Page 12 - MEOG Week 38 2022

MEOG FINANCE & INVESTMENT MEOG

East Pipes invites shareholders

to vote on capital increase

SAUDI ARABIA SAUDI Arabia’s East Pipes Integrated Co. for capital in August of this year, upon the recom-
Industry, a manufacturer of steel pipes for oil, mendation of the board of directors. At the time,
gas and water transportation, said on September it said it was taking this step in order to “pro-
19 that it had invited its shareholders to vote on a vide sustainable returns to shareholders, while
proposed capital increase. supporting the company’s strategic investment
In a series of stock exchange statements, East plans.”
Pipes explained that the vote would be held dur- Mohammed Al Shaheen, East Pipes’ CEO,
ing an extraordinary general meeting (EGM) added: “We aim to retain internal resources to
of shareholders on October 19. At the meeting, deliver on East Pipes’ current backlog, which is
which will be conducted virtually, shareholders [a] testament of the positive momentum in our
will vote on a measure that aims to raise the total industry.”
number of shares in the company from 21mn to The Saudi company reported a profit of
31.5mn. SAR6.2mn ($1.65mn) in the second quarter of
Under this measure, East Pipes’ existing 2022, up by 190% on the same period of 2021. It
shareholders will be issued 0.5 new shares for has attributed the share year-on-year increase to
every one share now held through the capitalisa- higher sales volumes.
tion of SAR105mn ($27.93mn) from the compa- East Pipes, based in the city of Dammam,
ny’s retained earnings. This will boost East Pipes’ manufactures helical submerged arc-welded
capital from SAR210mn ($55.85) to SAR315mn (HSAW) steel pipes. It has been in business since
($83.78mn). 2010 and has a production capacity of 500,000
The company approved the plan to raise tonnes per year (tpy).™

PROJECTS & COMPANIES

ADNOC’s oil target brought

forward five years

UAE THE UAE has brought forward the target date bpd to 5.7mn bpd by the end of the decade.
for state-owned Abu Dhabi National Oil Co. That ADNOC is being even more ambitious
(ADNOC) to increase oil production to 5mn than the region’s other top producers is perhaps
barrels per day (bpd) by five years. unsurprising given the competition between
Having already raised oil output from 4mn Gulf NOCs, though its production levels are
bpd to 4.2mn bpd since the target was set, it significantly lower than those of Saudi Aramco.
will look to add another 800,000 bpd by 2025, The UAE produced 3.4mn bpd in August, up
according to insiders speaking to Bloomberg. 51,000 bpd compared to the previous month,
The company is also working to achieve gas while Saudi Arabian output ran at 11.05mn bpd,
self-sufficiency by 2030. up 236,000 bpd.
The sources said that IOCs working on the To achieve the output expansion, the sources
development of Abu Dhabi oilfields have been said that ADNOC may need to hike upstream
asked by ADNOC to increase their long-term spending.
production levels by at least 10%, adding that if In December, Crown Prince Sheikh
the target is realised, ADNOC may set a target of Mohamed bin Zayed Al Nahyan, who serves
6mn bpd by 2030. as the company’s chairman, and the board of
The 5mn bpd target had originally been directors signed off on the company’s five-year
pegged for 2030, with recent reports suggesting business plan and capital expenditure (CAPEX)
that ADNOC would try to reach that level by of AED466bn ($127bn) for 2022-2026.
2027, the same date that Saudi Arabia expects to Work is ongoing to expand production across
complete the addition of 1mn bpd of capacity, various major assets across the emirate’s on- and
while Iraq is looking to add 3mn bpd and Kuwait offshore assets, while E&P efforts continue to
around 800,000 bpd. be carried out by IOCs that picked up assets in
Iran intends to expand capacity from 3.8mn recent licensing rounds.™

P12 www. NEWSBASE .com Week 38 21•September•2022