Oil Updates — Crude gains; Borouge sets IPO price; Iraq plans to launch new oil company in Kurdistan region

Oil Updates — Crude gains; Borouge sets IPO price; Iraq plans to launch new oil company in Kurdistan region
Iraq’s federal government aims to establish a new oil company in the Kurdistan region, the oil ministry said. (Shutterstock)
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Updated 23 May 2022

Oil Updates — Crude gains; Borouge sets IPO price; Iraq plans to launch new oil company in Kurdistan region

Oil Updates — Crude gains; Borouge sets IPO price; Iraq plans to launch new oil company in Kurdistan region

RIYADH: Oil prices gained on Monday with US fuel demand, tight supply and a slightly weaker US dollar supporting the market, as Shanghai prepares to reopen after a two-month lockdown fueled worries about a sharp slowdown in growth.

Brent crude futures rose 72 cents to $113.27 a barrel at 0408 GMT, while US West Texas Intermediate crude futures climbed 53 cents, or 0.48 percent, to $110.81 a barrel, adding to last week’s small gains for both contracts.

Abu Dhabi-based Borouge sets IPO price

Abu Dhabi-headquartered petrochemicals firm Borouge said on Monday it has set the offer price for its initial public offering, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.

The Abu Dhabi National Oil Company and Borealis’ joint venture set the IPO price at 2.45 dirhams ($0.67) a share, which implies an equity value of $20 billion.

Borouge said it secured a total commitment of about $570 million from Abu Dhabi state holding firm ADQ, the Abu Dhabi Pension Fund, the Emirates Investment Authority, India’s Adani family and entities controlled by International Holding Company, Multiply Group and Alpha Dhabi. 

Iraq aims to establish new oil company in Kurdistan region

Iraq’s federal government aims to establish a new oil company in the Kurdistan region, the oil ministry said on Saturday.

The aim of the new company will be to enter into new service contracts with oil firms currently operating there under the Kurdistan Regional Government, according to a statement.

Oil minister Ihsan Ismael said on May 7 that the ministry would start implementing a February federal court ruling that declared the legal foundations of the Kurdistan region’s oil and gas sector unconstitutional. 

Iraq then wrote to international oil firms operating in the semi-autonomous region requesting they sign new contracts with state-owned marketer SOMO rather than the Kurdistan Regional Government. 

The letters marked the first direct contact between the ministry and oil firms operating in the Kurdistan region. The move follows years of attempts by the federal government to bring KRG revenues under its control, including local court rulings and threats of international arbitration.

(With input from Reuters)


Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn

Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn
Updated 13 sec ago

Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn

Saudi miner Ma’aden’s half-year profit more than triples to $1.7bn

RIYADH: Saudi Arabian Mining Co., better known as Ma’aden, saw its profit soar 232 percent to SR6.2 billion ($1.7 billion) during the first half of 2022, according to a bourse filing.


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

Here’s what you need to know before Tadawul trading on Thursday 
Updated 10 min 37 sec ago

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

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

RIYADH: Saudi stocks ended higher for a third straight day on Wednesday, thanks to strong earnings results from most listed companies.

TASI, the main index, gained 0.8 percent to close at 12,431 and the parallel Nomu market edged 0.13 percent higher to 22,227.

Most Gulf peers advanced in line with Saudi Arabia, led by a 0.8 percent gain for Abu Dhabi’s bourse.

Dubai, Oman, and Qatar added 0.3, 0.1, and 0.4 percent, respectively, while Bahrain and Kuwait were down 1 percent and 0.2 percent, respectively.

Elsewhere in the Middle East, Egypt’s EGX30 exited the session almost flat.

In energy trading, Brent crude was priced at $97.31 a barrel by 9:16 a.m. Saudi time on Thursday, while US West Texas Intermediate traded at $91.79 a barrel.

Stock news

ACWA Power Co. said that operations at Umm Al Quwain IWP were launched, with a production capacity of 682,000 cubic meters per day of desalinated potable water

ACWA Power recorded a 21 percent jump in profits to SR542 million ($144 million) for the first half of 2022

Savola Group entered an SR459 million agreement to sell its shares in Knowledge Economic City Co. and Knowledge Economic City Developers Co. Limited to Taiba Investment Co.

Astra Industrial Group reported a 202 percent profit surge to SR318 million for the first half of 2022

Saudi Co. for Hardware turned into losses of SR19 million during the first half of 2022. The company also appointed Sameer Alhamidi as vice chairman of the board effective Aug. 11

Saudi Vitrified Clay Pipes Co.'s net losses widened by 661 percent to SR9 million during the first half of 2022

Eastern Province Cement Co. posted a 41 percent profit drop to SR72 million

Walaa Cooperative Insurance Co. got the Capital Market Authority’s approval to increase its capital to SR850 million for the merger with SABB Takaful

Saudi Arabian Mining Co. announced that Mansourah & Massarah gold mine plant is near completion, adding that pre-commissioning activities started

Saudi Industrial Services Co.’s profit dropped 93 percent during the first half of 2022 to SR3.9 million

Calendar

August 14, 2022

Saudi Aramco will announce its financial results for the second quarter of 2022

Close of Naba Alsaha Medical Services Co.’s IPO subscription

August 15, 2022

Naqi Water Co. will start trading its shares on the Saudi Exchange’s main market

 


PIF-owned ACWA Power’s H1 profit jumps 21% to $144m

PIF-owned ACWA Power’s H1 profit jumps 21% to $144m
Updated 5 min 39 sec ago

PIF-owned ACWA Power’s H1 profit jumps 21% to $144m

PIF-owned ACWA Power’s H1 profit jumps 21% to $144m

RIYADH: ACWA Power Co., which is part-owned by Saudi Arabia’s Public Investment Fund, has posted a 21 percent jump in profits to SR542 million ($144 million) for the first half of 2022, a bourse filing revealed.

Profits of the energy giant grew mainly in response to new projects beginning operations, which boosted income from equity-accounted investors, it said.

Most recently, ACWA Power announced the start of operations at a $797 million desalination plant in the UAE, namely Umm Al Quwain IWP.

With an SR251-billion portfolio, ACWA Power was the second largest utility company on the Saudi bourse after Saudi Electricity Co.


Naqi Water to debut on TASI market early next week following strong IPO

Naqi Water to debut on TASI market early next week following strong IPO
Updated 40 min 46 sec ago

Naqi Water to debut on TASI market early next week following strong IPO

Naqi Water to debut on TASI market early next week following strong IPO

RIYADH: Naqi Water Co. will start trading its shares on Saudi Arabia’s stock market on Aug. 15, after attracting huge demand during the initial public offering, according to a bourse filing.

The Saudi-based water producer generated SR560 million ($150 million) worth of subscriptions as it offered 600,000 shares to retail subscribers.

Prior to that, the final offer price was set at the top end of an indicated range of SR69, following a strong bidding period.

Naqi Water will float a 30 percent stake, representing six million shares, on the Kingdom’s main stock index TASI.


Savola Group to sell all shares in Knowledge Economic City for $122m

Savola Group to sell all shares in Knowledge Economic City for $122m
Updated 55 min 30 sec ago

Savola Group to sell all shares in Knowledge Economic City for $122m

Savola Group to sell all shares in Knowledge Economic City for $122m

RIYADH: Savola Group has entered into an SR459-million ($122 million) agreement to sell its stake in Knowledge Economic City Co. and Knowledge Economic City Developers Co. Limited.

This move came in light of Salove’s strategy of focusing on investing in its main operations in the food and retail sectors, while ending investments in non-core businesses, the group said in a bourse filing.

Knowledge Economic City is owned by Savola Group directly and indirectly at an approximate share of 11.47 percent.

Knowledge Economic City’s shares ended Wednesday’s trading session 6.12 percent higher at SR14.56.