Saudi Arabia’s NADEC delivers 137% profit growth as agri-food sales boom

Saudi Arabia’s NADEC delivers 137% profit growth as agri-food sales boom
Stock image of dairy production: Shutterstock
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Updated 22 May 2022

Saudi Arabia’s NADEC delivers 137% profit growth as agri-food sales boom

Saudi Arabia’s NADEC delivers 137% profit growth as agri-food sales boom
  • A boom in sales in the dairy and food processing unit of 12.6 percent and in the agriculture unit by 32.7 percent propelled a 13.2 percent increase in overall revenue

RIYADH: Saudi Arabia’s National Agricultural Development Co. benefited from a surge in sales of agriculture, dairy, and processed food in the first quarter of 2022.

This helped the company register 137 percent growth in net profit to SR15.1 million ($4 million) compared to the same period last year, the company said in a stock exchange filing.

A boom in sales in the dairy and food processing unit of 12.6 percent and in the agriculture unit by 32.7 percent propelled a 13.2 percent increase in overall revenue.

However, the company said it witnessed a rise in marketing expenses in addition to other financial charges and the cost of sales rose due to higher material costs.


UAE raises fuel prices for 5th time in a year

UAE raises fuel prices for 5th time in a year
Updated 19 sec ago

UAE raises fuel prices for 5th time in a year

UAE raises fuel prices for 5th time in a year

RIYADH: The UAE has raised fuel prices for the fifth time this year to further widen the gap with other oil producers who subsidize gasoline costs, Bloomberg reported. 

As oil prices jumped, gasoline prices in the UAE have surged by around 80 percent since the beginning of the year, while crude has increased almost 50 percent to reach over $100 a barrel. 

Gasoline in the UAE now costs three times more than in Kuwait and prices are more than double the average in the Gulf Cooperation Council members. 

According to data from globalpetrolprices.com, fuel prices in the UAE are below the global average. 


Madinah to have 12 electric charging stations to promote EVs

Madinah to have 12 electric charging stations to promote EVs
Updated 30 min 59 sec ago

Madinah to have 12 electric charging stations to promote EVs

Madinah to have 12 electric charging stations to promote EVs

RIYADH: The Madinah municipality has signed an agreement with Al-Sharif Holding Group to establish 12 electric charging stations in different parts of the city, the Saudi Press Agency reported.

It is part of the Kingdom’s efforts to achieve its zero-carbon goals.

The opening of these new electric charging stations is expected to increase the popularity of electric vehicles and will also support environmental sustainability programs. 

The agreement was signed between Fahd bin Muhammad Al-Balishi, mayor of the region and Ahmed Sindi, CEO of Sharif X Company for Electric Vehicle Charging Solutions. 

According to reports, these electric charging stations are expected to provide fast and medium charging devices, both AC and DC through power supply sockets with a power ranging from 22-200 kilowatts.

Recently, Kalyana Sivagnanam, group CEO of Petromin, during an exclusive interview with Arab News said that its electric charging station arm Electromin is planning to open new charging stations, in addition to the existing 100 to end Saudis’ reluctance to EVs. 


Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes
Updated 03 July 2022

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

Commodities Update — Gold prices fall; Indonesia to raise palm oil export quota; Russia reduces grain export taxes

RIYADH: Gold prices fell on Friday as a firm dollar and looming rate hikes soured appetite for the non-yielding asset, while India’s import tax hike on bullion also dampened its demand prospects.

Spot gold is currently priced at $1,811.43 per ounce, while US gold futures settled down at $1,801.50. 

Silver, Platinum fall

Spot silver is priced at $19.67 and has dropped about 6.5 percent this week, its biggest weekly fall since January 2022.

Spot platinum is priced at $892.73 per ounce, on course for its fourth consecutive weekly fall, while palladium is at $1,959.58, gaining about 4.5 percent this week.

Indonesia looks to raise palm oil export quota

Indonesia proposed raising palm oil export quotas on Friday and is considering increasing mandatory levels of biodiesel in fuel mixes to prop up prices for farmers when domestic palm oil inventories are high, a senior minister said on Saturday.

Palm oil inventories ballooned, and mills limited purchases of fresh fruit bunches from farmers after Jakarta stopped exports of crude palm oil and some other derivatives for three weeks to May 23 in a bid to contain soaring domestic cooking oil prices.

Indonesia replaced the ban with a domestic market obligation, requiring companies to supply a portion of their products to the domestic market through the government’s bulk cooking oil program and linked DMO volumes to companies’ export permits and quotas. 

DMO volumes as of the end of June were around 270,000 tons, the government said.

The government will now allow palm oil companies to export seven times the amount of their sales from currently five times, senior minister Luhut Pandjaitan said.

“I asked the Trade Ministry to increase the export multiplication factor to seven times starting July 1, with the main objective to increase farmer’s FFB prices significantly,” Luhut said in a statement.

Russia reduces grain export taxes to support exports

Sanctions-hit Russia has sharply reduced its grain export taxes after changing the formula it uses for calculating them to support shipments in the July-June marketing season, the agriculture ministry said on Friday.

Russian farmers are expected to harvest a massive wheat crop this summer, bringing a record exportable surplus in the 2022-2023 season. 

However, shipments are complicated by high export tax, a strong rouble and sanctions-inflated costs for freight and insurance.

The ministry said that the new base price for calculating the wheat export tax is set at 15,000 roubles ($283.68) per ton.

It was previously in US dollars at $200 a ton. The agriculture ministry used the base price and price indicators reported by traders to determine the level of tax weekly.

The wheat export tax is set at 4,600 roubles ($85.8) per ton from July 6-12 against $146.1 per ton from June 29 to July 5, the ministry said in a separate note.

President Vladimir Putin said this week that Russia is the world’s largest wheat exporter and aims to remain so. Despite disrupting the Black Sea supply chains, it continues to supply its traditional markets in the Middle East and Africa.

(With inputs from Reuters)


Careem acquires money transfer technology platform Denarii

Careem acquires money transfer technology platform Denarii
Updated 03 July 2022

Careem acquires money transfer technology platform Denarii

Careem acquires money transfer technology platform Denarii

RIYADH: Careem, the ride-hailing and e-commerce platform, has acquired Denarii, a Dubai-based money transfer platform, in its second acquisition this month.

While the company has not disclosed the value of the deal, this acquisition will allow Careem to integrate Denarii’s technologies and assets into its platform.

Some key members of the Denarii team will also join Careem as part of the acquisition, MAGNiTT reported. 

Careem will use Denarii’s technology for its Careem Pay feature, to connect customers and Captains with remittance services provided by licensed providers. 

“Denarii’s innovative API will accelerate our journey to offering simple and affordable international remittance services, adding to the wide variety of services already available through Careem Pay,” Mudassir Sheikha, CEO and co-founder of Careem said. 


JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts
Updated 03 July 2022

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

JPMorgan warns oil may hit $380 a barrel if Russia begins retaliatory production cuts

RIYADH: Amid ongoing geopolitical tensions and skyrocketing energy rates, global oil prices may hit $380 a barrel if the US and European curbs compel Russia to inflict retaliatory crude output cuts, Bloomberg reported citing analysts at JPMorgan Chase & Co.

It was after Russia’s invasion of Ukraine that the Western allies led by the US imposed several sanctions, and worked out a complicated mechanism to cap the price fetched by Russian oil.

According to JPMorgan analysts including Natasha Kaneva, currently Russia enjoys a strong financial position and it can afford to slash daily crude production by 5 million barrels.

The analysts noted that Russia’s crude production cuts could be disastrous for the world, as a cut of 3 million barrels will elevate London crude prices to $190. In the worst-case scenario, if the output is cut by 5 million barrels, the price could reach as high as $380 a barrel.

“The most obvious and likely risk with a price cap is that Russia might choose retaliate by reducing exports as a way to inflict pain on the West,” wrote the analysts.