LONDON: Vodafone Chief Executive Vittorio Colao will step down in October after 10 years in which the Italian reshaped the world’s second largest mobile operator into a digital communications powerhouse with a string of major deals.
The urbane Colao will be replaced by Nick Read, finance director since 2014 and long seen as his successor due to his previous roles running Vodafone’s operations around the world.
He will take charge of a group that, under Colao, pulled back from its once brazen expansionist drive, most notably when it sold out of the United States with a $130 billion exit from a joint venture with Verizon.
Last week Vodafone struck a long-expected $21.8 billion deal to buy Liberty Global’s cable TV and broadband networks in Germany and Eastern Europe, the latest move to strengthen its European business.
And in India, which it entered with great fanfare in 2007, it is merging its operations with Idea Cellular to bulk up in a market that has been hit by intense competition.
“Today Vodafone is at a natural juncture, the strategic 10 -year reshaping of the group is now nearing completion,” Colao, 56, told reporters. “Nick has been the core architect of Vodafone strategy for much of my tenure.”
Analysts said the timing of the departure should come as no surprise and that investors should be reassured by Read’s appointment. The change came as the group published solid 2018 results and a more cautious 2019 outlook.
Shares in Vodafone fell almost 4 percent on the news.
“With the Liberty deal announced and India set to close, he leaves behind a strategically well-positioned portfolio for his successor Nick Read, who we think is a safe pair of hands,” analysts at Bernstein said.
End of an era
In Read, 53, investors will get a new chief executive long groomed for the job.
Read said he had been alongside Colao through the process of reshaping Vodafone, and he would now deliver the benefits for shareholders and customers.
“I think now is the time to really focus on our organic plan, really focusing on digital transformation of our business and the customer experience,” he told reporters.
“And of course there’s a big opportunity of integrating these new businesses, both Liberty and over in India.”
Having joined Vodafone in 2001, Read’s roles have included running the British and emerging market operations. He has also sat on the boards of the company’s listed operations in Africa and Qatar, its subsidiaries in India and Egypt and its joint venture in Australia.
Read will be replaced by his deputy since 2015, Margherita Della Valle. The Italian joined Omnitel Pronto Italia — which later became Vodafone Italy — in 1994.
The announcement came as the company reported a 1.4 percent rise in organic service revenue for its fourth quarter, beating analyst forecasts of a 1.1 percent rise.
Full year core earnings rose 11.8 percent to 14.7 billion euros, beating guidance for “around 10 percent” organic growth and just ahead of analyst forecasts of 14.6 billion euros.
For 2019, the group forecast a more cautious organic adjusted core earnings growth of between 1 and 5 percent, and free cash flow before spectrum costs of at least 5.2 billion euros, slightly down on the 2018 number of 5.4 billion euros.
Work to do
Chairman Gerard Kleisterlee said Colao had been an “exemplary leader and strategic visionary who has overseen a dramatic transformation of Vodafone.”
Born in northern Italy, Colao cut his teeth as a management consultant at McKinsey before he joined Omnitel in 1996.
A keen cyclist, the tall Colao has lived a quiet life in London, largely avoiding London’s corporate social scene.
Colleagues say he enjoys the cut and thrust of talking to journalists and will also happily discuss European politics. Analysts have speculated that he could move into Italian politics.
His departure follows that of Martin Sorrell at WPP after 33 years in charge, meaning the FTSE 100 has lost two of its longest-serving CEOs in a short period of time.
“It has a been a real privilege to lead the group through a decade of massive strategic transformation culminating in today’s good financial performance,” Colao told reporters.
“But it is not yet the time for goodbyes. There is still a lot to do between now and October.”
End of an era as Vodafone boss Colao makes way for protege Read
End of an era as Vodafone boss Colao makes way for protege Read
- Last week Vodafone struck a long-expected $21.8 billion deal to buy Liberty Global’s cable TV and broadband networks in Germany and Eastern Europe
- The urbane Colao will be replaced by Nick Read, finance director since 2014 and long seen as his successor due to his previous roles running Vodafone’s operations around the world
Saudi Aramco achieves significant progress in its gas production plan
RIYADH: Saudi Aramco has announced the achievement of significant progress in its plan to expand gas production, with the start of production at the Jafurah field, the largest unconventional gas field in the Middle East, and the commencement of operational activities at the Tanajib Gas Plant, one of the largest gas plants in the world.
The oil giant aims to increase its sales gas production capacity by approximately 80 percent by 2030 compared to 2021 production levels, reaching nearly 6 million barrels of oil equivalent per day from total gas and associated liquids production, according to the Saudi Press Agency.
This is expected to generate additional operating cash flows ranging between $12 billion and $15 billion in 2030, subject to future demand for sales gas and liquids prices.
President and CEO of Saudi Aramco, Amin Al-Nasser, said: “We are proud to commence production at the Jafurah field and begin operations at the Tanajib Gas Plant. These are major achievements for Saudi Aramco and the future of energy in the Kingdom. Our ambitious gas program is expected to become a key source of profitability.”
He affirmed that these mega-projects contribute to meeting the growing domestic demand for gas, supporting industrialization and development in several key sectors, in addition to producing significant quantities of high-value liquids.
Al-Nasser expressed his gratitude for the support, trust, and attention that Saudi Aramco receives from the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, crown prince and prime minister, noting that this has had the most profound impact on the company’s achievements and distinguished projects that serve the Kingdom’s Vision 2030.
The gas extracted from the Jafurah field is expected to support the Kingdom’s growth targets in key sectors such as energy, artificial intelligence, major industries, and petrochemicals, potentially providing a major boost to the Kingdom’s economy and strengthening its position among the world’s top ten gas producers.
Saudi Aramco began first producing unconventional shale gas from the Jafurah field in December 2025, with technology playing a pivotal role in unlocking the potential of the Jafurah field and establishing it as a global benchmark for unconventional gas development.
Since its inception, the project has leveraged technology to help reduce drilling and stimulation costs and enhance well productivity, contributing to its strong economic prospects.
The Jafurah area covers 17,000 sq. km and is estimated to contain 229 trillion standard cubic feet of raw gas and 75 billion barrels of condensates. The Jafurah field project aims to produce 2 billion standard cubic feet per day of sales gas, 420 million standard cubic feet per day of ethane, and approximately 630,00 barrels per day of gas liquids and condensates by 2030.
The Tanajib Gas Plant is a key pillar in Aramco’s strategy to increase gas processing capacities and diversify its energy product portfolio, helping to foster long-term economic growth.
Operations began in December 2025, and its raw gas processing capacity is expected to reach 2.6 billion standard cubic feet per day in 2026. The start of operations at the Tanajib Plant coincided with the commencement of production from the Marjan field expansion and development program.
The plant is distinguished by its digital integration, enhanced operational efficiency, capability to execute complex projects, and optimal use of resources. It processes raw gas associated with crude oil production from the offshore Marjan and Zuluf fields.
Aramco’s gas expansion is expected to create thousands of direct and indirect job opportunities, generating significant added value and strengthening its position as a reliable energy provider.
It also helps meet the growing demand for natural gas and enhances its supply to national industries.
The expansion strategy supports efforts aimed at achieving the optimal energy mix for local electricity generation, advancing the Kingdom’s liquid fuel displacement program, which will have a positive environmental impact, supporting the Kingdom’s ambition to achieve net-zero emissions by 2060, enhancing energy security, and contributing to building a more diversified national economy.
