Saudi Arabia’s Maaden Successfully Raises $1 Billion Through 10-Year International Sukuk

The offering is an important step in Maaden's journey to enhance its financial flexibility. (Asharq Al-Awsat)
The offering is an important step in Maaden's journey to enhance its financial flexibility. (Asharq Al-Awsat)
TT

Saudi Arabia’s Maaden Successfully Raises $1 Billion Through 10-Year International Sukuk

The offering is an important step in Maaden's journey to enhance its financial flexibility. (Asharq Al-Awsat)
The offering is an important step in Maaden's journey to enhance its financial flexibility. (Asharq Al-Awsat)

The Saudi Arabian Mining Company (Maaden) announced the successful completion of a dollar-denominated sukuk offering with a total value of $1 billion (approximately 3.75 billion riyals). This issuance is part of the company's international sukuk program, which aims to attract qualified investors from within the Kingdom and abroad to strengthen the company's financial position and support its strategic projects.

In its statement published on the Saudi Stock Exchange (Tadawul) website on Sunday, the company said the offering is a follow-up to its previous announcement on January 22 regarding the start of the subscription process.

The issuance witnessed strong demand, reflecting international investors' confidence in Maaden's financial solvency and the future of the mining sector as a fundamental pillar of Saudi Vision 2030.

According to the statement, the total number of sukuk issued is 5,000, with a nominal value of $200,000 per sukuk. The company set the sukuk yield at 5.250 percent per annum, with a maturity period extending to 10 years, reflecting the company's ability to obtain long-term financing at competitive costs in international markets.

Maaden indicated that these sukuk will be listed on the International Securities Market of the London Stock Exchange. It also confirmed that the sale process will be conducted in accordance with applicable international regulations, including “Regulation S” and “Rule 144A” of the US Securities Act of 1933, as amended, which are standards that ensure the issuance reaches a broad base of global investment institutions.

Regarding the redemption conditions, the company stated that the sukuk may be redeemed in certain pre-defined cases, in accordance with the terms and conditions detailed in the offering document for the issuance.

The offering is an important step in Maaden's journey to enhance its financial flexibility at a time when the company is experiencing rapid growth and expansion in its portfolio of mining assets inside and outside the Kingdom.



Saudi Aramco Beats Forecasts with Adjusted First-Quarter Income of $33.6 Billion

Aramco President and CEO Amin Nasser speaks at a previous Aramco event. (Reuters)
Aramco President and CEO Amin Nasser speaks at a previous Aramco event. (Reuters)
TT

Saudi Aramco Beats Forecasts with Adjusted First-Quarter Income of $33.6 Billion

Aramco President and CEO Amin Nasser speaks at a previous Aramco event. (Reuters)
Aramco President and CEO Amin Nasser speaks at a previous Aramco event. (Reuters)

Saudi Aramco reported a sharp rise in first-quarter profit for 2026, beating analyst expectations as higher oil prices and increased crude sales offset geopolitical disruptions linked to shipping constraints in the Strait of Hormuz.

Aramco’s adjusted net income rose nearly 26% to $33.6 billion (SAR126.0 billion), above analysts’ average forecast of SAR109 billion and up from SAR99.8 billion a year earlier, according to a company statement on Sunday.

The company approved a base dividend of $21.89 billion (SAR82.08 billion), in line with its strategy to provide sustainable and growing returns backed by strong cash flow generation and a solid balance sheet.

The results highlighted Aramco’s ability to generate cash flow from operating activities of $30.7 billion despite heightened geopolitical tensions affecting global energy markets.

Iran’s blockade of shipping through the Strait of Hormuz during the US-Israeli conflict disrupted global energy supplies and pushed oil prices higher, prompting Aramco to increase crude flows from its eastern facilities to the Red Sea port of Yanbu through its East-West pipeline network.

Aramco President and CEO Amin Nasser said in this regard: “Our East-West Pipeline, which reached its maximum capacity of 7.0 million barrels of oil per day, has proven itself to be a critical supply artery, helping to mitigate the impact of a global energy shock and providing relief to customers affected by shipping constraints in the Strait of Hormuz.”

“Recent events have clearly demonstrated the vital contribution of oil and gas to energy security and the global economy, and are a stark reminder that reliable energy supply is critical,” Nasser added.

Crude prices climbed from around $65 per barrel in early February to more than $100 in March after Iran closed the Strait of Hormuz, triggering a global energy shock.

Strong revenue and profit growth

Adjusted net income of $33.6 billion (SAR125.97 billion) exceeded analysts’ consensus estimate of $31.16 billion.

The figure reflects underlying operating performance excluding non-recurring items and accounting impacts related to replacement costs, fair-value movements in certain derivatives and financing costs totaling about $1.06 billion (SAR3.96 billion), according to results published on the Saudi stock exchange website.

Net income rose more than 25% year-on-year to $32.04 billion (SAR120.13 billion), compared with $25.51 billion (SAR95.68 billion) in the same quarter of 2025, driven by higher crude oil prices and increased sales volumes.

Revenue increased 7% to $115.49 billion (SAR433.10 billion), supported by higher prices for crude oil, refined products and chemicals, as well as higher sales volumes of crude and chemical products.

On a quarterly basis, net income jumped 72.9% from the fourth quarter of 2025, rising from $18.53 billion to $32.04 billion, helped by stronger margins and lower operating costs despite higher taxes and zakat payments.

Aramco said shareholders’ equity rose 3.9% year-on-year to $408.46 billion (SAR1.5 trillion), while earnings per share reached $0.13 (SAR0.50).

Cash flow and financial position

Cash flow from operating activities totaled $30.7 billion (SAR115.2 billion).

Free cash flow came in at $18.6 billion (SAR69.9 billion), down slightly from $19.2 billion a year earlier, reflecting a strategic increase in working capital of $15.8 billion (SAR59.1 billion) aimed at ensuring business continuity.

The company maintained a strong capital structure, with gearing at 4.8%, up from 3.8% at the end of 2025. Return on average capital employed stood at 20.7%.

Aramco shares rose 0.8% after the results announcement to close at SAR27.42, with trading volume of around 12 million shares.

Dividends and expansion plans

Aramco’s board declared a first-quarter base dividend of $21.9 billion (SAR82.1 billion), up 3.5% from a year earlier, to be paid in the second quarter.

The company also invested $12.1 billion (SAR45.4 billion) in capital expenditure during the quarter as part of plans to expand production capacity and strengthen strategic infrastructure.

Nasser said the company’s first-quarter performance reflected “strong resilience and operational flexibility in a complex geopolitical environment.”

“Despite these headwinds, Aramco remains focused on its strategic priorities and is leveraging both its domestic infrastructure and its global network to navigate disruption,” he stated.

In comments to Reuters, Nasser warned the global oil market could take time to stabilize after recent disruptions.

The world has lost about one billion barrels of oil over the past two months, Nasser said, adding: “Our goal is simple: to ensure energy keeps flowing, even under the pressure the system is facing.”

Resilience

Hussein Al-Attas, a financial and economic adviser, told Asharq Al-Awsat that Aramco’s results demonstrated the strength of its operating model and its ability to benefit from higher oil prices.

“What stands out in these results is not only profit growth, but also the company’s operational flexibility in managing supply chains and exports under complex geopolitical conditions, which preserved strong cash flow levels and sustainable shareholder distributions,” he noted.

Al-Attas said part of the earnings growth was linked to exceptional price increases during the quarter, meaning future profitability would remain closely tied to global oil price trends and supply stability.

For his part, Mohammed Al-Farraj, senior head of asset management at Arbah Capital, said Aramco’s large cash distributions enhanced the stock’s appeal as a defensive investment for institutional and long-term investors, particularly sovereign wealth funds and pension funds.

He told Asharq Al-Awsat that the company’s low production costs and strong balance sheet supported its ability to continue distributing dividends despite energy market volatility.

Al-Farraj also said Aramco’s $3 billion share buyback program, announced in March, reflected management confidence in the company’s valuation and long-term cash generation capacity.

The repurchased shares will be held as treasury shares and allocated to employee stock programs, the company said.

Al-Farraj added that Aramco continued pursuing diversification through investments in natural gas, liquefied natural gas and projects such as the Jafurah field, while also deploying artificial intelligence technologies to improve efficiency and reduce costs.


Indian PM Urges Reduced Fuel Use amid Middle East War Disruption

FILE PHOTO: Workers assemble Ather 450X electric scooter inside Ather Energy's manufacturing facility in Hosur in southern state of Tamil Nadu, India, March 23, 2025. REUTERS/Nandan Mandayam/File Photo
FILE PHOTO: Workers assemble Ather 450X electric scooter inside Ather Energy's manufacturing facility in Hosur in southern state of Tamil Nadu, India, March 23, 2025. REUTERS/Nandan Mandayam/File Photo
TT

Indian PM Urges Reduced Fuel Use amid Middle East War Disruption

FILE PHOTO: Workers assemble Ather 450X electric scooter inside Ather Energy's manufacturing facility in Hosur in southern state of Tamil Nadu, India, March 23, 2025. REUTERS/Nandan Mandayam/File Photo
FILE PHOTO: Workers assemble Ather 450X electric scooter inside Ather Energy's manufacturing facility in Hosur in southern state of Tamil Nadu, India, March 23, 2025. REUTERS/Nandan Mandayam/File Photo

Prime Minister Narendra Modi on Sunday urged the people of India to cut down on petrol and diesel consumption amid supply disruptions due to the Middle East war.

India is one of few countries in the region that has not increased prices of petrol and diesel for domestic consumers or rationed supplies, according to AFP.

But it has increased prices of liquefied petroleum gas (LPG) -- a primary cooking fuel in the country -- after disruptions following the US-Israeli strikes on Iran, which led to Iran's near-total blockade of the strategic Strait of Hormuz.

"We have to reduce our use of petrol and diesel. In cities with metro lines, we should try to travel by metro...If we must use a car, then we should try to car pool," Modi said Sunday, addressing a gathering in southern Telangana state.

He added that restrictions on use were also necessary to save foreign currency spent on fuel imports.

"We must also place a strong emphasis on saving foreign exchange, as petrol and diesel have become so expensive globally."

Modi also urged people to resume energy-saving schemes that were in place during the Covid pandemic.

"We should prioritize work from home, online conferences, and virtual meetings again," he said.

Hardeep Singh Puri, India's minister for petroleum and natural gas, said oil marketing companies (OMCs) had taken a hit on their revenues while ensuring "uninterrupted energy imports and supply."

"OMCs are buying crude, gas and LPG at higher cost, but in order to protect consumers, they are selling final products at lower cost leading to massive mounting losses of up to 1,000 crore rupees (approximately $120 million) per day," Puri said Sunday on X.

He added that losses for the government, after reducing taxes on diesel and petrol for domestic consumption, "saw revenue losses of 14,000 crore rupees (approximately $1.6 billion) in a month."

He urged citizens to turn Modi's "empathetic appeal" into a mass movement "to save and conserve energy."


China Consumer Prices Rise on Iran War Oil Squeeze

 Buildings including China Zun, the tallest building in Beijing, are seen in the central business district in Beijing at dusk on May 7, 2026. (AFP)
Buildings including China Zun, the tallest building in Beijing, are seen in the central business district in Beijing at dusk on May 7, 2026. (AFP)
TT

China Consumer Prices Rise on Iran War Oil Squeeze

 Buildings including China Zun, the tallest building in Beijing, are seen in the central business district in Beijing at dusk on May 7, 2026. (AFP)
Buildings including China Zun, the tallest building in Beijing, are seen in the central business district in Beijing at dusk on May 7, 2026. (AFP)

China's consumer prices ticked up in April as the cost of crude oil rose globally due to the Iran war, official data showed on Monday.

Helped by the surging oil costs, factory gate prices also continued to show signs of recovery, rising for a second straight month after being stuck in negative territory since October 2022.

However, analysts warn deflation is still a threat for the world's second-largest economy as prices in other sectors continue to fall and overcapacity remains a headache.

China's consumer price index (CPI), a key measure of inflation, last month rose 1.2 percent year-on-year, data from the National Bureau of Statistics showed.

The jump was due to "changes in international crude oil prices and increased demand for holiday travel", according to Dong Lijuan, chief NBS statistician.

Domestic gas prices rose 19.3 percent on-year, Dong said, impacted by international commodity price fluctuations.

A five-day holiday at the beginning of May also typically sees more travel and spending in the weeks preceding it.

However, last month's CPI was still well below the government's two percent target for the year.

The April producer price index (PPI), which measures wholesale inflation, increased by 2.8 percent on-year -- up from 0.5 percent in March.

It beat a Bloomberg forecast of 1.8 percent and marked the quickest pace since July 2022, when the PPI rose by 4.2 percent on-year.

The gauge slipped into negative territory that October and did not reverse until March.

"The rise in international crude oil prices drove up prices in domestic petroleum-related sectors," the NBS' Dong said in a statement, listing fuel processing and manufacturing of raw materials.

But analysts warn shocks caused by oil blockages in the Middle East are temporary.

"The fallout from the Iran War pushed up inflation again in April but price pressures remain narrow in scope and aren't likely to build into a wider reflationary impulse," Capital Economics said in a note.

"(With) overcapacity in most sectors unresolved and domestic demand growth still sluggish, the ingredients for a sustained reflationary impulse still appear to be missing."