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Shell to Develop Natural Gas Reserves in Oman

Shell will contribute to the development of natural gas reserves in the energy sector in Oman. (Oman News Agency)
Shell will contribute to the development of natural gas reserves in the energy sector in Oman. (Oman News Agency)
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Shell to Develop Natural Gas Reserves in Oman

Shell will contribute to the development of natural gas reserves in the energy sector in Oman. (Oman News Agency)
Shell will contribute to the development of natural gas reserves in the energy sector in Oman. (Oman News Agency)

Investments are anticipated in projects linked to the development of natural gas reserves in Block 10 in central Oman, according to Dr. Saleh al Anbouri, director-general of exploration and production in the Ministry of Energy and Minerals.

The ministry has signed a concession agreement with Shell Integrated Gas Oman BV, a subsidiary of Royal Dutch Shell, and its partners, OQ, and Marsa Liquefied Natural Gas.

Anbouri said: "The concession agreement will attract $2 billion in investment over the 18-year tenure of the pact."

"It involves the drilling of wells and connecting these with production lines to achieve an output expected to reach 500mn m3 per day within the next two years.”

The concession agreement is a major step for strategic and long-term cooperation to harness the energy resources required by Oman to support the fuel and feedstock needs of industry, he added.

"This project will increase the capabilities of the energy industry in the Sultanate and bridge the gap between gas supply and its consumption needs in the future, in line with the Sultanate’s strategy to provide growth opportunities in all energy fields according to the priorities of Oman Vision 2040," Anbouri said.

The Ministry of Energy and Minerals is exerting efforts to encourage the local and foreign private sector to jointly invest in the various energy project, he added.

The minister further said that these investments will help sustain crude oil and natural gas output, noting that gas production from the Mabrouk North field in Block 10 will increase by 15 million cubic meters per day.

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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.