Oil Updates — Crude steady; PetroChina’s net profit surges 62% to record high

Oil Updates — Crude steady; PetroChina’s net profit surges 62% to record high
Brent crude futures were up 20 cents, or 0.26 percent, to $78.48 a barrel at 10.50 a.m. Saudi time. (Shutterstock)
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Updated 30 March 2023

Oil Updates — Crude steady; PetroChina’s net profit surges 62% to record high

Oil Updates — Crude steady; PetroChina’s net profit surges 62% to record high

RIYADH: Oil was steady on Thursday as a surprise drop in US crude stockpiles offset a smaller-than-expected cut to Russian supplies, while investors closely watched developments on Iraqi Kurdistan oil exports.

Brent crude futures were up 20 cents, or 0.26 percent, to $78.48 a barrel at 10.50 a.m. Saudi time, while West Texas Intermediate crude rose 34 cents, or 0.47 percent, to $73.31 a barrel.

Producers have shut in or reduced output at several oilfields in the semi-autonomous Kurdistan region of northern Iraq following a halt to the northern export pipeline, with more outages on the horizon, company statements showed.

Shell names Tony Nunan as its first chief of staff

Shell Plc said on Thursday that Tony Nunan will undertake the newly created senior role of the chief of staff and corporate relations, while Cecile Wake would take over from Nunan as Chair of Shell Australia.

The chief of staff, the first in Shell’s 115-year-old history, is the biggest change made by CEO Wael Sawan to the top management since he took the helm on Jan. 1, with a promise to boost the oil major’s performance.

Under the new role, Nunan will report to Sawan and be based in London, the company said, adding that Wake would replace Nunan, effective May 22.

PetroChina’s 2022 net profit surges 62 percent to record high

PetroChina’s net profit jumped 62.1 percent to a record high last year as stronger energy prices more than offset weak demand for fuel and chemicals, China’s largest oil and gas producer said on Wednesday.

PetroChina’s net profit amounted to 149.38 billion yuan ($21.69 billion) last year, while revenue rose 24 percent to 3,239 billion yuan, the firm said in a filing to the Hong Kong Stock Exchange.

The state energy giant produced 2.1 percent more crude oil last year at 906.2 million barrels, and natural gas output rose 5.8 percent to 4,675 billion cubic feet.

Refinery crude throughput, however, dipped 1 percent last year to 1,213 million barrels, or 3.32 million barrels per day, as Chinese consumption of gasoline and aviation fuel took a hard hit from Beijing’s COVID-19 control measures.

PetroChina recorded a 6.5 percent drop in domestic sales of gasoline, diesel and kerosene combined.

“For 2023, the global economy is expected to continue to recover but at a slower pace and there are still many unstable and uncertain factors,” PetroChina said.

(With input from Reuters) 


Riyadh Airports CEO joins international aviation body

Riyadh Airports Co. CEO Musad Aldaood (File)
Riyadh Airports Co. CEO Musad Aldaood (File)
Updated 29 May 2023

Riyadh Airports CEO joins international aviation body

Riyadh Airports Co. CEO Musad Aldaood (File)

RIYADH: In significant global recognition of the Kingdom’s aviation sector, Riyadh Airports Co. CEO Musad Aldaood has been elected to the board of the Airports Council International, Asia-Pacific.   

This assembly of airport authorities is dedicated to improving airport operations and standards, representing their collective interests with international organizations like International Civil Aviation Organization and International Air Transport Association.  

The announcement was made during the 18th meeting of the ACI Asia-Pacific Assembly in Kobe, Japan. 

Aldaood joined leaders from airports across mainland Asia, Australasia, the Pacific Ocean islands and key North American points such as Vancouver, San Francisco and Hawaii.  

Commenting on his appointment, Aldaood said he was looking forward to working with other board members, the World Executive Committee, regional advisers, and the management team to continuously make airports a great and safe place for travelers and airport partners.   

“We will devote our expertise and efforts to improve the aviation sector, raise the aspirations and expectations, and work with relevant sectors in a joint and integrated manner to develop our work through the ACI World Governing Board, Asia-Pacific and the Middle East,” he said.  

Aldaood brings over 21 years of experience managing and operating King Khalid International Airport under the RAC.   

He also holds concurrent positions as the vice chair of the board of directors of Saudi Public Transport Co. and a board member of Altanfeethi Co., overseeing executive terminals and offices across the Kingdom’s airports.  


New shipping service added to Kingdom’s Dammam port

New shipping service added to Kingdom’s Dammam port
Updated 29 May 2023

New shipping service added to Kingdom’s Dammam port

New shipping service added to Kingdom’s Dammam port

RIYADH: Traffic at the King Abdulaziz Port in Dammam will soon ease thanks to the addition of Swiss-based Mediterranean Shipping Co.’s new service, the Saudi Press Agency reported.

The Upper Gulf Express shipping service aligns with the objectives of the National Transport and Logistics Strategy to position the Kingdom as a global logistics hub connecting three continents, the General Authority of Ports said. 

The shipping service connects Dammam with the ports of Abu Dhabi and Sharjah in the UAE as well as the Iraqi port of Umm Qasr.  

The service which is set to launch at the end of May also consolidates the position of the King Abdulaziz Port as the main port through which goods pass from all over the world. 

In January this year, the ports authority announced the launch of a new freight service at King Abdulaziz Port operated by MSC.    

The connection allows Dammam to enjoy weekly sailings to eight maritime destinations spanning the Arabian Gulf, South Asia, and Southern Africa.    

These include the ports of Khalifa bin Salman in Bahrain, Khalifa in the UAE, Qasim in Pakistan, Mundra and Hazira in India, Port Louis in Mauritius, and Durban and Coega in South Africa.    

The service started on Jan. 21 and features five vessels with an average carrying capacity exceeding 6,000 twenty-foot equivalent units.


UAE’s Dana Gas raises its foreign ownership limit to 100% 

UAE’s Dana Gas raises its foreign ownership limit to 100% 
Updated 29 May 2023

UAE’s Dana Gas raises its foreign ownership limit to 100% 

UAE’s Dana Gas raises its foreign ownership limit to 100% 

RIYADH: The UAE’s vision of strengthening its capital markets has become one step closer to reality as Sharjah-based energy company Dana Gas plans to raise its foreign ownership limit to 100 percent. 

Listed on the Abu Dhabi market, the firm announced that it had obtained the approval of the regulatory authorities to raise the percentage of foreign ownership from 49 percent to 100 percent of its capital, according to a regulatory filing on the Abu Dhabi Securities Exchange. 

The largest private sector natural gas company in the region disclosed that the move aligns well with the UAE’s new Commercial Companies Law that abolished a requirement that UAE nationals own 51 percent of onshore firms. 

“Opening our company fully to foreign ownership will support the UAE’s vision of strengthening its dynamic capital markets by attracting greater numbers of international investors and deepening market liquidity,” said Dana Gas Chairman Hamid Jafar in a press statement. 

According to Jafar, the company’s growth outlook remained rather sturdy in the Kurdistan region of Iraq, where the firm is seeking to increase production. 

It also maintained a strong growth outlook in Egypt, where the firm is working on maximizing the value of its assets by negotiating improved fiscal terms. 

However, Dana Gas’ recent earnings report was not favorable. The company generated a net profit of 183 million UAE dirhams ($50 million) in the first quarter of 2023 compared to 198 million UAE dirhams in the year-ago period. 

Profitability for the quarter dropped 7 percent compared to a 22 percent decline in the company’s realized prices. However, the impact of lower realized prices on the company’s profitability was partially offset by reduced operating costs by 14 percent. 

Revenue was 13 percent lower at 447 million UAE dirhams in the first quarter of 2023 compared to 513 million UAE dirhams in 2022.

The decrease in revenue, and subsequently net profit, was primarily due to a pullback in energy prices from high levels. 


Closing bell: Saudi stocks remain steady; TASI edges down 0.02%

Closing bell: Saudi stocks remain steady; TASI edges down 0.02%
Updated 29 May 2023

Closing bell: Saudi stocks remain steady; TASI edges down 0.02%

Closing bell: Saudi stocks remain steady; TASI edges down 0.02%

RIYADH: Saudi Arabia’s Tadawul All Share Index lost 2.38 points or 0.02 percent to close at 11,135.67 on Monday.

While the parallel market Nomu shed 45 points to close at 21,007.84, the MSCI Tadawul Index edged down by 0.58 percent at 1,483.55.

The total trading turnover of the benchmark index was SR4.76 billion ($1.27 billion) as 111 listed stocks advanced, while 95 retreated.

Yanbu Cement Co. emerged as the best performer as its share price surged by 8.05 percent to SR40.95.AYYAN Investment Co. and Saudi Pharmaceutical Industries and Medical Appliances Corp. were other top gainers, as their share prices advanced by 6.71 percent and 5.45 percent respectively.

Astra Industrial Group was the worst performer, as its share price dropped by 3.22 percent to SR72.20.

Leejam Sports Co.’s share price was down by 3.20 percent to SR114.80, while stocks of Naseej International Trading Co. dipped by 3.03 percent to close at SR48.

Mayar Holding Co. was the top gainer on the Kingdom’s parallel market. The company’s share price soared by 15.82 percent to close at SR79.80.

Future Care Trading Co. was the worst performer on Nomu, as its share price went down by 8.83 percent.

 


Russia ‘welcomes goods from Saudi Arabia’

Russia ‘welcomes goods from Saudi Arabia’
Updated 29 May 2023

Russia ‘welcomes goods from Saudi Arabia’

Russia ‘welcomes goods from Saudi Arabia’
  • Russia can significantly benefit from Saudi imports in a wide range of economic sectors, says Gruzdev

RIYADH: Russia is willing to import and procure good technologies and expertise from its partners, the deputy minister of industry and trade of the Russian Federation said on Monday.

Alexey Gruzdev spoke to Arab News on the sidelines of a high-profile forum that began in Riyadh aimed at identifying investment opportunities to boost economic ties between Saudi Arabia and Russia.

Made in Russia + Innoprom is a two-day event consolidating both nations’ commitment to mutually beneficial partnerships and sustained growth.

Stressing the importance of imports to his country, Gruzdev urged Russian companies to explore the vast opportunities Saudi Arabia has to offer.

“Russian companies should come here (Saudi Arabia) to investigate and understand the experiences and capabilities of the local producers and also to see the materials, components, and services that can be imported from Saudi Arabia to Russia,” Gruzdev said.

Replying to Arab News question about measures Russia took to address the trade imbalance with Saudi Arabia, Gruzdev said: “The reason we came here is to look into this great turnover and find a way to improve.”

He added: “It might sound strange that as a producing country, we also talk about imports, but this is the model of modern Russia; we are not only able to supply to the world, but we are also ready to import and procure good technologies and expertise from our partners.”

Gruzdev further explained that the country is now implementing an import substitution strategy to replace suppliers who try to impose sanctions on Russia with products and services from friendly countries.

He said: “This kind of substitution means that we welcome goods from Saudi Arabia to Russia.”

The minister said that Russia can significantly benefit from Saudi imports in a wide range of economic sectors.

“A big part is machinery,” Gruzdev added, “we can also benefit a lot from biotechnology, chemicals, components, and raw materials … there is a wide selection of interest.”

Gruzdev stated that Saudi businesses could benefit from Russia’s large mining, pharmaceuticals, technology, and aviation industries.

“I would also suggest Saudi companies (to) invest in Russian startups and innovative companies in information technology, cybersecurity, and renewable energy,” he added.

The event highlighted the immense opportunities in the digital economy and advanced technologies, emphasizing the necessity of collaboration in these burgeoning fields. The infrastructure has sector also emerged as a promising avenue for joint ventures.

On the first day of the event, Saudi Deputy Minister of Investment Badr Al-Badr stressed the importance of Saudi-Russia trade relations. He said Russia is the 14th largest exporter to the Kingdom.

“The trajectory of Saudi exports to Russia has not followed the same path; Saudi exports to Russia between 2017 and 2022 have grown only by about 30 percent,” Al-Badr said.

He added: “In 2022, the value of the Saudi export to Russia was only 2 percent of the value of imports from Russia. This is clearly a major opportunistic area for us.”

The Saudi deputy minister also underscored crucial sectors such as energy, technology, and infrastructure, underlining their significant potential for bilateral cooperation.

Another key focus was the pivotal role of the energy and mining sectors, with Saudi Arabia being the leading global oil exporter and Russia being a major oil and gas powerhouse.

These initiatives reflect the joint resolve of Saudi Arabia and Russia to boost economic ties, setting a new growth trajectory in the post-pandemic era.