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Oil news is gushing in both the international and local press, with updates that Egypt is looking to secure at least 17 LNG cargoes over the next three months, news of a new jack-up drilling rig being deployed in the Suez Canal, and more. Also, we have news of an ambitious plan by Beltone Financial to almost double its assets under management by 2027.
But first…. We heard reports from Electricity Ministry sources that power cuts will resume once again for three hours between 2pm and 8pm until further notice.
Beltone targets EGP 50 billion AUM by 2027
The Clap:
EGX-listed financial services provider Beltone Financial Holding wants to hike its assets under management (AUM) to EGP 50 billion from the current EGP 28 billion over the next three years through expansions into new markets, the company’s regional and Gulf markets’ division head Khalil El Bawab told Al Borsa.
The plan:
Locally, the company plans to launch new Shariah-compliant financial instruments following the kick off of the country’s first Islamic index earlier this month. Bawab has not detailed the new overseas markets it is eying but it is worthy to note that Beltone already operates in the UAE, Saudi Arabia, and Qatar.
Remember:
In 2022, Emirati investor Chimera acquired a majority stake in Beltone and overhauled the company’s management team. The company set out a huge capital increase to recapitalize its business, and laid out a strategy to transition into a data-centric firm.
Impact:
As a result of the company’s restructuring process, Beltone turned profitable for the first time in three years in 2023. In May, the firm reported EGP 514 million in net income for 1Q 2024, and upped its operating revenue 812% YoY to EGP 1.33 billion in the same period.
EGAS issues tender for at least 17 LNG shipments
The Clap:
Government-owned Egyptian Natural Gas Holding Company (EGAS) is reportedly looking to issue an international tender in a bid to secure no less than 17 liquified natural gas (LNG) shipments over the next three months, Bloomberg reports. This comes after Egypt became a net importer of LNG in recent months following a drop in domestic production.
The specifics:
The tender will reportedly remain open until Wednesday, the 26th of June, and it is likely only Atlantic LNG supply would be competitive in the offer, Reuters reported, citing the head of LNG pricing at commodity pricing agency Argus.
Financing structure:
EGAS is targeting deferred payments of up to six months, and will likely “eventually pay more than the average premium of between USD 1 and USD 2 per million British thermal unit to the Dutch TTF hub gas price,” the newswire notes.
The timeline:
The state-owned company is eying importing seven LNG cargoes next month in July, six shipments in August, and four others the following month.
We knew this was coming:
At the start of the month, reports circulated on Egypt’s intention to issue an international tender to import about 15 shipments of LNG through October. The import strategy — expected to average around USD 120 million a month for three shipments — follows implementation of daily power cuts in a bid to save as much USD 300 million per month.
In other news:
Pharos Energy received USD 10 million of its dues from the Egyptian General Petroleum Corporation, amounting to 26.7% of the total arrears Egypt owes to the British company. As of March, arrears to international oil and gas companies were estimated to hover at around USD 6.25 billion, of which USD 1.5 billion — approximately 20% — were settled following fresh inflows of hard currency into the state’s purse.
The Clap:
KSA energy company Ades Holding has signed an agreement with state-owned Suez Oil Company (SUCO) to establish a new jack-up drilling rig in the Suez Canal at a SAR 185 million (EGP 2.34 billion) investment ticket.
The details:
The two-year contract is part of a wider ten-year service agreement with SUCO and Offshore Shukeir Marine Oil (OSOCO) that will expand output from two brownfields in Egypt.
What’s next?
Ades said back in March it plans to invest USD 30 million in SUCO and USD 36 million in OSOCO in the first three years of the pact, and the consortium will hold up to 72% of additional output from the project, which is set to kick off in July.
What else is clapping?
South Valley Cement recorded a 24.9% YoY rise in net losses to EGP 46.3 million during Q1 2024, and its revenues are also down 2.9% YoY to EGP 328.3 million.
Asec Company for Mining is in the red for Q1 2024, recording EGP 25.6 million in net losses compared to net gains of 38.5 million in the same period last year. Meanwhile, its revenues rose 52.5% YoY to EGP 759.7 million during the three-month stretch.
British oil and gas firm Energean will sell all of its Egypt-based assets – including its Abu Qir, North East Amriya, and North Idku concessions— to American multinational private equity Carlyle Group as part of a USD 945 million agreement.
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