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Offshore Oil and Gas Exploration Equipment Arrives in Beirut

Energy Minister Nada Boustani inspects Total's oil and gas exploration equipment at Beirut port. (Dalati & Nohra)
Energy Minister Nada Boustani inspects Total's oil and gas exploration equipment at Beirut port. (Dalati & Nohra)
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Offshore Oil and Gas Exploration Equipment Arrives in Beirut

Energy Minister Nada Boustani inspects Total's oil and gas exploration equipment at Beirut port. (Dalati & Nohra)
Energy Minister Nada Boustani inspects Total's oil and gas exploration equipment at Beirut port. (Dalati & Nohra)

Equipment to explore for offshore oil and gas from the Total company has arrived in Lebanon.

Caretaker Energy Minister Nada al-Boustani inspected the equipment at Beirut port on Saturday.

Total will kick off exploration in Lebanon’s Exclusive Economic Zone once it completes its operations in Egypt.

Boustani revealed that a ship with more equipment is set to arrive in Beirut on Sunday.

In 2018, February, Lebanon signed its first offshore oil and gas exploration and production agreements with the Total-Eni-Novatek consortium for offshore Blocks 4 and 9.

Former Energy Minister Cesar Abi Khalil had previously said exploration in Block 4 would start in 2019, while exploration in Block 9 would begin on the southern maritime border in 2020 after the final well is determined.

Lebanon has an unresolved maritime border dispute with Israel over a triangular area of sea of around 860 sq km (330 square miles) that extends along the edge of three of its total 10 blocks.

Israel is putting pressure on Total to halt exploration in Block 9. It claims that part of it is located in its Exclusive Economic Zone. But Lebanon insists on its right to explore it.

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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
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Saudi Transport, Logistics Sector Set for 10% Growth in Q2

An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)
An investor monitors a trading screen at the Saudi financial market in Riyadh. (AFP)

As Saudi companies start reporting their Q2 financial results, experts are optimistic about the transport and logistics sector. They expect a 10% annual growth, with total net profits reaching around SAR 900 million ($240 million), driven by tourism and an economic corridor project.

In Q1, the seven listed transport and logistics companies in Saudi Arabia showed positive results, with combined profits increasing by 5.8% to SAR 818.7 million ($218 million) compared to the previous year.

Four companies reported profit growth, while three saw declines, including two with losses, according to Arbah Capital.

Al Rajhi Capital projects significant gains for Q2 compared to last year: Lumi Rental’s profits are expected to rise by 31% to SAR 65 million, SAL’s by 76% to SAR 192 million, and Theeb’s by 23% to SAR 37 million.

On the other hand, Aljazira Capital predicts a 13% decrease in Lumi Rental’s net profit to SAR 43 million, despite a 44% rise in revenue. This is due to higher operational costs post-IPO.

SAL’s annual profit is expected to grow by 76% to SAR 191.6 million, driven by a 29% increase in revenue and higher profit margins.

Aljazira Capital also expects a 2.8% drop in the sector’s net profit from Q1 due to lower profits for SAL and Seera, caused by reduced revenue and profit margins.

Mohammad Al Farraj, Head of Asset Management at Arbah Capital, told Asharq Al-Awsat that the sector’s continued profit growth is supported by seasonal factors like summer travel and higher demand for transport services.

He predicts Q2 profits will reach around SAR 900 million ($240 million), up 10% from Q1.

Al Farraj highlighted that the India-Middle East-Europe Economic Corridor (IMEC), linking India with the GCC and Europe, is expected to boost sector growth by improving trade and transport connections.

However, he warned that companies may still face challenges, including rising costs and workforce shortages.