NESR and HSBC Announce First Sustainability-Linked Loan for MENA's Oilfield Services Industry
HOUSTON, TX / ACCESSWIRE / December 9, 2021 / National Energy Services Reunited Corp. ("NESR" or "the Company") (NASDAQ:NESR)(NASDAQ:NESRW), an international, industry-leading provider of integrated energy services in the Middle East and North Africa ("MENA") region, has announced that the company has secured a sustainability-linked loan ("SLL") with HSBC Bank Middle East - the first SLL of its kind within the MENA Oilfield Services ("OFS") sector.
The loan terms are linked to three key performance indicators ("KPIs") that are tied to the following environmental, social, and governance (ESG) indicators, and will be tracked within the agreement span:
- Environmental - Wastewater Reduction: NESR has set ambitious targets to reduce water waste, which incorporates both water stewardship in traditional OFS product lines and in water treatment projects within the newly formed ESG Impact segment.
- Social - HSE Training: NESR will drive growth in employee health, safety & environment ("HSE") training hours, which underpins the company's strategy of MENA localization and the empowerment of talent within the region. Training growth is also expected to enhance the safety, quality, and reliability of NESR service delivery.
- Governance - Supplier Compliance: NESR will increase its network of local suppliers that qualify with the Company's supplier governance policies. This not only aligns with MENA localization efforts but also should improve the durability and flexibility of the NESR supply chain.
In addition to the quantitative KPIs above, NESR has also pledged to establish a formal company carbon reduction strategy. As part of its inaugural ESG Report and broader decarbonization strategy, NESR is currently evaluating a Science-Based Target initiative ("SBTi") and expects to finalize targets in the coming year.
"As the National Champion of MENA, we are proud to be the first of our MENA-centric oilfield services peers to enter into an ambitious, sustainability-linked loan of this type with our valued partner lenders," said Sherif Foda, Chairman of the Board and Chief Executive Officer of NESR. "The loan also underscores our commitment to action, not just talk, within the broader framework of upstream decarbonization and energy transition. Our participation and conversations at the recent regions high level conferences punctuate the fact that all serious players in the energy value chain are moving quickly to drive the industry forward into a cleaner, more sustainable paradigm. These efforts not only encompass additional commercial opportunities, like we are seeing across our emerging ESG Impact segment, but also include internal efforts to bolster the Company internally across the E, S & G areas."
Sabrin Rahman, Managing Director & Head of Sustainability for Europe and the Middle East, HSBC, said: "HSBC is delighted to work with NESR on this sustainability linked loan, the first of its kind in MENA. HSBC is prioritising financing and investment that supports the transition to a net zero global economy, and NESR's ESG ambitions - as this transaction shows - dovetail with our financing commitments and expertise."
HSBC globally has committed to align its financed emissions - the carbon emissions of its portfolio of customers - to the Paris Agreement goal to achieve net zero by 2050 or sooner. To support customers in their transition to lower carbon emissions, HSBC aims to provide up to US
About National Energy Services Reunited Corp.
Founded in 2017, NESR is one of the largest national oilfield services providers in the MENA and Asia Pacific regions. With over 5,000 employees, representing more than 60 nationalities in over 15 countries, the Company helps its customers unlock the full potential of their reservoirs by providing Production Services such as Hydraulic Fracturing, Cementing, Coiled Tubing, Filtration, Completions, Stimulation, Pumping and Nitrogen Services. The Company also helps its customers to access their reservoirs in a smarter and faster manner by providing Drilling and Evaluation Services such as Drilling Downhole Tools, Directional Drilling, Fishing Tools, Testing Services, Wireline, Slickline, Drilling Fluids and Rig Services.
Forward-Looking Statements
This communication contains forward-looking statements (as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended). Any and all statements contained in this communication that are not statements of historical fact may be deemed forward-looking statements. Terms such as "may," "might," "would," "should," "could," "project," "estimate," "predict," "potential," "strategy," "anticipate," "attempt," "develop," "plan," "help," "believe," "continue," "intend," "expect," "future," and terms of similar import (including the negative of any of these terms) may identify forward-looking statements. However, not all forward-looking statements may contain one or more of these identifying terms. Forward-looking statements in this communication may include, without limitation, statements regarding the benefits resulting from the Company's recent business combination transaction, the plans and objectives of management for future operations, projections of income or loss, earnings or loss per share, capital expenditures, dividends, capital structure or other financial items, the Company's future financial performance, expansion plans and opportunities, and the assumptions underlying or relating to any such statement.
The forward-looking statements are not meant to predict or guarantee actual results, performance, events or circumstances and may not be realized because they are based upon the Company's current projections, plans, objectives, beliefs, expectations, estimates and assumptions and are subject to a number of risks and uncertainties and other influences, many of which the Company has no control over. Actual results and the timing of certain events and circumstances may differ materially from those described by the forward-looking statements as a result of these risks and uncertainties. Factors that may influence or contribute to the accuracy of the forward-looking statements or cause actual results to differ materially from expected or desired results may include, without limitation: the ability to recognize the anticipated benefits of the Company's recent business combination transaction, which may be affected by, among other things, the price of oil, natural gas, natural gas liquids, competition, the Company's ability to integrate the businesses acquired and the ability of the combined business to grow and manage growth profitably; integration costs related to the Company's recent business combination; estimates of the Company's future revenue, expenses, capital requirements and the Company's need for financing; the risk of legal complaints and proceedings and government investigations; the Company's financial performance; success in retaining or recruiting, or changes required in, the Company's officers, key employees or directors; current and future government regulations; developments relating to the Company's competitors; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic and market conditions, political disturbances, war, terrorist acts, international currency fluctuations, business and/or competitive factors; and other risks and uncertainties set forth in the Company's most recent Annual Report on Form 20-F filed with the Securities and Exchange Commission (the "SEC").
You are cautioned not to place undue reliance on forward-looking statements because of the risks and uncertainties related to them and to the risk factors. The Company disclaims any obligation to update the forward-looking statements contained in this communication to reflect any new information or future events or circumstances or otherwise, except as required by law. You should read this communication in conjunction with other documents which the Company may file or furnish from time to time with the SEC.
For inquiries regarding NESR, please contact:
Blake Gendron
National Energy Services Reunited Corp.
832-925-3777
investors@nesr.com
About HSBC in the MENAT region
HSBC is the largest and most widely represented international banking organisation in the Middle East, North Africa and Turkey (MENAT), with a presence in nine countries across the region: Algeria, Bahrain, Egypt, Kuwait, Oman, Qatar, Saudi Arabia, Turkey and the United Arab Emirates. In Saudi Arabia, HSBC is a
HSBC's climate commitments
In 2020 HSBC announced an ambitious plan to prioritise financing and investment that supports the transition to a net zero global economy: (https://www.hsbc.com/media/media-releases/2020/hsbc-sets-out-ambition-to-build-a-net-zero-economy)
- Committing to align its financed emissions - the carbon emissions of its portfolio of customers - to the Paris Agreement goal to achieve net zero by 2050 or sooner.
- Supporting its customers in all sectors with between US
$750b n and US$1 trillion of finance and investment by 2030 to help with their transition. - Applying a climate lens to financing decisions.
- Unlocking new climate solutions by creating one of the world's leading natural capital managers, creating a US
$100m venture debt fund for CleanTech innovation, and launching a philanthropic programme to donate USD100m to bring new solutions to viability and scale - Aiming to be net zero in its operations and supply chain by 2030.
HSBC's history of sustainable finance
The bank's ambitious climate declaration builds on its leadership in sustainable finance and addressing climate change.
In 2017, HSBC pledged to provide US
In 2020 and 2021, HSBC was named the World's Best Bank for Sustainable Finance by Euromoney and the Middle East's Best Bank for Sustainable Finance, which noted that "across every sector and region HSBC stands out for its commitment to developing partnerships and products that will bring finance at scale to create a more sustainable and resilient planet."
HSBC has been ranked a leading research house in ESG (Environmental, Social and Governance) for the past five years, according to external surveys that include Extel and Institutional Investor.
SOURCE: National Energy Services Reunited Corp.
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