Latest news with #EIG
Yahoo
19-07-2025
- Business
- Yahoo
BlackRock-led consortium to invest $10bn in Aramco's Jafurah gas project infrastructure
Saudi Aramco is reportedly nearing an agreement to secure approximately $10bn (SR37.5bn) from a consortium spearheaded by BlackRock towards infrastructure for its Jafurah gas project, reported Reuters, citing sources. This deal is part of a strategy by Gulf oil producers to raise capital for economic diversification while offering investors reliable revenue. The Jafurah project, valued at $100bn, is potentially the largest shale gas initiative outside of the US. This deal is crucial to Aramco's goal of significantly increasing its gas production capacity by 60% by 2030 compared with 2021 production levels. The assets involved in the potential deal encompass gas pipelines and a processing plant. The transaction is expected to mirror the structure of two previous Aramco infrastructure deals from 2021, which included a BlackRock investment in Aramco's gas pipeline networks. In 2021, investment groups including BlackRock and EIG acquired stakes in Aramco's pipeline subsidiaries, Aramco Oil Pipelines and Aramco Gas Pipelines, through leaseback transactions. Aramco retained majority ownership and the subsidiaries received tariffs backed by minimum throughput commitments, raising nearly $28bn for the company. These arrangements allowed Aramco to raise funds while maintaining control over the assets and providing investors with tariffs for pipeline usage. These transactions followed similar deals in the region, such as ADNOC's sale of minority stakes in its oil and gas pipeline leasing companies. Saudi Arabia has been actively seeking to diversify its economy in light of fluctuating oil prices and global economic uncertainties that threaten demand. Other challenges include increased oil output from OPEC countries, including Saudi Arabia, which aims to capture a larger market share. Furthermore, in March, Aramco announced its expansion into South America with the acquisition of Primax, a fuel distributor operating in Peru, Colombia and Ecuador, for approximately $3.5bn. "BlackRock-led consortium to invest $10bn in Aramco's Jafurah gas project infrastructure" was originally created and published by Offshore Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Arabian Business
18-07-2025
- Business
- Arabian Business
Aramco close to $10bn Jafurah infrastructure deal with BlackRock
Saudi Aramco is reported to be close to a deal that will raise around US$10 billion from a group led by BlackRock that will invest in the infrastructure of Aramco's Jafurah gas project. Reuters reported this after speaking with two people with knowledge of the matter, but requested anonymity. The US$100 billion Jafurah project, which could become the largest shale gas project outside the United States upon completion, is central to Aramco's future ambitions and is expected to increase its gas production capacity from 2021 levels by 60 per cent in 2030. The two people said the latest transaction was expected to be similarly structured to two Aramco infrastructure deals in 2021, including one in which BlackRock invested in Aramco's gas pipeline networks, allowing the Saudi company to generate funds. The Jafurah assets underpinning the deal include gas pipelines and a gas processing plant, one of the sources said. In 2021, BlackRock and EIG were among investor groups that took stakes in companies that leased usage rights in Aramco's gas and oil pipeline networks. The groups leased them back to Aramco for a 20-year period in two separate deals, helping the Saudi company to raise nearly US$28 billion. Reuters reported that the agreement would be the latest in a series of financial arrangements, akin to borrowing, that enable Gulf oil-producing countries to raise funds for economic diversification while providing investors with a stable revenue stream. Aramco has long been the biggest source of the kingdom's revenues. Saudi Arabia has been seeking to diversify its economy as oil prices have come under pressure from global economic uncertainty that could further reduce demand.
Bloomberg
11-07-2025
- Business
- Bloomberg
MidOcean Leads Bidding for Stake in Petronas Canada Unit
MidOcean Energy, a liquefied natural gas company founded by private equity firm EIG and backed by Saudi Aramco, has emerged as the frontrunner to buy a minority stake in Petroliam Nasional Bhd. 's Canadian business, people familiar with the matter said. Petronas, as the Malaysian state energy firm is known, has picked MidOcean as the preferred bidder, according to the people. The companies are in advanced talks to hammer out details of a transaction for the stake, which could be valued at several billion dollars, the people said.
Yahoo
07-07-2025
- Business
- Yahoo
2 Cash-Heavy Stocks to Keep an Eye On and 1 to Turn Down
Companies with more cash than debt can be financially resilient, but that doesn't mean they're all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers. Financial flexibility is valuable, but it's not everything - at StockStory, we help you find the stocks that can not only survive but also outperform. Keeping that in mind, here are two companies with net cash positions that can continue growing sustainably and one with hidden risks. Net Cash Position: $6.9 million (0.6% of Market Cap) With roots in Nevada and a strong concentration in California where 45% of its premiums are generated, Employers Holdings (NYSE:EIG) is a specialty provider of workers' compensation insurance focused on small and select businesses engaged in low-to-medium hazard industries across the United States. Why Do We Avoid EIG? Annual net premiums earned growth of 3.5% over the last two years was below our standards for the insurance sector Expenses have increased as a percentage of revenue over the last four years as its combined ratio degraded by 6.5 percentage points Earnings per share lagged its peers over the last two years as they only grew by 10.8% annually Employers Holdings is trading at $47.77 per share, or 1x forward P/B. If you're considering EIG for your portfolio, see our FREE research report to learn more. Net Cash Position: $966.4 million (0.8% of Market Cap) Founded in 1980 by David Lam, the man who pioneered semiconductor etching technology, Lam Research (NASDAQ:LRCX) is one of the leading providers of wafer fabrication equipment used to make semiconductors. Why Could LRCX Be a Winner? Highly efficient business model is illustrated by its impressive 29.6% operating margin, and it turbocharged its profits by achieving some fixed cost leverage Strong free cash flow margin of 26.6% enables it to reinvest or return capital consistently, and its improved cash conversion implies it's becoming a less capital-intensive business Stellar returns on capital showcase management's ability to surface highly profitable business ventures At $98.59 per share, Lam Research trades at 26.1x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Net Cash Position: $291.1 million (3.2% of Market Cap) Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments. Why Do We Like MEDP? Average organic revenue growth of 17.8% over the past two years demonstrates its ability to expand independently without relying on acquisitions Share repurchases have amplified shareholder returns as its annual earnings per share growth of 35.1% exceeded its revenue gains over the last five years Rising returns on capital show management is finding more attractive investment opportunities Medpace's stock price of $320 implies a valuation ratio of 25.7x forward P/E. Is now a good time to buy? See for yourself in our comprehensive research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today Sign in to access your portfolio
Arabian Post
05-07-2025
- Business
- Arabian Post
Aramco Eyes Multi-Billion Dollar Asset Sale
Saudi energy giant Aramco is preparing to divest up to five gas-fired power plants as part of a broader strategic shift aimed at unlocking billions of dollars to bolster state revenues and maintain fiscal discipline amid softening global oil prices. The proposed sale, focused on gas-based plants supporting key refinery operations, is expected to yield approximately $4 billion, according to individuals familiar with the internal deliberations. These facilities play a critical role in Aramco's downstream network, supplying electricity and steam to refining complexes across the Kingdom. The move reflects a renewed push by the government to drive asset monetisation through its flagship energy enterprise, which remains the world's most valuable oil firm by profitability. This latest disposal initiative underscores efforts to diversify revenue streams, improve operational efficiency and maintain dividend flows to the state, despite tighter margins from subdued crude benchmarks. ADVERTISEMENT Saudi Arabia's sovereign reliance on Aramco remains substantial, with the state owning 81.5% of the company directly. Although the firm reported strong profitability metrics over the past few years, falling global oil prices have placed pressure on its balance sheet. In response, Aramco has announced plans to reduce its base dividend for the current year by nearly one-third. The payout trimming comes despite the company's earlier pledge to deliver sustainable shareholder returns through progressive dividend policy. The company's dividend obligations include a significant share payable to the government, in addition to royalties and taxes. These distributions remain a primary source of national income. Riyadh has been leaning on Aramco to continue funding major state-led economic programmes, including Vision 2030, which aims to transition the Kingdom's economy away from its overwhelming dependence on hydrocarbons. Selling power assets is part of a growing pattern of partial divestitures by Aramco, which has increasingly sought to monetise non-core infrastructure. Previous deals include the landmark $12.4 billion pipeline transaction with a global consortium led by EIG in 2021, followed by another multi-billion-dollar oil pipeline sale to a group including BlackRock and Hassana Investment Company. Both transactions highlighted investor appetite for high-yield energy assets linked to long-term supply contracts. The latest initiative follows that model, though it will likely target a different buyer segment, potentially including regional utility investors and global infrastructure funds. The plants earmarked for sale are considered stable cash generators due to their integration with Aramco's refinery operations and are expected to attract competitive bidding from international investors seeking predictable returns from energy infrastructure. The shift toward divesting energy-generating assets also aligns with broader energy market dynamics. Gas-fired plants in the Gulf region have been positioned as key transitional assets as the region adapts to climate targets while still ensuring reliable energy delivery to industrial operations. The plants in question are powered by domestically available natural gas, a relatively low-cost and lower-carbon option compared to crude-based combustion. Aramco's plans are advancing at a time when the company is carefully balancing capital expenditure with shareholder expectations and broader macroeconomic demands from the Saudi treasury. The pressure to maintain fiscal buffers amid fluctuating oil revenues has intensified scrutiny on state-owned entities to deliver higher financial returns and optimise asset portfolios. While final decisions on the number and timing of sales are yet to be made, internal planning is underway and advisory firms have been engaged to evaluate asset valuations and potential transaction structures. Analysts monitoring the Kingdom's privatisation efforts believe the deal could be structured as a sale-and-leaseback or include long-term offtake agreements that secure energy supply to Aramco's core refining assets while transferring ownership to private operators.
