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00:00 Qatar is one of the most important markets for us,
00:03 because it has very important parts.
00:07 Of course, gas, as a development and exploration of gas,
00:12 and also oil.
00:14 We had three excavators working there in the market
00:20 in the past period,
00:21 from almost 20+ rigs.
00:26 This is about 15% of the market share.
00:30 In fact, we won in the first year in Thailand,
00:35 in Indonesia, unfortunately,
00:38 with one of the producers there.
00:43 We took a rig from EDC, from Qatar,
00:48 and it started to move in the past two days towards Indonesia.
00:54 It was very important for us to keep our market share.
00:59 So we had the opportunity to take the excavator
01:03 and we won the contract with Total,
01:07 which is worth 350 million Riyals.
01:13 On average, our margins are within the limits of the cost of the gas.
01:17 - How much do you want to increase this share in the Qatar market, Dr. Mohamed?
01:22 Is it also intended to increase and increase your investments
01:26 in the Qatar market during this period?
01:30 - Of course, we see, as you said,
01:32 the Qatar market has a growth in the amount of gas up to 20-30,
01:36 almost 1.8% of the current production.
01:39 Also, as I announced,
01:43 in the north, there is an increase in expected production.
01:48 We expect to double our number of excavators,
01:54 which is currently three, and maybe six,
01:59 given the market condition and the opportunities there,
02:05 and given that we are part of the Middle East,
02:08 which gives us a very high level of competitiveness
02:11 compared to the international players in this field.
02:15 - Dr. Mohamed, you talk about expansion in Indonesia,
02:18 and you also have expansions in India and Thailand.
02:21 What are the most prominent markets you are aiming to expand to?
02:25 And what is the expected size to cover these expansions?
02:30 - In fact, the Qatar market, as you mentioned,
02:34 is one of the most promising markets for us,
02:37 or very important.
02:39 It has Southeast Asia in general,
02:41 as a result of the lack of excavators in the world.
02:44 A simple example,
02:46 there are about 400 excavators in the world today.
02:50 These 400 excavators are not built by others,
02:54 the market is not built by others,
02:57 so people compete for a very limited number of excavators.
03:00 We have 49 of these companies,
03:04 which allows us to compete.
03:06 There is a huge shortage in Southeast Asia,
03:09 and as you know, all these countries are in a very serious growth state,
03:13 and all of them are consuming and importing energy,
03:16 so they are trying to compensate for this shortage
03:19 by exploring and developing their products.
03:22 They have a very large number of excavators,
03:26 and we have three excavators working in India,
03:29 and we have a plan to increase this number.
03:33 We have an excavator in Thailand, which will start in the second half,
03:37 and we have an excavator in Indonesia, which will start in the second half.
03:40 We hope that these five excavators will be able to,
03:44 in the next two years,
03:47 double their number and reach 10 excavators in the region.
03:52 We will also be the leader in the region of Southeast Asia.
03:56 This is also a very good thing that a Saudi company is emerging,
04:02 and it can compete with international companies,
04:05 which is the number one company today.
04:07 Dr. Mohamed, in light of these expansions and the entry into new markets,
04:13 in light of this framework,
04:16 how much is the size of your investment portfolio estimated,
04:19 and what are your goals for increasing this portfolio in the near future?
04:23 Even in terms of the expansions you are doing,
04:26 does it depend on the existence of a currently available financial liquidity,
04:30 how much is estimated, or through banking funds?
04:35 As you know, we are a listed company in trading.
04:41 We have access to the equity market and we have access to the debt market.
04:45 But we have a very conservative policy,
04:49 which says that I usually try to take a loan or invest,
04:54 so that the contract covers the loan and the cash flow
04:58 to the equity or shareholders above and beyond.
05:02 Of course, we have been buying steel for two years.
05:04 As you mentioned, we rely on maximizing the income of equity shareholders
05:11 by maximizing the debt,
05:13 but this debt must be covered through contract leverage,
05:17 through contracts, and not just through assets.
05:21 In response to your question,
05:23 we are preparing a debt campaign today,
05:29 so that we can acquire a backlog,
05:33 at least twice the debt,
05:36 so that it allows the debt to be covered in a good way.
05:39 At the same time, we have financial liquidity,
05:41 as was announced in the last financial report of the F31-12,
05:48 in the range of 200 million dollars or 750 million riyals.
05:51 So, thank God, between the equity we have
05:54 and the availability or access to debt in a contract leverage manner,
06:01 so that it is covered in the usual way,
06:03 and there is no risk to the company or shareholders,
06:05 this will allow us to grow, God willing,
06:08 in terms of investments, we see that it will not be less than 1.5 billion dollars
06:14 or within the range of 5.5 billion riyals, God willing,
06:19 in the next two years.
06:21 Dr. By talking about the Egyptian market today,
06:24 with the number of contracts with Swiss,
06:27 how large is your business in Egypt?
06:29 What is expected from this market?
06:31 And how can you deal with the risks of the fluctuations in the exchange rates?
06:35 This is a very important question.
06:38 The Egyptian market was a very important market for us as a company,
06:41 and we have been working since 2012 as a market leader in the market.
06:47 We are able to deal with the circumstances,
06:49 because all our businesses in Egypt are Egyptian,
06:53 and at the same time, all our spending on local currency,
06:57 so we do not have the risk.
06:58 On the contrary, sometimes the evaluation works in our favor in some situations.
07:03 But today, the size of our business,
07:07 according to the latest budget, was within the range of 500 million Saudi riyals,
07:14 which I think is very good on an annual basis.
07:16 Of course, the process of limiting the exchange rate and the existing dynamics
07:23 has worked in our interest more as a result of reducing the cost
07:28 and increasing our revenue.
07:31 Therefore, today the risk is much less than six months ago.
07:37 I hope this continues, and God willing,
07:39 we will be able to live with the market from 2012 until today,
07:44 which is about 12 years of success, and we hope to maintain our market share.
07:47 Yes, Dr. Mohamed, the last question, and in short,
07:50 there were temporary platforms that were suspended in Saudi Arabia.
07:54 When do we expect their work to return?
07:56 And is there a reason for the increase in these businesses in the Saudi markets?
08:00 As you know, the Saudi market is a very large market,
08:05 and a very high dynamic market,
08:07 and they have their plans that change over time.
08:13 And thank God, we were able to,
08:17 through the number of platforms that were suspended for a year
08:21 within the five platforms,
08:23 thank God, we were able to employ three of the five today,
08:26 and two more platforms remain, and God willing,
08:28 through the efforts of marketing,
08:30 I see that in the coming months we will announce news, God willing,
08:35 about the employment process.
08:37 This is also good news that we were able to,
08:39 the five of them, in a short period of time,
08:42 as a result of our efforts, to employ them.
08:45 And we also see that Saudi Arabia is still aware,
08:48 especially in the field of unconventional gas,
08:51 or sea gas, which we are specialized in.
08:54 And we thank you, Dr. Mohamed Farouk Abdel Khaliq,
08:57 and you are the CEO of Addis,
08:59 who is in charge of all these details.
09:01 You were with us from Riyadh.
09:03 Thank you.