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Eni to Invest $7.7 Bn in Egypt’s Energy Sector

An offshore gas platform of the Italian company Eni. (Getty Images)
An offshore gas platform of the Italian company Eni. (Getty Images)
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Eni to Invest $7.7 Bn in Egypt’s Energy Sector

An offshore gas platform of the Italian company Eni. (Getty Images)
An offshore gas platform of the Italian company Eni. (Getty Images)

Eni Energy Company President Claudio Descalzi said the Italian company and its partners intend to inject new investments into Egypt over the coming four years at a value of $7.7 billion.

The investment reflects the Italian energy company’s commitment to boosting its successful projects in Egypt.

Egypt’s President Abdel Fattah al-Sisi received Descalzi during a meeting attended by Minister of Petroleum and Mineral Resources Tarek El-Molla and senior Eni officials.

Descalzi underscored Egypt’s great importance as one of the significant markets for Eni’s activities and business worldwide, given the promising opportunities in its energy sector, noting the state and president’s interest in upgrading this vital sector and maximizing its revenues.

Descalzi reviewed the company’s upcoming search and exploration plans and development operations activities. He also highlighted the progress achieved in energy efficiency and sustainability projects related to the energy transition, in line with the Memorandum of Understanding (MoU) signed in March 2023.

Presidency Spokesman Ahmad Fahmy said Sisi underscored the outstanding Egyptian-Italian relations and the longstanding partnership with Eni.

He praised the numerous activities the company has implemented in Egypt at the highest global standards.

He said he looks forward to further advancing the fruitful cooperation between Egypt and Eni in search, exploration, development, and production to leverage the national resources in the energy sector and enhance the vast successes.

Meanwhile, Prime Minister Mostafa Madbouly held a meeting to discuss procedures of the new incentive package for industrial investment ordered by Sisi.

The meeting was attended by Minister of Trade and Industry Ahmed Samir, Chairman of the General Authority for Industrial Development Mohamed Abdel Karim, and Executive Director of Industrial Modernization Center Doaa Salima.

The Minister of Trade explained that the new incentives to push industrial investment aim to achieve one or more goals that include deepening local manufacturing.

They are also devised to attract investments in production input industries, cover local needs for strategic goods, especially pharmaceuticals, shrink the trade balance deficit, reduce the demand for the dollar for import operations, expand exports, and increase employment rates.

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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.