State-controlled Saudi Aramco has formed a fuel retailing unit through which the world’s top oil exporting company will create a network of petrol stations in the Arab World’s biggest economy as it looks to expand its downstream business.
The new wholly-owned subsidiary, Saudi Aramco Retail Company (RetailCo), will sell automotive fuel at its own network of petrol stations in a move that will open up a "new and stable" source of revenues for the national oil company, Aramco said yesterday. It did not provide a timeline, size or the value of the investment into the network.
"Integrating fully across the hydrocarbon value chain is key to capturing maximum value from our resources," said Abdulaziz Al Judaimi, Aramco's senior vice president of downstream.
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“It will leverage synergies in our business model and position us to actively participate in the customer-facing segment of the downstream value chain.”
The move is part of Aramco's overall strategy of further enhancing its crude production, increase its refining capacity and invest in its consumer-facing business.
Downstream is an industry term that refers to purifying oil extracted from the ground into crude grades that can be sold to oil markets.
Refineries separate unwanted elements such as sulphur and products including gasoline, petrol, kerosene, jet fuel as well as hundreds of petrochemicals, which are then marketed and distributed to the consumers.
RetailCo’s will take a “phased approach” to expand its network of domestic fuel retail stations to cover the kingdom, Saudi Aramco said.
The formation of the new unit is the start of a series of initiatives and deals for RetailCo to become a "full-fledged" fuel retail segment of Aramco, the company said.
Aramco is increasingly pivoting to grow its downstream business to reduce the risk of a slowdown in the demand for oil in the global markets.
The oil major has signed several deals in refining and petrochemicals sectors to secure new markets for its crude, expanding its footprint globally and boosting the capacity of its plants.
The move to sell fuel directly at its own network of domestic stations will allow Aramco to cater directly to consumers as part of the kingdom’s Vision 2030 programme to improve citizens’ standard of living, the company said.
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
Jewel of the Expo 2020
252 projectors installed on Al Wasl dome
13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas
550 tonnes of moulded steel were raised last year to cap the dome
724,000 cubic metres is the space it encloses
Stands taller than the leaning tower of Pisa
Steel trellis dome is one of the largest single structures on site
The size of 16 tennis courts and weighs as much as 500 elephants
Al Wasl means connection in Arabic
World’s largest 360-degree projection surface
COMPANY PROFILE
Name: Grubtech
Founders: Mohamed Al Fayed and Mohammed Hammedi
Launched: October 2019
Employees: 50
Financing stage: Seed round (raised $2 million)
Pad Man
Dir: R Balki
Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte
Three-and-a-half stars
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Zayed Sustainability Prize
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Nickname: Mama Nadia to children, staff and parents
Education: Bachelors degree in English Literature with Social work from UAE University
As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families
Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too
First Person
Richard Flanagan
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T20 World Cup Qualifier
Final: Netherlands beat PNG by seven wickets
Qualified teams
1. Netherlands
2. PNG
3. Ireland
4. Namibia
5. Scotland
6. Oman
T20 World Cup 2020, Australia
Group A: Sri Lanka, PNG, Ireland, Oman
Group B: Bangladesh, Netherlands, Namibia, Scotland
The results of the first round are as follows:
Qais Saied (Independent): 18.4 per cent
Nabil Karoui (Qalb Tounes): 15.58 per cent
Abdelfattah Mourou (Ennahdha party): 12.88 per cent
Abdelkarim Zbidi (two-time defence minister backed by Nidaa Tounes party): 10.7 per cent
Youssef Chahed (former prime minister, leader of Long Live Tunisia): 7.3 per cent
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Four reasons global stock markets are falling right now
There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:
1. Rising US interest rates
The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.
Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”
At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.
2. Stronger dollar
High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”
3. Global trade war
Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”
4. Eurozone uncertainty
Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.
Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”
The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”
RACECARD
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ABU%20DHABI'S%20KEY%20TOURISM%20GOALS%3A%20BY%20THE%20NUMBERS
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Pearls on a Branch: Oral Tales
Najlaa Khoury, Archipelago Books
The%20Beekeeper
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