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Energy Minister Says Companies to Continue Offshore Oil Exploration in Lebanon

The Tungsten Explorer is to start drilling in its first exploration well some 30 kilometers offshore from Beirut. AFP file photo
The Tungsten Explorer is to start drilling in its first exploration well some 30 kilometers offshore from Beirut. AFP file photo
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Energy Minister Says Companies to Continue Offshore Oil Exploration in Lebanon

The Tungsten Explorer is to start drilling in its first exploration well some 30 kilometers offshore from Beirut. AFP file photo
The Tungsten Explorer is to start drilling in its first exploration well some 30 kilometers offshore from Beirut. AFP file photo

Lebanese caretaker Energy Minister Raymond Ghajar has announced that the international consortium on oil and gas exploration will continue offshore operations under the leadership of France’s Total.

Recent reports indicated that Total has stopped exploration for oil and gas in Lebanon. However, Ghajar explained that the coronavirus pandemic and budget cuts have forced international oil companies to reduce exploration in most countries.

He indicated that it is difficult to maintain offshore explorations in light of the preventive measures taken to help limit the spread of the virus.

Ghajar confirmed that the exploration for gas by the consortium consisting of Total, Italy's Eni, and Russia's Novatec in blocks 4 and 9 has been extended to August 2022 after delays due to COVID-19 and the Aug. 4 Beirut port blast.

The companies presented their schedule and budgets for blocks 4 and 9 for 2021, including studies and data analysis in block 4 where an exploration well was drilled, as per the Exploration and Production Agreement (EPA).

They must also drill block 9 by the end of the first exploration phase.

The statement confirmed that the Energy Ministry and the Lebanese Petroleum Administration (LPA) are following up with the consortium on the implementation of the two projects in both blocks.

The port explosion caused damage to the logistical base designated for offshore gas exploration, noted the statement.

In 2018, Lebanon signed contracts for the first time with international companies, including Total, Eni, and Novatek to explore for oil and gas in blocks 4 and 9.

Block 9, which includes a disputed part with Israel, will not be included in the exploration although Lebanese officials pin high hopes on it to save the country from its worst economic crisis.

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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.