramco to claim the top position globally in terms of market cap last week.


Saudi Arabia’s Almosafer, Thai tourism body sign deal to boost cooperation

Saudi Arabia’s Almosafer, Thai tourism body sign deal to boost cooperation
Updated 33 min 48 sec ago

Saudi Arabia’s Almosafer, Thai tourism body sign deal to boost cooperation

Saudi Arabia’s Almosafer, Thai tourism body sign deal to boost cooperation

RIYADH: Saudi Arabia’s omni-channel travel brand Almosafer has signed a memorandum of cooperation with the Tourism Authority of Thailand to boost tourism between the Southeast Asian state and the Gulf Cooperation Council countries. 

With Thailand ranking among the top 5 international destinations for Saudis, the demand for travel to the country has surged following the lifting of a travel ban in March 2022, according to a statement. 

Since the announcement, demand for travel from Saudi Arabia to Thailand increased by 470 percent compared to January 2022 and  268 percent compared to February 2022, the statement added. 

“The signing of the memorandum of cooperation with the Tourism Authority of Thailand is an important step in meeting the growing demand for tourism from the GCC to Thailand,” Muzzammil Ahussain, executive vice president of Almosafer said. 
Both parties will focus on key niche markets including sport tourism, luxury tourism, and health and wellness tourism in a bid to develop the quality of GCC travelers’ tourism experience in Thailand. 

The two countries turned a new page in their relations in January earlier this year with the restoration of full diplomatic ties.