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Saudi Aramco posts 39 percent jump in profits

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Saudi Aramco posts 39 percent jump in profits

Saudi Aramco on Tuesday posted a 39-percent jump in third-quarter profits year on year boosted by higher oil prices resulting largely from Russia’s invasion of Ukraine.

The announcement came as the OPEC+ cartel of oil producers was set to implement production cuts that have drawn the ire of the United States, which says the move — approved at a meeting last month — amounts to “aligning with Russia” in the conflict.

The energy giant’s net income totalled $42.4 billion — up from $30.4 billion during the same period last year — and was “primarily driven by higher crude oil prices and volumes sold”, it said in a filing with the Saudi stock exchange.

CEO Amin Nasser touted the firm’s “strong earnings and record free cash flow” of $45 billion, up from $28.7 billion at this time last year.

“While global crude oil prices during this period were affected by continued economic uncertainty, our long-term view is that oil demand will continue to grow for the rest of the decade given the world’s need for more affordable and reliable energy,” he said in a statement.

Aramco’s latest financial results were published just days before the COP27 climate summit aimed at curbing global warming.

Last year, ahead of the COP26 climate-change summit, Saudi Arabia pledged to achieve net zero carbon emissions by 2060, sparking scepticism from environmental campaigners.

Saudi Aramco, for its part, has pledged to achieve “operational net-zero” carbon emissions by 2050.

That applies to emissions that are produced directly by Aramco’s industrial sites, but not the CO2 produced when clients burn Saudi oil in their cars, power plants and furnaces.

Saudi officials have lately stressed the need for more investment in the sector, arguing that focusing on climate change at the expense of energy security would further fuel inflation and other economic woes.

– ‘Headwinds’ –
Aramco is Saudi Arabia’s “crown jewel” and primary source of revenue.

It has been well positioned to benefit from energy price spikes, boasting “the lowest cost of production by a huge margin” compared to other oil companies, said Ellen Wald, author of “Saudi Inc.”, a history of the company.

That strong performance has led to a banner economic year for Saudi Arabia, driving a surplus that could help finance ambitious plans by Crown Prince Mohammed bin Salman to open up the kingdom and diversify its oil-reliant economy.

On Monday, Saudi Arabia reported a preliminary estimate of 8.6 percent economic growth in the third quarter of 2022 compared to the same period last year, “mainly due to the increase in oil activities”.

The International Monetary Fund has said Saudi Arabia’s GDP is expected to expand by 7.6 percent this year.

Yet a slowdown in China and recession fears in Europe and the United States could make it difficult for Aramco to maintain its current momentum, even after accounting for the OPEC+ cuts that would slash supply by two million barrels per day and a European ban on Russian crude imports due to take effect in December.

“The controversial production cut announcement by OPEC+ was driven in large part by concerns that energy prices were not exactly where oil-producing countries like Saudi Arabia wanted them to be,” said Robert Mogielnicki, of the Arab Gulf States Institute in Washington.

“There are absolutely going to be headwinds associated with Aramco trying to realise the profits that they generated in previous quarters.”

Long-term, Saudi Arabia plans to increase daily oil production capacity by more than one million barrels to exceed 13 million by 2027.

Aramco floated 1.7 percent of its shares on the Saudi bourse in December 2019, generating $29.4 billion in the world’s biggest initial public offering.

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Agriculture

Borno establishes Ministry of Livestock, Fishery Development

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Gov Zulum Initiates Efforts to Revive Transborder Trade with Chad

The Borno Government has announced the creation of Ministry of Livestock and Fishery Development to align its

Development strategy with Federal Government initiatives, and boost the state’s economic potential.

Gov. Babagana Zulum made the announcement on Tuesday during the swearing in of two commissioners at the council chambers of the Government House.

Zulum underscored the importance of livestock and fisheries as vital sectors with untapped revenue potential.

He emphasised that the new ministry would focus on high-yield livestock breeds, milk production and fisheries, targeting both domestic consumption and export opportunities.

The governor said that “no state government can make substantial money in livestock alone, but we believe with the right investment and political will, the sector can generate significant revenue.”

He said that the growing demand for milk by yogurt companies and the proximity of Maiduguri to Asian and Arab markets, are great opportunities for dairy exportation.

The governor, therefore, assigned the Deputy Governor, Dr Umar Kadafur, to oversee the activities of the new ministry, citing his practical experience and passion for livestock development.

He said “livestock development is not just about academic qualifications, it is about practice and the deputy governor has demonstrated capability in that regard.”

According to him, the ministry will prioritise procuring high-yielding livestock varieties, enhancing milk production and creating sustainable rural projects to support

Local communities.

He said that projects in Mafa, Gajiram and in Southern Borno will soon be launched under the new ministry’s purview.

The governor urged civil servants and ministry personnel to take ownership of the new initiative, adding that the ministry’s success would contribute to the states

Long-term economic stability and self-reliance.

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British High Commissioner seeks military, civilian efforts in tackling insecurity

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The British High Commissioner to Nigeria, Mr Richard Montgomery, has called for the combination of military and civilian efforts in tackling the complexity of security challenges in Nigeria and globally.

Montgomery made the call at a two-day Security and Justice Symposium organised by the Office of the National Security Adviser (ONSA) in Collaboration with the British High Commission, on Tuesday in Abuja.

He commended the efforts of the Nigerian military in promoting civil-military collaboration and adoption of kinetic and non-kinetic action in addressing the menace of terrorism and insurgency in the country.

“At the heart of all this is recognition of the importance of upholding the rule of law, human rights, humanitarian law and international humanitarian law.

“We need to consider the different legal principles and frameworks that apply to criminal violence or to violent conflicts and how we deal with them in protracted conflict zones.

“We had a legal frameworks roundtable with the Nigerian military officers earlier this year, and a really good debate about how we adapt to different situations.

“I am hoping today we will help progress that dialogue on which Nigerian legal frameworks are appropriate in which circumstances,’’ he said.

Montgomery highlighted the positive and open relationship between the UK and Nigeria, noting that both countries were learning from each other’s experiences in tackling security challenges.

He expressed his appreciation for the opportunity to continue this productive dialogue and hoped that the symposium would result in actionable insights and further strengthen the partnership.

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Zulum swears in 2 new commissioners

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Gov. Babagana Zulum of Borno on Tuesday presided over the swearing-in of two new commissioners to replace those who died while in active service.

The State Chief Judge, Justice Kashim Zannah, administered the oath of office at the ceremony held at the Government House in Maiduguri.

The new commissioners are Muhammad Lawan-Dalorima for the Ministry of Finance and Isa Haladu for the Ministry of Reconstruction, Resettlement and Rehabilitation (RRR).

In his speech, Zulum expressed gratitude to the Borno House of Assembly for their prompt scrutiny and confirmation of the nominees.

He urged the commissioners to uphold the principles of integrity, transparency, and accountability in their new roles, while emphasising the administration’s strategy of periodically rotating commissioners to different ministries to promote fresh ideas and effective governance.

“You have been chosen for your exceptional qualities and expertise. I have no doubt you will make valuable contributions to our administration,” he said.

The governor also paid tribute to the late commissioners who previously held the portfolios, reflecting on their contributions to the development of the state.

Responding on behalf of the commissioners, Haladu thanked the governor for finding them worthy of the appointment, and promised him of diligent service delivery.

 

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