to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
to download the complete report - GulfBase.com
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TRANSPORTATIONExhibit 155: Comparison of P/B and RoE, 2007 Exhibit 156: Comparison of P/B and RoE, 2008363630302424NSCSABUDGETROE (%)18NSCSABUDGETROE (%)181212SLTCO6PBSAPTCO00 2 4 6 8 106SLTCOSAPTCO00 1 2PBSource: Bloomberg, TadawulSize of <strong>the</strong> bubble represents market cap. as on 31 Dec 2007Source: Bloomberg, TadawulSize of <strong>the</strong> bubble represents market cap as on 31 Dec 2008National Shipping Company had <strong>the</strong> highest average volume traded in 2007-08.Exhibit 157: Average daily trading volume of s<strong>to</strong>cks (‘000s) , Jan 2007 – Dec 20087,0006,0005,9705,0004,0003,7813,0002,7912,0001,0001,0600NSCSA SAPTCO SLTCO BUDGETSource: Bloomberg, ReutersLong-term outlook promisingon <strong>the</strong> back of growingdependency on KSA forsourcing global oil requirementGoing forward, <strong>the</strong> long-term fundamentals of <strong>the</strong> Saudi transportation sec<strong>to</strong>r remain strong.KSA’s oil exports are expected <strong>to</strong> grow <strong>to</strong> approximately 9.3 million barrels per day (mn b/d) by2012 from approximately 8.7mn b/d in 2008, according <strong>to</strong> <strong>the</strong> data released by BusinessMoni<strong>to</strong>r International Limited‘s 4Q-08 KSA Oil & Gas <strong>report</strong>. This would give an impetus <strong>to</strong> <strong>the</strong>growth of transportation sec<strong>to</strong>r of KSA in <strong>the</strong> long term. Rising infrastructural developmentactivities and construction of economic cities are set <strong>to</strong> boom inter-city and intra-citytransportation in <strong>the</strong> Kingdom. Across all modes of transportation, <strong>the</strong> freight <strong>to</strong>nnage traffic inKSA is expected <strong>to</strong> grow at an average of 3.7% annually during <strong>the</strong> next five years, according <strong>to</strong><strong>the</strong> data released by <strong>the</strong> Saudi Arabia Freight Transport Report for 1Q-09. An expandingpopulation base and rising religious <strong>to</strong>urism also generate significant business opportunities for<strong>the</strong> firms engaged in road and rail transport in KSA.However, as seen in 4Q-08, declining international trade amid weakening consumer confidencecontinues <strong>to</strong> dent travel and freight rates across all modes of transportation, in <strong>the</strong> near-<strong>to</strong>mediumterm. Consequently, shipping <strong>com</strong>panies have been delaying <strong>the</strong>ir capacity expansionplans in an attempt <strong>to</strong> cope with <strong>the</strong> decline in demand for marine transportation, oversupplyJUNE 2009SAUDI ARABIA FACTBOOK97
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