Company news

Qatar Electricity and Water Co

Qatar Electricity and Water Co., or QEWC, a company that runs the Gulf state’s power and desalination plants, on Thursday posted a 22 per cent year-on-year fall in second-quarter net profit to 348.1 million Qatari riyals (Dh348 million). The company made a net profit of QAR638.9 million in the six-month period, down from QAR669 million for the same period last year, QEWC said in a statement posted on the Doha bourse website. The company’s earning per share amounted to QAR6.39 as of June 30, versus QAR6.69 for the corresponding period in 2011, the statement added.

Zain

Mobile Telecommunications Co. Saudi Arabia, known as Zain KSA, said Wednesday that its Murabaha loan of 9.75 billion Saudi riyals (Dh9.45 billion) has been extended for two months, as the telco finishes a capital-reorganisation plan. “The new due date is September 27,” Zain KSA said in a statement posted on the Saudi bourse website. The loan had previously been extended by six months to end in July. In July, Zain KSA finalised an oversubscribed $1.6 billion rights issue, part of Zain KSA’s capital-reorganization plan, which includes a reduction in its accumulated losses to be followed by raising fresh cash. Ahead of the issue, Zain KSA lowered its capital to 4.8 billion riyals from 14 billion riyals to wipe out most of its losses. The telco said that proceeds from the issue would be used to reduce bank debt and improve its mobile network in the kingdom. Zain Saudi Arabia became the country’s third mobile operator when Kuwait-based Mobile Telecommunications Co. won the bid for the company’s license in March 2007, paying 23 billion riyals. Zain KSA said in July that its second-quarter net loss narrowed from the year-earlier period as financing costs fell. The telco reported a 394 million riyals net loss for the second quarter, compared with a loss of 448 million riyals in the same quarter last year.

Gulf Power Corp

Kuwait-based Gulf Power Corp. is interested in building an oil refinery in Uganda, the president’s office in the East African nation said. Gulf Power Executive Chairman Mohammad Aoun and his father “expressed the readiness of their company to partner with the government of Uganda to invest in electricity generation and oil processing by constructing an oil refinery,” the statement said. The firm is also interested in working with the African country to form a distribution company for refined oil products, it added.

Qassim Cement Co

Saudi Arabia’s Qassim Cement Co. said on Wednesday it will distribute 225 million Saudi riyals ($60 million) in dividends at 2.5 riyals per share for the first half of 2012. The amount, approved at a board meeting held last week, represents 25 per cent of the company’s paid up capital, the cement producer said in a statement posted on the Saudi stock market website. The company last month reported a second quarter net profit of 148.9 million riyals, an increase of 3 per cent compared with the same period a year earlier. It attributed the rise to increased sales.

Al Mazaya Holding Co

Kuwait-based Al Mazaya Holding Co. plans to enter new investments and new real estate projects in Qatar through Mazaya Qatar Real Estate Development (MRDS.DO) in light of the good economic indicators there, Kuwait-based Al Anba daily reports Thursday citing an executive. Mazaya Qatar has evaluated a number of new future projects, and is looking forward for alliances and investments with Qatari and regional parties, Rashid Al Nafisi, Al Mazaya Holding’s chairman, said according to the paper. Shariah-compliant Mazaya Qatar is managed by Al Mazaya Holding, according to the latter’s website. Al Mazaya Holding owns a 5 per cent stake in Mazaya Qatar, as per Zawya.com data.

Qatar Holding

Qatar Investment Authority, owner of Qatar Holding LLC, said on Wednesday it bought 1.01 million shares in diversified mining group Xstrata PLC at 853 pence, lifting its total holding including options to 332.31 million shares, or 11.067 per cent. Qatar’s holding excluding options is 313.75 million shares, or 10.449 per cent.

Equate Petrochemical

Equate Petrochemical Co., a joint venture between Petrochemical Industries Co. of Kuwait and Dow Chemical Co., shut down one of its ethylene glycol units for about six weeks after a fire.The unit has a capacity of 550,000 metric tons a year, Equate said in an e-mailed statement today. A fire in part of a manufacturing facility didn’t affect production operations, Kuwait-based Equate said on July 31.

DEH

Kuwait’s Development Enterprises Holding Co., known as DEH, has completed the acquisition of a 66.76 per cent stake in Aref Energy Holding Co. (AREFENRGY.KW) for 67.1 million Kuwaiti dinars ($238 million), the Kuwaiti bourse said Wednesday. DEH, a wholly owned unit of Kuwait Finance House KSC — the Gulf state’s largest Islamic bank-held a 29 per cent stake in Aref Energy prior to this acquisition which raises its overall investment in the company to 95.76 per cent, according to Zawya Dow Jones calculations. The exchange said in the statement that was posted on its website that the 66.76 per cent stake acquired by DEH consisted of about 500.7 million shares bought at KWD0.134 each. The conclusion of the deal followed its approval by the country’s Capital Markets Authority, according to the statement. Loss-making Aref Energy had total assets of KWD93.74 million at the end of 2011, according to Zawya.com data.