Saudi Aramco to enter South American retail market with 100% Esmax acquisition

Saudi Aramco to enter South American retail market with 100% Esmax acquisition
Southern Cross Group Partner Raoul Sotomayor and Acting President of Aramco Europe Mansour Al Turki at the signing ceremony. (Supplied)
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Updated 17 September 2023
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Saudi Aramco to enter South American retail market with 100% Esmax acquisition

Saudi Aramco to enter South American retail market with 100% Esmax acquisition
  • Deal unlocks new market opportunities and advances Aramco’s global downstream expansion

RIYADH: Saudi-based Aramco, one of the world’s leading integrated energy and chemicals companies, has agreed to purchase a 100 percent equity stake in Esmax Distribuscion SpA from Southern Cross Group, a Latin America-focused private equity company.

The transaction is subject to certain customary conditions, including regulatory approvals, Aramco said in a statement issued on Friday.

Esmax is a leading diversified downstream fuels and lubricants retailer in Chile and its national presence includes retail fuel stations, airport operations, fuel distribution terminals and a lubricant blending plant.

Aramco’s planned acquisition of Esmax would be its first downstream retail investment in South America, recognizing the potential and attractiveness of these markets while advancing Aramco’s strategy of strengthening its downstream value chain.

 

 

The transaction would enable Aramco to secure outlets for its refined products and help expand its retail business internationally.

The acquisition would also further unlock new market opportunities for Valvoline-branded lubricants, following Aramco’s acquisition of the Valvoline global products business in February.

Mohammed Al-Qahtani, Aramco downstream president, said: “This agreement is yet another milestone in our strategy to grow Aramco’s downstream presence globally and expand our retail, lubricants and trading businesses.

“We are excited by the opportunities it presents, creating synergies with our extensive trading and manufacturing systems,” he said.

“Moreover, it creates a platform to launch the Aramco brand both in Chile and South America more broadly, unlocking significant potential to capitalize on new markets for our products,” he said.

“Esmax is a well-run business in Chile with more than 100 years of experience with quality assets and growth potential, Al-Qahtani said. “We are excited to have the outstanding people of Esmax join the Aramco family as we continue to execute on our downstream strategy.”


Saudi Aramco sets LPG contract prices for December

Saudi Aramco sets LPG contract prices for December
Updated 9 sec ago
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Saudi Aramco sets LPG contract prices for December

Saudi Aramco sets LPG contract prices for December

RIYADH: The Saudi Arabian Oil Co., also known as Saudi Aramco, kept the official selling prices for liquefied petroleum gas in December unchanged from the previous month, according to an official statement.

Aramco’s December OSP for propane is $610 per ton, while price for butane has been set at $620 per ton.

Propane and butane are types of LPG with different boiling points.

LPG is mainly used as a fuel for cars, heating and as a feedstock for other petrochemicals.

Aramco’s OSPs for LPG are used as a reference for contracts to supply the product from the Middle East to the Asia-Pacific region.


Saudi Arabia to extend voluntary cut of 1 million bpd to end of Q1 of 2024

Saudi Arabia to extend voluntary cut of 1 million bpd to end of Q1 of 2024
Updated 1 min 49 sec ago
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Saudi Arabia to extend voluntary cut of 1 million bpd to end of Q1 of 2024

Saudi Arabia to extend voluntary cut of 1 million bpd to end of Q1 of 2024

RIYADH: Saudi Arabia will extend voluntary cut of 1 million barrels per day starting from July to the end of Q1 of 2024, Saudi Press Agency reported on Thursday.

More to follow...


Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 

Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 
Updated 30 November 2023
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Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 

Saudi Arabia Railways, Al-Jabr enter 4-year vehicle transport deal 

RIYADH: Saudi Arabia Railways and Al-Jabr Automotive have collaborated to transport thousands of vehicles annually by train from King Abdulaziz Port in Dammam, aiming to boost operational efficiency, reduce costs, and minimize damage and carbon emissions.  

The four-year contract plays a significant role in enhancing the efficiency of operational processes, cutting expenses, and minimizing the incidence of damage related to the transportation and handling of new cars. 

Furthermore, it serves to alleviate pressure on the port, as reported by the Saudi Press Agency.  

The contract marks a pioneering milestone in the Kingdom, aligning with SAR’s strategic initiative to broaden the scope of transportation services.  

This endeavor aims to cater to diverse customer segments, showcasing the national railway company’s commitment to innovation in the sector.  

The deal also underscores SAR’s steadfast commitment to providing sustainable solutions in the transport and logistics sector. Aligned with the National Strategy for Transport and Logistics, SAR aims to reduce carbon emissions by 25 percent by 2030, in harmony with the Kingdom’s environmental initiatives. 

Looking forward to outreaching new customers to achieve a tangible impact on the environment and society, Bashar bin Khalid Al-Malik CEO of SAR pointed out that the agreement represents a milestone moment towards achieving the strategic vision of a comprehensive transformation within the transport and logistics sector. 

He said: “We are taking a significant step through this agreement. Not only we are expanding and diversifying the services provided to our customers but also offering logistical transport solutions that contribute to reducing carbon emissions and enhancing traffic safety levels,” he said. 

He further emphasized that the recent collaboration underscores their complete dedication to realizing sustainability goals and offering transportation solutions that consider the future of the nation and succeeding generations. 

According to its website, Al-Jabr Automotive occupies a leading position in the Saudi automobile market, having 28 showrooms and 38 fully-fledged service centers across the Kingdom.  

The company offers a wide spectrum of new and used KIA Motors cars as well as quality after-sales services. It boasts a large distribution network covering major regions in Saudi Arabia.


Closing Bell: Saudi main index rises to close at 11,177 

Closing Bell: Saudi main index rises to close at 11,177 
Updated 30 November 2023
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Closing Bell: Saudi main index rises to close at 11,177 

Closing Bell: Saudi main index rises to close at 11,177 

RIYADH: Saudi Arabia’s Tadawul All Share Index rose on Thursday, gaining 74.43 points, or 0.67 percent, to close at 11,177.48. 

The total trading turnover of the benchmark index was SR7.40 billion ($1.97 billion) as 124 of the listed stocks advanced, while 91 retreated.  

Similarly, the Kingdom’s parallel market Nomu also rose 153.56 points, or 0.61 percent, to close at 25,235.62. This comes as 22 of the listed stocks advanced, while as much as 30 retreated. 

The MSCI Tadawul Index saw a gain of 11.82 points, or 0.83 percent, to close at 1,442.03. 

The best-performing stock of the day was Maharah Human Resources Co. The company’s share price surged 6.31 percent to SR64. 

Other top performers included Al-Rajhi Company for Cooperative Insurance as well as Electrical Industries Co., whose share prices soared by 5.69 percent and 5.04 percent, to stand at SR171 and SR2.50 respectively. 

Other leading performers included Naseej International Trading Co. and Gulf Insurance Group. 

The worst performer was Al-Baha Investment and Development Co., whose share price dropped by 6.67 percent to SR0.14. 

Other poor performers were Saudi Pharmaceutical Industries and Medical Appliances Corp. as well as Jadwa REIT Saudi Fund, whose share prices dropped by 3.61 percent and 3.44 percent to stand at SR36.05 and SR12.36, respectively. 

Moreover, Development Works Food Co. and National Medical Care Co. also performed badly. 

On the announcements front, Saudi Cable Co. announced its annual financial results for the period ending on Dec. 31 2022. 

According to a Tadawul statement, the firm’s net profits reached SR584 million in 2022, reflecting a 201.93 percent drop when compared to 2021. 

The decline in net profits is mainly attributed to a liquidity issue that the firm was facing as a result of judicial enforcement orders filed against it by creditors and lenders. 

Consequently, during the period, the company was unable to use its bank accounts and could not execute and produce on hand orders that obtained from the market. 

On another note, on behalf of MBC Group, HSBC Saudi Arabia in its capacity as lead manager, announced the offering price range at SR23 to SR25 per share as well as the commencement of the institutional book-building period. 

A bourse filing revealed that the offering comprised the issuance of 33.25 million ordinary shares for public subscription, representing 10 percent of MBC’s share capital. 

Meanwhile, ​​Lumi Rental Co. announced that it has received a purchase order from The Royal Commission for AlUla to provide vehicle rental services based on the existing contract between the two firms. 

According to a Tadawul statement, the value of the purchase order is SR41.82 million and includes providing rental services for 264 vehicles by the company to RCU. 


Saudi Arabia studies graphite, rare earths trading platform — minister

Saudi Arabia studies graphite, rare earths trading platform — minister
Updated 30 November 2023
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Saudi Arabia studies graphite, rare earths trading platform — minister

Saudi Arabia studies graphite, rare earths trading platform — minister

LONDON: Saudi Arabia is exploring the potential launch of a new commodity trading platform for battery materials, including graphite and rare earths, its vice minister of industry and mineral resources said.

Riyadh’s efforts to build an economy that is not dependent on oil include a shift toward mining the country’s untapped mineral resources — worth about $1.33 trillion — including copper, lithium, phosphate and gold, but also investing in overseas assets.

“To be a minerals hub you have to have it all and we are studying a future minerals commodity exchange for graphite, rare earths, lithium, cobalt and even nickel, as there is no efficient commodity exchange nor price-finding mechanism for some,” Khalid bin Saleh Al-Mudaifer told Reuters in an interview.

The Kingdom has been studying setting up the trading platform for the past three months and it does not expect a decision to be made before the next six, Al-Mudaifer said.

“We don’t yet know if it would be feasible ... because the quantities are small and the specifications differ, it’s not as easy as aluminium or crude oil.”

There are currently no exchanges offering contracts for graphite or rare earth metals, both important materials for electric vehicle and the energy transition.

Lithium and cobalt can be traded on the London Metal Exchange and Chicago Mercantile Exchange.

“We are working with a number of consultants and also with the people who trade the commodities,” he said.

Saudi Arabia’s investment fund Manara Minerals, a joint venture between state-owned miner Ma’aden and the Public Investment Fund, was set up in January to buy assets overseas. It will prioritise copper, nickel, iron ore and lithium.

Its first major foray abroad was a deal to become a 10 percent shareholder in Vale’s $26 billion copper and nickel unit last July.