Saudi Arabia’s TAQA drilling subsidiary agrees to acquire Schlumberger’s Mideast drilling rigs business for $415 million 

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Officials of the TAQA and the Arabian Drilling Company at the signing of Taqa's  acquisition of Schlumberger’s Middle East onshore drilling rigs business. (Supplied photo)
Updated 28 April 2019
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Saudi Arabia’s TAQA drilling subsidiary agrees to acquire Schlumberger’s Mideast drilling rigs business for $415 million 

  • Will create a diversified, pan-regional drilling powerhouse with 58 onshore and 9 offshore rigs and decades of experience across Saudi Arabia, Kuwait, Oman, Iraq and Pakistan
  • Fully aligned with Saudi Arabia’s Vision 2030, the transaction expected to demonstrate TAQA’s delivery on its transformation strategies to unlock value and drive growth

Officials of the TAQA and the Arabian Drilling Company at the signing of Taqa's  acquisition of Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415 million (SAR 1.56 billion).

 

DAMMAM: Saudi Arabia’s Industrialization and Energy Services Company (TAQA) announced Sunday that its drilling subsidiary, Arabian Drilling Company (ADC), has agreed to acquire Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415 million (SAR 1.56 billion). The transaction transforms ADC into a regionaldrilling leader with one of the largest rig fleets, client portfolios and geographic footprints in the Middle East. ADC, a drilling rig partnership between TAQA and Schlumberger, was established in 1964 through a royal decree. 

Through this expansion, ADC, Saudi Arabia’s current market leader and drilling national champion, will become an industry powerhouse, operating a superior fleet of 58 onshore rigs and 9 offshore rigs across the MENA region. The combined firm will have more than 5,900 employees and builds on ADC’s long-standing reputation of reliably serving national and international oil and gas companies for over 55 years.

The transaction will combine the outstanding track records of the parties with respect to operations, quality of service, health, safety and environment. It will also create economies of scale and cost synergies, making ADC a regional leader, encompassing a diversified, multi-country and multi-client offering.

For TAQA, the expansion represents a major step forward in its ongoing group-wide transformation and growth strategy. TAQA’s 2021 strategy is to become a leading regional oilfield services and equipment (OFSE) company and is based on three key pillars: (1) creating value by strengthening the position and growth of its existing businesses and expanding into higher-tier services and new markets, (2) sustaining value by providing differentiated, best-in-class client services and safety, using the latest technologies, and, (3) realizing value and greater operational efficiencies by delivering more integrated client services that are safe, reliable and competitive. 

“This acquisition is fully aligned with Saudi Vision 2030. It unlocks value and drives growth across our entire value chain through a more integrated regional approach, while positioning a leading Saudi company as a global player,” said TAQA chief executive officer Azzam Shalabi, who is also chairman of the ADC Board.

He said the transaction also follows on from ADC’s accelerated expansion activity in 2018 when 16 rigs were commissioned to support the growth of Saudi Aramco. 

“This new combination clearly demonstrates that TAQA and ADC are delivering on their transformation and growth strategies, and further strengthens what is already a long-standing and trusted partnership between TAQA and Schlumberger. We look forward to supporting ADC in the next phase of its expansion and have full confidence that this will benefit all stakeholders, most notably our regional clients,” he added.

The transaction is expected to close in the second half of 2019, subject to regulatory approvals.

Moelis & Company acted as exclusive financial advisor to TAQA, and Rothschild & Co. acted as exclusive financial advisor to Schlumberger.

Established in 2003, Industrialization & Energy services Company (TAQA) is a joint stock company owned by the Kingdom’s Public Investment Fund, Saudi Arabian joint stock companies and prominent institutional investors. It has majority stakes in a number of fast-growing, successful and innovative businesses, overseeing the management with a remit to support and expand Saudi Arabia’s oil field services and equipment manufacturing capabilities. 

TAQA’s portfolio of subsidiaries offers top-tier equipment and oilfield services including: drilling services, production and completion, seismic data and geophysical mapping, the manufacturing of OCTG and API pipes.

ADC, established in 1964, is a limited liability partnership between TAQA, which owns 51%, and Schlumberger, which owns the remaining 49%. 

ADC’s drilling services are backed by over 55 years of operational experience and has a history of innovation, driving safety and drilling efficiencies. The company’s operations started with one drilling rig and will expand to 67 onshore and offshore rigs by the end 2019. ADC has a long-standing reputation and track record serving national and international oil and gas companies including Saudi Aramco, Al-Khafji Joint Operations (KJO), Schlumberger and Halliburton. 


As Formula E partner, SABIC advances world’s sustainable transition to EVs

Updated 17 February 2025
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As Formula E partner, SABIC advances world’s sustainable transition to EVs

The Jeddah E-Prix just concluded with a resounding success, giving yet another opportunity to SABIC — as principal and innovation partner — to demonstrate its ability to support the world’s transition to electric vehicles and a more sustainable future.

The Jeddah E-Prix was held on a new track at the Jeddah Corniche Circuit, offering fans an electrifying experience and a platform for SABIC to showcase its expertise in automotive technologies, which have the potential to directly contribute to the evolving needs of EV manufacturers. 

Since initiating the partnership in 2022, SABIC has worked closely with Formula E, officially the ABB FIA Formula E World Championship, to drive innovation across the sport. It is collaborating closely with Formula E to integrate its sustainable solutions across their race cars and the whole ecosystem.

One such example is that of the GENBETA car development program — a live development platform created with Formula E to push the boundaries of EV technology. SABIC’s materials were used in the applications of GENBETA, contributing directly to the car’s achievement of hitting a top speed of 218 kph at the London E-Prix — setting a new Guinness World Record. 

Being an innovative science and technology company, SABIC has materials and capabilities to take advantage of the enormous growth opportunity that electrification represents. At the same time, SABIC’s initiatives to advance electrification align fully with its broader sustainability strategy, which supports a circular carbon economy vision.

As Formula E continues to make waves globally as a premier motorsport championship for electric cars, SABIC’s ongoing work with commercial EV makers and their partners is contributing to the development of breakthrough solutions to help increase efficiency and performance — perfectly aligned with its mission to provide innovative solutions to automakers and help them enhance the performance of EVs.


GFH reports 15% rise in net profit to $118.5m for 2024

Updated 17 February 2025
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GFH reports 15% rise in net profit to $118.5m for 2024

GFH Financial Group has announced its financial results for the fourth quarter and 12 months ending Dec. 31, 2024.

The net profit attributable to shareholders was $30.56 million for the fourth quarter of the year versus $23.94 million in the fourth quarter of 2023, an increase of 27.63 percent. This was attributed to higher contribution from the investment banking and proprietary investment business lines. The earnings per share for the quarter were 0.84 cents compared with 0.69 cents in the fourth quarter of 2023. The total income was $189.34 million for the fourth quarter of the year, reflecting a 32.57 percent increase from $142.82 million in the fourth quarter of 2023, supported by investment banking activities, proprietary income, and treasury operations. The consolidated net profit for the fourth quarter was $32.96 million compared with $24.18 million in the fourth quarter of 2023, a growth of 36.31 percent, despite fair value movements in the group’s treasury and investment portfolio. The total expenses for the quarter were $111.10 million, compared with $84.06 million in the prior-year period, reflecting a 32.17 percent increase, largely due to business operation expansion.

The group reported net profit attributable to shareholders of $118.5 million for the full year compared with $102.86 million in 2023, an increase of 15.21 percent. The gain is attributed to the group’s strong investment banking performance, higher proprietary income, contributions from its commercial banking subsidiary, and a robust performance in treasury and asset management. The earnings per share for the year were 3.27 cents compared to 2.95 cents for the full year 2023, reflecting an increase of 10.85 percent. The total income for the year was $675.82 million, up 39.86 percent from $483.22 million for the previous year, demonstrating strong growth across all business lines. The consolidated net profit for the year was $128.51 million, compared with $105.23 million in 2023, an increase of 22.12 percent. The total expenses for the year were $344.99 million, compared with $264.30 million in 2023, reflecting a 30.53 percent increase.

The total equity attributable to shareholders was $980.94 million on Dec. 31, 2024, compared with $989.54 million at year-end 2023, a decrease of 0.87 percent. The total assets of the group were $11.03 billion on Dec. 31, 2024, compared with $11.12 billion on Dec. 31, 2023, down 0.81 percent.

In line with the group’s results, the board of directors has recommended a total cash dividend of 6.2 percent on par value ($0.0164 per share excluding treasury shares), subject to approval by the general assembly and regulators.

Currently, GFH manages close to $22 billion of assets and funds including a global portfolio of investments in logistics, healthcare, education and technology in the MENA region, Europe and North America. 

In a statement, GFH Chairman Abdulmohsen Rashed Al-Rashed said: “GFH has once again continued to deliver sustainable value for its shareholders with sound financial results for the fourth quarter and full year 2024. The net profit attributable to shareholders grew by more than 15 percent for the year, reflecting our disciplined execution, diversification, and the strength of our core businesses. As a result, we are pleased to announce another solid dividend for our shareholders reflecting the group’s ongoing commitment and ability to deliver shareholder value. 

"We are also proud to have successfully priced our S500 million five-year sukuk during the fourth quarter with demand from international investors. The solid double-digit growth in income and profitability highlights our ability to navigate market dynamics while seizing new opportunities. 

"Moving forward, we will continue to focus on building long-term resilience and delivering strong returns for our shareholders as we expand our global footprint and reinforce our position as a regional financial leader.”

GFH CEO and Board Member Hisham Alrayes said: “We are pleased to report another year of positive performance, with total income surging by 40 percent to $675.82 million, reflecting the success of our strategic initiatives and the expansion of our investment and treasury activities. Our net profit attributable to shareholders also rose by 15.2 percent to $118.50 million, driven by the performance of our investment banking, treasury and proprietary investment activities, and commercial banking businesses.

"Investment banking remained a key driver of profitability, supported by asset management growth and new deal-related income reinforcing our leadership in the sector. Our treasury and proprietary investments also delivered robust contributions, benefiting from well-executed capital deployment strategies and income from structured placements. Additionally, our commercial banking business continued its upward trajectory, supporting growth through disciplined restructuring and enhanced efficiency.

"As we look ahead, we will continue to build on this momentum by capitalizing on new investment opportunities, growing our global asset base, and further capitalizing on opportunities for growth in our core regional markets with an emphasis on Saudi Arabia and the UAE. This is in addition to strengthening our existing access to the US as a mature market, allowing us to continue to offer compelling asset management and investment products. Our focus remains on delivering sustainable returns, enhancing our financial strength, and driving value creation for all stakeholders. With a healthy balance sheet and a well-diversified platform, GFH is well-positioned to accelerate its growth and reinforce its status as a market leader in the region and beyond.”


4th Global Airports Forum to host 300 global exhibitors in Riyadh

Updated 17 February 2025
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4th Global Airports Forum to host 300 global exhibitors in Riyadh

The Saudi Airports Exhibition, recently renamed the Global Airports Forum, is set to double in size for its fourth edition, making it the largest in its history. The event will take place at the Riyadh International Convention and Exhibition Center on Dec. 16–17, covering 15,000 square meters and featuring 300 global exhibitors and more than 10,000 attendees. This expansion reinforces its position as a premier platform for the airport and aviation industry in the region.

The conference will host several concurrent events, including the Global Aviation Issues Conference, the General Assembly of Women in Aviation, and the Airport Excellence Awards, with participation from more than 100 international speakers. Additionally, more than 5,000 pre-scheduled meetings between exhibitors and buyers will take place, fostering collaboration and business opportunities in the sector.

The 2024 edition of the exhibition was a resounding success under the theme “Expansion, Innovation, and Collaboration,” with sponsorship from Matarat Holding — an arm of the General Authority of Civil Aviation — and several leading local and global aviation companies. The event attracted more than 7,000 aviation professionals and 250 exhibitors from 22 countries, including major firms specializing in airport management, ground-handling, security, and aviation technology. The exhibition received highly positive feedback, with 99 percent of exhibitors affirming its importance for their businesses, and 91 percent expressing their intention to participate in the 2025 edition.

Saudi Arabia is executing a massive airport expansion and modernization program with $147 billion in investments, expected to contribute $82.3 billion to the GDP by 2037. The GACA aims to increase air connectivity to 250 destinations, boost annual passenger numbers to 330 million by 2030, and double air cargo capacity to 4.5 million tonnes per year. These developments are crucial as the Kingdom prepares to host several major global events, including the AFC Asian Cup in 2027, the Asian Winter Games in 2029, Expo 2030 in Riyadh, and the FIFA World Cup in 2034.

Among the key projects currently underway are:

• King Salman International Airport (Riyadh): one of the world’s largest airports, targeting 100 million passengers annually by 2030, with future expansions increasing capacity to 185 million passengers by 2050.

• AlUla International Airport: undergoing expansion to accommodate 2 million visitors by 2035.

• Privatization of Abha and Taif airports: with $1 billion in investments, increasing Taif airport’s capacity to 2.5 million passengers annually by 2030.

Additionally, several regional and international airports across the Kingdom are undergoing expansion and modernization to support Saudi Arabia’s growing aviation sector.

This year will also mark the launch of Riyadh Air’s first commercial flights. The airline has already placed an order for 60 Airbus A321neo aircraft and is preparing for another major aircraft deal in 2025, as it gears up to operate flights to more than 100 destinations worldwide.

Saudi Arabia’s aviation sector saw significant growth in 2024, with Saudia Airlines transporting over 35 million passengers and both flyadeal and flynas setting new records in passenger numbers and flight operations.

Daksha Patel, director of Niche Ideas, the event organizer, said: “The pace of transformation in the aviation sector across the region is unprecedented, and Saudi Arabia is at the forefront of this change with massive investments in aviation infrastructure. We are proud to see the Global Airports Conference serving as a premier platform that brings together industry leaders to support these efforts and drive innovation in airport development.”

The Global Airports Forum 2025 presents a unique opportunity to showcase the latest technologies, innovations, and strategic partnerships in aviation, further strengthening Saudi Arabia’s position as a global hub for air transport and airport excellence.


SADAFCO wins award for corporate governance

Updated 17 February 2025
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SADAFCO wins award for corporate governance

Saudia Dairy and Foodstuff Company has been recognized as one of the top-performing companies in corporate governance listed on Tadawul, based on the Corporate Governance Index assessment for Fiscal Year 2023. This was announced at the Third Corporate Governance Award, hosted by the Alfaisal University Corporate Governance Center in partnership with King Faisal Specialist Hospital and Research Center.

Held under the patronage of Dr. Majed Alfayyadh, the conference successfully concluded with a strong turnout of industry leaders, experts, and professionals. The event featured an insightful program, highlighting discussions on the evolving landscape of corporate governance and the integration of AI in governance frameworks.

The conference, held under the theme “Beyond Compliance: Rethinking Corporate Governance in the Age of Artificial Intelligence,” highlighted best practices in corporate governance and honored the top-performing listed companies. The assessment evaluates organizations based on key governance principles, including board structure, shareholder rights, public disclosure and transparency, and stakeholder engagement.

Sultan Alghamdi, chief legal and governance, risk and compliance officer, and board secretary at SADAFCO, accepted the award on behalf of the company.

“At SADAFCO, we are committed to upholding the highest standards of corporate governance, ensuring transparency, accountability, and long-term sustainability,” Alghamdi said.

 This recognition reaffirms our dedication to maintaining robust governance practices that foster trust among our stakeholders,” said Alghamdi.

SADAFCO continues to enhance its governance framework, aligning with international best practices to drive corporate excellence and sustainable growth in the region. SADAFCO is a publicly listed company producing high-quality dairy and foodstuff products under the Saudia brand name since 1976, a year after the company was formed. 

Saudia enjoys being one of the market leaders in the Kingdom in the production of milk, tomato paste and ice cream.

Based in Jeddah, the company operates sales and distribution depots in 24 locations across Saudi Arabia and the Middle East. 


Ericsson, Tawal to deliver fully integrated neutral host provider for indoor network

Updated 17 February 2025
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Ericsson, Tawal to deliver fully integrated neutral host provider for indoor network

ICT giant Ericsson and Tawal, a telecommunications tower company in Saudi Arabia, announced the signing of a framework agreement at LEAP 2025 to provide a fully integrated neutral host provider ecosystem in the country. This partnership allows Tawal to enhance their solutions portfolio with Ericsson’s advanced solutions, to deliver seamless indoor connectivity across multiple networks, overcoming the limitations of operating within a single-vendor radio access network.

This collaboration introduces a vendor-neutral approach that enables communications service providers to enhance capacity and coverage in high-traffic areas such as malls, airports, and stadiums. The solution supports multi-operator deployments, creating a collaborative ecosystem that fosters scalability and cost efficiency.

Leveraging Ericsson’s Radio Dot System and robust network infrastructure, the solution addresses Saudi Arabia’s growing demand for advanced connectivity while aligning with the objectives of Saudi Vision 2030 to modernize telecommunications infrastructure and foster innovation.

Saeed Al-Shehri, chief operation officer at Tawal, said: “This achievement demonstrates our commitment to delivering cutting-edge solutions that redefine connectivity. By adopting a vendor-neutral model, we are enabling greater flexibility and efficiency for communication service providers, ultimately improving connectivity for end users. This collaboration highlights our ambition to set new benchmarks in connectivity and support Saudi Arabia’s digital transformation journey, aligning with Saudi Vision 2030.”

Håkan Cervell, vice president and head of Ericsson Saudi Arabia at Ericsson Middle East and Africa, said: “Together with Tawal, we are driving scalable and innovative network solutions that cater to the evolving needs of operators and consumers in the Kingdom of Saudi Arabia, in line with Saudi Vision 2030.” 

By leveraging our advanced technology and expertise, we are enhancing connectivity and fostering a competitive environment that drives efficiency and growth. This achievement aligns perfectly with our vision of enabling a connected, sustainable future.”

This framework agreement strengthens the long-standing relationship between Ericsson and Tawal to deliver innovative and transformative connectivity solutions across Saudi Arabia.