Page 7 - MEOG Week 10 2023
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MEOG                                  PRICES & PERFORMANCE                                            MEOG

       Global energy sector emissions

       reach new height in 2022

        EMISSIONS        GLOBAL  energy-related CO2 emissions  extreme weather, nuclear power plants (NPPs)
                         reached a new record in 2022 of 36.8bn tonnes,  being offline and industrial production curtail-
                         inching up 0.9% from the previous year’s level,  ment, particularly in China and Europe.
                         the International Energy Agency (IEA) reported   Emissions from natural gas fell by 1.6%,
                         last week. The rise was chiefly the result of soar-  reflecting reduced demand because of high
                         ing gas prices, which led more countries to ramp  prices. Europe saw a decline of 13.5%, after
                         up coal use, while oil demand recovered as gov-  having to resort to other fuels to cope with the
                         ernments ended lockdown measures. It came  loss of Russian gas supply. Natural gas-related
                         despite increased deployment of new wind, solar  emissions in the Asia-Pacific region fell by 1.8%
                         and other low-carbon technologies.   – an unprecedented decline considering it is the
                           Despite emissions rising to a new height, the  fastest-growing market for gas. Europe secured
                         IEA said the growth had not been as great as it  extra LNG last year that would otherwise have
                         had anticipated. Emissions fell 5% in 2020, as a  gone to Asia, which responded by stepping up
                         result of COVID-19 lockdowns, only to rise once  coal-fired power generation.
                         more by 6% in 2021. “In a year marked by energy   The decline in natural gas emissions was more
                         price shocks, rising inflation and disruptions to  than offset by a 1.6% increase in coal emissions.
                         traditional fuel trade flows, global growth in  Meanwhile, CO2 emissions from oil climbed by
                         emissions was lower than feared, despite gas-to-  2.5%, with half of this rise caused by a recovery
                         coal switching in many countries,” the IEA said.  in air travel from a pandemic low.
                         “Increased deployment of clean energy technol-  Chinese emissions dropped by a slight 0.2%
                         ogies such as renewables, electric vehicles [EVs]  last year, while the EU reduced its emissions by
                         and heat pumps helped prevent an additional  2.5%. US emissions rose by 0.8%. Emissions
                         550mn tonnes in CO2 emissions.”      from Asia’s emerging market and developing
                           There were also other factors such as  economies, excluding China, grew more than in
                         increased cooling and heating demand in  any other region, by 4.2%.™

                                             FINANCE & INVESTMENT

       OQ sets Abraj price as IPO is over-subscribed

        OMAN             THE drilling division of the Omani state oil  2. Saudi Omani Investment Co. committed to
                         company, OQ, has revealed that its initial public  acquiring 20% of the shares, with Oman’s Royal
                         offering (IPO) has been oversubscribed by 8.7  Court Affairs and Schlumberger Oman & Co.
                         times after strong demand from investors, both  to pick up 10% each. A maximum of 85% of the
                         local and international.             shares will be offered to institutional investors,
                           Abraj Energy Services is expected to be  and will be made available to Omani and inter-
                         listed on the Muscat Stock Exchange (MSX) on  national investors, except those from the US. The
                         March 14, and has seen its shares total demand  remaining 15% of shares will be offered to retail
                         exceed OMR790mn ($2.05bn), which equates  investors. Abraj announced in late January that
                         to an 870% oversubscription. This is the largest  its 2023 dividend will be made up of 85% of 2022
                         demand for an IPO in Oman in recent years,  profits.
                         according to a tweet by the company.   Abraj CEO, Saif Al Hamhami, stated that the
                           Abraj had hoped to raise OMR93.97mn  company’s future is promising, partly because
                         ($244mn) through the IPO, in which 49% of  it is prequalified in four countries to conduct a
                         the share capital was offered to the public by its  range of services, setting the stage for interna-
                         parent company, OQ. The company expressed  tional expansion aimed at delivering growth
                         its pride at having achieved the largest IPO in  and shareholder value. Ahli Bank of Oman, EFG
                         Oman’s stock market and thanked new investors  Hermes and National Bank of Oman have been
                         for their confidence in the company.  appointed as joint global co-ordinators for the
                           Abraj set the final price for its shares at  listing.
                         OMR0.249 ($0.65) per share, the highest offer   The sale of Abraj has been discussed by Mus-
                         price range given at the IPO launch. This was  cat since 2015, but it has been postponed numer-
                         accomplished by offering 377.4mn shares in a  ous times due to the upstream oil industry’s
                         price range of OMR0.242-0.249 ($0.63-0.65)  downturn. The company was formed in 2006
                         to public subscription, which closed on March  and has 13 land rigs.™

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