UAE In-Focus — Abu Dhabi's ADNOC Drilling net profit rises 33% in 2022  

UAE In-Focus — Abu Dhabi's ADNOC Drilling net profit rises 33% in 2022  
ADNOC Drilling also presented strong guidance for 2023, with revenue projected at between $3 billion and $3.2 billion. (Supplied)
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Updated 13 February 2023

UAE In-Focus — Abu Dhabi's ADNOC Drilling net profit rises 33% in 2022  

UAE In-Focus — Abu Dhabi's ADNOC Drilling net profit rises 33% in 2022  

RIYADH: Abu Dhabi’s ADNOC Drilling reported a rise of 33 percent in 2022 net profit, largely driven by new rigs entering its operational fleet. 

The company’s net profit for 2022 was $802 million, up from $604 million in the previous year. Revenue increased to $2.67 billion in 2022 from $2.27 billion in 2021.  

ADNOC Drilling also presented strong guidance for 2023, with revenue projected at between $3 billion and $3.2 billion, representing year-on-year growth of up to 20 percent, according to a press release. 

It is expecting a record net profit in 2023 of $850 million to $1 billion in the same period, the company said. 

ADNOC Drilling’s Chief Financial Officer Esa Ikaheimonen said in a post-earnings call that the forecasts are underpinned by ADNOC Group’s plans to bring forward its 5 million barrel per day oil production capacity expansion to 2027 from a previous target of 2030, to meet rising global energy demand. 

“That’s really what’s underpinning it because we as a drilling company are on a critical path in terms of achievement of those goals,” Ikaheimonen told Reuters. 

Emirates Steel Arkan’s 2022 net profit jumps to $138.4 million 

Buoyed by strong demand from international customers, Emirates Steel Arkan announced that its net profit rose to 508.5 million dirhams ($138.4 million) in 2022. 

The rise in profit was also attributed to the steps taken by the group to enhance operational efficiencies following the merger of Emirates Steel and Arkan in the fourth quarter of 2021.  

The group’s net profit for the full year 2022 was 508.5 million dirhams compared to a pro-forma loss of 636.7 million dirhams in the financial year 2021, supported by the group’s expansion of its international export footprint by 25 percent to 70 countries, from 56 in 2021. 

Revenue for the financial year 2022 rose to 9.5 billion dirhams, versus pro-forma 8.6 billion dirhams in the financial year 2021, earnings before interest, taxes, depreciation, and amortization increased to 1.16 billion dirhams, a 51 percent year-on-year advance from pro-forma 770 million dirhams in the financial year 2021.  

RAKEZ partners with RAKPSD to bolster industrial businesses  

Aiming to regularize the movement of goods vehicles, Ras Al Khaimah Economic Zone signed a memorandum of understanding with Ras Al Khaimah Public Works Department to support the rollout of electronic Aber toll gate systems.  

The aim of this partnership is to streamline the industrial inflow and outflow of RAKEZ clients’ transport and logistical operations. 

RAKEZ industrial zones are home to companies that are involved in the regular movement of goods in and out of the emirate as well as the UAE. 

This collaboration will help them easily tap into new regional and global markets.  

In its continuous efforts to boost the ease of doing business in Ras Al Khaimah, RAKEZ said it has been closely working with government entities through various agreements. 

Burjeel Holdings’ net profit up 52%   

Burjeel Holdings, a leading healthcare services provider in the UAE, reported a record performance in the financial year 2022 posting revenue of 3.92 billion dirhams, an increase of 17 percent year-on-year.  

Group EBITDA increased by 13 percent year-on-year to 878 million dirhams in the financial year 2022, delivered at a stable margin of 22.4 percent. 

Net profit in the financial year 2022 increased by 52 percent to 355 million dirhams year-on-year. 

The company’s overall group patient footfall increased by 15 percent. Hospital inpatient footfall increased by 17 percent, outpacing outpatient footfall growth of 15 percent.  

Revenue from the hospital segment, which made up 88 percent of the group’s total revenue in the period, increased 18 percent year-on-year to 3.47 billion dirhams driven by strong growth at Burjeel Medical City and the group’s other larger Burjeel-branded hospitals.  

(With input from Reuters) 


GCC, Iraq electrical interconnection project enhances energy security: Saudi minister

GCC, Iraq electrical interconnection project enhances energy security: Saudi minister
Updated 08 June 2023

GCC, Iraq electrical interconnection project enhances energy security: Saudi minister

GCC, Iraq electrical interconnection project enhances energy security: Saudi minister
  • Project is ‘dream become reality,’ Prince Abdulaziz bin Salman says

RIYADH: The electrical interconnection project between Saudi Arabia and Iraq will support the Iraqi electrical grid, according to Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman.

In an interview with Al-Arabiya, the prince said the connection was a dream that had become a reality and would achieve tangible economic benefits and enhance energy security.

Speaking on the sidelines of the OPEC+ meeting in Vienna, he said: “We have no complexes about speculation in the oil market,” and the decision to cut oil production was a “precautionary” one.

“Everyone agreed to cut production and we did not force anyone,” he said.

The prince said the oil market needed reassurances and measures to prevent fluctuations.

“We have no interest in the fluctuation of the oil market, whether in the short or long term,” he said.

The aim was to give the oil market clear data for stability and there were independent bodies that would work with the OPEC+ countries to evaluate their production in 2024, he said.

“The task of the independent bodies is to ensure the reliability of data for the oil market,” he said, adding that those parties would end the previous controversy over production data in OPEC+.

The minister said they had discussed with Russia the issue of its production and requested it clarify its data.

“Moscow’s decision not to publish production data leaves doubts about its volume,” he said.

“Independent parties contacted Russia about its production and got the numbers, and we have strengthened transparency with Russia over its oil production numbers.”


Saudi Arabia’s voluntary production cuts support oil prices

Saudi Arabia’s voluntary production cuts support oil prices
Updated 08 June 2023

Saudi Arabia’s voluntary production cuts support oil prices

Saudi Arabia’s voluntary production cuts support oil prices

RIYADH: Oil prices rose on Thursday as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to US interest rate hikes offset worries over demand weakness and a global economic slowdown.

At a recent meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, Saudi Arabia said it will cut its crude output by 1 million barrels per day in July on top of a broader deal to limit supply into 2024 as the producer group seeks to boost flagging prices.

Brent crude rose 25 cents, or 0.3 percent, to $77.20 a barrel by 1328 GMT. US West Texas Interme- diate crude gained 20 cents, or 0.3 percent, to $72.73.
“With the OPEC+ meeting out of the way, focus is now shifting toward the next move the Fed will make when it meets next week,” said Tamas Varga of oil broker PVM.
There is growing consensus that the central bank will skip a rate hike, which could lift oil prices even before falling supply starts draining global oil inventories, Varga added.
OPEC+ cooperation praised
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman praised their collaboration during a phone call on Wednesday in a discussion of the work of OPEC+, the Kremlin said.
“The topic of ensuring stability on world energy markets was discussed in detail,” according to a Kremlin statement on the Telegram messaging app.
“Both sides praised cooperation within the framework of OPEC+, allowing for the adoption of timely and effective steps to ensure a balance between supply and demand for oil.”
The statement noted the impor- tance of agreements reached at the group’s meeting this week.
UAE ship insurance rules
Tougher requirements for some ship insurers covering the UAE ships are aimed at boosting environmental safety amid growing concerns over unregu- lated shipping, reported the state- run news agency WAM.
The UAE’s Energy and Infrastructure Ministry, in a June 2 circular, announced it would tighten insurance criteria for vessels registered under its flag for insurers that are not part of the leading ship insurers, known as the International Group of Protec- tion and Indemnity Clubs, which cover 90 percent of the world’s ocean-going fleet.
“By prioritizing stringent P&I standards, we ensure the safety, financial security, and environ- mental stewardship of our maritime activities, attracting reputable investors,” said Hessa Al Malek, adviser to the minister for maritime transport affairs.
The WAM report added that the move would reduce the risk of accidents and oil spills, leading to a safer and more secure marine environment.


Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31
Updated 08 June 2023

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

Saudi Arabia’s M3 money supply jumps 4.7% since Dec. 31

RIYADH: Saudi Arabia’s M3 money supply has surged 4.71 percent since December 2022, according to data released by the Saudi Central Bank, also known as SAMA.

The M3 money supply — the broadest measure of liquidity in the monetary system — reached SR2.61 billion ($697 billion) in the week ending June 1, up from SR2.5 billion on Dec. 31.

However, the money supply for the week ending June 1 dropped 0.29 percent compared to $2.62 billion in the week ending June 25.

The SAMA data also showed that the money supply has been stable at SR2.6 billion in the past six weeks.  

Central banks use M3 money supply figures to direct monetary policy, thereby controlling inflation, consumption, growth, and liquidity over medium- and long-term periods.

Meanwhile, the M2 money supply recorded a 4.53 rise compared to Dec. 31 and a 0.57 percent weekly increase. 

The M2 poses a measurement of the nation’s money supply that estimates all the cash individuals have in hand or short-term bank deposits. It is usually used to indicate possible increases or decreases in inflation levels.

As for the M1 money supply during the week ending June 1, it jumped 1.45 percent from the end of December 2022 and 1.52 percent against the preceding week.

The M1 money supply comprises currency, demand and other liquid deposits.

It contains currency and assets that can be quickly converted to cash.


Closing bell: Saudi bourses end the week in green

Closing bell: Saudi bourses end the week in green
Updated 08 June 2023

Closing bell: Saudi bourses end the week in green

Closing bell: Saudi bourses end the week in green

After rising for four consecutive days, Saudi Arabia’s Tadawul All Share Index ended the week in green, as it gained 24.31 points, or 0.21 percent, to close at 11,397.14.

The total trading turnover of the benchmark index hit SR7.14 billion ($1.90 billion), as 113 stocks advanced, while 94 retracted. 

While parallel market Nomu gained 368.10 points to close at 21,849.68, MSCI Tadawul Index increased 0.16 percent to end the day at 1,509.41.

The top-performing stock on Thursday was Arabian Contracting Services Co., whose share price went up 7.5 percent to SR154.80. 

HIGHLIGHTS

The total trading turnover of the benchmark index hit SR7.14 billion ($1.90 billion), as 113 stocks advanced, while 94 retracted on Thursday.

The worst performer of the day was Leejam Sports Co., whose share price dipped by 4.2 percent.

Etihad Atheeb Telecommunication Co. and Astra Industrial Group were top performers, whose share prices soared by 5.63 percent and 5.18 percent, respectively.

The worst performer of the day was Leejam Sports Co., whose share price dipped by 4.2 percent. 

On the announcements front, Saudi Arabian Mining Co. said its shareholders approved the board’s recommendation to increase capital by 50 percent through a bonus share distribution.

According to a Tadawul statement, the mining giant will distribute one share for every two shares held, thus capitalizing SR12.31 billion from the statutory reserve and retained earnings. The company’s share price went down by 0.69 percent to SR43.85. 

Meanwhile, National Medical Care Co., also known as Care, announced that it had signed a share purchase agreement to acquire the entire share capital of Jiwar Medical Services Co. 

In a statement to Tadawul, Care noted that the acquisition deal was made after obtaining all approvals from competent authorities. The company’s share price dropped by 2.36 percent to SR116.


Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 
Updated 08 June 2023

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

Saudi Arabia launches ‘visiting investor’ visa to boost foreign investments 

RIYADH: A new business visa for investors has been announced by Saudi Arabia as part of the Kingdom’s drive to attract foreign funding into the economy. 

The “visiting investor” visa is being launched by Saudi Arabia’s Ministry of Investment, which worked closely with the Kingdom’s Foreign Affairs department to develop the new permit. 

Saudi Arabia has demonstrated a keen interest in streamlining the process for investors and international companies looking to expand their portfolios within the Kingdom, as part of the Vision 2030 initiative to diversify the economy away from oil. 

“The launch of the visiting investor business visa service comes within the framework of the success of cooperation and integration of efforts between the Ministries of Foreign Affairs and Investment,” Khalid Al-Falih, minister of investment, said in a tweet.  

FASTFACTS

The Kingdom’s industrial sector is among several witnessing a significant influx of foreign investments, which comprise 37 percent of the industry’s total funding.

The ‘visiting investor’ visa, a brainchild of the Kingdom’s Investment Ministry, was launched in collaboration with the Ministry of Foreign Affairs.

He further noted that the Ministry of Foreign Affairs backs the efforts of the Ministry of Investment in simplifying the process for investors interested in discovering business opportunities in the Kingdom.  

“I thank His Highness the Minister and the brothers in the Ministry of Foreign Affairs for supporting the efforts of the Ministry of Investment to facilitate the journey of the investor wishing to learn about the environment and investment opportunities in the Kingdom,” Al-Falih added.  

Foreign investments in Saudi Arabia rose by 2 percent in 2022 to SR2.4 trillion ($640 billion), up from SR2.36 trillion in 2021, according to the Saudi Central Bank, also known as SAMA.  

SAMA’s report indicated that foreign direct investments constituted 42 percent of the total inflow of international funds into the Kingdom, amounting to SR1.01 trillion.  

In March, Al-Falih indicated that multinational companies moving their headquarters to Saudi Arabia in 2023 to secure government contracts might be eligible for tax exemptions.  

The Kingdom’s industrial sector is among several witnessing a significant influx of foreign investments, which comprise 37 percent of the industry’s total funding.