Latest news with #Saudi Aramco
Zawya
5 days ago
- Business
- Zawya
Citi cuts Q2 net profit estimate on Saudi Aramco
Citi Research has cut its estimate on Saudi Aramco's Q2 net profit to $22.8 billion, from $27.8 billion earlier, as lower crude prices offset the benefits of increased oil production and strengthening refining margins. Analyst Alastair Syme and others have lowered the target price on the stock 25.50 riyals ($6.80) from SAR 29.50. On Thursday the share opened at SAR 24.21. The report said recent underperformance sees the dividend yield at 5.5%. Corporate debt spread widen to 100 basis points, 'but the context is an oil market that appears to be on the cusp of significant oversupply into 4Q'. Citi views the equity as fairly priced given this overhang and retain a Neutral rating, the analysts said. (Writing by Brinda Darasha; editing by Daniel Luiz)
Zawya
6 days ago
- Business
- Zawya
Mideast Stocks: Gulf markets rebound on US-Japan trade deal, strong earnings
Gulf stocks rebounded on Wednesday following U.S. President Donald Trump's announcement of a trade deal with Japan, fuelling hopes of further agreements ahead of a fast-approaching tariff deadline, while positive corporate earnings also bolstered market sentiment. Trump said on Tuesday that the U.S. and Japan had struck a trade deal that includes a 15% tariff on U.S. imports from Japan. It followed an agreement with the Philippines by which the U.S. will collect a 19% tariff rate on imports from there. While the increasing imposition of tariffs around the world poses risks to global economic growth and oil demand, the recent U.S.-Japan deal helped ease investor concerns and supported oil prices. Saudi Arabia's benchmark index gained 0.5%, supported by energy stocks benefiting from stabilised oil prices. Oil behemoth Saudi Aramco advanced 0.7%. Elsewhere, Arab National Bank rose more than 2% after posting strong second-quarter results. The Abu Dhabi index jumped 0.9%, driven by robust earnings. First Abu Dhabi Bank, the UAE's largest lender, surged over 4% after beating second-quarter profit estimates on strong revenue growth, while Bank of Sharjah soared nearly 8%. Among other gainers, Space42 advanced around 2% after securing a $695.5 million facility to fund next-generation UAE satellites. Dubai's main share index added 0.3%, on course to snap a three-day losing streak, with nearly all sectors in positive territory as upbeat earnings lifted sentiment across the United Arab Emirates. Index heavyweight Salik climbed 1.5%. Qatar stock index edged up 0.2%, continuing to hover near a two-and-a-half-year high. (Reporting by Amna Mariyam and Ateeq Shariff in Bengaluru, editing by Ed Osmond)
Zawya
22-07-2025
- Business
- Zawya
Mideast Stocks: Most Gulf bourses fall on US tariff concerns, weaker oil
Gulf stocks dipped across key markets on Tuesday as investors weighed concerns over U.S. trade policy ahead of a looming tariff deadline and weaker oil prices over strong corporate earnings. The European Union is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington fade, according to EU diplomats. U.S. President Donald Trump's imposition of tariffs around the world risks hurting global economic growth and oil consumption. Saudi Arabia's benchmark index retreated 0.3%, pressured by broad sector declines and falling oil prices, after snapping its longest downturn in nearly two years in the previous session. Oil behemoth Saudi Aramco slid 0.5%. Oil - a key catalyst for Gulf markets - fell on concerns that the brewing trade war between major crude consumers, the U.S. and the EU, will curb fuel demand growth by dampening economic activity. Dubai's main share index slipped 0.5%, on track for a second straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally. Dubai Islamic Bank, the index heavyweight, dropped 1% and budget carrier Air Arabia fell over 2.5%, ending a five-session winning streak. In Abu Dhabi, the index was under pressure as a wave of earnings releases this week kept many investors on the sidelines. Qatar's stock index pulled back from near a two-year peak, weighed down by a 0.4% decline in AlRayan Bank.
Zawya
15-07-2025
- Business
- Zawya
Low Aramco dividend likely to double 2025 Saudi budget deficit
A steep fall in dividends by the state oil company Saudi Aramco will double the Gulf Kingdom's budget deficit in 2025 despite an expected fall in spending, a think-tank in the world's dominant oil exporter said on Friday. Saudi Arabia has projected a 2025 budget deficit of around 101 billion Saudi riyals ($27 billion), assuming an average price for its crude of $75 and oil output of 9.5 million barrels per day (bpd). In the first quarter of this year, the Kingdom recorded a fiscal deficit of SAR 58.7 billion ($15.5 billion) as revenue declined by 10 percent year-on-year due to lower oil revenue, while spending was five percent higher. 'Our fiscal outlook is largely unchanged from our report in the first quarter. The budget deficit will widen in 2025, to 4.3 percent of GDP from 2.5 percent of GDP in 2024,' Jadwa Investment company said in a report. The consultancy firm expected the actual budget deficit at around SAR202 billion ($54 billion), adding that lower oil prices and minimal Performance-Linked Dividends (PLDs) from Saudi Aramco are driving the wider shortfall. An expected increase in non-oil revenue and a five percent decline in total budget spending will help limit the budget deficit, it said. 'Taking a closer look at revenue dynamics, we expect budget oil revenue to decline by around 23 percent compared to 2024,' Jadwa said. It attributed the forecast drop to lower oil prices, which leads to lower royalty and income tax payments from Saudi Aramco to the budget. A second reason is a 31.5 percent decline in total dividends due from Saudi Aramco this year, Jadwa said, noting that the ordinary dividend has risen by four percent for 2025—an increase of SAR10 billion ($2.6 billion) into the budget. 'However, the PLD for the budget will be minimal at SAR2.7 billion ($720 million) compared with SAR132 billion ($35.2 billion) in PLD follows a formula and has dropped away because of lower oil revenue in 2024,' Jadwa said. 'Turning to spending, we expect a decline of five percent in 2025, to SAR1.3 trillion ($347 billion) close to the budget which indicated a decline of 6.4 percent.' Experts said the wider deficit remains under management in Saudi Arabia as it could be easily funded through bonds given the Kingdom's massive assets and high credit rating. 'The deficit to GDP in Saudi Arabia is minimal….the debt to GDP is also still under control at around 30 percent, far below than the limit in the European Union,' well-known Saudi economist Ihsan Buhlaiga told Zawya Projects. Saudi Arabia's public debt stood at around SAR1.2 trillion ($320 billion) at the end of 2024 and Jadwa projects it to swell to SAR1.4 trillion ($373 billion) at the end of 2025. (Reporting by Nadim Kawach; Editing by Anoop Menon)
Reuters
11-07-2025
- Business
- Reuters
Saudi oil exports to China to rise to over two-year high in August, sources say
SINGAPORE, July 11 (Reuters) - Saudi Arabia's crude oil exports to China are set to rise to the highest in more than two years in August, five trade sources said on Friday, as the top exporter seeks to regain market share in the world's biggest importer. State oil firm Saudi Aramco ( opens new tab will ship about 51 million barrels to China in August, or 1.65 million barrels per day (bpd), a tally of allocations to Chinese refiners showed. The supply is 4 million barrels higher than July's allotted volume and the highest since April 2023, data by Reuters and Kpler showed. China is the world's biggest buyer of Saudi Arabian oil. State refiner Sinopec ( opens new tab will be receiving more crude in August, the sources said. The biggest refiner in Asia is ramping up processing output after completing maintenance at several plants in the second quarter. Saudi Aramco and Sinopec could not be immediately reached for comment. The allocation for other Chinese refiners were unchanged from the previous month, the sources said. Saudi Arabia, the world's biggest oil exporter, on Sunday hiked August prices for Asian and European buyers by more than $1 a barrel as domestic crude demand is expected to rise, reducing exports, and Chinese consumption is likely to increase. Asian refiners have already requested more term crude supplies for loading in August and September from Middle Eastern producers after spot market premiums jumped in June because of the Iran-Israel conflict. The higher supply to China also follows the agreement by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, to raise production by 548,000 bpd in August as the group unwinds earlier voluntary cuts.
