Saudi’s Aramco recorded its second-highest net income in 2023, despite falling 25% y-o-y to USD 121 bn on waning oil prices and lower output, according to the oil giant’s latest earnings release (pdf). The firm’s revenues also decreased by 18% y-o-y to USD 440 bn over the same period, the company said in a Tadawul filing.

And dividends were up 30% throughout the year, with USD 98 bn paid out to shareholders. The Saudi government — which owns 82% of Aramco — relies heavily on the oil giant’s lofty payouts, including royalties and tax, to bridge a widening budget deficit and finance its diversification away from oil, as Crown Prince Mohamed Bin Salman looks to diversify the economy.

Market reax: Aramco’s shares were up 1.4% to SAR 32.20 a share by the end of trading yesterday.

ALSO FROM THE KINGDOM- It’s not just Egyptian companies that have been heading to KSA: Some 350 multinational companies — including PepsiCo, Boeing, PwC, and Unilever — have set up regional headquarters in Saudi Arabia to be eligible to bid on government contracts as required by the country’s regional headquarters program. Big banks have been slower to join the program, citing regulatory concerns. (Financial Times)

GLOBAL MARKETS this morning: Hong Kong’s Hang Seng is the only Asian benchmark in the green this morning (+1.4% at dispatch time) as Asian shares sagged on the first day of trading this week. The Nikkei leads the losers, down 2.2% as we prepared to hit “send” on this morning’s issue.

The look ahead: Stock futures are down slightly after the Dow posted its worst week since October 2024. European benchmarks also seem set for a soft open later today.

EGX30

32,920

+5.2% (YTD: +32.2%)

USD (CBE)

Buy 49.09

Sell 49.22

USD at CIB

Buy 49.15

Sell 49.25

Interest rates CBE

27.25% deposit

28.25% lending

Tadawul

12,619

+0.3% (YTD: +5.4%)

ADX

9,234

+0.1% (YTD: -3.6%)

DFM

4,253

+0.4% (YTD: +4.8%)

S&P 500

5,124

-0.7% (YTD: +7.4%)

FTSE 100

7,660

-0.4% (YTD: -1.0%)

Euro Stoxx 50

4,961

-0.3% (YTD: +9.7%)

Brent crude

USD 81.81

-0.3%

Natural gas (Nymex)

USD 1.83

+1.4%

Gold

USD 2,183

+0.2%

BTC

USD 68,648

+0.2% (YTD: +62.7%)

THE CLOSING BELL-

The EGX30 rose 5.2% at yesterday’s close on turnover of EGP 7.5 bn (62.5% above the 90-day average). Local investors were net buyers. The index is up 32.2% YTD.

In the green: Fawry (+20.0%), E-Finance (+20.0%), and Elsewedy Electric (+10.9%).

In the red: Egypt Kuwait Holding (-4.2%), GB Corp (-3.3%), and Delta Sugar (-2.5%).

CORPORATE ACTIONS-

Misr Fertilizers Production Company (MOPCO) is paying out a dividend of EGP 2.0 per share on its 2023 earnings after its general assembly approved the decision, according to an EGX disclosure (pdf).

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