BAE Systems has finalised a pricing deal with Saudi Arabia concerning 72 Eurofighter Typhoon jets, ending several years of uncertainty over the purchase.
The British defence giant announced yesterday that the United Kingdom and Saudi governments had agreed price escalation terms relating to buying the aircraft as part of the Salam programme, originally signed between the two governments in 2005.
Details of the price escalation agreement have not been disclosed.
Cash settlement is expected to follow the signing of the pricing agreement, starting in the early part of this year, the company said.
BAE and Saudi Arabia signed a £4.5 billion (Dh27.57bn) agreement in 2007 to supply the kingdom with 72 Typhoon jets.
The original agreement stipulated that a price escalation on the deal would be negotiated after delivery of the first 24 aircraft.
Negotiations between the two parties continued for approximately two years.
“This is an equitable outcome for all parties,” said BAE Systems’ chief executive Ian King.
“I am pleased that we have been able to conclude this negotiation which builds on our long-standing relationship with this much valued customer”.
BAE had continued to deliver the planes to Saudi Arabia during 2013 while price escalation negotiations were in process, suggesting it was confident that a deal was in reach.
More than 30 of the 72 aircraft are understood to have been delivered as part of the deal so far.
However, the company warned in October that its earnings per share for 2013 would be affected by between 6 to 7 pence if an agreement was not reached by the time it announced its results for the year.
The company also said its £1bn share buy-back scheme, launched last February, was contingent on the success of negotiations.
Analysts welcomed the news of the agreement as removing long-running uncertainty over the deal.
“Investors had responded negatively to the news of another Salam delay late in 2013,” said Robert Stallard, an analyst with RBC. “With Salam cash coming in, this should give BAE more flexibility for cash deployment moving forward.”
Mr Stallard noted that the agreement also freed up capacity in the Saudi defence ministry to work on other prospective defence agreements.
“It seems as if BAE got an agreement that was close to what they wanted, but you suspect there must have been a bit of give and take in the final reckoning,” said a London-based defence analyst.
“It means that they now can book an increase in revenue and therefore an increase in margins from Salam, which means they have a clearer position to build on.”
The news comes as a particular relief to the company after a £6 deal with the UAE for typhoons collapsed in December.
The country had expressed an interest in acquiring up to 60 Eurofighter typhoons as part of the deal. BAE Systems shares rose by 4 per cent on the news in early trading on Wednesday. The company is scheduled to reports earnings for 2013 today.
jeverington@thenational.ae
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The Bio
Favourite holiday destination: Either Kazakhstan or Montenegro. I’ve been involved in events in both countries and they are just stunning.
Favourite book: I am a huge of Robin Cook’s medical thrillers, which I suppose is quite apt right now. My mother introduced me to them back home in New Zealand.
Favourite film or television programme: Forrest Gump is my favourite film, that’s never been up for debate. I love watching repeats of Mash as well.
Inspiration: My late father moulded me into the man I am today. I would also say disappointment and sadness are great motivators. There are times when events have brought me to my knees but it has also made me determined not to let them get the better of me.
OPTA'S PREDICTED TABLE
1. Liverpool 101 points
2. Manchester City 80
3. Leicester 67
4. Chelsea 63
5. Manchester United 61
6. Tottenham 58
7. Wolves 56
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10. Everton 50
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16. Brighton 37
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The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
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Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
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Started: January 2018
Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
Investors in Jaib's mother company Alpha Apps: Aramex and 500 Startups
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The full list of 2020 Brit Award nominees (winners in bold):
British group
Coldplay
Foals
Bring me the Horizon
D-Block Europe
Bastille
British Female
Mabel
Freya Ridings
FKA Twigs
Charli xcx
Mahalia
British male
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Lewis Capaldi
Dave
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Aitch
Lewis Capaldi
Dave
Mabel
Sam Fender
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Ed Sheeran and Justin Bieber - I Don’t Care
Mabel - Don’t Call Me Up
Calvin Harrison and Rag’n’Bone Man - Giant
Dave - Location
Mark Ronson feat. Miley Cyrus - Nothing Breaks Like A Heart
AJ Tracey - Ladbroke Grove
Lewis Capaldi - Someone you Loved
Tom Walker - Just You and I
Sam Smith and Normani - Dancing with a Stranger
Stormzy - Vossi Bop
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Camila Cabello
Lana Del Rey
Lizzo
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Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
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The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
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Defined Benefit Plan (DB)
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A defined contribution plan is where the benefit depends on the amount of money put into the plan for an employee, and how much investment return is earned on those contributions.
Gran Gala del Calcio 2019 winners
Best Player: Cristiano Ronaldo (Juventus)
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Best Goal: Fabio Quagliarella (Sampdoria vs Napoli)
Best Team: Atalanta
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Serie B Best Young Player: Sandro Tonali (Brescia)
Best Women’s Goal: Thaisa (Milan vs Juventus)
Best Women’s Player: Manuela Giugliano (Milan)
Best Women’s XI: Laura Giuliani (Milan); Alia Guagni (Fiorentina), Sara Gama (Juventus), Cecilia Salvai (Juventus), Elisa Bartoli (Roma); Aurora Galli (Juventus), Manuela Giugliano (Roma), Valentina Cernoia (Juventus); Valentina Giacinti (Milan), Ilaria Mauro (Fiorentina), Barbara Bonansea (Juventus)
GAC GS8 Specs
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