UAE's Agthia sees revenues soar on strong H1 performance

UAE's Agthia sees revenues soar on strong H1 performance
The firm pulled in 2 billion dirhams ($544.5 million) in the first half of 2022 (Shutterstock)
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Updated 05 August 2022

UAE's Agthia sees revenues soar on strong H1 performance

UAE's Agthia sees revenues soar on strong H1 performance

RIYADH: The UAE’s Agthia Group saw a 51 percent year-on-year growth in net revenues, according to a company statement.

The firm pulled in 2 billion dirhams ($544.5 million) in the first half of 2022, thanks to exceptional growth in the first three months of the year and the ongoing consolidation of strategic acquisitions.

The Abu Dhabi-based food and beverage company's net profit attributable to shareholders grew 74 percent year-on-year to 118 million dirhams, despite a global inflationary environment. 

Khalifa Sultan Al Suwaidi, chairman of Agthia, said:“The acquisitions we have completed over the past year have not only delivered strong top-line growth but also contributed to enhanced profitability as we integrate the businesses into the Group and leverage synergies effectively.”

Agthia recently announced a 90 million dirhams investment in a manufacturing facility in Saudi Arabia to drive growth for its protein vertical and in response to strong demand from  local customers. 

In July 2022, the company’s board approved the acquisition of a strategic 60 percent stake in Auf Group, a specialized healthy snacks and coffee manufacturer and retailer in Egypt.

Agthia Group has also received its board’s approval to acquire 60 percent of Egyptian coffee maker Auf Group as it expands its footprint in the north African country last month.

The company’s CEO, Alan Smith, struck an optimistic tone when discussing the company’s future. 

“Recent milestones, including Board approvals for expansion of our protein business in the Kingdom of Saudi Arabia and the acquisition of Egypt-based Auf Group will further support the realization of our five-year strategy as we capitalize on our strengthening momentum in-market,” he said.

Last year, Agthia acquired Egypt’s meat producer Atyab as it seeks to expand in the country’s consumer packaged goods industry.


Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound

Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound
Updated 16 sec ago

Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound

Oil Updates — Crude down; China’s July refinery output drops to over 2-year low; Singapore marine fuel sales rebound

RIYADH: Oil prices dropped for a second session on Monday as weak China economic data triggered concerns about demand at the world’s largest crude importer while the head of the world’s top exporter, Saudi Aramco, said it was ready to ramp up output.

Brent crude futures fell 89 cents, or 0.9 percent, to $97.26 a barrel by 0034 GMT after settling 1.5 percent lower on Friday. 

US West Texas Intermediate crude was at $91.27 a barrel, down 82 cents, or 0.9 percent, after a 2.4 percent drop in the previous session.

July refinery output in China drops to over 2-year low on plant outages

China’s refinery crude throughput fell last month to its lowest since March 2020 as several state refiners underwent unplanned shutdowns and their independent peers trimmed production in response to thinning margins.

Refiners processed 53.21 million tons of crude oil in July, 8.8 percent less than a year earlier, according to data from the National Bureau of Statistics.

That is equivalent to 12.53 million barrels per day, the lowest daily rate since March 2020, and compared with 13.37 million bpd in June.

The weaker throughput in July extended a rare decline in China’s refinery processing seen in the first half of 2022 as strict COVID-19 lockdowns and fuel export controls curbed their production.

During the first seven months, refineries processed 380.27 million tons, down 6.3 percent from a year before and equal to about 13.09 million bpd.

Prolonged outages at large state-run refineries such as Sinopec Shanghai Petrochemical Corp’s 320,000-bpd crude facility and PetroChina Wepec’s 200,000-bpd plant weighed on national production.

Sinopec did not resume refining at some of the units at the Shanghai plant until last week, while the northeast Liaoning-based Wepec was not expected to resume operation until late August after nearly three months’ shutdown, said an industry source.

Singapore marine fuel sales rebound to 7-month high in July

Marine fuel sales in Singapore, the largest bunkering hub in the world, rose by 10 percent month-on-month to a seven-month high of 4.12 million tons in July, the latest data from the Maritime and Port Authority of Singapore showed.

The uptick came amid a rise in vessel arrivals for bunkering, which climbed 8 percent month-on-month to 3,181 vessel calls in July. Bunker fuel prices were also lower in July versus June, amid softer upstream crude prices.

Sales for both low-sulfur fuel oil and high-sulfur fuel oil grades climbed from the previous month, the MPA data showed.

LSFO supplied to ships climbed by 7 percent month-on-month to 2.51 million tons in July, though the sales fell by 7 percent year-on-year.

Low-sulfur bunker fuel premiums were still elevated in the first half of July, at a time when cargo premiums rallied to record highs, before trending lower toward the end of the month.

Meanwhile, HSFO supplied to ships rose by 16 percent month-on-month to 1.27 million tons in July, and was 20 percent higher year on year.

(With input from Reuters)


TASI almost flat on higher inflation: Opening bell

TASI almost flat on higher inflation: Opening bell
Updated 26 min 46 sec ago

TASI almost flat on higher inflation: Opening bell

TASI almost flat on higher inflation: Opening bell

RIYADH: Saudi stocks started Monday’s session almost flat after the Saudi annual inflation rate increased to 2.7 percent in July, inciting uncertainty among investors.

TASI edged down 0.08 percent at 12,504, while the parallel market, Nomu, fell 0.16 percent at 22,005, as of 10:06 a.m. Saudi time.

Saudi Aramco shed 0.25 percent, despite achieving its highest quarterly profit since going public in 2019 with SR182 billion ($48.4 billion), a 90 percent jump over analysts' expectations.

Saudi Tadawul Group Holding Co. dropped 1.65 percent, following the announcement of a 23 percent decline in profits during the first half of the year to SR278 million.

Red Sea International Co. gained 4.96 percent to lead the gainers, after the real estate firm announced that its accumulated losses have been cut to zero, following a reduction in the company’s capital by SR298 million.

Saudi Printing and Packaging Co. climbed 2.45 percent, after the company narrowed its losses by 91.8 percent to SR2 million during the first half.

Basic Chemical Industries Co. lost 0.97 percent, despite achieving a 63 percent profit increase to SR46 million for the first half.

solutions by stc increased 0.43 percent, after its acquisition of Egypt’s Giza Systems has been approved by the Saudi competition authority.

Wafrah for Industry and Development Co. increased 1.86 percent, after the company swung to a profit of SR11 million during the first half of 2022.

Arabian Shield Cooperative Insurance Co. edged up 0.43 percent, despite a 30 percent profit decline to SR16 million for the first half.

The country's biggest lender Saudi National Bank declined 0.27 percent, while the Kingdom’s largest valued bank Al Rajhi fell 0.34 percent.


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 36 min 21 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 15 August 2022

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 15 August 2022

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.