Gas Is Stronger Than Politics between Algeria, Spain

The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)
The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)
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Gas Is Stronger Than Politics between Algeria, Spain

The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)
The Algerian president receives the Spanish Foreign Minister on September 30, 2021. (Algerian News Agency)

Algerian gas topped Spain’s gas imports during the first quarter of 2024 despite a trade rift between Algiers and Madrid over the Sahara conflict.

According to a report on gas imports published by El Espanol newspaper, Algerian gas accounted for 42 percent of Spain’s gas imports during the past three months, while imports from Russia reached 25.7 percent, and 18.2 percent from the US, during the same period.

The newspaper relied on data published by Enagas, the leading Spanish company in the field of transporting natural gas from abroad, and the technical supervisor of energy systems in Spain.

The company explained that the rise in the quantities of gas imported from Algeria was the result of the increase in the pumping through the Medgas pipeline, which connects the city of Beni Saf, in western Algeria, to the city of Almeria in southern Spain.

According to a report by the company, the flow of Algerian gas to Spain via Medgas, between January and March, increased by 15.4 percent compared to the same period in 2023, when the quantity reached 25.8 terawatts.

Algeria topped the countries supplying energy to Spain throughout 2023, with coverage reaching 29.2 percent of the country’s needs, ahead of the United States, which came in second.

Algeria had frozen foreign trade operations of products and services with Spain from June 2022 following an announcement by Spanish Prime Minister Pedro Sanchez that his country was siding with the Moroccan autonomy plan for Western Sahara.

Algeria strongly supports Polisario’s efforts to establish a Sahrawi state, causing a yearslong rift between Algiers and Rabat.

However, Algiers excluded gas from the decision to stop trade with Spain, as the two countries are bound by long-term energy contracts and any violation of these agreements would have resulted in the case being referred to international arbitration.



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.