Saudi Arabia's Sabic: World’s Biggest Chemical Maker Sees Profit Slump in Q4 - Bloomberg
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The world’s biggest chemicals maker said profit margins would remain tight with the Chinese market yet to recover and the global economic downturn weakening demand for plastics and building materials.
Saudi Basic Industries Corp.’s net income dropped to 290 million riyals ($78 million) in the fourth quarter, down 94% year-on-year and the worst figure since the height of the coronavirus pandemic in mid-2020.
The stock fell 3.7% on Tuesday to 88.50 riyals, the biggest decline this year.
The ending of Covid lockdowns in China hasn’t led to a rapid rebound in consumption in the world’s second-largest economy, according to Abdulrahman Al-Fageeh, Sabic’s acting chief executive officer.
“Things in China are still roughly the same as they were in 2021,” he said to reporters. “So far we have not seen the high demand that was expected. It seems to me that the second quarter or the second half may witness the return of the Chinese market.”
Mideast Stocks: Most Gulf markets end higher on upbeat oil prices
Most Gulf stock markets closed higher on Tuesday, as a rise in oil prices and hopes for a solid economic rebound in China raised investors sentiments.
Crude prices - a key catalyst for the gulf's financial markets - rose 1.4% on Tuesday with Brent crude was up $1.19, to $83.64 at 1300 GMT. Expectations of demand recovery in the world's top oil importer China underpinned gains as economists polled by Reuters expected factory activity grew in February.
The benchmark index in Saudi Arabia climbed 1.1%, lifted up by gains in almost all sectors. Petrochemical maker Sahara International Petrochemical surged 4.3% after it reported a rise in full year profit. However, the index ended the month almost 6.6% down, erasing some of the gains from January.
In Abu Dhabi, the index rose 0.1% to post a monthly gain of 0.3%. The index was lifted by a 1.3% gain in real estate developer Aldar Properties and 2.4% rise in Abu Dhabi Islamic Bank. Al Yah Satellite Communications jumped 3.1% after its board proposed a final dividend of 8.06 fils per share, bringing total dividend for fiscal year 2022 to 16.12 fils per share.
Dubai's benchmark index ended 0.6% higher, registering a 4.1% monthly gain after closing the previous month in the red. The index was helped by gains in almost all sectors with blue-chip developer Emaar Properties surging 2.6% and Emirates Central Cooling Systems gaining 2.6%.
The Qatari index ended up 0.3%, aided by gains in financial and industrial sectors. The Gulf's biggest lender Qatar National Bank rose 1.9% and the index heavyweight Islamic banks Qatar Islamic Bank and Qatar International Islamic Bank gained 0.8% and 1.7% respectively. However, the index declined 3.3% on a monthly basis.
Outside the Gulf, Egypt's blue-chip index lost 0.6%, extending its losses to a second session. The index was dragged down by losses in financial and material sectors. Commercial International Bank and Misr Fertilizer dropped 2.4% and 6.2% respectively. However, the index is on track for a 3% gain this month, its fifth positive month in a row.
UAE: e& hikes stake in Vodafone to 14%
E& increased its equity ownership in Vodafone Group to 3.79 billion shares, which represents 14% of the latter’s share capital, excluding treasury shares.
The two entities carried out the stake hike process on 27 February 2023, according to a bourse filing.
Earlier this month, the UAE-based firm raised its shareholding in Vodafone to 13% from 12%, excluding treasury shares.
On 14 May 2022, e& acquired a 9.80% stake in Vodafone in order to anchor its exposure to global markets and back possible commercial partnerships.
Last year, the ADX-listed company, formerly known as Etisalat Group, recorded net profits attributable to the equityholders worth AED 10 billion.
Edmond de Rothschild Plans Dubai Hires With Eye on Mideast Money - Bloomberg
Edmond de Rothschild, the privately-held Swiss investment firm, may hire up to 10 people each year in Dubai after obtaining a key license in the Middle Eastern business hub.
The company is opening in the Dubai International Financial Centre with an advisory license and “eight extremely senior colleagues who recently joined us,” according to Saman Habibian, market leader for Edmond de Rothschild in the Middle East and Africa.
“The region is a very strategic market from growth point of view. We are planning to grow,” Habibian said in an interview with Bloomberg TV on Tuesday. “The number is second priority to us. We want to grow with experienced colleagues. That number could be anything between 5 and 10 on an annual basis.”
Dubai is emerging as a favored destination for hedge funds and financial firms, which are drawn by its ease of doing business, tax-free status and allure as a global travel hub. The financial center has said that it’s in talks with more than 50 hedge funds jointly managing over $1 trillion worth of assets about setting up.
Edmond de Rothschild plans to follow growth opportunities in the region and may eventually look at setting up in Saudi Arabia too, Habibian said.
Oil Price Heads for Fourth Monthly Drop as Fed Angst Eclipses China - Bloomberg
Oil headed for a fourth consecutive monthly decline as concerns about tighter monetary policy and swelling stockpiles in the US eclipsed optimism about rising demand in top importer China.
West Texas Intermediate ticked above $76 a barrel, but is still down more than 3% this month. Crude has been burdened in February as signs of sticky inflation in the US have spurred expectations the Federal Reserve will keep hiking. That’s aided the dollar, hurting commodities priced in the currency.
Oil prices have also been weighed down by rising US stockpiles, which are at the highest level since May 2021. As part of that increase, there have been builds in crude holdings at the key storage hub in Cushing, Oklahoma.
Saudi Wealth Fund Unit Backs Emkan Capital’s Technology Fund - Bloomberg
A unit of Saudi Arabia’s sovereign wealth fund is among investors in Emkan Capital’s $31 million tech fund that will back early-stage start-ups across the Middle East.
Jada Fund of Funds, which is wholly owned by the Public Investment Fund, invested in the Emkan Capital Fund I, Emkan general partner Ghassan Aloshban said in an interview. Emkan also received an investment from foreign investors including Ori Sasson, he said.
The fund will invest in pre-seed and seed-stage companies with high-growth potential in sectors such as fintech, e-commerce, and logistics, Aloshban said. It will also cover frontier sectors like artificial intelligence, cyber, cloud and health tech across the Middle East, North Africa and Pakistan region.
Saudi Arabia’s PIF has been plowing money into tech firms and startups as it seeks to build a venture capital industry and encourage young entrepreneurs to set up their own businesses to diversify the economy and create jobs. It created a $1 billion fund of funds for venture capital firms, and also invests directly through its subsidiary, Sanabil.
SABIC's quarterly profit slumps 94% on lower sales prices | Reuters
Saudi Basic Industries Corp (SABIC) (2010.SE), one of the world's biggest petrochemical companies, said on Tuesday its fourth-quarter net profit slumped 94% on lower average sales prices.
The company posted a net income of 290 million riyals ($77.28 million) in the three-month period ended Dec. 31, down from 4.97 billion a year earlier.
SABIC's shares fell 4% to 88 riyals in early trade in Riyadh following the results.
Prices across the company's main petrochemicals segments, chemicals, polyethylene and performance polymers were lower in the fourth quarter, SABIC said, adding that margins were expected to remain under pressure in the first half of 2023 amid slow demand.
Major Gulf bourses mixed, Saudi falls on weak earnings | Reuters
Gulf stock markets opened mixed on Tuesday as strong U.S. economic data fuelled concerns of further interest rate hikes by the U.S. Federal Reserve to tame high inflation, while Saudi Arabia's index fell on a slew of poor earnings.
Data on Monday showed U.S. core capital goods orders accelerated in January, beating forecasts, while contracts to buy previously owned U.S. homes rose the most in more than 2-1/2 years in January.
Monday's data comes after a hotter-than-expected personal consumption expenditure report on Friday, which reinforced expectations the Fed will need to stay on its hawkish path for longer.
Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror U.S. monetary policy changes.
Saudi Arabia's benchmark stock index (.TASI) dropped 0.2%, extending losses for an eighth-consecutive session. The index was weighed down by a 3.8% dive in petrochemicals firm Saudi Basic Industries Corporation (Sabic) (2010.SE).
Sabic posted a 94% slump in its fourth-quarter net profit to 0.29 billion riyals ($77.28 million) compared to a 4.97 billion riyals profit a year-ago.
Annual net income attributable to shareholders for 2022 came in at 16.53 billion riyals ($4.40 billion), down 28% from the previous year.
Sahara International Petrochemical (Sipchem) (2310.SE) also fell 0.7% after reporting slightly lower net profit of 3.60 billion riyals ($959.33 million) in fiscal year 2022, compared to 3.59 billion riyals ($956.67 million) a year ago.
Among other stocks, National Industrialization's (Tasnee) (2060.SE) annual profit halved to 666.3 million riyals ($177.56 million).
Dubai's benchmark stock index (.DFMGI) edged down 0.2%, dragged down by properties and utilities stocks, with blue-chip developer Emaar Properties shedding 0.9% and TECOM Group (TECOM.DU) losing 1.7%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) edged up 0.2%, led by a 1% increase in United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB) (FAB.AD) and a 1.2% hike in Telecoms firm e& (EAND.AD), formerly known as Emirates Telecommunications.
The Qatari Stock index (.QSI) edged up 0.2%, supported by its industrial and financial stocks.
Petrochemical maker Industries Qatar (IQCD.QA) added 0.9%, while Qatar National Bank (QNBK.QA), the Gulf largest lender, was up 0.2%.
Qatar Gas Transport Nakilat (QGTS.QA) also gained 1.4%.
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