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Rabee Securities Iraq Stock Exchange (ISX) market report (week ending: 2nd May 2019).

Please click here to download a table of listed companies and their associated ticker codes.

The RSISX index ended the week at IQD586 (+0.2%) / $630 (+0.2%) (weekly change) (-11.2% and -11.3% YTD change, respectively). The number of week traded shares was 1.5 bn and the weekly trading volume was IQD1.1 bn ($0.9 mn).

ISX Company Announcements

  • Iraqi Carton Manufactories (IICM) will hold an AGM* on May. 9, 2019 to discuss and approve 2016 annual financial results. The company has been suspended from trading since Aug. 6, 2017 due to not disclosing 2016 and 2017 annual financial results.
  • Asiacell (TASC) invited its shareholders to receive their cash dividend (100% cash dividend, 12.2% dividend yield) starting May 2, 2019.
  • ISX suspended trading of Kurdistan International Islamic Bank (BKUI) starting Apr. 29, 2019 due to the GA that will be held on May. 4, 2019 to elect 4 original and 7 alternative board members. The bank will resume trading on May. 5, 2019.

By John Lee.

The United Nations has advertised new positions in Iraq:

(Source: UN)

(Picture: Finger pressing a new career start button, from Olivier Le Moal/Shutterstock)

By John Lee.

The United Nations has advertised new positions in Iraqi Kurdistan:

(Source: UN)

(Picture: Success, growth, career, development signpost from 3D_Creation/Shutterstock)

By Padraig O’Hannelly.

More than 100 guests gathered at the Babylon Hotel in Baghdad on Tuesday to attend Iraq’s first Tech Conference.

Hosted by the Iraq Britain Business Council (IBBC) and chaired by Ashley Goodall, the event brought together the leading companies involved in the technology sector in Iraq to discuss how the power of the tech economy can benefit the country.

Among the many speakers and contributors during the day, Mohammed Khudairi of Iraq Tech Ventures emphasised the need to create the right environment for innovative companies, adding:

“We want to create a cluster of inovation as they’ve done in San Francisco, as they’ve done in London, and in many other places around the world; Iraq has the skillset, the talent and the motivation to make this happen, and has a great path ahead of it over the coming years.”

Patricia Letayf of Five One Labs discussed the changes they’re working to bring about in Iraq:

“When you hear the word “Iraq” we want you to think of start-ups and innovation … we want Iraq to be a focal point and a competitive business environment.”

According to Mohammed al Hakim, of Careem Iraq:

“There is no lack of human capital in Iraq — there is a lack of investment in human capital in Iraq.”

The event, along with the Start-Up Championship the previous evening, forged connections between people from various disciplines and locations, and will doubtless be a starting point for many of tomorrow’s success stories.

 

Germany’s Siemens and the Iraqi Ministry of Electricity have agreed on the award of contracts valued at approximately EUR 700 million for Phase 1 of their “Iraq Roadmap“, covering short-, mid- and long-term addition of new highly-efficient power generation capacity, rehabilitation and upgrade of existing plants, and the expansion of transmission and distribution networks.

The agreement builds on the exclusive Memorandum of Understanding signed between the ministry and Siemens in October last year, and outlines the specific projects, associated budgets and timelines for the execution phase, covering all essential elements of the electrification of Iraq.

The document was signed by Joe Kaeser (pictured), President and CEO of Siemens AG, and Luay al-Khatteeb, Iraq’s Minister of Electricity, in Berlin in the presence of Adil Abdul-Mahdi, Prime Minister of Iraq and Angela Merkel, Chancellor of the Federal Republic of Germany.

Projects include the EPC construction of a 500 megawatt gas-fired power plant in Zubaidiya; the upgrade of 40 gas turbines with upstream cooling systems; and the installation of 13 of 132 kilovolt substations along with 34 transformers across Iraq.

The ‘Siemens Roadmap for the Electrification of the New Iraq’ is a series of short, medium and long-term plans designed to meet the reconstruction goals of Iraq and support the country’s economic development. Along with the electrification scope, Siemens had also committed to the donation of a smart health clinic, a 60 million US-dollar software grant for universities of Iraq, and the training of more than 1,000 Iraqis in vocational education.

The clinic will be equipped with the company’s medical devices to make healthcare more accessible to Iraqis and will support the rehabilitation of populations in liberated areas of the country, with the capacity to treat up to 10,000 patients per year. As for the grant, it will empower local university students with the digital skills essential for the future.

The economic viability of the plan is secured by billions of US dollars in potential fuel savings and revenue generation for the electricity sector. The company also envisions the creation of tens of thousands of jobs over the course of the projects. The roadmap focuses on energy, education, compliance and financing, aiming to advance sustainable economic development, national security and quality of life for the people of Iraq. Siemens initially presented the Roadmap to the Government of Iraq during the Iraq Reconstruction Conference in Kuwait, in February 2018.

Kaeser commented:

Our mission is to secure reliable and affordable electricity for the Iraqi people and help them rebuild their country. This binding agreement addresses the various aspects of the roadmap. We are also committed to supporting Iraq in arranging financing for the projects, creating attractive jobs and opportunities for small and medium enterprises.

“Investing in the country’s future workforce through education and training is close to our heart. Contributing to social and economic development is at the core of what we do and forms a significant part of this agreement.

(Source: Siemens)

By John Lee.

Iraq’s Ministry of Oil has announced interim oil exports for April of 103,988,853 barrels, giving an average for the month of 3.466 million barrels per day (bpd), up from the 3.377 million bpd exported in March.

These exports from the oilfields in central and southern Iraq amounted to 100,635,009 barrels, while exports from Kirkuk amounted to 2,570,000 barrels, and from Qayara 783,844 barrels.

Revenues for the month were $7.011 billion at an average price of $67.419 per barrel.

March export figures can be found here.

(Source: Ministry of Oil)

By John Lee.

Genel Energy has announced that it “will only proceed with significant investment in Bina Bawi once an agreement is reached on a commercial framework that provides a clear route to monetisation.

In a statement, the company said:

As previously announced, the deadline to meet the conditions precedent relating to the Bina Bawi gas lifting agreement (‘GLA’) was extended until 30 April 2019, as discussions with the Kurdistan Regional Government (‘KRG’) on the commercial framework relating to the development of the licence continued.

“Having reached agreement that the existing GLA does not reflect the commercial realities of the proposed development, Genel and the KRG (‘the Parties’) have jointly agreed to let the GLA lapse on 30 April 2019 and focus on negotiating updated commercial terms based on a staged and integrated oil and gas development. The Parties are progressing the negotiation of a project scope based on a phased approach and ramp up of the gas development, with an initial phase of c.250 MMscfd raw gas capacity, and an accelerated development of the oil scope, where the KRG and Genel will jointly fund the first phase gas development utilising the revenue from Bina Bawi oil.

“The Parties have agreed to focus on finalising the commercial arrangement for this solution as soon as practical. The current production sharing contract (‘PSC’) provides a further 12 month period from 30 April 2019 within which to agree a new GLA. Should no agreement be reached in twelve months, the KRG has a right to terminate the PSC.

“In line with our capital allocation strategy, the Company will only proceed with significant investment in Bina Bawi once an agreement is reached on a commercial framework that provides a clear route to monetisation.

“The deadline for the Miran conditions precedent will be reached on 31 May 2019 and the Company similarly expects that the Miran GLA will lapse.

Meanwhile, analysts at Numis Securities have reportedly upgraded the shares to a “buy” rating.

(Sources: Genel Energy, thisismoney.co.uk)

By Padraig O’Hannelly.

Iraqi tech start-up Sandoog has won the Iraq round of Arabnet‘s Start-up Championship.

The company aims to solve local logistical issues using an e-logistics solution that allows merchants to send, track and manage their deliveries, invoices and customer base anywhere in Iraq.

As part of the IBBC (Iraq Britain Business Council) Tech Conference in Baghdad on 29th and 30th April, Iraq Tech Ventures and Arabnet hosted the competition on Monday at The Station Co-Working Space.

In front of a large audience, startups had five minutes to pitch their business to a panel of judges made up of angel and corporate investors, along with key industry leaders.

The top three businesses, which will be entered into Arabnet’s Regional Startup Championship in Beirut, were:

Also taking part and making impressive pitches were Alsaree3, Brsima, Dakakenna, Erbil Delivery, IOT Kids, Sumer Card, and Tabib Baghdad.

By John Lee.

Kuwait’s Qualitynet is reported to have been granted a licence to provide internet, telecommunications and satellite services in Iraq.

According to CommsMEA, the move makes it the first Kuwaiti telecommunications service provider to win a service licence in the country.

Said Qualitynet CEO Mohammed Nizar Al-Nusif is quoted as saying:

Winning this licence comes after an extensive study of the needs of the Iraqi market, the estimation of investment volumes and feasibility studies for the establishment of infrastructure, and will complement our strategic plan for regional and international expansion.

“Our experts are currently working on deploying the network and infrastructure to provide our services to our customer base across Iraq, and to provide the network with point-of-presence devices through Qualitynet Iraq, for which it was officially established.

(Source: CommsMEA)

(Picture credit: Tasnim, under Creative Commons licence)