https://arab.news/b44h8
RIYADH: Saudi oil giant Aramco has given out an order worth SR60 million ($16 million) to homegrown Arabian Pipes Co. to supply steel pipes.
The contract will be valid for one year, the Riyadh-based pipe manufacturer said in a statement to the Saudi stock exchange, Tadawul.
Arabian Pipes expects the transaction to impact its financial statements starting from the second quarter of 2023.
This comes as an extension to two contracts awarded by Aramco to Arabian Pipes so far this year, worth SR368 million in total.
DUBAI: British American Tobacco and Philip Morris International invested $9.6 billion in the research and development of risk-free alternatives to smoking.
BAT invested $589 million in R&D to develop innovative new category products last year, according to Dr. Hugo Tan, the company’s regional head of scientific engagement in the Asia-Pacific region and the Middle East.
What matters is not just to believe what people say, but to be guided by the evidence. Not just consumers but also public health experts and regulators often equate nicotine with cigarettes.
Hugo Tan, BAT’s regional head of scientific engagement in the Asia-Pacific and the Middle East.
Tan explained to Arab News that tobacco harm reduction is a strategy that recognizes the harmful effects of combustible cigarettes and encourages smokers to switch entirely to alternatives such as vaping and tobacco-heated products.
“It has been widely accepted and adopted by many countries, including the US, UK, Germany, France and others,” Tan said.
Since 2008, PMI has invested more than $9 billion in the R&D of smoke-free products.
He added that the move is supported by its R&D center in Southampton and 1,500 specialists, who have contributed to publishing more than 130 peer-reviewed scientific studies on its new category products.
Also, among PMI’s professionals are over 930 scientists, engineers and technicians committed to building scientific assessment capabilities, such as preclinical systems toxicology, clinical and behavioral research, and post-market assessment, according to the company’s website.
Tan clarified many myths about nicotine and explained how it is essential to rely on evidence when making decisions.
“What matters is not just to believe what people say, but to be guided by the evidence,” he continued.
Not just consumers but also public health experts like him and regulators often equate nicotine with cigarettes, Tan added.
Evidence has shown, however, that it is primarily the smoke from tobacco combustion and not nicotine that causes most of the health risks associated with cigarettes. Nicotine, he said, is only one of many chemicals found in cigarettes.
BAT has also completed a study, which is yet to be published, on a clinical trial on one of the new category products, Vuse. This study looks at both scenarios, the Vuse user and the cigarette user.
“It will provide a snapshot of the differences in biomarkers of potential harm between Vuse consumers compared to cigarette smokers, and from there, we can see if one indicator differs from the other in terms of biomarkers,” he said.
Tan said that in the UK, there are major health regulators and medical associations that have contributed to tobacco harm reduction strategies.
He cited the Public Health England report on e-cigarettes that said vaping was 95 percent safer than smoking combustible cigarettes.
Based on their clinical findings on the website, PMI also has found that using their tobacco heating system, such as IQOS, positively impacts smokers’ health.
Despite the clinical findings of PMI and BAT’s research, Dr. Karem Harb, general practitioner and medical director at Dubai-based Hortman Clinics, said there are not enough studies on electronic cigarettes or coil-heated tobacco products.
Smokers do admit they feel better on e-cigarettes. That is because they contain less or zero amounts of tar. On the other hand, many e-cigarette smokers have reported an increase in palpitations and anxiety.
Karem Harb, Medical director and general practitioner at Dubai-basedHortman Clinics.
In his opinion, the new trend in e-cigarettes or similar products is that they have a higher concentration of nicotine when compared to regular cigarettes.
“Smokers do admit they feel better on e-cigarettes and breathe better, as well as sleep better, etc. and that is because they contain less or zero amounts of tar,” Harb said.
“On the other hand, many e-cigarette smokers have reported an increase in palpitations and anxiety, which could be directly related to the higher levels of nicotine compared to regular cigarettes,” Harb added.
Furthermore, BAT proposes five ways to accelerate THR, Tan said.
The company encourages data collection to better understand the potential impact of electronic nicotine delivery products in the region.
He said this approach would improve consumer choice, quality and trust in the products.
Developing an appropriate regulatory system would be the second step in which science-based relative risks are differentiated and used to guide policies such as taxation, Tan added.
He explained that another way to ensure products can adapt to changing consumer preferences is to allow them to innovate.
Communication is essential for regulators and consumers to make informed decisions and support transparent industry-academic research collaboration to eliminate biased research.
Responsible marketing freedom, he concluded, enables consumers to move from combustible to non-combustible products faster. He said that BAT is committed to helping and working with local regulators to implement THR strategies.
According to PMI’s website, the Food and Drug Administration has approved marketing modified risk versions of IQOS Platform 1 devices and consumables as modified risk tobacco products.
PMI’s smoke-free products were available in 71 countries as of March 31, 2022.
It is stated on the website that the FDA found it appropriate to modify exposure orders for these products to promote public health.
As Harb concluded, although many claim to have quit cigarettes and taken up what would seem to be a healthier substitute, there is still a lot to learn about the new industry trends and the new age-group populations adopting the habit. “No smoking is always the better alternative,” he said.
RIYADH: Saudi Arabian Military Industries’ CEO has hinted his firm and BAE Systems will soon make announcements aimed at boosting the “indigenous capability” of Saudi Arabia's defense industry.
Speaking to Arab News from the Farnborough Air Show held in the UK, Walid Abukhaled said that solving the Kingdom's supply chain challenge is key to boosting the military sector.
He warned that SAMI could not do “everything ourselves” when it comes to developing the Kingdom’s defense industry, and later this year the company would set out the “services and support required” by the firm.
SAMI aims at localizing 50 percent of total military spending by 2030, in line with the Kingdom's Vision 2030.
Referring to talks between SAMI and BAE Systems, Abukhaled said: “There is nothing that we can announce yet, but we're hoping soon we will be able to both announce some positive news that will demonstrate and show that SAMI is the national defense champion, and they are working very hard to build indigenous capability in the Kingdom.”
Abukhaled pointed to BAE Systems' 50 years of experience in operating in Saudi Arabia, adding: “They acknowledged that the changing environment in the Kingdom required them also to adapt to the new requirements and to be key strategic partners in the Kingdom.”
As well as outside companies, Abukhaled emphasized the important role of the General Authority for Military Industries, also known as GAMI, in building up strong Saudi supply chains.
When it comes to helping small and medium enterprises becoming more involved, he said:“We're planning to have an industry day for all our suppliers toward quarter three of this year.”
During the Farnborough Airshow, which took place from July 18-22, SAMI also announced the establishment of a company called SAMI Composite LLC. to produce and manufacture composite parts that will go into both military and commercial aircraft.
The facility is expected to start operations by the third or fourth quarter of 2023, Abukhaled revealed.
A joint venture has been launched in Jeddah, a machine has been installed, and Saudi technicians returned from specialist training abroad on how to produce metallic precision parts that go into aircrafts.
Abukhaled told Arab News there was also a “specific key project with Lockheed Martin, and that was related to SAMI Composite.”
He added that in nearly five years, SAMI has signed 13 global joint ventures with the top defense companies globally, including Boeing, Lockheed Martin, Northrop Grumman, General Dynamics, Airbus and others.
“Those joint ventures will be enablers for us,” said the official, adding: “We will establish capability in the Kingdom, we will grow together, we will work with our partners to support the Saudi supply chain, and really to grow and insert capability in the kingdom.”
SAMI’s focus is to deliver a plus and high quality service to customers to meet their demands and overcome the challenges, Abukhaled said.
“When we start to build this capability, then we would look outside of the Kingdom. However, now if there are opportunities that come from abroad to ally, nation and friendly countries, and its own projects that we're already executing in the Kingdom, we absolutely will come in with our partners to export outside,” he added.
Other deals signed by SAMI at the airshow included an agreement with Singapore's ST Engineering to produce “cutting-edge defense systems”, and an agreement with Airbus Helicopters Arabia to assist with the provision of rotorcraft support to Saudi Armed Forces.
BENGALURU: European shares were set to notch their best week in two months on Friday as concerns over an energy supply crunch eased, bringing some calm to investors worried about a big rise in interest rates and a political crisis in Italy, according to Reuters.
The pan-European STOXX 600 index rose 0.4 percent on the day after struggling for direction in the prior session following an aggressive 50-basis point rate hike, the first increase by the European Central Bank in 11 years.
While Russian gas flows to Europe resumed after a scheduled maintenance outage, market participants fretted as euro zone business activity unexpectedly shrank in July, due to a speedy downturn in manufacturing and a near-stalling of service sector growth.
Gains on Friday were led by sectors that are more resilient to uncertainty such as utilities, food and beverages and real estate stocks.
Cyclical stocks such as banks, automakers and miners lost between 0.5 percent and 1.2 percent., while rising oil prices lifted heavy-weigh energy stocks 0.7 percent.
“We retain a cautious view on European stocks as the ECB treads a fine line between fighting inflation and avoiding recession,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
“The abandonment of forward guidance will likely spur rate volatility ahead of the next ECB meetings, as investors are left to speculate about the size of future hikes.”
After a volatile session following the resignation of Prime Minister Mario Draghi on Thursday, Italian shares rose 0.5 percent as the country prepared for a snap national election on Sept. 25.
For the week, major European bourses were set to end higher, with the STOXX 600 up almost 3 percent. But fears of rising borrowing costs sparking a recession, a weak euro and the Ukraine war have pushed the index down more than 12 percent for the year.
In earnings reports, Danske Bank fell 2.7 percent as it axed dividends, while Swiss elevator and escalator manufacturer Schindler slipped 4.2 percent after cutting 2022 revenue guidance.
Aluminium-maker Norsk Hydro rose 6 percent after proposing an extra dividend and offering share buybacks.
Lloyd’s of London insurer Beazley topped the STOXX 600 as it raised full-year profitability outlook.
RIYADH: Aldrees Petroleum and Transport Services Co. saw its profits drop in the second quarter of 2022, thanks to the impact of Ramadan and losses from investment portfolios.
The firm recorded a SR46 million ($12.24 million) profit in the three months to the end of June, down from SR62.4 million in the first quarter of 2022.
However, Aldrees is still up year-on-year, bringing in SR10 million more in 2022’s second quarter compared to to the same period last year.
Speaking to Argaam, Aldrees CEO Abdulilah Saad Aldrees attributed the profit decline to the drop in wheat cargo transport, driven by the fall in number of incoming ships amid the Russia-Ukraine war.
The rise in general and administrative expenses due to appointing new staff, especially Saudis, and the increase in some employees’ salaries also contributed to the lower figure, he said.
The company paid the full price of a warehouse plot located in Al Sulay district, Riyadh, owned by Saudi Paper’s subsidiary from available cash in the company, he added.
Aldrees expects the company to post better results in the third quarter, compared to the year-ago period.
Despite the quarter-on-quarter fall, Aldrees has seen its profit increase by 44 percent for the first half of 2022 compared to the same period a year earlier, a bourse filing showed on Thursday.
The number of petroleum transport stations reached 698 by the end of second quarter, while the number of trucks reached 1,405.
HOUSTON/WASHINGTON: A tanker carrying a liquid fertilizer product from Russia is about to arrive in the US, sources and vessel tracking data showed in recent days, at a time of widespread worry that sky-high global fertilizer prices could lead to food shortages, according to Reuters.
President Joe Biden’s administration has not blacklisted Russian agricultural commodities, including fertilizers, in the aftermath of the Ukraine invasion. Still, many Western banks and traders have steered clear of Russian supplies for fear of running afoul of rapidly changing rules.
Russia and Ukraine are major exporters of fertilizer, key to keeping corn, soy, rice and wheat yields high. Farmers have scaled back fertilizer use due to high prices, and cut the amount of land they plan to cultivate.
Washington sanctioned Russian crude, refined products, coal and liquefied natural gas, and imposed an April 22 deadline to wind down imports.
The Liberia-flagged tanker Johnny Ranger was scheduled to arrive in New Orleans on Monday carrying about 39,000 tons of urea ammonium nitrate solution, a fertilizer produced by combining urea, nitric acid and ammonia, the sources and Refinitiv Eikon data showed.
The vessel loaded last month at St. Petersburg, according to Eikon data.
Details on the seller and buyer were not immediately available. The US Treasury Department and the US Customs and Border Protection agency declined to comment.
A State Department spokesperson said the US has never sanctioned food or agricultural goods from Russia. “Unlike the Russian government, we have no interest in weaponizing food to create humanitarian crises at the expense of vulnerable populations.”
US non-food sanctions will remain in place until Russian President Vladimir Putin stops the war in Ukraine, the person added.
In 2021, the US imported $262.6 million worth of urea ammonium nitrate fertilizers from Russia, according to the Commerce Department.
This week, the US International Trade Commission revoked hefty anti-dumping and anti-subsidy duties on urea ammonium nitrate fertilizers from Russia in an effort to ease fertilizer shortages and price increases.