The profits of companies listed on the Saudi Stock Exchange, Tadawul, declined by about 9.6% in the first quarter of 2024, compared to the same quarter of 2023, amid a decline in the profits of several major companies, led by Aramco and SABIC Agri-Nutrients.
Statistics based on companies’ disclosures on the Saudi Stock Exchange website revealed a decline in the combined profits of listed companies to about 137 billion riyals, compared to 151.57 billion riyals.
Today, Sunday, May 19, 2024, the regular deadline granted to listed companies to disclose their financial results for the first quarter, which began on April 1, ended.
All companies whose fiscal year ends at the end of December of the Gregorian year announced their financial results for the first quarter during the deadline, which amounted to 210 companies.
Second lowest profit in a year
The profits of Saudi companies in the first quarter of this year recorded the second lowest quarterly profits since the beginning of last year, as the fourth quarter of last year witnessed the lowest profits since the beginning of 2023, with profits amounting to 126 billion riyals.
The highest quarterly profits during that period were in the third quarter of 2023, which amounted to 158.2 billion riyals, followed by the first quarter of 2023 with total profits amounting to 149.8 billion riyals.
20 companies capture 95%
According to the statistics, the total profits of the top 20 companies in terms of profits amounted to 129.79 billion riyals, in the first quarter of 2024, representing 94.73% of the total profits of companies.
Saudi Aramco maintained its undisputed leadership position, after the company alone captured about 74.65% of the total combined profits of listed companies in the first quarter of this year.
Aramco recorded a net profit of 102.27 billion riyals in the first quarter of 2024, compared to 119.54 billion riyals for the same period last year, a decline of 14.45%.
Aramco explained that the decrease in net profits is primarily due to lower quantities of crude oil sold, weak profit margins in refining and chemicals businesses, and lower financing and other income.
She pointed out that the decline in profits came despite the decrease in revenues from crude oil production, the increase in crude oil prices compared to the same period of the previous year, and the decrease in income taxes and zakat.
Al Ahli Bank came in second place in terms of the highest profits in the first quarter of this year, after net profits rose to 5.04 billion riyals compared to 5.02 billion riyals in the first quarter of last year, an increase of 0.36%.
The bank attributed the increase in net profit to a 2.4% increase in operating income, in addition to an increase in other non-operating expenses net, which was partially offset by an increase in operating expenses, including the net provision for expected credit losses.
Al Rajhi Bank came in third place, with profits rising to about 4.4 billion riyals, compared to 4.15 billion riyals in the same quarter of 2023, an increase of 6.27%.
The bank explained that net income increased as a result of a 6.6% increase in total operating income, which is due to an increase in net financing and investment income and income from other operations, offset by a decrease in income from banking services fees and income from foreign currency exchange.
Petro Rabigh leads losses
On the other hand, 36 companies recorded net losses in the first quarter of 2024, with a total loss of about 2.98 billion riyals, compared to 1.88 billion losses for those companies in the first quarter of 2023, with losses increasing by 58.22%.
The highest losses were for Rabigh Refining and Petrochemical Company (Petro Rabigh), which incurred a net loss of about 1.37 billion riyals in the first quarter of this year (46.8% of total losses), compared to losses of 964 million riyals during the same period last year, so the company’s losses increased by 41.6%.
The company explained that the increase in losses is mainly due to the decrease in sales as a result of the unscheduled shutdown of the high-olefins catalytic cracking unit, to carry out necessary repairs and maintenance, in addition to the decrease in profit margins for refined products and the increase in financing costs as a result of the increase in interest rates.
Saudi Kayan recorded the second highest losses in the first quarter of 2024, with a net loss of 571.9 million riyals, compared to 673.3 million riyals in net losses in the same period last year, a decrease of 15%.
The company attributed the decline in net losses compared to the first quarter of the previous year to the decrease in the increase in the quantities sold, despite the decrease in the average selling prices of products.
