MIDEAST STOCKS Major Gulf bourses gain, Saudi Aramco's Q2 profit surges | Reuters
Major stock markets in the Gulf ended higher on Sunday, helped by a slew of corporate earnings, with the Abu Dhabi index closing at a new record high.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, with Al Rajhi Bank (1120.SE) gaining 0.7% and Dr Sulaiman Al-Habib Medical Services (4013.SE) advancing over 2% following an increase in quarterly net profit.
The healthcare firm also proposed a cash dividend of 0.70 riyal per share for the second quarter.
However, the index's gains were capped by losses at Saudi Telecom Company (7010.SE) and the kingdom's biggest lender Saudi National Bank (1180.SE), which were down 1.5% and 1%, respectively.
The two companies reported a higher second-quarter net profit, however, they saw a decrease sequentially in earnings.
Elsewhere, oil behemoth Saudi Aramco (2222.SE) added 0.3%.
Aramco reported a near four-fold rise in second-quarter net profit on Sunday, beating expectations and boosted by higher oil prices and a recovery in oil demand. read more
Aramco's net profit rose to 95.47 billion riyals ($25.46 billion) for the quarter to June 30 from 24.62 billion riyals a year earlier.
Dubai's main share index (.DFMGI) added 0.1%, supported by a 1.9% gain in logistic firm Aramex (ARMX.DU), reversing early losses.
On Thursday, the courier firm said quarterly net profit fell 31% due to the disruptive impact of the COVID-19 pandemic on global supply chains.
The company said the business continued to invest in digital transformation to improve efficiencies and adapt to consumer and industry trends.
In Abu Dhabi, the index (.ADI) advanced 1.1%, boosted by a 3.4% jump in conglomerate International Holding (IHC.AD) and a 0.6% increase in First Abu Dhabi Bank (FAB.AD).
The Qatari benchmark (.QSI) gained 0.4%, with Qatar National Bank (QNBK.QA), the Gulf's largest lender, rising 0.9%.
Among other gainers, Mesaieed Petrochemical Holding Co (MPHC.QA) climbed 2%, after reporting a net profit of 909.4 million riyals ($248.61 million), up from 135.1 million riyals a year earlier.
Outside the Gulf, Egypt's blue-chip index (.EGX30) inched up 0.1%, led by a 0.3% gain in top lender Commercial International Bank (COMI.CA).
Egypt's central bank kept its key interest rates unchanged at its monetary policy committee (MPC) meeting on Thursday, the bank said in a statement.
** Kuwait was closed for a public holiday.
Aramco Bucks Trend by Prioritizing Oil Output Over Dividends - Bloomberg
Saudi Aramco is bucking the trend among oil majors by spending the windfall from this year’s surge in energy prices on boosting production capacity rather than increasing returns for shareholders.
While Aramco will maintain its hefty $75 billion annual dividend -- the world’s largest and most of which goes to the government -- it’s so far resisting the path taken by other industry giants to dole out more to investors.
In the past two weeks, the likes of BP Plc, Chevron Corp. and Royal Dutch Shell Plc have said they will increase share buybacks and payouts, confident the worst of the coronavirus pandemic is over. The rise in commodities -- crude’s up around 40% this year -- is bolstering their bottom lines even as some scale back on exploration and new production.
It’s different for Aramco. The company, based in Dhahran in eastern Saudi Arabia, kept its payout unchanged last year, even as oil prices plunged and it needed to sell debt to meet the commitment.
Aviation jobs: Wizz Air plans to hire 4,600 pilots | ZAWYA MENA Edition
European budget carrier Wizz Air plans to launch a massive recruitment campaign to hire additional cabin crew and 4,600 pilots by 2030, to meet its expansion targets.
The airline had earlier established a joint venture with Abu Dhabi’s major holding company ADQ. In the past year, it has opened 18 new bases and kicked off more than 300 new routes across its network.
In a statement on Sunday, the carrier said it is looking to triple its fleet, with 500 Airbus aircraft expected in the next decade. As part of its growth strategy, the European airline has recently trained more than 150 new pilots to operate over 100 percent of pre-COVID capacity this summer, with upcoming plans to hire over 300 more by the end of 2021.
“We are pleased to be recruiting for thousands of new pilot positions at an exciting time for Wizz Air, as we continue to grow our presence across Europe and beyond,” said Heiko Holm, chief operations officer of the airline.
Holm said the airline provides competitive compensation to its flight crew, as well as opportunities to achieve improved work-life balance.
The recruitment drive is open to experienced captains and first officers, including those who have no flying experience at all. The airline’s Wizz Air Pilot Academy Program provides aspiring pilots the opportunity to obtain a commercial pilot’s license.
The airline did not specify how many cabin crew members it intends to hire.
Last December, Wizz Air Abu Dhabi announced that it would start flying to Athens, its inaugural destination, on January 2021. Airlines have incurred losses since the COVID-19 pandemic begun.
Maaden CEO: Continue to Expand Gold, Phosphate Production - Bloomberg
Abdulaziz Al Harbi, CEO of Maaden, discusses Maaden's 2Q21 quarterly results. The Saudi state miner's CEO also gives his outlook on the commodity market amid the Covid-induced volatility the sector is experiencing. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
JLL's Salbak on the UAE's Property Market Volatility - Bloomberg
Dana Salbak, Head of Research, MENA, at Jones Lang Lasalle, discusses the United Arab Emirates' residential and office market. Dubai's luxury real estate sector is booming for now, but research suggests the market might bottom out by next year. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
MIDEAST STOCKS Most Gulf bourses gain, Saudi Aramco's Q2 profit soars | Reuters
Most major stock markets in the Gulf rose in early trade on Sunday, supported by a slew of corporate earnings, although Dubai bucked the trend to trade lower.
Saudi Arabia's benchmark index (.TASI) edged up 0.1%, with Al Rajhi Bank (1120.SE) gaining 0.9% and Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 3.1% following an increase in its quarterly net profit.
However, the index's gains were capped by losses at the kingdom's biggest lender Saudi National Bank (1180.SE), which declined 1.9%.
The bank reported a higher second-quarter net profit, however, saw a decrease sequentially in earnings.
Oil behemoth Saudi Aramco (2222.SE) added 0.1%.
Aramco reported a near four-fold rise in second-quarter net profit on Sunday, beating expectations and boosted by higher oil prices and a recovery in oil demand. read more
Aramco's net profit rose to 95.47 billion riyals ($25.46 billion) for the quarter to June 30 from 24.62 billion riyals a year earlier.
In Abu Dhabi, the index (.ADI) advanced 1.1%, buoyed by a 4.6% jump in conglomerate International Holding (IHC.AD) and a 0.4% increase in top lender First Abu Dhabi Bank (FAB.AD).
The Qatari benchmark (.QSI) added 0.1%, with Qatar National Bank (QNBK.QA), the Gulf's largest lender, rising 0.6% and petrochemical firm Industries Qatar (IQCD.QA) was up 0.4%.
Elsewhere, Mesaieed Petrochemical (MPHC.QA) climbed 1.3%, after reporting a net profit of 909.4 million riyals ($248.61 million), up from 135.1 million riyals a year earlier.
Dubai's main share index (.DFMGI) dropped 0.3%, hit by a 0.4% fall in Emirates NBD Bank (ENBD.DU) and a 0.2% decrease in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
Among other decliners, Aramex (ARMX.DU) retreated 0.6%.
On Thursday, the courier firm said quarterly net profit fell 31% due to the disruptive impact of the COVID-19 pandemic on global supply chains.
Saudi Arabians Trapped at Home Lift Covid Blues for Business - Bloomberg
At Mamo Michelangelo, a French cuisine fine-dining spot in Riyadh, the next available dinner slot is in mid-September.
The restaurant’s reservations phone line that never stops ringing is evidence of the potent fuel propelling a Saudi economic rebound that’s defying gloomy forecasts: billions of dollars in “trapped spending,” money kept at home by some of the world’s tightest travel restrictions during much of the pandemic.
While many countries saw a major domestic spending boost during the health emergency, Saudi Arabia’s an outlier because its above-forecast growth can’t be attributed to stimulus.
The world’s largest oil exporter greeted Covid-19 with one of the most muted assistance packages in the G-20. Instead, it tripled value-added tax to shore up its finances and slimmed down an aid program for the poorest. The austerity approach sparked predictions of a prolonged slowdown.
Oil and gas: MENA capital spending unlikely to reach pre-pandemic levels for years | ZAWYA MENA Edition
Capital spending on oil and gas in the MENA region is set to rise, in line with the global recovery from COVID-19 and the unwinding of the OPEC+ deal, said Fitch Solutions in a report.
However, it will be many years until capex can recover to its pre-pandemic highs.
Few of the region’s national oil corporations report on capital expenditure (capex), but regional giant Saudi Aramco has indicated that it will raise its spending by 30 percent in 2021, to around $35 billion. “That said, this remains far below the $40-45 billion that was its guidance prior to the coronavirus,” the report said.
Spending and production outlooks will continue to diverge within the region, as the core GCC countries increasingly outperform the rest of the region. Saudi Arabia, the UAE, Kuwait and Qatar boast large and low-cost resource bases.
In light of spending pullbacks elsewhere, the four are well-positioned to regain global market share over the coming decade, driving robust spending growth, according to Fitch.
Saudi Aramco Q2 profit soars on higher prices, demand recovery | Reuters
Saudi Arabian state oil producer Aramco (2222.SE) reported a near four-fold rise in second-quarter net profit on Sunday, beating expectations and boosted by higher oil prices and a recovery in oil demand.
Aramco said its results were supported by the global easing of COVID-19 restrictions, vaccination campaigns, stimulus measures and accelerating economic activity in key markets.
Aramco joins other oil majors who have reported strong results in recent weeks.
Exxon Mobil (XOM.N) last month said its net income for the second quarter came in at $4.69 billion, or $1.10 per share, compared with a loss of $1.08 billion, or 26 cents per share, a year ago. read more
Royal Dutch Shell (RDSa.L) reported its highest quarterly profit in more than two years, with adjusted earnings at $5.53 billion, compared with earnings of $638 million a year earlier. read more
Oil prices, boosted by output cuts made by the Organization of the Petroleum Exporting Countries and their allies, a group known as OPEC+, closed at $70.70 a barrel on Friday and has gained over 35% since the start of the year.
"Our second quarter results reflect a strong rebound in worldwide energy demand and we are heading into the second half of 2021 more resilient and more flexible, as the global recovery
gains momentum," Aramco CEO Amin Nasser said in a statement.
Aramco's net profit rose to 95.47 billion riyals ($25.46 billion) for the quarter to June 30 from 24.62 billion riyals a year earlier.
Analysts had expected a net profit of $23.2 billion, according to the mean estimate from five analysts.
