Sabic approves $1.8bn in first-half dividend
The board of Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals company, approved a dividend of 6.75 billion Saudi riyals ($1.8bn) for the first half of 2022, as the company continues to post profits amid a market recovery.
The first-half cash dividend of 2.25 riyals a share represents 22.5 per cent of the nominal share value and will be distributed to eligible shareholders on October 2, Sabic said in a statement on Sunday to the Tadawul Stock Exchange, where its shares are traded.
The dividend will be distributed to shareholders “who own the company shares on the eligibility date and enrolled in the company's register at Securities Depository Centre Company (Edaa) by the end of the second trading day following the due date, corresponding to September 11, 2022”, the company said.
Sabic is majority-owned by the world’s largest oil-exporting company, Saudi Aramco, which acquired a 70 per cent stake in the company in 2020 for $69bn.
Saudi Arabian Stocks Tumble as Oil, Rates Roil Mideast Equities - Bloomberg
Saudi Arabia’s benchmark stock index headed for the longest losing streak since 2020, following a global sell-off in equities last week and after oil fell the most in three months on Friday. Stocks in Qatar and Kuwait also declined.
Gulf equities are selling off due to the impact of higher interest rates could have on the demand of commodities, said Jassim Al-Jubran, head of sell-side research at Riyadh-based Aljazira Capital. “The current hit is driven by panic and partially by margin calls.”
However, Al-Jubran said he doesn’t “expect the current declines in the Saudi market to sustain for long time as we start to see a good potential in some sectors with the current decline.”- Tadawul All Share Index dropped as much as 3.8% to the lowest since January; the benchmark has retreated for the past six days
- All 14 sectors traded lower, while over 200 out of 211 stocks on the benchmark fell
- Aramco contributed the most to the index decline, decreasing 3.1%
- West Texas Intermediate on Friday dropped to $109.56, shedding 6.8%, the biggest daily drop since March as US Fed Chair Jerome Powell doubled down on his determination to curb the hottest inflation in decades with more aggressive rate hikes
- Fears that rising interest rates and a slowdown in economic growth will lead to demand destruction have gripped the market but in the long run, supplies still look tight, market participants said
- State-owned Aramco is still the world’s biggest listed entity with a market value of $2.18 trillion compared with $2.13 trillion for Apple
Qatar Energy partners with Eni for North Field East LNG project | Reuters
Qatar Energy signed a partnership deal with Eni (ENI.MI) on Sunday for the North Field East expansion of the world's largest liquefied natural gas (LNG) project, having announced a deal with TotalEnergies earlier this month.
Qatar Energy CEO Saad al-Kaabi said the joint venture with Eni would own 12.5% of the North Field East expansion. Eni would own 25% of the joint venture, Kaabi told a news conference, giving the Italian producer a 3.12% stake in the expansion.
Qatar is partnering with international energy companies in the first and largest phase of a nearly $30 billion expansion of the North Field project. read more
Kaabi said the first gas from the North Field East expansion is expected in early 2026.
Mideast’s Largest Crypto Platform Trims Staff Amid Market Tumult - Bloomberg
BitOasis, the Middle East’s largest local crypto platform, reduced its headcount by about 7% this past week, the latest sign of stress at some of the region’s biggest digital-asset exchanges.
“Earlier this week, nine employees were made redundant across offices in Dubai, Abu Dhabi and Amman,” Chief Executive Officer Ola Doudin said in a message to Bloomberg. “As the market slows down we ensure to stay focused on execution and growing our footprint across the region.”
HSBC Oman to hold talks on possible merger offer from Sohar International Bank | Reuters
HSBC Bank Oman (HBMO.OM) said on Sunday it would hold preliminary talks with local rival Sohar International Bank (BKSB.OM) after the latter last week held out the possibility of a cash-and-shares deal to merge the two lenders.
In a statement the unit of UK-based HSBC Holdings (HSBA.L) said it had considered the letter of intent it received from Sohar and had agreed to engage in preliminary discussions to obtain more information on the possible offer.
"If the parties agree to proceed with the merger, it will be subject to various conditions including ... approval of the relevant regulatory authorities and of the shareholders at the extraordinary general assembly of each bank," it added.
Sohar has so far given no details of the terms of its possible offer, saying only that its board had decided to explore the possibility of a cash and shares deal, subject to various approvals.
