Saudi companies see profits fall 22% to SAR 21.9 bln

The combined profits of Saudi Arabia’s listed companies decreased 22 percent to SAR 21.90 billion in first quarter, compared to SAR 28.14 billion in the same period of 2014, according to research conducted by Argaam.

Combined profits were hurt by a 53 percent drop year-on-year in the profits of petrochemical producers to SAR 4.38 billion in Q1, compared to SAR 9.32 billion a year earlier.

The sector’s figures were mainly impacted by lower product prices and maintenance shutdowns.

Mobily, the kingdom’s second largest telecom operator also weighed on the market with a net loss of SAR 199 million in Q1, against a net profit of SAR 1.6 billion in the year-ago period.

Compared with the same period last year, banks accounted for 51 percent of market profits. The banking sector logged a five percent rise in Q1 earnings to SAR 11.16 billion. All banks reported higher net profit, with the exception of Al-Rajhi Bank, which saw a drop this year.

Petrochemicals took the second spot with 20 percent of total profits.

Telecommunication only contributed nine percent to Saudi market earnings after reporting a 44 percent profit decline year-on-year in the first quarter. Saudi Telecom was the only gainer in the sector, reporting SAR 2.504 billion in net profit.

Cement contributed to eight percent, thanks to a four percent rise in the combined net profits of the sector’s companies in Q1.

Financial Results

Q1-2015