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OPEC Expects its Market Share to Rise 40% in 2040

OPEC Secretary General Haitham Al-Ghais (Reuters)
OPEC Secretary General Haitham Al-Ghais (Reuters)
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OPEC Expects its Market Share to Rise 40% in 2040

OPEC Secretary General Haitham Al-Ghais (Reuters)
OPEC Secretary General Haitham Al-Ghais (Reuters)

OPEC Secretary General Haitham Al-Ghais said he expected the organization’s market share to increase from 30% to more than 40% by 2040.

The increase will come from production decreases from non-OPEC+ countries, Al-Arabiya quoted Al-Ghais as saying.

“This will happen after production decreases from countries outside OPEC+ or outside OPEC. The US production is expected to decrease by 2029-2030, as well as other countries,” he told the agency.

For his part, Kuwaiti Oil Minister Saad Al-Barrak told the Emirates News Agency (WAM) on Thursday that his country would invest more than $300 billion in the energy sector by 2040.

The OPEC energy ministers held a meeting on Wednesday to attend the eighth international OPEC conference in Vienna.

Participants in the meeting reviewed the market conditions and agreed to continue consultations with their non-OPEC counterparts, through the approved mechanisms, including the Meetings of the Joint Ministerial Monitoring Committee, and the ministerial meeting of OPEC and non-OPEC countries, in continuation of their efforts to support the stability and balance of oil markets.

During the meeting, the ministers expressed their appreciation to Saudi Arabia for extending its voluntary cut of one million barrels per day, to the month of August.

They also thanked Russia for the additional voluntary cut of 500,000 barrels per day in exports, and Algeria for the additional voluntary cut of 20,000 barrels per day in August.

Meanwhile, the Iraqi Oil Ministry said that Oil Minister Hayan Abdul Ghani met with his Saudi counterpart, Prince Abdulaziz bin Salman, on the sidelines of the OPEC conference.

The two officials underlined the importance of joint coordination between the member states of the OPEC and OPEC Plus to achieve stability in global oil markets.

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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
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Revenue Growth, Improved Operational Efficiency Boost Profitability of Saudi Telecom Companies

A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)
A man monitors the movement of stocks on the Saudi Tadawul index. (AFP)

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.