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.


Saudi Arabia raises the bar in green hydrogen production: KAPSARC

Saudi Arabia raises the bar in green hydrogen production: KAPSARC
Updated 19 sec ago

Saudi Arabia raises the bar in green hydrogen production: KAPSARC

Saudi Arabia raises the bar in green hydrogen production: KAPSARC

RIYADH: Given its resources, infrastructure and land, Saudi Arabia is placed at a very competitive position in the green hydrogen industry, especially in terms of cost and volume capacity of the product, according to Rami Shabaneh, a King Abdullah Petroleum Studies and Research Center researcher.

Global prices of hydrogen range between $2 and $7 per kg. The Kingdom falls at the lower end of the cost curve due to low natural gas and renewable electricity prices locally.

“In Saudi Arabia, it is much lower because of the low-cost resources and high capacity factors the electrolyzers can achieve. A recent study by KAPSARC shows that reaching $1 per kg is plausible in the long term,” Shabaneh told Arab News.

“Other countries can achieve a similar levelized cost of hydrogen production, but only a few can produce the volumes required to meet the decarbonization targets,” he added.

The cost of green hydrogen is highly sensitive to renewable electricity costs and electrolyzer load factors.

“The renewable energy prices in the Kingdom are some of the lowest in the world. An auction price accepted at $10.4 per MWh is a world record low right now,” he said.

KAPSARC analyzes the resource, export and cost reduction potential of Saudi Arabia’s hydrogen production.

According to Shabaneh, despite significant decreases in hydrogen costs, the world still needs supporting mechanisms for hydrogen to substitute for traditional fuels in some sectors.

He further pointed out that having fossil fuels in the Kingdom’s energy system does not necessarily mean more emissions.

“You can still use fossil fuels to make blue hydrogen with high capture rates of GHG emissions,” he said.

Saudi Arabia is building a $5 billion green hydrogen project in NEOM, powered by renewable energy, to supply 650 tons of carbon-free hydrogen daily. The plant will see its first production in 2026.

The project will export hydrogen in the form of liquid ammonia to the world market for use as a biofuel that feeds transportation systems.

The plant will need around 4.3 gigawatts of clean energy to power it, as ACWA Power, one of three project owners, plans to use solar during the day and wind at night to eliminate the need for batteries and expensive storage solutions.

 


Abu Dhabi power transmission project secures $3.2bn financing

Abu Dhabi power transmission project secures $3.2bn financing
Updated 29 September 2022

Abu Dhabi power transmission project secures $3.2bn financing

Abu Dhabi power transmission project secures $3.2bn financing

DUBAI: Abu Dhabi Offshore Power Transmission Company has secured more than $3.2 billion in financing with export credit agencies and banks for an offshore electricity transmission project, the Japan Bank for International Cooperation said in a statement.

The financing is to build and operate a high-voltage direct current offshore power transmission system linking two offshore production facilities owned by state-controlled oil giant Abu Dhabi National Oil Company to Abu Dhabi’s onshore grid.

Japan Bank for International Cooperation provided $1.201 billion for the direct current transmission project. The remaining $2 billion was financed by Export-Import Bank of Korea, Mizuho, Sumitomo Mitsui Banking Corporation, BNP Paribas Fortis and Standard Chartered, JBIC said in the statement on Wednesday.

“The project will receive payment of power transmission charges from ADNOC for 35 years after the construction has been completed,” JBIC said.

ADNOC and JBIC signed a memorandum of understanding in November to cooperate on decarbonization, energy transmission and energy efficiency.

JBIC said the project was in line with the United Arab Emirates’ commitment in October last year to cut carbon dioxide emissions to net zero by 2050.


OPEC+ has begun talks on output cut for Oct. 5 meeting, source tells Reuters

OPEC+ has begun talks on output cut for Oct. 5 meeting, source tells Reuters
Updated 29 September 2022

OPEC+ has begun talks on output cut for Oct. 5 meeting, source tells Reuters

OPEC+ has begun talks on output cut for Oct. 5 meeting, source tells Reuters

DUBAI: Leading members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, have begun discussions about an oil output cut when the group meets on Oct. 5, according to Reuters.

One OPEC source told Reuters a cut is “likely” and two other OPEC+ sources said key members had spoken about the topic. 

A source familiar with Russian thinking told Reuters earlier this week that Moscow could suggest a cut of up to 1 million barrels per day.

The latest comments suggest that key OPEC members have started communicating over the matter, although the volume of any potential cut is still unclear.

Next week’s meeting takes place against a backdrop of falling oil prices from multi-year highs hit in March, and severe market volatility.

OPEC+, which combines OPEC countries and allies such as Russia, agreed a small oil output cut of 100,000 barrels a day at its September meeting to bolster prices.

Top OPEC producer Saudi Arabia flagged in August the possibility of output cuts to address market volatility. 

Also at the group’s last meeting, OPEC+ members agreed to stick to their forecasts for robust global oil demand growth in 2022 and 2023, citing signs that major economies were faring better than expected despite headwinds such as surging inflation.

Oil demand will increase by 3.1 million barrels per day in 2022 and by 2.7 million bpd in 2023, unchanged from last month, OPEC said in its monthly report.

 


TASI extends gain as global recession fears fizzle out: Opening bell

TASI extends gain as global recession fears fizzle out: Opening bell
Updated 29 September 2022

TASI extends gain as global recession fears fizzle out: Opening bell

TASI extends gain as global recession fears fizzle out: Opening bell

RIYADH: Saudi Arabia’s main index rose in early trade on Thursday, extending gains from the previous session as investors brushed off fears of a global recession.

The Tadawul All-Share Index grew 1.22 percent to reach 11,306, while the parallel market Nomu started flat at 19,922, as of 10:08 a.m. Saudi time.

Saudi oil giant Aramco began with a 1.29 percent gain, while Rabigh Refining and Petrochemical Co. climbed 1.15 percent.

The Saudi National Bank, the Kingdom’s largest lender, increased by 1.46 percent, while Saudi British Bank rose 4.18 percent.

The Kingdom’s highest valued bank, Al Rajhi, went up 0.88 percent, while Alinma Bank gained 1.57 percent.

Saudi Basic Industries Corp. rose 0.34 percent, as it announced the resignation of its CEO Yousef Al-Benyan to serve as Education Minister, and appointed Abdulrahman Al-Fageeh as acting CEO.

Retal Urban Development Co. fell 0.14 percent, after it sold its 50 percent stake in a land plot in Al Khobar for SR113 million ($30 million).

Arriyadh Development Co. added 0.29 percent, after it declared a cash dividend of SR0.25 per share for the first half of 2022.

Ladun Investment Co. gained 0.78 percent, after it completed the process of acquiring raw lands in Riyadh.


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 29 September 2022

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 Arabia’s main index ended higher for a second session following a sharp drop earlier in the week sparked by economic concerns.

The Tadawul All-Share Index rose 1.39 percent to reach 11,120 at the end of Wednesday, while the parallel market Nomu rose 1 percent to 19,916.

Abu Dhabi’s main followed the Saudi trend to close 0.4 percent up to 9,740 on Wednesday.

In a different direction, Dubai’s and Kuwait’s indexes ended Wednesday in red, shedding 0.9 percent and 1.51 percent, respectively.

In energy trading, Brent crude traded at $88.35 a barrel and WTI crude reached $81.34 a barrel, as of 9:15 a.m. Saudi time.

Stock news

Yousef Al-Benyan, the CEO of SABIC, has resigned after being appointed Minister of Education by Royal Decree; accordingly, Abdulrahman Al-Fageeh was appointed as acting CEO for six months effective Sep. 28, 2022.

Saudi Azm for Communication and Information Technology Co. reported SR19 million ($5 million) in profit for the fiscal year ending June 30, 2022, an increase of 23 percent.

Alkhorayef Water and Power Technologies Co. raised credit facilities with Saudi British Bank to SR509 million.

Sumou Real Estate Co. signed an agreement with National Housing Co. to develop an area in Dammam for a total of SR305 million.

Leen Alkhair Trading Co. was approved by the Capital Markets Authority to register and offer 958,750 shares on the Nomu-Parallel Market.

Meshkati Trading Co. received approval from the CMA to offer 900,000 shares on the Nomu-Parallel Market.

Arriyadh Development Co. has declared a cash dividend of SR0.25 per share for the first half of 2022.

National Fertilizer Co. will distribute an interim cash dividend of SR1.5 to shareholders in the first half of 2022.

Retal Urban Development Co. has sold its 50 percent stake in a land plot in Al-Khobar for SR113 million.

Ladun Investment Co. said it completed the process of acquiring raw lands in Riyadh.