Key corporate moves span energy, tech and trade

United International Transportation Co. (Budget Saudi) shareholders approved a 33.74% capital increase from SAR 781.7 million to SAR 1.04 billion at an extraordinary general meeting on 19 February. The company will distribute 26.1 million bonus shares on a one-for-three basis, representing 33.33% of the post-hike capital, and allocate an additional 320,000 shares – 0.41% of the enlarged capital – to a long-term employee stock incentive program.

The capital raise will be funded by capitalizing SAR 263.8 million from retained earnings. Management said the purpose is to support the company’s growth and strengthen its financial position. Fractional shares arising from the bonus issue will be aggregated into a single portfolio and sold in the market, with proceeds distributed pro rata to eligible shareholders within 30 days of allocation.

Shareholders also approved an amendment to Article 3 of the company’s articles of association regarding its objectives, and ratified the establishment of the long-term employee stock incentive program, giving the board authority to set and amend its terms. Following the capital adjustment, Tadawul set Budget Saudi’s fluctuation limits based on a reference price of SAR 43.52 on 23 February, and the Securities Depository Center (Edaa) is scheduled to deposit the additional shares into investor portfolios by 25 February.

Indonesia’s Agreement on Reciprocal Trade (ART) with the United States could remove tariffs on US-made telecommunications equipment, providing cost relief for operators and tower firms, according to KISI Sekuritas head of research Muhammad Wafi. He said the policy may create short-term market optimism due to lower investment outlays and, over the medium term, structurally benefit networks where US vendors dominate in core equipment, fiber optics and data centers.

Wafi noted that potential tariff removal would support fixed–mobile convergence and data center expansion at PT Telkom Indonesia (TLKM), PT Indosat (ISAT) and PT XL Axiata’s parent XLSMART (EXCL), by reducing capex on imported gear. For tower operators such as PT Tower Bersama (TBIG), PT Dayamitra Telekomunikasi (MTEL) and PT Sarana Menara Nusantara (TOWR), cheaper imports could accelerate fiberisation of tower sites, enabling operators to lease upgraded infrastructure at more efficient rates.

However, Wafi cautioned that the tariff measure alone is unlikely to reverse negative sentiment in tower stocks, which remain pressured by high leverage and interest-rate dynamics. He described the trade change as a solid fundamental support rather than a standalone catalyst, highlighting that tower firms carry substantial bond and loan obligations and still depend on a more favourable interest-rate environment. He currently favours ISAT and also assigns target prices to TLKM, EXCL, MTEL, TOWR and TBIG.

Indonesia’s state-owned energy company Pertamina has signed a memorandum of understanding with Halliburton to evaluate the use of new well construction and stimulation technologies in selected onshore fields. The MoU covers multi-stage hydraulic fracturing, acid stimulation and advanced cementing services, alongside potential deployment of automation and artificial intelligence to improve drilling and fracturing processes.

Pertamina president director Simon Mantiri said the cooperation forms part of a broader transformation of upstream operations aimed at boosting national production and revitalising mature fields. He said advanced technology and global expertise could help optimise older assets so they again contribute meaningfully to Indonesia’s energy output. Halliburton plans to address efficiency, cost management and production performance through its digital integration, drill bit design, drilling fluids, directional tools and measurement services.

The service company highlighted several platforms to be assessed under the partnership, including its DecisionSpace 365 and LOGIX automation and remote operations systems for well planning and execution, as well as its cloud-based Digital Well Program. Halliburton’s iStar intelligent drilling and logging platform, which provides real-time data streaming and automated features for precise wellbore placement and reservoir evaluation, is also among the technologies under consideration. Halliburton Asia-Pacific senior vice president Martin White said the company will combine unconventional methodologies with local reservoir knowledge to strengthen capabilities and maximise asset value.

Arabian Internet and Communications Services Co. (solutions) has signed a five-year managed IT services contract with National Water Co. (NWC) valued at SAR 519.7 million including VAT. The agreement, dated 19 February, covers comprehensive management, operation, monitoring and continuous improvement of NWC’s IT systems across all applications and user segments.

Under the deal, solutions will deliver infrastructure, application and end-user support services with defined performance, availability, security and compliance levels. The company said the arrangement is designed to ensure business continuity, enhance user satisfaction and align IT operations with NWC’s objectives, while applying best-practice governance and ongoing innovation and process improvement.

Solutions expects the financial impact of the contract to begin appearing in its results from the second quarter of 2026. The company characterised the award as a significant step in consolidating its position in the Saudi IT outsourcing market and in supporting business growth through upgraded digital infrastructure. The revenue-sharing agreement carries no minimum guarantee, and solutions stated that there are no related parties to the transaction.