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Saudi’s Aramco recorded its second-highest annual net income ever in 2023, despite falling 25% y-o-y to USD 121 bn on waning oil prices and lower output, according to the oil giant’s latest earnings release (pdf). The firm’s revenues also decreased by 18% y-o-y to USD 440 bn over the same period, the company said in a Tadawul filing.
And dividends were up 30% throughout the year, with USD 98 bn paid out to shareholders. The Saudi government — which owns 82% of Aramco — relies heavily on the oil giant’s lofty payouts, including royalties and tax, to bridge a widening budget deficit and finance its diversification away from oil, as Crown Prince Mohamed Bin Salman looks to diversify the economy.
Market reax: Aramco’s shares were up 1.4% to SAR 32.20 a share by the end of trading yesterday.
KSA is attracting more international companies to set up HQs: Some 350 multinational companies — including PepsiCo, Boeing, PwC, and Unilever — have set up regional headquarters in Saudi Arabia to be eligible to bid on government contracts as required by the country’s regional headquarters program. Big banks have been slower to join the program, citing regulatory concerns. (Financial Times)
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ADX |
9,234 |
+0.1% (YTD: -3.6%) |
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DFM |
4,253 |
+0.4% (YTD: +4.8%) |
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Nasdaq Dubai UAE20 |
3,696 |
+0.1% (YTD: -3.8%) |
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USD : AED CBUAE |
Buy 3.67 |
Sell 3.67 |
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EIBOR |
5.0% o/n |
5.2% 1 yr |
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TASI |
12,618 |
+0.3% (YTD: +5.4%) |
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EGX30 |
32,919 |
+5.17% (YTD: +32.2%) |
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S&P 500 |
5,124 |
-0.7% (YTD: +7.4%) |
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FTSE 100 |
7,660 |
-0.4% (YTD: -1.0%) |
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Euro Stoxx 50 |
4,961 |
-0.3% (YTD: +9.7%) |
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Brent crude |
USD 81.81 |
-0.3% |
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Natural gas (Nymex) |
USD 1.83 |
+1.4% |
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Gold |
USD 2,178 |
0.0% |
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BTC |
USD 68,648 |
+0.2% (YTD: +62.7%) |
THE CLOSING BELL-
The DFM rose 0.4% yesterday on turnover of AED 773.9 mn. The index is down 3.6% YTD.
In the green: Gulf Cement (+9.8%), Hayah Ins. (+6.8%) and Sharjah Cement and Industrial Development (+4.6%).
In the red: Foodco National Foodstuff (-8.0%), E7 Group (-5.0%) and Aram Group (-4.5%).
Over on the ADX, the index closed up 0.1% on turnover of AED 258.4 mn. Meanwhile Nasdaq Dubai rose 0.1%.
GLOBAL MARKETS this morning: Hong Kong’s Hang Seng is the only Asian benchmark in the green this morning (+1.4% at dispatch time) as Asian shares sagged on the first day of trading this week. The Nikkei leads the losers, down 2.2% as we prepared to hit “send” on this morning’s issue.
The look ahead: Stock futures are down slightly after the Dow posted its worst week since October 2024. European benchmarks also seem set for a soft open later today.
CORPORATE ACTIONS-
Bayanat’s board of directors is set to approve its merger with Yahsat as well as changing Bayanat’s legal name to Space42, according to an ADX filing (pdf). The board will review the decisions at its meeting tomorrow.
Abu Dhabi Commercial Bank approved distributing dividends of 0.56 AED per share to shareholders for 2023, totaling AED 4.09 bn, according to an ADX disclosure (pdf). The bank also approved the renewal of a debt issuance program and the creation of new programs, with a cap of USD 8 bn.
