Saudi investment firm SEDCO to acquire two properties worth $187m

Saudi investment firm SEDCO to acquire two properties worth $187m
The Fund expects that this acquisition will positively impact its overall performance (Shutterstock)
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Updated 26 July 2022

Saudi investment firm SEDCO to acquire two properties worth $187m

Saudi investment firm SEDCO to acquire two properties worth $187m

RIYADH: SEDCO Capital REIT Fund’s board has approved acquiring two income-generating real estate assets worth SR700 million ($187 million), located in Riyadh and Jeddah.

This acquisition will be covered by new units and by using banking facilities in accordance with the Fund’s terms and conditions, according to a bourse filing.

The Fund expects that this acquisition will positively impact its overall performance, as it seeks to add value to its portfolio, as well as its unitholders.


Saudi Aramco prepared to increase output to 12m bpd if government asks for, says CEO

Saudi Aramco prepared to increase output to 12m bpd if government asks for, says CEO
Updated 11 sec ago

Saudi Aramco prepared to increase output to 12m bpd if government asks for, says CEO

Saudi Aramco prepared to increase output to 12m bpd if government asks for, says CEO

RIYADH: The Saudi Arabian Oil Co., also known as Aramco, is ready to increase oil production to 12 million barrels per day when the government asks for it, according to its CEO Amin Nasser. 

In a press conference after reporting a 90-percent rise in second-quarter profit on Sunday, Nasser said that oil demand growth is healthy with more demand coming from Asia. 

The CEO said that Aramco is deeply concerned with the lack of investment in oil output capacity globally, along with declining rates in oil fields. 

He noted that Aramco has been responding to this crisis by raising the maximum production capacity, while urging others to join hands with Aramco in this effort. 

The CEO predicted that there could be an additional 2 million bpd crude oil demand next year, but there is no sufficient capacity to meet that. 

He also noted that the market could further tighten if the demand for aviation fuel rises beyond limits. 

Nasser added that the possibility of a potential joint venture with PKN Orlen, along with the existing tri-party agreement between Aramco, SABIC, and PKN Orlen could be the next big thing for the firm in Europe. 

He, however, noted that the growth of the company in Europe is not as good as in Asia, but still, the firm is looking for more opportunities there. 

The CEO further stated Saudi Aramco is looking for more investments in China, along with enhancing cooperation with Chinese entities within the Kingdom. 

He said that Aramco is in talks with China’s Sinopec and others on petrochemicals and liquid to chemicals projects. 

“Chemicals are very important for our strategy,” he emphasized. 

Nasser stated that Aramco has 99.8 percent reliability in delivering crude to its customers, and made it clear that the company has strong contingency plans. 

He added that Aramco has the lowest carbon intensity globally and the company is working toward achieving a sustainable future. 

Nasser also revealed that the Jafura gas project’s first phase will be operational by 2025, followed by the opening of the second phase in 2027.


TASI stats the week higher on the back of strong earnings reports: Opening bell

TASI stats the week higher on the back of strong earnings reports: Opening bell
Updated 40 min 46 sec ago

TASI stats the week higher on the back of strong earnings reports: Opening bell

TASI stats the week higher on the back of strong earnings reports: Opening bell

RIYADH: Saudi Arabia’s main index started the week higher on the back of strong earnings reports, led by oil giant Aramco reports, which lifted investor sentiment.

TASI edged 0.17 percent higher at 12,552, while the parallel market, Nomu, started flat at 22,020, as of 10:07 a.m. Saudi time.

The Kingdom’s oil giant Saudi Aramco started the day with a 0.49 percent increase, after it announced a record second-quarter profit of $48.4 billion.

Rabigh Refining and Petrochemical Co. gained 3.53 percent, following the announcement last week that its first-half profits jumped 54 percent to SR2.1 billion.

Saudi Tadawul Group Holding Co. declined 1.93 percent, after its first-half profits declined 23 percent to SR278 million.

National Agricultural Development Co. increased 1.73 percent, after it turned into profits of SR43 million during the first half of 2022.

Saudi Chemical Co. declined 1.3 percent, after reporting a 32 percent drop in first-half profits to SR47 million.

National Medical Care Co. added 5.64 percent to lead the gainers, while Arab Sea Information System Co. edged down 4.42 percent to lead the fallers.


Saudi Aramco shares open 0.5% lower despite record profit of $48bn

Saudi Aramco shares open 0.5% lower despite record profit of $48bn
Updated 55 min 18 sec ago

Saudi Aramco shares open 0.5% lower despite record profit of $48bn

Saudi Aramco shares open 0.5% lower despite record profit of $48bn

RIYADH: Shares of the world’s largest crude producer Saudi Aramco opened lower on Sunday, following 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.

Despite the robust results, its share price edged 0.5 percent lower to SR40.6 by 10:27 a.m. Saudi time on Sunday, down from SR40.8 at the previous close.

This brings Aramco’s market cap to SR8.93 trillion. 

The crude producer attributed the profit hike to rising crude prices which soared to record highs earlier this year, higher volumes sold, and improved downstream margins.


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 14 August 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

RIYADH: Saudi Arabia’s stock market concluded four out of five sessions in green last week, bolstered by strong earnings from most listed companies.

TASI, the main index, gained 0.8 percent to 12,530 on Thursday, while the parallel market Nomu was up 0.8 percent to 22,023.

Qatar led the gains in the Gulf to close 1.3 percent higher, followed by Abu Dhabi’s index with a 1 percent gain.

Bahrain and Kuwait added 0.9 and 0.1 percent, respectively, while Dubai and Oman were down 0.3 and 0.7 percent, respectively.

Elsewhere in the Middle East, the Egyptian blue-chip index EGX30 edged up 0.2 percent.

Oil prices settled lower on Friday, dragged down by fears over a potential recession.

Brent crude exited the week at $98.15 a barrel, while US West Texas Intermediate reached $92.09 a barrel.

Stock news

Aramco’s profit surged 90 percent in the second quarter of 2022 to SR182 billion ($48.4 billion), beating the median of analysts’ forecasts with the highest quarterly profit since going public in 2019

Saudi Tadawul Group Holding Co. posted a 23 percent first-half profit decline to SR278 million

National Gas and Industrialization Co. will distribute SR0.85 per share in cash dividends for the first half of 2022

Alandalus Property Co. reported SR35 million in profit for the first half of the year, down 8 percent from the same period a year ago

The National Agricultural Development Co., known as Nadec, turned into profits of SR43 million during the first half of 2022

Saudi Chemical Co. posted a 32 percent drop in first-half profit to SR47 million

Tanmiah Food Co.’s profits rose 43 percent to SR32 million during the first half of 2022

Bupa Arabia for Cooperative Insurance approved the re-appointment of Loay Hisham Nazer as chairman of the board and Martin Fletcher as vice chairman

Maharah Human Resources Co. reported a 26 percent decline in half-year profit to SR52 million

Academy of Learning Co. saw its profit rise 10 percent to SR8 million in the first six months of 2022

Calendar

August 14, 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


Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales
Updated 14 August 2022

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

Saudi Arabia’s NADEC turns into profit of $11m on higher dairy and food sales

RIYADH: Saudi Arabia’s National Agricultural Development Co. turned in profits during the first half of 2022 helped by a surge in sales of dairy and food processing.

The company turned green with a profit of SR43 million ($11 million) in the first six months of the year from losses of SR10.98 million in the same period last year, according to a bourse filing.

The company attributed the result to an 18 percent growth in sales of dairy and food processing, leading to a 21 percent revenue increase.