Aramco beats analyst forecasts with $40bn profit; highest quarterly since listing

Update Aramco beats analyst forecasts with $40bn profit; highest quarterly since listing
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Updated 17 May 2022

Aramco beats analyst forecasts with $40bn profit; highest quarterly since listing

Aramco beats analyst forecasts with $40bn profit; highest quarterly since listing
  • Capital expenditure during the quarter stood at $7.6 billion and Aramco expects expenditure to grow further until around the middle of the decade

RIYADH: Saudi Aramco’s profit has surged 82 percent in the first quarter of 2022, beating the median of analysts' expectations with the highest quarterly profit since it went public in 2019.

The company was expected to report $38.5 billion in net income based on 12 analyst forecasts.

Profits of “the most profitable oil company in the world” hit SR148 billion ($40 billion) after revenue almost doubled to SR467 billion, according to a bourse filing.

This is up from SR121 billion in the fourth quarter and SR81 billion in the first quarter of 2021.

The crude producer said the results were “primarily driven by higher crude oil prices and volumes sold, and improved downstream margins.”

Aramco also maintained stable quarterly dividends at $18.8 billion and approved the issuance of one bonus share for every ten shares held at a total value of $4 billion.

Capital expenditure during the quarter stood at $7.6 billion and Aramco expects expenditure to grow further until around the middle of the decade in support of its long-term strategy.

“Against the backdrop of increased volatility in global markets, we remain focused on helping meet the world’s demand for energy that is reliable, affordable, and increasingly sustainable,” said CEO, Amin Nasser, commenting on the results.

“During the first quarter, our strategic downstream expansion progressed further in both Asia and Europe, and we continue to develop opportunities that complement our growth objectives,” he added.

Along with strong financial results, Aramco has recently been in a race with Apple Inc. for the world’s most valuable company, with the tech major being pressured by rising inflation.

Strong oil prices drove the crude giant to claim the top position globally in terms of market cap as its shares hit record levels on May 11 to yield a valuation of $2.43 trillion.

The company’s rating has been revised by Fitch this year to positive from stable, with a credit profile of aa+.


Saudi Advanced Petrochemical’s profits down 37% as raw material costs bite

Saudi Advanced Petrochemical’s profits down 37% as raw material costs bite
Updated 13 sec ago

Saudi Advanced Petrochemical’s profits down 37% as raw material costs bite

Saudi Advanced Petrochemical’s profits down 37% as raw material costs bite

RIYADH: Saudi Arabia’s Advanced Petrochemical Co. saw its profit decline by 37 percent during the first half of 2022, hit by higher raw material prices.

The Jubail-based company’s profit dropped to SR274 million ($73 million), compared to SR436 million for the same period a year earlier, according to a bourse filing.

The decline was propelled by a rise in propane and outsourced propylene prices by 51 and 20 percent, respectively, and a decrease in profit share from its South Korean unit SK Advanced Co. by SR75 million.

This was coupled with an increase of 174 percent in offshore logistics costs, despite a 24-percent higher sales volume.

Sales of the Saudi-listed petrochemical producer surged to SR1.68 billion during the six-month period.

In a separate announcement, Advanced Petrochemical said it will distribute a cash dividend of SR142.53 million at SR0.55 per share for the second quarter of the year on Sept. 18. 

 


TASI falls to its lowest level in 2022 as fear grips the market: Opening bell

TASI falls to its lowest level in 2022 as fear grips the market: Opening bell
Updated 16 min 41 sec ago

TASI falls to its lowest level in 2022 as fear grips the market: Opening bell

TASI falls to its lowest level in 2022 as fear grips the market: Opening bell

RIYADH: Saudi Arabia's main index, TASI, fell 0.77 percent to 11,257, its lowest level at the opening bell in 2022 amid rising investor concerns of a possible global recession.


US food company Tyson to buy Tanmiah subsidiaries’ stakes for $70m

US food company Tyson to buy Tanmiah subsidiaries’ stakes for $70m
Updated 27 min 28 sec ago

US food company Tyson to buy Tanmiah subsidiaries’ stakes for $70m

US food company Tyson to buy Tanmiah subsidiaries’ stakes for $70m

RIYADH: Tyson International Holding Co., a wholly-owned subsidiary of New York-listed Tyson Foods, has reached an agreement to acquire equity stakes in two of Tanmiah Food Co.’s subsidiaries for SR262.6 million ($70 million).

Tyson will acquire 15 percent of shares in Agricultural Development Co. and 60 percent of shares in Supreme Foods Processing Co., according to a bourse filing.

In partnership with Tyson, Tanmiah will double its production capacity and develop new halal products for the international market, expanding its product portfolio and enhancing its supply chain and procurement processes.

The agreement with Tyson will also strengthen and boost the Tanmiah brand in the Gulf Cooperation Council and other regions.

With SR20 million in registered capital, Agricultural Development Co. rears and produces broilers, feed mills, and operates hatcheries. It also raises fresh chicken.

Supreme Food Processing Co. produces pre-prepared chicken and beef products. It has a registered capital of SR8.6 million.


Advanced Polyolefins secures $1.6bn loans for 3 plants at Jubail Industrial City

Advanced Polyolefins secures $1.6bn loans for 3 plants at Jubail Industrial City
Updated 06 July 2022

Advanced Polyolefins secures $1.6bn loans for 3 plants at Jubail Industrial City

Advanced Polyolefins secures $1.6bn loans for 3 plants at Jubail Industrial City

RIYADH: Advanced Polyolefins Industry Co., a unit of Saudi-listed Advanced Petrochemical, has secured loans worth SR6.1 billion ($1.6 billion) to finance the construction of three plants at Jubail Industrial City II in Saudi Arabia.

The Shariah-compliant facility deals are repayable in 22 installments until November 2035, while SR956 million of the amount is payable by May 2026, a bourse filing revealed.

The company said the proceeds will be used to set up three plants for propane dehydrogenation, polypropylene, and isopropanol, with a capacity to produce 843,000, 800,000, and 70,000 tons per annum, respectively.

Alinma Bank, Al Rajhi Banking and Investment Corp., Arab National Bank, and the Saudi National Bank were among the financing entities for the facilities. 


Saudi-listed shipping firm Bahri closes $1.04bn sukuk issuance

Saudi-listed shipping firm Bahri closes $1.04bn sukuk issuance
Updated 06 July 2022

Saudi-listed shipping firm Bahri closes $1.04bn sukuk issuance

Saudi-listed shipping firm Bahri closes $1.04bn sukuk issuance

RIYADH: National Shipping Co. of Saudi Arabia, better known as Bahri, has completed the issuance of SR3.9 billion ($1.04 billion) sukuk, denominated in Saudi Riyals and maturing in seven years.

The offering, led by Al Rajhi Capital, HSBC Saudi Arabia, and SNB Capital, started by mid-June, and the settlement was done on July 5, the firm said in a bourse filing.

The Saudi-listed company earlier said it will use proceeds to refinance the existing sukuk which will mature this month.

Bahri is a joint venture between Saudi Aramco and the Public Investment Fund, operating a fleet of 89 tankers and container ships that transport oil, petrochemicals, and other types of cargo.