Latest news with #Jafurah
Yahoo
18-07-2025
- Business
- Yahoo
SLB earnings top forecasts amid digital platform strength
- SLB has posted second-quarter results that were above consensus estimates, as the oilfield services group was boosted by growth at its digital platforms that helped offset lower sales of exploration data. Adjusted earnings per share came in at $0.74 for the quarter, down from $0.85 in the prior three-month period, but above Bloomberg consensus expectations of $0.73. Revenues also slipped by 6.5% to $8.55 billion, topping projections of $8.48 billion. In a statement, CEO Olivier Le Peuch said the returns demonstrated SLB's resilience to headwinds from softer upstream spending and broader economic uncertainty. Le Peuch added that commodity prices have remained "range bound" despite "the market [...] navigating several dynamics -- including fully supplied oil markets, OPEC+ supply releases, ongoing trade negotiations and geopolitical conflicts." Last month, Le Peuch said at an event that SLB was expecting its earnings to be dented by weaker drilling activity in Saudi Arabia and Latin America. Several rigs in Saudi had been demobilized and operations paused at the country's Jafurah unconvential gas field, while short-cycle work in Latin America was down. However, Le Peuch said on Friday that SLB's broad exposure "across geographies and business lines" had enabled it to overcome the impact of regional slowdowns. International revenue ticked up by a sequential 2%. SLB also intends to increase its exposure to the "less cyclical and growing production and recovery space" via its $8 billion acquisition of ChampionX, which closed on Wednesday, the company said. Shares of SLB were higher by more than 1% in premarket U.S. trading. Related articles SLB earnings top forecasts amid digital platform strength These Under-the-Radar Stocks Offer Better Risk-Reward Ratio Than Nvidia Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
18-07-2025
- Business
- Bloomberg
Aramco Nears $10 Billion Jafurah Pipeline Stake Sale to GIP
By and Anthony Di Paola Save Saudi Aramco is in advanced talks to sell a roughly $10 billion stake in midstream infrastructure serving the giant Jafurah natural gas project to a group led by BlackRock Inc., according to people with knowledge of the matter. The consortium is backed by BlackRock's Global Infrastructure Partners unit and could reach an agreement as soon as the coming days, said the people, who asked not to be identified discussing confidential information.
Arabian Business
18-07-2025
- Business
- Arabian Business
Aramco close to $10bn Jafurah infrastructure deal with BlackRock
Saudi Aramco is reported to be close to a deal that will raise around US$10 billion from a group led by BlackRock that will invest in the infrastructure of Aramco's Jafurah gas project. Reuters reported this after speaking with two people with knowledge of the matter, but requested anonymity. The US$100 billion Jafurah project, which could become the largest shale gas project outside the United States upon completion, is central to Aramco's future ambitions and is expected to increase its gas production capacity from 2021 levels by 60 per cent in 2030. The two people said the latest transaction was expected to be similarly structured to two Aramco infrastructure deals in 2021, including one in which BlackRock invested in Aramco's gas pipeline networks, allowing the Saudi company to generate funds. The Jafurah assets underpinning the deal include gas pipelines and a gas processing plant, one of the sources said. In 2021, BlackRock and EIG were among investor groups that took stakes in companies that leased usage rights in Aramco's gas and oil pipeline networks. The groups leased them back to Aramco for a 20-year period in two separate deals, helping the Saudi company to raise nearly US$28 billion. Reuters reported that the agreement would be the latest in a series of financial arrangements, akin to borrowing, that enable Gulf oil-producing countries to raise funds for economic diversification while providing investors with a stable revenue stream. Aramco has long been the biggest source of the kingdom's revenues. Saudi Arabia has been seeking to diversify its economy as oil prices have come under pressure from global economic uncertainty that could further reduce demand.
Arabian Post
18-07-2025
- Business
- Arabian Post
Aramco Nears $10 Bln Jafurah Infrastructure Investment
Arabian Post Staff -Dubai Saudi Aramco is in advanced discussions with a consortium spearheaded by BlackRock to secure approximately $10 billion for infrastructure linked to its expansive Jafurah gas initiative. The financing structure echoes prior deals, with investors purchasing usage rights while Aramco retains operational control and ownership. The proposed transaction centres on critical assets—specifically pipelines and a processing facility—essential to the $100 billion Jafurah project, the world's largest shale gas development outside the United States. Aramco aims to lift gas output by 60 per cent by 2030 from 2021 levels. ADVERTISEMENT This initiative represents another strategic approach by Gulf oil majors to diversify their revenue models amid volatile crude prices. The deal allows Aramco to tap private capital while offering investors stable tariff income backed by long‑term usage commitments. In 2021, BlackRock and EIG invested in Aramco's gas and oil pipeline subsidiaries through similar lease‑back transactions, collectively raising nearly $28 billion. Under those agreements, Aramco retained a 51 per cent stake in each entity and paid tariffs to investors for pipeline usage, a structure described by consultancy Qamar Energy as more akin to borrowing than a sale. With this new deal, Aramco continues its disciplined approach to infrastructure financing. The Jafurah project itself is a linchpin of Saudi Arabia's energy transition agenda, aligning with national objectives to bolster gas production and reduce reliance on oil exports. While those familiar with the talks confirm the structure mirrors the 2021 transactions, the group declined to specify a timeline for finalisation. Both Aramco and BlackRock declined to comment. Experts note that such arrangements enable Aramco to free up capital for diversification ventures while retaining strategic infrastructure oversight. 'The pipeline deals were basically a securitisation,' said Robin Mills, chief executive of Qamar Energy, referencing the 2021 transactions. Market analysts believe this deal could serve as a template for financing future segments of Jafurah, which is expected to reach production of 2 billion cubic feet per day by 2030. Taken together with Aramco's earlier asset sales—such as its consideration of offloading gas-fired power plants and port infrastructure—these moves reflect mounting government pressure to boost proceeds amid a fiscal deficit and fluctuating oil revenues. Saudi Arabia's reliance on oil revenues—which accounted for around 62 percent of state income in 2024—has prompted a series of asset realisations, bond issuances and structured financing to support large-scale domestic projects and broaden the economic base. The Jafurah deal also highlights growing investor appetite for stable, long‑dated infrastructure revenue streams in the Gulf. With institutional players like BlackRock involved, these deals are gaining traction as a viable alternative to traditional equity or debt-financing routes. Analysts suggest more such partnerships could emerge as the kingdom scales up energy-reform initiatives, including clean energy and non-oil sectors. As the deal progresses, stakeholders will monitor its structure, particularly in comparison with the 2021 models, and assess implications for Aramco's capital allocation strategy. The outcome could influence both market perception of the firm and broader investment flows into Middle East energy infrastructure.
Arabian Post
26-05-2025
- Business
- Arabian Post
Aramco Eyes Asset Divestments Amid Profit Squeeze and Global Expansion Drive
Arabian Post Staff -Dubai Saudi Aramco is exploring asset sales to bolster its balance sheet as it navigates declining oil revenues and intensifies its international expansion efforts. The state-owned oil giant has engaged investment banks to propose strategies for monetising its assets, according to individuals familiar with the matter. While specific assets and banks involved remain undisclosed, the move underscores Aramco's proactive approach to financial management amid market challenges. The company's net income fell by 12% to $106.2 billion in 2024, down from $121.3 billion the previous year, primarily due to lower oil prices and reduced production volumes. Consequently, Aramco plans to cut its total dividend payout by nearly a third in 2025, distributing $85.4 billion compared to $124 billion in 2024. This reduction is expected to impact Saudi Arabia's budget, which heavily relies on Aramco's dividends to fund its Vision 2030 economic diversification initiative. ADVERTISEMENT In response to these financial pressures, Aramco is actively seeking investors for infrastructure assets in its $100 billion Jafurah gas project, aiming to become a major global natural gas player. The company intends to maintain majority ownership and operational control while attracting external investments to support development. This strategy follows previous deals, including nearly $28 billion raised in 2021 through selling 49% stakes in its oil and gas pipeline subsidiaries. Aramco's international expansion includes signing preliminary agreements with U.S. companies valued at up to $90 billion, encompassing sectors such as liquefied natural gas, artificial intelligence, and technology. Key deals involve a 20-year LNG purchase agreement with NextDecade's Rio Grande LNG export project in Texas and collaborations with ExxonMobil to upgrade the Samref refinery in Saudi Arabia. Additionally, Aramco is in discussions to invest in two new refineries in India, seeking stable markets for its crude amidst increased competition from cheaper sources like Russia. Despite the dividend cut, Aramco plans capital investments between $52 billion and $58 billion in 2025, focusing on expanding its gas capabilities and integrating its upstream and downstream businesses. The company expects potential operating cash flows of $9 billion to $10 billion from growth in its upstream gas business and $8 billion to $10 billion from its downstream business by 2030. Aramco's financial adjustments come amid a broader context of declining oil prices, with Brent crude trading around $70 a barrel, down from approximately $100 three years ago. The company's performance-linked dividend has seen a significant reduction, reflecting broader struggles in the oil industry. Analysts suggest that Aramco may need to tap into debt markets to finance its dividend and capital expenditure commitments if oil prices remain subdued.
