Saudi Fisheries pioneers the journey of the Kingdom’s marine industry

Saudi Fisheries pioneers the journey of the Kingdom’s marine industry
(Saudi Fisheries)
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Updated 27 January 2022

Saudi Fisheries pioneers the journey of the Kingdom’s marine industry

Saudi Fisheries pioneers the journey of the Kingdom’s marine industry

RIYADH: Saudi Fisheries Co. has accumulated years of expertise in the Kingdom’s marine sector since its establishment in 1980, even as its stock tumbled over the years.

Owing to major steps taken by the fisheries firm and peers in the industry, Saudi Arabia saw its traditional aquaculture industry transform into an export-oriented and modernized hub.

The Saudi Arabian fisheries market reached a total production volume of 140,000 tons in 2020, including 80,000 tons in aquaculture and 60,000 tons of traditional wild-catch fishery on the Red Sea and the Arabian Gulf.

However, the demand for fish products within the Kingdom stood at 282,000 tons — meaning import levels are currently high. 

Saudi Fisheries, valued at around SR1.9 billion ($500 million), aims to exploit marine resources in Saudi waters and meet rising demand, through its fleet of 32 fishing vessels, processing plants, and retail stores.

The Saudi private sector holds 60 percent of its share capital, while the remaining 40 percent is government-owned.

The Riyadh-based company runs its operations in factories across Riyadh, Jeddah, Dammam, and Jizan, and exports its fishery products to several foreign countries.

In compliance with Vision 2030, it processes products in a way that ensures high quality and food safety.

The company took a leap in 1993 when it launched a shrimp farm in Huraidah on the Red Sea coast, with a production capacity of more than 1,700 tons per year, according to the company’s website.

Shares of the firm, which is known to be one of the pioneers in its field, hit a peak of over SR500 in late 2006. Today, the stock is at SR46.8 as of Jan. 26, 2022.

In 2021, the share price dropped 17 percent to exit the year at SR45.5 after it jumped more than twofold during pandemic-hit 2020.

Saudi Fisheries widened its net loss in the first nine months of 2021 by 45 percent to SR37.8 million as the impairment of one of its farms and higher expenses weighed on earnings. Revenues were up by 12 percent to SR33.8 million.

In 2020, fish sales contributed to SR15.6 million of revenues, shrimp sales yielded SR3.2 million, and SR22.1 million was recorded from other products.

On a wider scale, Saudi Arabia is taking several steps to boost its aquaculture and plans to increase the sector’s yield fivefold by 2030 through a public-private partnership.

The sector is expected to get a boost in the short-to-medium term through various projects to increase production to 600,000 tons per year, Deputy Minister for Agriculture Ahmed Aleyada told Arab News in December. 


Shares in Saudi Tadawul gain despite a decline in profits

Shares in Saudi Tadawul gain despite a decline in profits
Updated 12 sec ago

Shares in Saudi Tadawul gain despite a decline in profits

Shares in Saudi Tadawul gain despite a decline in profits

RIYADH: Saudi Tadawul Group’s stock gained in the afternoon trading session on Monday, despite the company posting lower first-quarter profit yesterday.

As of 2:04 p.m. Saudi time, the Kingdom’s bourse operator had seen its shares rise 3.15 percent to SR209.80 ($56), up from SR203.2 at the previous close.

The company reported lower profits yesterday, dropping 21 percent to SR141 million in the first quarter, from SR180 million for the same quarter last year.


Bahrain Central Bank oversubscribed its Sukuk Al-Salam securities

Bahrain Central Bank oversubscribed its Sukuk Al-Salam securities
Updated 24 min 4 sec ago

Bahrain Central Bank oversubscribed its Sukuk Al-Salam securities

Bahrain Central Bank oversubscribed its Sukuk Al-Salam securities

RIYADH: The Central Bank of Bahrain’s monthly issue of Sukuk Al-Salam Islamic security has been oversubscribed by 184 percent. 

In total, it received subscriptions worth $209 million for the $114-million issue, which matures in 91 days, the central bank stated in a statement.

The Sukuk is expected to give a return of 2.30 percent on maturity on August 17, against its previous issue rate of 1.99 percent on April 13, 2022.

CBB issued the Sukuk Al-Salam on behalf of the Government of Bahrain.


Chinese battery supplier Calb adds more banks for its $1.5bn Hong Kong IPO: Bloomberg

Chinese battery supplier Calb adds more banks for its $1.5bn Hong Kong IPO: Bloomberg
Updated 25 min 15 sec ago

Chinese battery supplier Calb adds more banks for its $1.5bn Hong Kong IPO: Bloomberg

Chinese battery supplier Calb adds more banks for its $1.5bn Hong Kong IPO: Bloomberg

RIYADH: Calb Co., a Chinese battery supplier for electric vehicle makers, has added more banks as it plans for its Hong Kong initial public offering that could raise as much as $1.5 billion, Bloomberg reported. 

It has selected Citigroup, Credit Suisse Group and JPMorgan Chase & Co. as joint global coordinators for its IPO, the report said citing people familiar with the matter. 

More banks can be picked for the deal as discussions are in progress, the people added. 

Calb’s $1.5 billion IPO could be one of Hong Kong’s biggest in 2022 upon its completion, according to data compiled by Bloomberg. 

Founded in 2007, Calb operates major production bases in China and is specialized in the development, production and sales of lithium batteries for electric vehicles. 

 


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 29 min 13 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 31 min 19 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.