UNCHA AMIRPUR: Subedar Singh bears the scars of India’s painful reliance on dirty power and its struggle to pay for the costly transition to the brave new world of solar and renewable electricity.
Last year, the farmer walked into a field in his village and suffered 70 percent burns to his feet and ankles from an underground coal fire caused by a nearby power plant. Singh said he dragged himself out of the field and then fainted from the searing pain.
The people of Uncha Amirpur in the northern Uttar Pradesh state — east of the smog-afflicted capital New Delhi — discovered that a mix of water and coal used by the nearby NTPC Dadri power plant had accumulated under the field and caught fire. Some cattle died.
Hundreds of millions of people in India are forced to live with the fallout of the dirtiest fuels — with the government blaming a lack of funds to pay for greener power.
Money will be the key issue when about 100 countries meet in Paris on Tuesday for the One Planet Summit organized by French President Emmanuel Macron. The meeting will focus on marshalling public and private funds to speed the move to a low-carbon economy.
Developing countries say barely a tenth of the $100 billion (SR375 billion) promised by the end of the decade under a 2010 deal has come in so far.
“If more money is available, of course the (Indian) government is in a position to push renewable energy faster,” energy analyst Narendra Taneja said.
“The pollutants accumulated over the decades, we didn’t do that. It was the West and they should clear up those dues as soon as possible,” said Taneja, a consultant to the ruling Bharatiya Janata Party.
India needs $140 billion to reach Prime Minister Narendra Modi’s ambitious target of installing 100,000 megawatts of solar power by 2022, according to Arunabha Ghosh, chief executive of the Council on Energy, Environment and Water, a New Delhi think tank.
So far it has just 15,000 MW, less than five percent of the country’s total generation capacity of 331,000 MW.
Developing countries “have stayed committed to the Paris agreement, even after the US decision to exit, but their ability to scale up ambitions is contingent on how much rich countries do at home and how much they support actions outside,” Ghosh said.
“Next year could be a tipping point for their patience.”
As one of the fastest growing major economies, India needs uninterrupted power to keep factories humming and the economy expanding.
Currently, 66 percent of its electricity is generated by coal and gas. The rest comes from nuclear and renewables, including hydro, wind and solar.
India needs renewable energy to meet its 2015 Paris commitment to reduce emissions relative to gross domestic product by up to 35 percent by 2030 from 2005 levels.
A lack of affordable options to store wind and solar energy means cheap coal is India’s mainstay. More than 300 coal power plant units missed a December 7 government deadline to upgrade with emissions reduction technology.
The impact is visible in Uncha Amirpur, where a thick coat of grime and dust covers every surface.
The Dadri power plant provides up to one third of the electricity required for New Delhi, 66 kilometers away by road, but also fuels the smog that envelops the Indian capital each winter.
The severe air pollution in New Delhi — many times the global safe limit — has been linked to asthma, bronchitis and even brain disease in babies.
Mandeep Raghav, a village local trying out for the Uttar Pradesh state cricket team, said there are days when he finds it hard to breathe.
“When I run, it’s okay for a while as I absorb the pollution, but at night when I sleep, I can feel my heartbeat increasing,” the 23-year-old batsman, whose father died of asthma in April, said.
“Sometimes I feel like I’m about to die.”
Ishwar Chand Sharma, who earns about 7,000 rupees a month as a mechanic at the coal plant, said: “For most of this year, I’ve been sick at least 10 days a month and missed work.”
Ash from the coal plant spreads to nearby villages, including Salarpur Kala, which is sandwiched between the plant and two cement factories.
Satbir Singh, a retired soldier who took up farming, said the ash ruins his crops.
“There’s a thick layer on the buds that just kills the wheat,” he said. “At least half of the 200 acres here was wiped out in October.”
Pollution conundrum: India faces painful move to cleaner energy
Pollution conundrum: India faces painful move to cleaner energy
Closing Bell: Saudi main index closes in green, reaches 11,949 points
- MSCI Tadawul Index increased by 15.52 points, or 1.05%, to close at 1,500.07
- Parallel market Nomu lost 285.18 points, or 0.91%, to close at 30,953.11 points
RIYADH: Saudi Arabia’s Tadawul All Share Index increased by 0.84 percent or 99.42 points to reach 11,948.79 points on Monday.
The total trading turnover of the benchmark index was SR4.9 billion ($1.3 billion), as 111 of the listed stocks advanced, while 117 retreated.
The MSCI Tadawul Index also increased by 15.52 points, or 1.05 percent, to close at 1,500.07.
The Kingdom’s parallel market Nomu dropped, losing 285.18 points, or 0.91 percent, to close at 30,953.11 points. This comes as 32 of the listed stocks advanced while 51 retreated.
The main index’s top performer, Zamil Industrial Investment Co., saw a 4.31 percent increase in its share price to close at SR33.90.
Other top performers included Saudi Reinsurance Co., which saw a 4.20 percent increase to reach SR47.15, while the Mediterranean and Gulf Insurance and Reinsurance Co.’s share price rose by 4.16 percent to SR23.52.
Red Sea International Co. also recorded a positive trajectory, with share prices rising 3.89 percent to reach SR56.10.
Kingdom Holding Co. also witnessed positive gains, with 3.75 percent reaching SR9.13.
National Co. for Learning and Education was TASI’s worst performer, with the firm’s share price dropping by 3.94 percent to SR204.60.
Aldrees Petroleum and Transport Services Co. followed with a 3.84 percent drop to SR120.20. Riyadh Cement Co. also saw a notable drop of 3.61 percent to settle at SR32.05.
Walaa Cooperative Insurance Co. and MBC Group Co. were among the top five poorest performers, with shares declining by 3.52 percent to settle at SR17.56 and by 3.17 percent to sit at SR54.90, respectively.
On the announcement’s front, Almujtama Alraida Medical Co. disclosed that Khabeer Althanyia Investment Co. — a major shareholder — has announced its intention to distribute and deposit its 630,673 shares in Almujtama Alraida, representing 6.64 percent of the company’s capital, into the investment portfolios of its current partners.
The move, according to a filing on Tadawul, will result in changes to the list of the company’s major shareholders.
Almujtama Alraida Medical Co.’s share price dropped 2.91 percent on Monday to settle at SR30.05.
Najran Cement Co. announced that its shareholders approved the transfer of SR163.62 million from its statutory reserve, as reported in its financial statements for the year ending Dec. 31, 2023, to its retained earnings balance of SR138.15 million.
The decision was made during the company’s extraordinary general meeting held on Dec. 22, according to a statement on Tadawul.
Shareholders also approved the repurchase of up to 17 million shares to be held as treasury shares, citing the board’s view that the company’s stock is trading below its fair value.
The share buyback will be financed through the firm’s resources, including cash balances or credit facilities, with the board authorized to complete the process within 12 months of the meeting date.
The repurchased shares can be retained for a maximum of 10 years, after which the company will comply with applicable laws and regulations, the statement said.
Najran Cement Co.’s share price saw a 1.22 percent dip on Monday to close at SR8.92.
Saudi Arabia inaugurates Yanbu Grain Terminal to boost food security, trade
RIYADH: Saudi Arabia has inaugurated the Yanbu Grain Handling Terminal, underscoring the Kingdom’s efforts to strengthen public-private partnerships, enhance agricultural trade, and bolster food security across the region.
The event was attended by Abdulrahman Al-Fadli, minister of environment, water and agriculture, and by various government and private sector officials, according to the Saudi Press Agency.
The Yanbu Grain Handling Terminal will serve both public and private sector importers, and boasts a storage capacity of 156,000 tonnes, including 12 silos with a combined capacity of 96,000 tonnes.
Food security has risen up the agenda in recent years, as countries in the Gulf contend with the impacts of climate change, the consequences of trade-disrupting conflicts such as the Ukraine-Russia war, and interruptions to supply routes through the Red Sea.
In September 2022, in response to these challenges, the Kingdom collaborated with regional partners to launch a food security action plan with an initial funding of $10 billion.
The Yanbu Grain Handling Terminal will be operated by the National Grains Co., a joint venture between the national shipping carrier Bahri and the Saudi Agricultural and Livestock Investment Co.
It features a 650-meter conveyor belt and a discharge rate of 800 tonnes per hour directly from ships, with an annual handling capacity exceeding 3 million tonnes of grain.
According to Bahr’s statement to the Saudi Stock Exchange, the inauguration delay was caused by the inclusion of additional requirements to enhance future operational efficiency, along with the construction of extra infrastructure to accommodate potential future expansions.
The company said that because of this the total project cost rose by 7 percent from the initially allocated SR412.5 million ($109.7 million), though the increase is not deemed significant.
The Yanbu Grain Handling Terminal aims to become a world-class logistics hub, connecting three continents and supporting the Kingdom’s vision for a resilient and efficient agricultural supply chain.
Established in 2020 as a strategic partnership between SALIC and Bahri, the National Grain Co. aims to fulfill the Kingdom’s future feed grain requirements while enhancing its global competitiveness.
It is committed to advancing grain trade, handling, and storage through the Yanbu terminal, strengthening supply chains and ensuring price stability across Saudi Arabia.
SALIC, a Public Investment Fund-owned company, was formed in 2011 to secure food supply for Saudi Arabia through mass production and investment.
When the project was announced in 2020, Al-Fadli, who is also the chairman of SALIC’s board of directors, said: “The project aims to enhance the velocity of the main grain influx to Saudi Arabia and is considered the first regional center for grains in the commercial port of Yanbu.”
He added that SALIC relies on the geographical location of the Kingdom and the port infrastructure to enhance food distribution in the region by linking the Kingdom to global grain sources, especially countries where SALIC is investing.
A grain delivery service to customers within the Kingdom has been introduced as part of the project, ensuring greater proximity to clients, enhanced customer experience, and improved profitability margins.
UAE’s ADNOC boosts drilling capabilities with 2 new jack-up rigs
- ADNOC Drilling will expand its fleet to 142 platforms
- UAE possesses the sixth-largest crude oil reserves globally
JEDDAH: The Abu Dhabi National Oil Co. has received two new jack-up rigs, reinforcing its position as one of the largest drillship fleet owners globally.
ADNOC Drilling will launch the new rigs by the first quarter of next year, expanding its fleet to 142 platforms. This marks a strong year for the company, showcasing its performance and strategy, according to UAE state news agency WAM.
For over 50 years, ADNOC Drilling has been the exclusive provider of drilling and rig-related services to ADNOC Group under agreed contractual terms, supporting the firm’s upstream operations in exploring and developing oil and gas resources in the UAE.
With most of the Gulf country’s crude oil and gas reserves located in Abu Dhabi, ADNOC oversees the majority of nationwide exploration, appraisal, development, and production activities, which are managed by ADNOC, either independently or in partnership with third parties.
In its analysis of the company’s performance, JPMorgan, a global financial services firm, said: “Since its initial public offering, ADNOC Drilling has proven to be a high-quality, defensive business, consistently meeting and surpassing guidance and expectations. The exceptional performance also reflects positive progress with ADNOC Drilling’s two joint ventures.”
The UAE possesses the sixth-largest crude oil reserves globally, with approximately 107 billion stock tank barrels of proven oil reserves. Since its inception in 1972, ADNOC Drilling has played a crucial role in enabling ADNOC to unlock the country’s oil and gas resources efficiently and reliably, contributing to the nation’s energy sector.
This year, Enersol, a joint venture between Alpha Dhabi Holding and ADNOC Drilling, acquired four oilfield services technology companies, while Turnwell, another business partnership between ADNOC, SLB, and Patterson-UTI, set a record for initial well delivery time, accelerating the development of the UAE’s unconventional energy reserves.
Following its second upward guidance revision this year alongside its third-quarter results, ADNOC Drilling is on track to deliver its best-ever performance in Q4. ADNOC Drilling anticipates at least mid-single-digit expansion as it scales operations, according to WAM.
ADNOC forecasts a rise in drilling activity in the coming years, driven by its commitment to increasing crude oil production capacity by 25 percent, reaching five million barrels per day by 2027.
As the company looks to expand beyond the UAE and explore opportunities in the region, it foresees a growing need to expand its rig fleet to support its strategic growth plans.
The energy giant believes that expanding its rig fleet will enhance its current capabilities in rig hire, drilling, completion services, and associated operations and enable the company to offer unconventional drilling and biogenic well services. This expansion is expected to contribute to increased revenue and profitability.
Terminal 4 at Cairo International Airport to boost Egypt’s aviation and tourism sectors
- Project is expected to bolster the country’s tourism goals and improve traveler experiences
- Egypt’s aviation sector also improved 36 spots to 27th in the 2024 edition of the Air Transport Infrastructure Index
RIYADH: Egypt is advancing its aviation sector with the ongoing development of Terminal 4 at Cairo International Airport, set to accommodate 30 million passengers annually.
According to a statement from the Cabinet, the “New Republic Air Gateway” project is expected to bolster the country’s tourism goals, improve traveler experiences, and position Egypt as an international aviation hub.
This year, the government announced plans to involve the private sector in airport management, including a global tender for Cairo International.
Egypt’s aviation sector also improved 36 spots to 27th in the 2024 edition of the Air Transport Infrastructure Index, aligning with Vision 2030’s focus on sustainable development, innovation, and global competitiveness.
Prime Minister Mostafa Madbouly, during a meeting at the New Administrative Capital, reviewed progress on the project alongside Minister of Civil Aviation Sameh El-Hefny. The session focused on the terminal’s specifications, implementation strategy, and potential to reshape the African nation’s aviation and tourism landscapes.
“Airport development works come within the framework of presidential directives to upgrade the Egyptian airport system, raise its capacity and improve the level of services provided to passengers,” he said.
At the meeting, Madbouly emphasized the importance of creating world-class facilities to accommodate rising traveler numbers.
El-Hefny outlined the project’s phased execution, with completion expected within four to five years. He also revealed that negotiations are underway with international firms specializing in airport construction and management to ensure world-class execution.
The minister emphasized the cutting-edge features of the new terminal, including its ability to initially handle 30 million passengers annually, with expansion potential to 40 million.
In September 2023, Cairo Airport Co. partnered with Pangiam, a trade and travel technology company, and signed two agreements to develop the new terminal. These deals, focused on enhancing the airport’s operations with advanced technology, include a feasibility study to incorporate emerging technologies and deliver a seamless travel experience.
The terminal will feature a state-of-the-art runway equipped with advanced navigation and lighting technologies that meet international standards.
Once operational, Terminal 4 is expected to elevate Cairo International Airport’s global status, making it a hub for regional and international travel.
Saudi banks report 24% profit growth amid strong non-interest income
RIYADH: Saudi banks’ aggregate profit reached SR7.7 billion ($2.05 billion) in October, marking a 23.67 percent year-on-year increase, newly released data has revealed.
According to the Saudi Central Bank, also known as SAMA, these figures represent profits before zakat and taxes.
Cumulatively, from the beginning of the year to the end of October, banks recorded a total profit of SR73.28 billion, compared to SR64.47 billion during the same period last year.
The increase in banks’ profits is primarily attributed to a combination of favorable factors that highlight the sector’s strength and ability to adapt.
The third quarter of 2024 marked a significant turning point, with non-interest income playing a pivotal role.
According to a Fitch Ratings report published in November, strong gains on securities and trading contributed SR1.4 billion to non-interest income, offsetting higher financing impairment charges and helping push combined quarterly profits to SR20 billion.
This growth followed SAMA’s decision to implement a 50-basis-point interest rate cut in September, which mirrored the US Federal Reserve’s shift toward a more accommodative monetary policy.
The rising interest rate environment that characterized much of the Gulf region in recent years had previously bolstered bank returns on loans, as higher borrowing costs translated into greater income from financing activities.
However, this dynamic also increased funding costs, particularly for savings accounts and external liabilities.
Many Saudi banks navigated these challenges by diversifying their funding sources, tapping into external markets, and issuing a record $13 billion in debt in the first eight months of 2024 to meet growing foreign-currency financing demands, particularly for giga-projects.
Despite these efforts, deposit growth in the third quarter of 2024 lagged behind earlier quarters, according to Fitch, reflecting the sector’s strategic pivot toward external funding to sustain its expansion.
The recent shift in monetary policy by the US Federal Reserve, which influences rates in Saudi Arabia due to the riyal’s peg to the dollar, has injected new dynamics into the financial landscape.
After a period of aggressive rate hikes to combat inflation, the Fed lowered interest rates by 50 basis points in September, followed by successive 25-basis-point cuts in November and December, signaling a focus on boosting economic growth as inflation eased to acceptable levels.
This policy change benefited Saudi banks by improving the valuation of certain securities, as noted by Fitch, and created a more favorable environment for non-interest income growth.
Another critical factor underpinning Saudi banks’ profitability has been their robust asset quality and prudent risk management.
The average impaired financing ratio, according to Fitch Ratings, remained low at 1.5 percent by the end of the third quarter, with provision coverage at a healthy 116 percent.
This stability reflects the resilience of Saudi banks in managing risks associated with their expanding financing books, which grew by 3.6 percent during the quarter, led by strong performances from banks like Aljazira, Saudi Awwal Bank, and Saudi Investment Bank.
The sector’s healthy operating environment is supported by the Kingdom’s broader economic stability and strategic investments under Vision 2030, which continue to drive demand for corporate financing.
While external liabilities and a negative net foreign asset position present challenges, Saudi banks remain well-capitalized, with average Common Equity Tier 1 ratios of 15.6 percent, and are positioned to maintain strong asset quality metrics as they navigate a shifting global monetary landscape.
The combination of rising non-interest income, strategic funding diversification, and favorable monetary policy shifts underscores the resilience of Saudi Arabia’s banking sector, making it a key player in the region’s economic transformation.
As SAMA continues to align with global trends, Saudi banks are poised to further strengthen their profitability while maintaining a balanced approach to growth and risk management.
