France urges producers to cap oil price over Ukraine

The US had suggested a price cap decided by consuming countries, a proposal that is due to be discussed by G7 leaders meeting in the Bavarian Alps on Sunday.
The US had suggested a price cap decided by consuming countries, a proposal that is due to be discussed by G7 leaders meeting in the Bavarian Alps on Sunday.
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Updated 26 June 2022

France urges producers to cap oil price over Ukraine

France urges producers to cap oil price over Ukraine

ELMAU, Germany: France on Sunday urged oil producers to cap the price of the commodity in order to put the squeeze on Russia which is benefiting from soaring energy prices.

Paris backs a US proposal for a maximum oil price, but said that “it would be much more powerful if it came from the producing countries,” said the French presidency.

To make such a measure work, it was “necessary to get into a discussion with OPEC+ and with the world’s oil producers,” said the source.

The US had suggested a price cap decided by consuming countries, a proposal that is due to be discussed by G7 leaders meeting in the Bavarian Alps on Sunday.

But Germany believes that the measure would be too difficult to put in place.

A senior German official said: “We are still intensively discussing how this would work and how that can fit in with the American, British, European and Japanese sanction regimes.”

EU President Charles Michel also said discussions were ongoing but “we want to go more into the details.”

“We want to make sure that ... the goal is to target Russia and not to make our life more difficult and more complex,” he said.


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

Here’s what you need to know before Tadawul trading on Monday
Updated 12 sec ago

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

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

RIYADH: Saudi stocks closed slightly lower on Sunday, tracking oil’s Friday drop.

TASI slipped 0.13 percent to 12,514, with shares of oil giant Aramco down 0.9 percent after reporting a record second-quarter profit of SR182 billion ($48.4 billion).

Aramco’s profit soared 80 percent in the second quarter of 2022 from SR95.5 billion a year earlier, beating the median of analysts’ forecasts with the highest quarterly profit since going public in 2019.

The Kingdom’s parallel Nomu market finished 0.08 percent higher at 22,041.

Elsewhere, Oman, Qatar, and Bahrain advanced 0.1, 0.4, and 0.8 percent, respectively, while the Kuwaiti index lost 0.7 percent.

Outside the Gulf, the Egyptian index EGX30 ended the session flat.

Oil prices continued to drop on Monday. Brent crude fell to $97 a barrel and US West Texas Intermediate reached $91.03 a barrel by 8:57 a.m. Riyadh time.

Stock news

Red Sea International Co. said its accumulated losses have dropped to zero, following an SR298 million capital reduction

Basic Chemical Industries Co. recorded a 63 percent profit increase to SR46 million for the first half of 2022

solutions by stc’s acquisition of a controlling stake in Egypt’s Giza Systems has been approved by the Saudi competition authority

Al Hassan Ghazi Ibrahim Shaker Co. achieved a net profit of SR26 million in the first half of 2022, a 72 percent increase from the first half of last year

Lazurde Co. for Jewelry reported a 22 percent profit rise in the first half of 2022 to SR22.2 million

Saudi Printing and Packaging Co.’s losses narrowed by 91.8 percent to SR2 million during the first half of 2022

Halwani Bros Co. reported a first-half profit decline of 65 percent to SR18 million

Middle East Paper Co.’s board proposed a 33 percent capital raise to SR666 million to support the company’s financial position and growth plans

Watani Iron Steel Co. saw its profit drop 15 percent to SR25 million during the first half of 2022

Calendar

August 15, 2022

Naqi Water Co. will start trading its shares on TASI


Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales

Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales
Updated 29 min 21 sec ago

Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales

Saudi jeweler L’azurde posts 22% profit jump in H1 on strong retail sales

RIYADH: Saudi jeweler L’azurde has reported a 22 percent profit rise in the first half of 2022 on the back of higher retail sales.

It reported a profit of SR22.2 million ($5.9 million) in the first half compared to SR18 million in the same period last year, according to a bourse filing.

The results were helped by higher revenues, higher gross profits, and reduced financing costs.

Saudi retail revenues surged 12.6 percent over the same period last year following the easing of precautionary measures regarding COVID-19.

In Egypt, retail revenues rose 5 percent due to an increase in revenues at the same stores, the opening of new outlets in the past year, and the increase in selling prices to counter the lower exchange rate, it said.


Red Sea International reduces $80m capital to write off accumulated losses 

Red Sea International reduces $80m capital to write off accumulated losses 
Updated 37 min 2 sec ago

Red Sea International reduces $80m capital to write off accumulated losses 

Red Sea International reduces $80m capital to write off accumulated losses 

RIYADH: Red Sea International Co. said its accumulated losses have dropped to zero, following an SR298 million ($80 million) capital reduction.

The Saudi-listed construction firm brought down its capital to SR302 million from SR600 million, by canceling nearly 30 million shares, according to a bourse filing.

The purpose of the transaction was to extinguish accumulated losses, which amounted to almost 58 percent of the capital, or SR346 million, as of June end.

Most recently, Red Sea International reported that its net loss widened by 7 percent to SR67 million in its financial results for the first half of 2022.


Saudi annual inflation rate rises to 2.7% in July driven by high food prices

Saudi annual inflation rate rises to 2.7% in July driven by high food prices
Updated 12 min 1 sec ago

Saudi annual inflation rate rises to 2.7% in July driven by high food prices

Saudi annual inflation rate rises to 2.7% in July driven by high food prices

RIYADH: Saudi Arabia’s annual inflation rate accelerated to 2.7 percent in July, from 2.3 percent in June, according to the recent data released by the General Authority for Statistics, also known as GASTAT.

The uptick in the Consumer Price Index, as it is called in technical terms, is driven by a rise in food and beverage prices, GASTAT added. 

According to the report, food and beverage prices showed an annual increase of 3.9 percent, while meat prices surged by 5.1 percent. 

“Food and beverages prices were the main drivers of the inflation rate in July 2022 due to their high relative importance in the Saudi consumer basket with a weight of 18.8 percent,” said GASTAT. 

Transport prices increased by 3.6 percent, mainly due to the increase in the purchase of motor cars prices which went up by 4.2 percent. 

The GASTAT report further revealed that personal goods and services prices in the Kingdom also increased by 2.1 percent. 

Restaurants and hotels prices increased by 6.3 percent, due to the increase in catering services prices, which went up by 6.5 percent, the report added.


Saudi IT firm solutions by stc gets approval to acquire Egypt’s Giza Systems

Saudi IT firm solutions by stc gets approval to acquire Egypt’s Giza Systems
Updated 15 August 2022

Saudi IT firm solutions by stc gets approval to acquire Egypt’s Giza Systems

Saudi IT firm solutions by stc gets approval to acquire Egypt’s Giza Systems

RIYADH: Arabian Internet and Telecommunication Co., known as solutions by stc, received approval from Saudi Arabia’s General Authority For Competition to buy a $158 million stake in Egypt's Giza Systems Co., a bourse filing revealed.

The Saudi-listed company had earlier entered a binding deal for the takeover of an 89.49 percent stake in Giza Systems in addition to 34 percent of its unit, Giza Arabia.

Subject to other regulatory conditions, solutions by stc said the transaction is expected to be completed by the fourth quarter of 2022, adding that any developments will be announced in due course.