Page 7 - MEOG Week 10 2023

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.™

Week 10 08•March•2023 www. NEWSBASE .com P7