Energy consumption rise drives net profit increase for Dubai utility firm DEWA 

Energy consumption rise drives net profit increase for Dubai utility firm DEWA 
DEWA currently provides its services to 3.5 million Dubai residents, and the Emirate’s active daytime population of over 4.7 million (Supplied)
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Updated 13 May 2022

Energy consumption rise drives net profit increase for Dubai utility firm DEWA 

Energy consumption rise drives net profit increase for Dubai utility firm DEWA 

RIYADH: The Dubai Electricity and Water Authority recorded a net profit of 691 million dirhams ($188.13 million) and revenues of 5.06 billion dirhams in the first quarter of 2022.

The first quarter revenues increased by 15 percent, driven by an increase in consumption across all sectors and the transition to a normalized tariff structure in the beginning of this year, a statement showed.

A rise in hospitality and commercial activities in Dubai amid ease of pandemic restrictions globally has contributed to the robust demand growth.

“The strong first quarterly result is a testament to our resilient operating business model and continues a track record of consistent growth. We have ample liquidity on our Balance sheet to allow us to pursue growth opportunities,” DEWA Managing Director and CEO Saeed Mohammed Al Tayer said.

Electricity revenue grew by 17.5 percent in the first quarter of 2022, compared to the previous year, while water revenue grew by 20.2 percent and district cooling revenue grew by 17.6 percent.

DEWA’s consolidated gross fixed assets grew by 2.8 billion dirhams to 204.2 billion dirhams as on March 31, 2022 compared to 201.4 billion dirhams on December 31, 2021.

“DEWA will continue to make disciplined capital investments, achieving cost savings while growing our footprint and maintaining a high level of safety, quality and customer happiness. We are committed to creating incremental shareholder value and to providing dividend visibility to our shareholders,” Al Tayer said.

DEWA currently provides its services to 3.5 million Dubai residents, and the Emirate’s active daytime population of over 4.7 million, according to the statement.

Those numbers are expected to grow to 5.8 million and 7.8 million respectively by 2040. 

An interim dividend payment of 3.1 billion dirhams is scheduled to be paid in October 2022, DEWA said.


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

Here’s what you need to know before Tadawul trading on Sunday
Updated 20 sec ago

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

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

RIYADH: Saudi Arabia’s main index dipped during its last trading session last week in anticipation of another large rate increase by the Federal Reserve on Wednesday.

The Tadawul All Share Index dropped 0.37 percent to end at 11,461, while the parallel market Nomu rose 0.23 percent at 20,265.

Tadawul was closed on Thursday in observance of Saudi National Day.

During Thursday’s session, most Gulf stock markets ended in red, following the Federal Reserve's sharp hike in interest rates and forecasting further and faster increases.

Dubai's main share index dropped 0.8 percent, while Abu Dhabi’s index remained unchanged.

In the same direction, the Qatari benchmark retreated 0.9 percent, Bahrain's main index retreated 0.2 percent, and Kuwait's main index retreated 0.7 percent.

Outside the Gulf, Egypt's stock index fell by 0.2 percent.

Stock News

Saudi Steel Pipe Co. has sealed a deal worth SR150 million ($40 million) with Saudi Aramco to supply steel pipes.

Arabian Pipes Co. also won a deal with Aramco for the supply of steel pipes worth SR155 million.

Albabtain Food has set its IPO price range at SR68-77 per share as it begins the book-building period.

Gulf Union Al Ahlia Cooperative Insurance Co. has appointed Aljazira Capital as its Financial Advisor for the proposed merger with Al Sagr Cooperative Insurance Co.

The Capital Market Authority approved Raydan Food Co.’s proposal to reduce its capital from SR338 million to SR158 million.

Following receiving the CMA’s approval, Abdulmohsen Alhokair Group for Tourism and Development has invited its shareholders to vote on reducing its capital to SR315 million.

Calendar

September 25, 2022
AlBabtain Food starts book-building for IPO


AlBabtain Food launches IPO at $18-21 per share today

AlBabtain Food launches IPO at $18-21 per share today
Updated 55 min 20 sec ago

AlBabtain Food launches IPO at $18-21 per share today

AlBabtain Food launches IPO at $18-21 per share today

RIYADH: Abdulaziz & Mansour Ibrahim AlBabtain Co.’s initial public offering price range has been set at SR68-77 ($18-21) per share.

The Riyadh-based firm will conduct a three-day offering period beginning Sunday, Sept. 25, and concluding on Wednesday, Sept. 28, Yaqeen Capital, its financial advisor and lead manager, said in a bourse filing.

The company, known as AlBabtain Food, is offering 544,000 ordinary shares, 16 percent of its capital, for subscription as it seeks to join the Kingdom’s parallel Nomu market.

AlBabtain Food has 11 branches spread across the Kingdom, allowing the company to provide its customers with a high level of services in the region.

 


Arabian Pipes wins $41m contract from Saudi Aramco to supply steel pipes

Arabian Pipes wins $41m contract from Saudi Aramco to supply steel pipes
Updated 25 September 2022

Arabian Pipes wins $41m contract from Saudi Aramco to supply steel pipes

Arabian Pipes wins $41m contract from Saudi Aramco to supply steel pipes

RIYADH: Arabian Pipes Co. has won an order worth SR55 million ($41 million) from Saudi Aramco to supply oil and gas steel pipes.

The company said the financial impact of the 15-month contract is anticipated during the second quarter and the third quarter of 2023, according to a bourse filing.

This marks the fourth contract that the pipe producer has signed with oil giant Aramco this year.

Arabian Pipes Co. was awarded a contract worth SR268 million from Aramco on Jan. 25. This was followed by another deal of SR100 million that it signed on May 22 with the oil giant to supply steel pipes for over 10 months.

It also announced that it won, on June 30, a contract worth SR58 million from Saudi Aramco to supply steel pipes.

The company currently has projects worth over SR800 million, which will enhance the company’s financial position and increase its sales in the upcoming period, it said.


Oil Updates — Crude down; Exxon halts activity at Texas oilfield; Argentina’s oil workers end strike

Oil Updates — Crude down; Exxon halts activity at Texas oilfield; Argentina’s oil workers end strike
Updated 25 September 2022

Oil Updates — Crude down; Exxon halts activity at Texas oilfield; Argentina’s oil workers end strike

Oil Updates — Crude down; Exxon halts activity at Texas oilfield; Argentina’s oil workers end strike

RIYADH: Oil prices plunged about 5 percent to an eight-month low on Friday as the US dollar hit its strongest level in more than two decades and on fears rising interest rates will tip major economies into recession, cutting demand for oil.

Brent futures fell $4.31, or 4.8 percent, to settle at $86.15 a barrel, down about 6 percent for the week. US West Texas Intermediate crude fell $4.75, or 5.7 percent, to settle at $78.74, down about 7 percent for the week.

It was the fourth straight week of declines for both benchmarks, the first time this has happened since December. Both were in technically oversold territory, with WTI on track for its lowest settlement since Jan. 10 and Brent for its lowest since Jan. 14.

Exxon halts activity at Texas oilfield site following worker fatality

Exxon Mobil temporarily halted maintenance at an East Texas oil drilling facility after a fatality this week, which was at least the second death this year of a contractor at one of its Texas production sites.

The incident occurred on Tuesday near Hawkins, about 110 miles east of Dallas. The US Occupational Safety and Health Administration is investigating, the Harrison County Sheriff’s Office said.

The name of the worker, an employee of Axis Energy Services, was not immediately available. The death was ruled accidental, the sheriff’s office said in a Facebook post.

Argentina’s oil workers end strike after inking safety deal

Unions representing thousands of striking Argentine oil workers called off a strike on Friday afternoon that they began the day before after a meeting with business leaders ended in a deal on greater safety measures and training for employees.

The workers launched the strike on Thursday after a fire in a storage tank caused an explosion at the New American Oil refinery in the town of Plaza Huincul in western Neuquen province.

The blast left three dead and one injured.

Union leaders, representatives of oil companies, and local government officials signed a deal designed to improve “training programs and prepare active personnel and future workers on issues of on-the-job safety.”

The deal also requires spending to ensure compliance with regulations, according to a copy of the deal released by one of the unions.

Swiss to release petrol, diesel, heating oil stocks from Oct. 3

The Swiss government will release petrol, diesel, heating oil and kerosene from its strategic reserves from Oct. 3 to ensure the supply of oil products to the domestic economy, it said on Friday.

It cited limited freight capacities on the Rhine river and logistical problems with foreign rail transport for a lack of conventional supply.

The government has already effectively released fuel reserves twice this year by allowing companies required to contribute to them to underfill by almost 20 percent.

Strategic reserves, or compulsory stocks, for petrol, diesel, and heating oil cover around four and half months of normal consumption. In the case of kerosene, reserves suffice for around three months, the government said in a statement.

The ordinance releasing stocks will remain in force “for as long as the situation absolutely requires,” it said.

Compulsory stocks of petroleum products were last released in 2005, 2010 and 2019.

(With input from Reuters) 

 


Iraq, Qatar discuss joint cooperation in civil aviation

Iraq, Qatar discuss joint cooperation in civil aviation
Updated 25 September 2022

Iraq, Qatar discuss joint cooperation in civil aviation

Iraq, Qatar discuss joint cooperation in civil aviation

The head of Iraq’s Civil Aviation Authority, Nael Saad Abdul Hadi discussed on Saturday, with the Minister of Transport and Qatar Aviation Authority the prospects for joint cooperation in civil aviation. 
A statement by the Civil Aviation Authority said the cooperation would “provide mutual support in all fields, especially technical, air transport, air safety and aviation security, as well as scholarships and training for the Civil Aviation Authority.”
The discussion took place on the sidelines of the General Assembly of the International Civil Aviation Organization lCAO held in Montreal.