#Saudi Oil Rigs Slump to Lowest in 20 Years, Outpaced by Gas - Bloomberg

Saudi Oil Rigs Slump to Lowest in 20 Years, Outpaced by Gas - Bloomberg

Saudi Arabia’s oil drilling units declined for a sixth straight month, reaching its lowest level in over two decades, as investments in natural gas projects gain momentum.

Saudi Arabia’s oil rig count fell to 20 in July from 46 in early 2024, the lowest since February 2005, according to Baker Hughes data. The number has been on an 18-month downward trajectory, following Riyadh’s decision to scrap plans to boost Aramco’s capacity to 13 million barrels a day, keeping it at 12 million instead.

Several oilfield expansion projects to help maintain capacity “are finished or are mostly done,” said Robin Mills, founder of Dubai-based consultant Qamar Energy. “They can also slow down production maintenance on some of their older and larger fields.”

As the world’s biggest oil exporter, the number of rigs operating in Saudi Arabia is an important metric for global markets as it offers a glimpse into future supply dynamics. While the drilling installations targeting oil have slumped, those seeking gas have climbed as the country seeks to produce more of the cleaner fuel for its own consumption, and eyes future exports.

Saudi Arabia aims to save about 1 million barrels of crude daily by 2030, by using natural gas as a fuel instead. Aramco Chief Executive Officer Amin Nasser said on May 12 that more than 50% of the company’s upstream spending was for gas, rather than oil projects.

The Jafurah gas project is a crucial part of that plan with the first 650-million-cubic-feet-per-day phase slated to start up by the end of this year. Execution of phase 2, scheduled to start operating in two years’ time, as well as a gas pipeline project to reinforce supplies to the kingdom’s power plants and industry will be crucial to meeting its targets.
Gas Exports

Saudi Arabia also wants to tap into growing global demand for natural gas. It previously said it would export gas as blue ammonia, but it’s since scaled back those plans and is considering considering alternative ways to export the gas.

While Saudi Arabia’s unconventional gas development program has offset some of oil’s decline, rig suppliers are feeling the pinch from lower demand.

Olivier Le Peuch, chief executive officer of services company SLB, attributed some of the reason for his company’s flat quarter-on-quarter revenue to a slump in Saudi Arabia. “Activity has declined ahead of our expectations with several additional rigs being demobilized,” he said in June.

Saudi Aramco said it signed 23 gas rig contracts worth $2.4 billion in June. Another package of drilling expected to be awarded in the first quarter of this year is now anticipated in the fourth quarter, said Rahul Choudhary, a researcher at Rystad Energy A/S.

Rig suppliers also need to contend with lower demand stemming from rigless operations at mature fields, Choudhary said. “For mature onshore fields like Ghawar and Khurais, with low decline reservoirs, traditional drilling gives way to wireline and coiled‑tubing interventions instead of new rigs.”

#Kuwait Petroleum annual profit slips 5.8% on lower crude prices | Reuters

Kuwait Petroleum annual profit slips 5.8% on lower crude prices | Reuters

State-owned Kuwait Petroleum Corporation posted a net profit of 1.366 billion dinars ($4.47 billion) for the fiscal year ended March 31, down 5.8% year-on-year according to Reuters calculations based on the company's latest annual report.

The company and its subsidiaries posted a net profit of 1.450 billion dinars in the previous fiscal year.

KPC did not give a reason for the decline, but lower oil prices likely dented returns. The average price of Kuwaiti crude fell 5.5% to $79.70 per barrel during the 2024/25 fiscal year, down from $84.40 a year earlier, according to Kuwait-based financial advisory firm AlShall.

Despite the drop in profit, KPC subsidiary Kuwait Oil Company achieved its annual production target for the first time in seven years, with sustainable capacity reaching 2.59 million barrels per day, the report said.

Kuwait Oil Company is the country's main crude producer, alongside Kuwait Gulf Oil Company, which operates in the Neutral Zone shared with Saudi Arabia.

The report described the production milestone as "a major operational achievement" and noted that heavy crude output reached 95,000 bpd — its highest level since the heavy oil project began in 2020.

#Oman’s OQ Group secures first-ever S&P ‘BBB-’ rating

Oman’s OQ Group secures first-ever S&P ‘BBB-’ rating

International ratings agency S&P Global Ratings has assigned a 'BBB-' global scale issuer credit rating and a 'gcAA-' Gulf Cooperation Council (GCC) regional scale rating to OQ SAOC, the wholly government-owned integrated energy group operating under the umbrella of Oman Investment Authority (OIA).

This marks the first time OQ Group has received a public rating from S&P. Commenting on the announcement in a post on Thursday, July 31, 2025, the Group stated that the rating affirms “OQ’s position as a national energy leader committed to long-term resilience and value creation.”

“The assessment highlights OQ’s strong liquidity position, disciplined capital structure, and key role in supporting Oman’s economic diversification and energy transition under Vision 2040,” the company added.

S&P said its assessment of OQ's business risk profile reflects its vertically integrated operations across the hydrocarbon value chain, with efforts to diversify and enhance its asset base. In 2024, upstream accounted for 60% of reported EBITDA, downstream 37%, and other segments—including alternative energy, marketing, manufacturing, and corporate functions—3%.

The agency noted that most of OQ’s assets are located within Oman (rated BBB-/Stable/A-3), benefiting from the country’s robust energy infrastructure. This provides feedstock security, particularly for its refining and petrochemical operations. A well-established trading arm supports both upstream and downstream segments by off-taking production and sourcing feedstock, enhancing operational flexibility.

OQ’s downstream capacity was significantly boosted following the final completion of the 230,000-barrel-per-day Duqm (OQ8) refinery in April 2025. Developed as a 50:50 joint venture with Kuwait Petroleum (Europe), the refinery represents a major strategic milestone for the group.

S&P further highlighted OQ’s government-backed mandate to promote economic diversification and investment in Oman. Through its subsidiary, OQ Alternative Energy, the company is investing in renewable energy projects, many of which are expected to be developed in partnership with private players, with OQ retaining up to 50% ownership. Final investment decisions on several of these initiatives are expected in 2025 and 2026.

Since 2021, OQ has significantly improved its balance sheet, reducing gross debt by over 45%—from RO 5.3 billion to RO 2.9 billion by end-2024. This deleveraging, supported by strong operating cash flows and nearly RO 2 billion in IPO and divestment proceeds over 2022–2024, underpins its robust credit profile, even amid expectations of a weaker market in 2025–2026. S&P expects funds from operations (FFO) to debt to remain solid at 50%–53% in 2025 and 54%–57% in 2026.

Despite planned capital expenditure of RO 700–800 million annually in 2025 and 2026, including investments in maintenance and alternative energy projects, OQ is projected to generate positive free operating cash flow (FOCF) of RO 125–175 million in 2025 and RO 150–200 million in 2026. This is supported by its strong liquidity, including RO 3 billion in cash and cash equivalents, largely placed in interest-bearing short-term deposits, the agency noted.

OQ maintains a conservative financial policy, targeting net debt to EBITDA of 2.0x–2.5x and keeping Funds from Operations (FFO) to debt above 55%. Annual dividends are set at RO 289 million, with additional payouts dependent on divestment proceeds. Distributions from 2026 onward are expected to remain balanced with performance, leverage, and investment priorities, S&P added.

TECOM Group reports $200.6mln net profit in H1 2025

TECOM Group reports $200.6mln net profit in H1 2025

TECOM Group announced its financial results for the first half (H1) of the year ending 30th June 2025. The Group reported robust net profit growth of 22 percent year-on-year (YoY) to AED737 million, with revenue rising 21 percent YoY to AED 1.4 billion during the period.

TECOM Group noted a YoY 24 percent increase in EBITDA, which reached AED1.1 billion, maintaining healthy EBITDA margins at 80 percent, reflecting sustainable business growth.

Funds from operations (FFO) increased by 17 percent YoY to reach AED984 million, supported by consistent collections and improved revenue quality.

The Board of Directors approved an interim dividend payment of AED400 million for H1 2025, in line with the approved Dividend Policy valid until September 2025.

Malek Al Malek, Chairman of TECOM Group, said the results reflect the Group’s resilience and its ability to keep pace with the economic growth witnessed in the UAE. He added that TECOM continues to enhance its operational efficiency and deliver sustainable value to shareholders.

Abdulla Belhoul, Chief Executive Officer of TECOM Group, said, “Our financial and operational growth in H1 2025 reflects the success of TECOM Group’s roadmap for long-term growth through our recent strategic investments and attracting new customers. The Group’s robust performance is a step forward in our journey to enable a sustainable future through our ecosystems, solidifying the UAE’s and Dubai’s appeal as a global destination for investment and the ease of doing business.”

Occupancy in the Group’s Land Lease portfolio reached 99 percent, marking YoY growth of 3 percent led by strong customer demand from the industrial sector, accelerated by government strategies such as Operation 300bn, Make it in the Emirates, and Dubai Economic Agenda ‘D33’.

In April, PayPal opened its first regional headquarters in the Middle East and Africa at Dubai Internet City, the pioneering hub uniting global tech industry leaders and talent which today generates 65 percent of Dubai’s technology sector GDP.

In May, Pure Ice Cream commenced construction on its AED80 million production facility at Dubai Industrial City, cementing its vital contribution towards developing the UAE’s industrial sector.

TECOM Group continued its commitment to nurturing sustainability across its ecosystems and raised the number of its LEED-certified buildings to 55 during H1 2025, marking 34 percent growth compared to H1 2024.

The Group made steady progress towards renewable energy adoption, with its solar power projects contributing 8 gigawatt hours (GWh) of clean energy.

Aligned with the UAE’s vision to strengthen gender balance in the private sector, 35.4 percent of the Group’s workforce is comprised of women.

TECOM Group has been awarded Shariah compliance certification by the Shariyah Review Bureau (SRB) for the fiscal period ending 31st March 2025.

Mideast Stocks: #UAE markets decline over profit booking and tariff tensions

Mideast Stocks: UAE markets decline over profit booking and tariff tensions

United Arab Emirates markets declined on Friday, mirroring losses in global equities, after the U.S. slapped steep tariffs on dozens of trading partners, while investors await U.S. jobs data that could impact the Federal Reserve rate cut decision.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, while Japan's Nikkei closed 0.7% lower. Late on Thursday, President Donald Trump signed an executive order imposing tariffs of 10% to 41% on U.S. imports from foreign countries, including 25% on goods from India, 20% from Taiwan, 19% from Thailand and 15% from South Korea.

The Fed's decisions impact monetary policy in the Gulf, where most currencies, including the Saudi riyal, are pegged to the U.S. dollar.

Dubai's main index dropped 0.8%, retreating for a second straight session, as investors booked profits after the index surpassed a 17-1/2-year high, with top lender Emirates NBD Bank falling 2.4% and toll operator Salik Company decreasing 1.1%. However, maritime and shipping company Gulf Navigation Holding surged 5.8% after it raised the foreign ownership limit to 100% from 49%.

Abu Dhabi's benchmark index settled 0.5% lower, snapping a five-session winning streak after reaching its highest level in over two and a half years earlier in the week.

The downturn was led by a 3.4% decline in Abu Dhabi Commercial Bank, the UAE's third-largest lender. Commercial Bank International also slumped 7.8% after reporting a 5% decrease in second-quarter profit to 42.6 million dirhams ($11.60 million).

Nevertheless, losses in the index were partially capped by a 5.1% jump in IHC-owned investment firm Multiply Group as investors continued to buy dips after sluggish earnings last week.

National Bank of Fujairah also climbed 9.6%, its biggest single-day gain since early February, following a 67% growth in its Q2 profit. Oil prices - a key catalyst for the Gulf's financial market - slipped 0.9% to $71.03 a barrel by 1136 GMT.

Dubai and Abu Dhabi indices ended their five-week winning streaks with weekly declines of 0.6% and 0.2% respectively, but still posted strong monthly gains with Dubai clinching 8%, its highest in over four years, and Abu Dhabi climbed 4.2%, its highest in more than two years, according to LSEG data.