France’s EDF helping Saudi Arabia achieve renewable energy targets

EDF Renewables’ other big project in the Kingdom is the 400-megawatt Dumat Al-Jandal utility-scale wind farm project, located 900 kilometers north of Riyadh in the Al-Jouf region.
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Updated 17 May 2021
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France’s EDF helping Saudi Arabia achieve renewable energy targets

  • Despite pandemic delays, Kingdom’s largest wind farm set to begin operations this year

DUBAI: Like many executives around the world, Bruno Bensasson hasn’t been on a plane much in the last year. However, one of the few flights he did take recently was to Riyadh to check up on the progress of two massive renewable energy projects, showing the French company’s dedication to both the Kingdom and the renewable energy sector.

Saudi Arabia is aiming to generate 50 percent of its energy from renewables by 2030, with the remainder provided by gas. Bensasson is chairman and CEO of EDF Renewables, a subsidiary of French state-controlled power group EDF.

His flight to the Kingdom was for the unveiling of a solar power plant in Jeddah, which is being built in partnership with Abu Dhabi’s renewable energy company Masdar and privately owned Saudi firm Nesma Co.

The consortium was awarded the 300-megawatt utility-scale photovoltaic solar power plant by the Saudi Ministry of Energy after it submitted a bid of SR60 ($16.24) per megawatt hour. The group signed a 25-year Power Purchase Agreement, and the plant is expected to be operational in 2022.

“These large-scale renewable installations are perfectly in line with the EDF Group’s CAP 2030 strategy, which aims at doubling its renewable energy net capacity in operation worldwide, between 2015 and 2030, from 28 to 60 gigawatt net,” Bensasson said at the time.

As of the end of 2020, 13.7 percent of EDF’s electricity output comes from renewable energy, with 76.5 percent coming from nuclear, 9.3 percent coming from fossil fuels (excluding coal) and the remaining 0.4 percent coming from coal.

EDF Renewables’ other big project in the Kingdom is the 400-megawatt Dumat Al-Jandal utility-scale wind farm project, located 900 kilometers north of Riyadh in the Al-Jouf region. The Middle East’s largest wind farm, construction began in August 2020 and reached the halfway point in April this year.

“We are now aiming at having all the turbines in operation I would say by Autumn 2021,” Bensasson told Arab News. Similar to the solar power plant, the wind farm was built as part of a consortium consisting of EDF Renewables and Masdar.

The $500 million wind farm will feature 99 wind turbines, each with a power output of 4.2 megawatts. It is predicted that that the first turbine will start creating power in the coming weeks, and when complete, will power 70,000 Saudi households per year and save 988,000 tons of carbon dioxide, helping the Kingdom achieve its Vision 2030 and Saudi green goals. Like many projects around the world, the coronavirus disease (COVID-19) pandemic has slightly delayed progress on the project. “There were some difficulties for staff and construction workers to access the site last year. We perfectly understand that, so it took some months — several months — to have the possibility to access the site,” Bensasson said.

It was not only the wind farm that was impacted — coronavirus affected the entire region. The Middle East saw a 5 percent year-on-year increase in its renewable energy capacity last year, down from 13 percent growth in 2019, according to the UAE-based International Renewable Energy Agency.

However, the global agency said that despite the slower growth in 2020, Saudi Arabia’s capacity has grown significantly over the last nine years — starting at only 3 megawatts and increasing to 413 megawatts in 2020.

Bensasson has worked in the renewable energy industry for almost 20 years, but believes that only now the technology has started to become a viable reality.

He said: “It’s my day-to-day reality, it’s really a booming reality. I would say that it has really changed since 2010. To give you a figure, in 2000, 70 percent of solar was developed in Europe, especially in Germany, Italy and Spain. And you will agree that they are not the biggest or sunniest countries. And same for wind. It’s totally different. About 60 percent of the growth now is within China and India. “Many countries have opted in.

And the reason for this shift, I would say, is twofold: One is economic and the other  is ecological.” Bensasson added that another factor in the growing popularity of renewables is the cost of wind production dropping 8 percent per year, and solar by about 15 percent per annum, making them “no-brainer solutions for many countries.”

EDF has been active in the Middle East for 20 years and has offices in Riyadh, Abu Dhabi, Dubai, Bahrain and Doha, with 199 employees.


China’s exports and imports return to growth

Updated 8 sec ago
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China’s exports and imports return to growth

  • Shipments from the country grew 1.5 percent last month by value: data

RIYADH: China’s exports and imports returned to growth in April after contracting in the previous month, signaling an encouraging improvement in demand at home and overseas.

The data suggests a flurry of policy support measures over the past several months may be helping to stabilize fragile investor and consumer confidence.

Shipments from China grew 1.5 percent year on year last month by value, customs data showed on Thursday, in line with the increase forecast in a Reuters poll of economists. They fell 7.5 percent in March, which marked the first contraction since November.

Imports for April increased 8.4 percent, beating an expected 4.8 percent rise and reversing a 1.9 percent fall in March.

“Export values returned to growth from contraction last month, but this was mainly due to a lower base for comparison,” said Huang Zichun, China economist at Capital Economics.

“After accounting for changes in export prices and for seasonality, we estimate that export volumes remained broadly unchanged from March,” she added.

In Q1, both imports and exports rose 1.5 percent year on year, buoyed by better-than-expected trade data over the January-February period. But the weak March figures prompted concerns that momentum could be faltering again.

Crude oil imports

China’s crude oil imports rose on the previous year in April, as refiners prepared for a fully recovered Labor Day holiday travel season, official data showed on Thursday.

Crude imports in April totaled 44.72 million tonnes, or about 10.88 million barrels per day, according to data from the General Administration of Customs.

That represented a 5.45 percent increase from the relatively low 10.4 million bpd imported in April 2023.

China saw more than 1.3 billion passenger trips over the five day Labor Day holiday that began on May 1, up 2.1 percent from a year earlier, state media outlet Xinhua reported.

Highway traffic was up 2.1 percent while air trips surged 8.1 percent, Xinhua said.

Domestic airline seat capacity in April was up 1.3 percent on last year, data from consultancy OAG showed.

China’s manufacturing sector continued to see muted recovery in April.

Natural gas imports for April rose 14.7 percent from a year earlier to 10.30 million tonnes, data showed.

Prices of liquefied natural gas for Asia at the end of April were down 11.3 percent on the same period last year, and down 43 percent from last year’s peak in October.

Customs data also showed exports of refined oil products, which include diesel, gasoline, aviation fuel and marine fuel, were up 21.46 percent from a year earlier at 4.55 million tonnes.

Coal imports

China’s coal imports rose in April fueled by lower domestic production and greater buying by power generators to swell stockpiles ahead of the peak summer demand season.

Shipments of coal into the world’s largest consumer of the fuel were 45.25 million tonnes last month, up 11 percent from 40.68 million a year earlier.

That was up by 9.4 percent from March and 2 million tonnes less than December’s record of 47.3 million tonnes.

The boost in imports is partly because domestic coal production has not increased to meet demand, said Feng Dongbin, an analyst with consulting firm Fenwei.

China’s coal output fell 4 percent on the year during the first quarter, the most recent data shows, in part because of a string of deadly accidents that forced mines in the top coal-producing province of Shanxi to halt operations for safety inspections.


Saudi bourse among top 10 in the world in terms of market cap, says official

Updated 09 May 2024
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Saudi bourse among top 10 in the world in terms of market cap, says official

RIYADH: Saudi Tadawul Group finds itself in a “fortunate” position amid the Kingdom’s rapidly growing industries, said a senior executive.   

On the sidelines of the Capital Market Forum 2024 held in Hong Kong, Nayef Al-Athel, group chief of sales and marketing officer at Tadawul Group, highlighted the company’s aim to attract global investors by sharing compelling success stories at international forums.  

Speaking to Arab News, Al-Athel explained the dual nature of the group’s goals, emphasizing commercial targets focused on maximizing revenues as a listed company.   

He said: “I think we are very fortunate as a capital markets group, fortunate in the sense that a lot is going on in the Kingdom. There’s unbelievable momentum in various facets of this country, and we are fortunate to be at the juncture of spillover from all these industries and all these new sectors being unraveled and unveiled in Saudi Arabia.”   

Al-Athel added: “The story of the Kingdom of Saudi Arabia is very attractive, and that attraction then translates to us being very attractive as a capital market.”  

Additionally, he emphasized Saudi Arabia’s geographic and time zone position, acting as a bridge between the East and West.   

“If you take that from a geographical standpoint, time zone perspective, that can be straightforwardly translated into capital markets narratives of connecting East to West,” Al-Athel said.   

He added: “If you look at the conference that we’re in here at CMF Hong Kong, it’s literally an attempt, which we think is very successful of us, connecting East to West.” 

Commenting on his statement from the previous CMF in February held in Riyadh, Al-Athel explained how Tadawul Group is at the forefront of global capital market leaders. 

“We are a top 10 stock exchange when it comes to market cap, to continue to propel ourselves high incomes to market cap rankings. That, of course, means more IPOs and more capital market transactions, more interest from investors all over the world,” he said.

Al-Athel further explained that the group’s success is building itself as an equity capital market powerhouse in Saudi Arabia, particularly through a significant number of IPOs in recent years. There’s a focus on expanding into debt capital markets and derivatives to diversify their offerings.  

“We’ve worked hard on building ourselves as an equity capital market powerhouse. The number of IPOs has been staggering over the last three to four years in the Kingdom,” Al-Athel stated. 

However, he mentioned that there are currently no specific announcements to make. 

“We’re living in a very exciting situation as we speak, hosting 300 investors from 44 companies at the Capital Market Forum in Hong Kong,” said Al-Athel, adding that it’s the first cross-border capital market event, with participation from entities in Saudi such as the CMA and the Ministry of Investment. 

He continued: “This is the flavor of where we are at the moment. This is where we are focused. Again, for sure there will be activity in the foreseeable future.” 

Furthermore, Al-Athel mentioned that the group has celebrated 400 securities listed on Tadawul.  

“Among those 400 listed securities, we find many success stories, and those success stories do sell themselves internationally. We have more than 22 companies traveling with us to Hong Kong, and the sole purpose of those companies, the Saudi corporates, is to tell their success stories to investors from Asia. 

Al-Athel concluded his statement by highlighting the significant transformation undergone by the capital market, particularly with the achievement of 400 listed securities and a diverse investor base spanning Saudi Arabia, the region, and globally. 

He noted that the rise in institutional investment and increasing numbers of IPOs signal a healthy market environment. 


Al Rajhi Bank launches $1bn in perpetual bonds, says document 

Updated 09 May 2024
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Al Rajhi Bank launches $1bn in perpetual bonds, says document 

RIYADH: Al Rajhi Bank, the world’s largest Islamic bank by assets and market capitalization, has launched $1 billion in Additional Tier 1 sustainable sukuk, or Islamic bonds, a document from one of the banks arranging the deal revealed on Thursday. 

The final yield for the debt transaction was set at 6.375 percent, tighter than the initial guidance of around 6.875 percent released in a document earlier in the day. The notes are perpetual in nature and can first be redeemed in May 2029. 

The deal received more than $3.5 billion in orders and allocation is expected to happen later in the day, the document showed. 

AT1 bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature, but lenders can call them after a specified period.


Closing Bell: Saudi main index slips to close at 12,284 

Updated 09 May 2024
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Closing Bell: Saudi main index slips to close at 12,284 

RIYADH: Saudi Arabia’s Tadawul All Share Index slipped on Thursday, losing 175.70 points, or 1.41 percent, to close at 12,284.41.    

The total trading turnover of the benchmark index was SR7.31 billion ($1.94 billion) as 41 of the stocks advanced, while 184 retreated.  

On the other hand, the Kingdom’s parallel market Nomu rose 199.85 points, or 0.74 percent, to close at 27,086.44. This came as 20 of the stocks advanced, while as many as 45 retreated. 

Meanwhile, the MSCI Tadawul Index slipped 19.92 points, or 1.28 percent, to close at 1,537.54. 

The best-performing stock of the day was Al-Babtain Power and Telecommunication Co. The company’s share price surged 7.77 percent to SR45.75. 

Other top performers include Retal Urban Development Co. as well as Tanmiah Food Co. 

The worst performer was Gulf Union Alahlia Cooperative Insurance Co. whose share price dropped by 10 percent to SR22.68. 

Other worst performers were Allied Cooperative Insurance Group as well as Al-Etihad Cooperative Insurance Co. 

On the announcements front, Jamjoom Pharmaceuticals Factory Co. has announced its interim financial results for the period ending on March 31. 

According to a Tadawul statement, the company’s net profit hit SR102.9 million in the first quarter of 2024, reflecting a 22 percent surge when compared to the similar quarter last year. 

The increase was mainly driven by an increase in sales, which were slightly offset by the devaluation impact from the Egyptian pound. 

Moreover, the National Gas and Industrialization Co. also announced its interim financial results for the first three months of 2024. 

A bourse filing revealed that the firm’s net profit reached SR78.6 million by the period ending on March 31, up 7.6 percent in comparison to the corresponding period in 2023. 

The increase in net profits is primarily attributed to a surge in gross profit by SR9 million due to increased revenues, alongside a rise in investment and finance income by SR2 million. Additionally, there was an increase in other income by SR1 million, coupled with a decrease in zakat expense by SR2 million. 

Furthermore, Modern Mills for Food Products Co. also announced its interim financial results for the first quarter of the year. 

According to a Tadawul statement, the company’s net profits climbed 1.3 percent to reach SR64.9 billion in the first three months of 2024 compared to the same period a year earlier. 

This rise is mainly owed to revenue growth as well as improving efficiency. 

Additionally, Saudi Industrial Investment Group also announced its interim financial results for the period ending on March 31. 

A bourse filing revealed that the firm’s net profit stood at SR28 million at the end of the first quarter of 2024, compared to a net loss of SR242 million recorded in the same quarter a year ago. 

The increase in net profit is attributed to SIIG’s higher share of profit from joint ventures, coupled with a reduction in zakat expenses. 


Saudi PIF’s AviLease delivers first tranche of six aircraft to Indian airline

Updated 09 May 2024
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Saudi PIF’s AviLease delivers first tranche of six aircraft to Indian airline

RIYADH: AviLease, owned by the Public Investment Fund, has delivered two aircraft to an Indian airline, marking the initial delivery of six planes scheduled for 2024.

The global aircraft lessor announced the delivery of Boeing 737-8 jets to Air India Express Ltd. with plans to lease four additional aircraft within the current year.

An AviLease statement said these type of planes are one of the most fuel-efficient, sustainable, and technologically advanced narrow-body aircraft on the market.

It added that these deliveries set the tempo for AviLease, as it aims to build a diverse portfolio of the most advanced, latest-generation narrow- and wide-body aircraft available.

AviLease CEO Edward O'Byrne said the company is delighted to deliver the first two of six new Boeing 737-8 aircraft to its Indian client.

“Our partnership with Air India continues to strengthen under Tata Group ownership and we are proud to support their fleet modernization program. We wish the Air India Express team continued success with their commitment to provide affordable and reliable air travel to its customers.” O'Byrne said.

The full-service commercial aircraft lessor highlighted its role in fulfilling PIF’s mandate to unlock the potential of priority sectors, supporting the diversification of Saudi Arabia’s economy and contributing to non-oil gross domestic product.

AviLease, which was established in 2022, noted that the two-aircraft delivery reaffirms its rapid global expansion.

With a portfolio value of $6 billion, the company is dedicated to providing tailored fleet solutions to its airline partners.