Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo
Brent crude futures fell 22 cents, or 0.2 percent, to $114.02 a barrel by 0327 GMT. (Shutterstock)
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Updated 17 May 2022

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

Oil Updates — Crude eases; Equinor, Exxon to expand Brazil oil operations; EU fails to convince Hungary over Russian embargo

RIYADH: Oil prices eased on Tuesday as Hungary resisted an EU push for a ban on Russian oil imports, a move that would tighten global supply, and as investors took profits following a recent rally.

Brent crude futures fell 22 cents, or 0.2 percent, to $114.02 a barrel by 0327 GMT, while US West Texas Intermediate crude futures slid 35 cents, or 0.3 percent, to $113.85 a barrel. 

Both benchmarks had gained more than 2 percent on Monday, following a 4 percent jump on Friday.

Equinor, Exxon agree to expand Brazil oil operations

Equinor and Exxon Mobil Corp. have taken the first steps to expand an $8-billion oil development off Brazil’s coast, the Norwegian oil producer told Reuters.

The firms want to boost future production from the Bacalhau oil field, Equinor’s largest project outside of Norway with more than 1 billion barrels of oil, the company said.

A second drilling rig and a second floating production platform are being considered for the next phase along with a more than 100-mile-long gas pipeline, three people close to the discussions said.

For Exxon, Bacalhau could provide its first barrel of oil from offshore Brazil, one of its top growth prospects, and a new supply of oil from lower carbon operations. First oil is due in 2024 from the venture’s 220,000 barrels per day production vessel.

EU fails to persuade Hungary to sign up for Russian oil embargo

EU foreign ministers failed on Monday in their effort to pressure Hungary to lift its veto of a proposed oil embargo on Russia, with Lithuania saying the bloc was being “held hostage by one member state.”

The ban on crude imports proposed by the European Commission in early May would be its harshest sanction yet in response to Moscow’s Feb. 24 invasion of Ukraine and includes carve-outs for EU states most dependent on Russian oil.

Germany, the EU’s biggest economy and a major buyer of Russian energy, said it wanted a deal to authorize the oil embargo, which it suggested could last for years.

As expected, the ministers failed to reach a deal on Monday, EU foreign policy chief Josep Borrell said after the meeting, with ambassadors now charged to negotiate an agreement.

“Unhappily, it has not been possible to reach an agreement today,” Borrell told reporters, saying Hungary set out its argument based on economic, not political, concerns.

Some diplomats now point to a May 30-31 summit as the moment for agreement on a phased ban on Russian oil, probably over six months, with a longer transition period for Hungary, Slovakia and the Czech Republic.

“I am confident that we will find agreement in the coming days,” German Foreign Minister Annalena Baerbock said.

(With input from Reuters)  


TASI begins July in green following a dismal June: Opening bell

TASI begins July in green following a dismal June: Opening bell
Updated 17 sec ago

TASI begins July in green following a dismal June: Opening bell

TASI begins July in green following a dismal June: Opening bell

RIYADH: Saudi stocks started their first trading session of July in green, following a dismal performance in June when the market lost 11 percent.

As of Sunday’s opening bell, TASI gained 0.60 percent to reach 11,591, while the parallel market, Nomu, added 0.17 percent to 21,622, as of 10:05 a.m. Saudi time.

This was led by a 3.03 percent gain in one of the Kingdom’s biggest lenders Saudi National Bank and a 0.26 percent gain in oil giant Aramco. 

Etihad Atheeb Telecommunication Co. gained 3.37 percent to lead the gainers, while Bupa Arabia for Cooperative Insurance Co. slipped 2.51 percent to lead the fallers.

In the financial sector, the Kingdom’s largest valued bank Al Rajhi edged up 0.85 percent, while Alinma Bank climbed 0.90 percent.

Al Moammar Information Systems Co. added 2.22 percent, after being awarded SR34 million ($9 million) by Saudi Co. for Comprehensive Technical and Security Control as well as SR21.9 million by King Abdulaziz City for Science and Technology.

Abdullah Al Othaim Markets Co. edged down 0.19 percent, after reporting that it canceled the initial public offering plans for its malls unit.

Oil prices closed Friday with US West Texas Intermediate crude at $108.43 per barrel and Brent crude at $111.63 per barrel.


Saudi IT firm Al Moammar secures $15m in contracts with two firms

Saudi IT firm Al Moammar secures $15m in contracts with two firms
Updated 29 min 11 sec ago

Saudi IT firm Al Moammar secures $15m in contracts with two firms

Saudi IT firm Al Moammar secures $15m in contracts with two firms

RIYADH: Saudi IT solution provider Al Moammar Information Systems Co. won an SR34.4 million ($9 million) project with the Saudi Co. for Comprehensive Technical and Security Control.

The deal, valid for 36 months, is to implement a project to raise the operational efficiency of the security firm.

The IT firm, known as MIS, was also awarded a three-year contract with King Abdulaziz City for Science and Technology worth SR21.9 million, according to a bourse filing.

In a separate announcement, MIS said its board approved the distribution of SR36 million in dividends at SR1.2 per share for the first half of 2022.


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 34 min 3 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 stock market posted its second-largest monthly decline of the year in June, led by fears of interest rate hikes weighing on investor optimism.

TASI, as the main index is known, ended June losing 11 percent to reach 11,523 at the closing bell of Thursday’s session, while Nomu exited the month at 21,585.

Elsewhere in the Gulf, stock exchanges of Dubai, Qatar, Abu Dhabi, and Oman shed between 0.1 and 0.7 percent, while those of Bahrain and Kuwait were up 0.8 and 0.2 percent, respectively.

In energy trading, Brent crude settled at $111.63 a barrel on Friday, while US West Texas Intermediate reached $108.43 a barrel.

Stock news

The Saudi National Bank will distribute dividends of SR4.9 billion ($1.3 billion) in total to its shareholders for the first half of 2022

Saudi Industrial Development Co.’s unit Sleep High signed a deal worth SR12.7 million annually with Emmdad Logistics Services

Al Moammar Information Systems Co. won a SR34.4 million project with the Saudi Co. for Comprehensive Technical and Security Control in addition to a SR21.9 million deal with King Abdulaziz City for Science and Technology

Al Moammar Information Systems Co.’s board of directors approved the distribution of SR1.2 per share in dividends for the first half of 2022

Arabian Pipes Co. was awarded a SR60 million deal to supply oil and gas steel pipes to oil giant Aramco

International Human Resources Co. intends to proceed with a 20-percent stake initial public offering on Saudi Arabia’s parallel Nomu market

Arabian Centres Co. declared a cash dividend of SR0.75 per share for the second half of its fiscal year ended March 31, 2022

Banque Saudi Fransi signed a SR44 million contract with Allianz Saudi Fransi Cooperative Insurance Co. for credit life insurance coverage

Shareholders of ACWA Power Co. approved the recommendation to distribute a SR0.77 dividend per share for 2021

Thimar Development Holding Co.’s losses widened by 79 percent to SR11.7 million in 2021

Shareholders of Bupa Arabia for Cooperative Insurance Co. approved a dividend payout of SR4.5 per share for the fiscal year 2021

L’azurde Co. for Jewelry got its shareholders’ approval to distribute cash dividends of SR0.25 per share for 2021

Al-Alamiya for Cooperative Insurance Co. sealed a five-year bancassurance distribution agreement with Riyad Bank

Unitholders of Albilad Saudi Sovereign Sukuk ETF are set to receive SR80,808 in total as cash dividends for the month of June

Saudi Real Estate Co.’s subsidiary Tamear got its shareholders’ approval to reduce capital from SR100 million to SR34 million

Calendar

July 4, 2022

Launch of single-stock futures trading on Tadawul

July 7, 2022

Saudi Exchange will close for Eid Al Adha holidays and resume trading on July 13


Saudi iHR selects Yaqeen Capital to advise on IPO for 20% stake

Saudi iHR selects Yaqeen Capital to advise on IPO for 20% stake
Updated 45 min 42 sec ago

Saudi iHR selects Yaqeen Capital to advise on IPO for 20% stake

Saudi iHR selects Yaqeen Capital to advise on IPO for 20% stake

RIYADH: Saudi recruitment service provider International Human Resources has selected Yaqeen Capital to advise on its potential initial public offering on the Kingdom’s stock market.

The company is looking to offer 500,000 shares, representing 20 percent of its capital, on the parallel market Nomu, according to a filing.

The IPO will be confined to qualified investors, who will be allowed to subscribe starting July 31 until Aug. 2.

Established in 2005, iHR offers human resources solutions and employment-related consultancy to businesses.

Saudi iHR selects Yaqeen Capital to advise on IPO for 20% stake

RIYADH: Saudi recruitment service provider International Human Resources has selected Yaqeen Capital to advise on its potential initial public offering on the Kingdom’s stock market.

The company is looking to offer 500,000 shares, representing 20 percent of its capital, on the parallel market Nomu, according to a filing.

The IPO will be confined to qualified investors, who will be allowed to subscribe starting July 31 until Aug. 2.

Established in 2005, iHR offers human resources solutions and employment-related consultancy to businesses.


Saudi Aramco awards $16m steel pipes order to Arabian Pipes

Saudi Aramco awards $16m steel pipes order to Arabian Pipes
Updated 03 July 2022

Saudi Aramco awards $16m steel pipes order to Arabian Pipes

Saudi Aramco awards $16m steel pipes order to Arabian Pipes

RIYADH: Saudi oil giant Aramco has given out an order worth SR60 million ($16 million) to homegrown Arabian Pipes Co. to supply steel pipes.

The contract will be valid for one year, the Riyadh-based pipe manufacturer said in a statement to the Saudi stock exchange, Tadawul.

Arabian Pipes expects the transaction to impact its financial statements starting from the second quarter of 2023.

This comes as an extension to two contracts awarded by Aramco to Arabian Pipes so far this year, worth SR368 million in total.