RIYADH: Abu Dhabi-based ADNOC Drilling’s net profit surged 34 percent to $379 million in the first half of 2022, as the firm’s revenue rose amid a continued fleet expansion program.
The half-yearly revenue of ADNOC Drilling, a unit of Abu Dhabi National Oil Co., increased 13 percent at the end of June to $1.27 billion, according to a press release.
The release added that the net profit to $204.85 million, while the revenue increased 11 percent to $669 million in the second quarter of 2022.
The company’s board has also approved an interim dividend rise of 5 percent to $341 million, which translates into 7.83 fils per ordinary share.
“Excellent half-year results and successful strategic execution are testaments to the vital role that the company is playing in enabling significant production capacity growth for ADNOC as well as the UAE’s objective to achieve gas self-sufficiency,” said Sultan Ahmed Al Jaber, UAE minister of industry and advanced technology and chairman of ADNOC Drilling.
Abdulrahman Abdullah Al Seiari, CEO of ADNOC Drilling said: “The rigs we have added to our fleet in the first half will support us in delivering on our resolute commitments to our shareholders, including ADNOC, as it works toward its production capacity targets and gas self-sufficiency for the UAE.”
LONDON: The declining strength of Sterling has created a window of opportunity in London for investors from the Middle East, according to property consultancy JLL.
Sterling buyers are paying 35 percent more now for London properties than they were eight years ago but those purchasing in US dollars are paying 3.8 percent less.
In June 2014, a US buyer would have had to pay $1.7 million for a £1 million property in London. The weaker pound means at the end of June this year, a £1 million property in the city would have cost only $1.2 million.
Exchange rate forecasts from Oxford Economics predict the pound will strengthen against the dollar between now and 2026, suggesting that this is the perfect time for overseas buyers to take advantage of the currency-exchange benefits that are available.
Analysis of passenger arrivals at London’s Heathrow Airport show that the number of visitors from the Middle East has recovered to pre-pandemic levels. In fact, the number of passengers arriving from the region in May was 1 percent higher than the pre-pandemic average, and 2 percent higher in June.
“The weaker sterling, alongside the safe-haven status usually associated with UK real estate, is driving and will continue to drive investment here,” said JLL’s Alex Carr.
“This return of overseas demand at present is particularly apparent among purchasers from the Gulf states, who are traveling back here for the first time in two years.
“London has always, historically, been a safe haven for wealthy individuals from Gulf states who are looking to diversify their assets, being one of the most resilient and transparent property markets in the world.”
London’s upscale Kensington district reportedly has experienced a significant increase in inquiries and applications from buyers in the Middle East.
“It was evident in May that demand was building, with increased communications from prospective (Middle Eastern) buyers who were preparing for their return to the UK following two years of travel restrictions,” said JLL’s Thomas Middleditch.
“A lot of these individuals have kept in touch over the course of the pandemic to stay informed on the market, yet as most are tangible buyers they have waited until they are in a position to physically return to the UK before inquiring about specific properties.
“Kensington has always been popular among Middle Eastern buyers and considered a low-risk investment given its location and established address.”
LONDON: Spain’s Ferrovial is looking at options for its 25 percent stake in London’s Heathrow, two sources told Reuters, and has held preliminary talks with external advisers on the future of its holding in Britain’s biggest airport.
The early stage discussions come amid interest in Ferrovial’s stake from private equity firm Ardian, which has held talks with its own advisers on a possible joint proposal with Saudi Arabia’s Public Investment Fund, these sources and another person familiar with the matter said.
Ferrovial has yet to take a final decision and the discussions may not result in a sale, all the sources said.
Heathrow is worth about €24.3 billion ($25 billion), including debt.
Qatar Investment Authority, which has a 20 percent stake in Heathrow, is the second biggest investor in the busy British airport.
Shares in the Madrid-listed firm rose as much as 4.2 percent on the Reuters report. At market close they were up 3.7 percent, scoring their second best day in five months and making them the third best performing stock across the pan-European STOXX 600 index.
Ferrovial and Ardian both declined to comment while PIF did not immediately respond to a request for comment.
Heathrow is worth about €24.3 billion ($25 billion), including debt, JPMorgan analysts calculated in May. By JPMorgan’s estimates, Ferrovial’s Heathrow holding has an equity value of €611 million.
But Insight Investment Research analyst Robert Crimes had a less conservative approach and told Reuters the equity value of Ferrovial’s 25 percent stake in Heathrow could be close to €2 billion, well above analysts’ consensus. He said Ferrovial’s stock has yet to reflect the post-pandemic recovery in traffic volumes and inflation-linked returns.
Heathrow, which Aviation data firm OAG said was the world’s fifth busiest airport in July, was hard hit by coronavirus lockdowns, but raised its 2022 traffic forecast to 54.4 million passengers in June after a travel rebound.
Last month Heathrow, like some other airports in Europe, asked airlines to stop selling tickets for summer departures and capped passenger numbers to limit queues, baggage delays and cancellations as it struggled with pent-up demand.
Madrid-based Ferrovial, which controls Spanish transport infrastructure developer Cintra and has stakes in motorways in the US and Canada, has been invested in Heathrow airport for 16 years and ranks as its single largest investor.
Qatar Investment Authority, which has a 20 percent stake in Heathrow, is the second biggest investor in the busy British airport, while Caisse de dépôt et placement du Québec, Singapore’s wealth fund GIC and China Investment Corp. also have sizeable holdings.
QIA declined to comment while CDPQ, GIC and China Investment Corp. were not immediately available.
NEW YORK: Oil edged up on Tuesday, reversing an early decline as worries about tightening supply were revived after Russia said oil exports to Europe on the southern leg of the Druzhba pipeline had been suspended since early August.
Russian pipeline monopoly Transneft said Ukraine had suspended oil flows via the pipeline leg because Western sanctions had prevented a payment from Moscow for transit fees from going through.
“Not that we need it at this point, but it’s another reminder of how tight the market is and how sensitive the price is to supply disruptions, particularly those from Russia,” said Craig Erlam of brokerage OANDA.
Brent crude was up $1.01, or 1.1 percent, to $97.66 a barrel at 11:30 a.m. EDT (1503 GMT), a sharp rebound from the session low of $94.90. US West Texas Intermediate crude gained 75 cents, or 0.8 percent, to $91.51 a barrel, bouncing from the session low of $89.05.
Oil also got a boost from a weaker US dollar. The dollar index, which measures the currency’s value against a basket of peers, was 0.23 percent lower at 106.09 at 10:25 a.m. ET (1425 GMT). Traders awaited a US inflation report on Wednesday.
Until the Druzhba news, mounting fears that a recession could cut oil demand had offset support for crude prices from tight supply and progress in talks to revive the Iran nuclear accord.
“Early selling had been prompted by a renewed prospect of Iranian nuclear discussions that could eventually facilitate resumption of oil exports out of Iran,” said Jim Ritterbusch, president of Ritterbusch and Associates LLC in a note, but added that he considered an imminent deal unlikely.
RIYADH: Saudi Arabia’s General Authority for Competition on Tuesday announced its approval for Zamil Development Co.’s acquisition of Itqan Capital.
Itqan Capital is a Saudi closed joint-stock company.
The #General_Authority_for_Competition issued a No Objection Certificate with respect to the completion of the economic concentration transaction between:
ALZAMEL DEVELOPMENT HOLDING pic.twitter.com/V6Ca2i4Me9
RIYADH: South Korea’s steel firm SeAH Group has partnered with Saudi Aramco to boost its expansion plans in the Middle East, according to the Korea Economic Daily.
The group’s special steel maker, SeAH Besteel Corp. has established the joint venture SeAH Gulf Special Steel Industries with the Saudi oil giant.
The JV is set to start building the factory, with an annual capacity of 17,000 tons, in the fourth quarter of 2022. Commercial operations are likely to begin in the first half of 2025.
“We will actively explore the Middle East market with various products such as stainless steel precision tubes and seamless stainless steel pipes,” said a SeAH Changwon official.