Q3 profits of TASI firms ex-Aramco up at SAR 43.22B

Tadawul trading screen

Tadawul-listed companies, excluding Saudi Aramco, reported a 28% leap in Q3 2024 aggregate net profits to SAR 43.22 billion, primarily due to the positive results of the banking, petrochemicals, and utilities sectors.

The overall results of Saudi companies showed a 10% decline year-on-year (YoY) in combined profits to around SAR 140.85 billion by the end of the third quarter of 2024. Saudi Aramco accounted for 69% of the aggregate earnings, as its profit fell 21% YoY to SAR 97.62 billion, impacted by a drop in the volume of crude oil sales and weak refining margins.

A total of 177 firms reported earnings in the three-month period, 15 of which swung to profit, while 103 posted profit growth and 58 others reported lower profit YoY.

Meanwhile, 41 companies operating in different sectors incurred losses in Q3 2024, including 16 that turned to loss-making, mainly Emaar The Economic City (Emaar EC), Jabal Omar Development Co., and Herfy Food Services Co.

*Excluding Ataa Educational and National Company for Learning and Education (NCLE), which have different fiscal years, as well as Ash-Sharqiyah Development and Tihama due to failure to disclose their financial statements on time.

**Including non-cash losses resulting from the deal to sell Hadid, a subsidiary of SABIC, at a value of SAR 2.93 billion, as well as fair value losses of SAR 3.2 billion arising from the sale of Hadid, and gains of SAR 1.9 billion from the sale of land in Al Khobar, valued at SAR 1.29 billion. This is in addition to a reversal of provision worth SAR 641 million in stc.

***SABIC’s provisions included the removal and restructuring of SAR 1.15 billion and the reversal of deferred income tax entries of SAR 1.02 billion, in addition to a one-time fee of Cenomi Retail at SAR 0.77 billion, which is related to the impact of converting the store portfolio.

Sector-wise, the energy sector contributed the largest portion of aggregate net profit in Q3 2024, with more than 69% after its profit fell by about 21% YoY to reach SAR 97.16 billion. The fall was due to the decline in Saudi Aramco's Q3 profit by 21% YoY, in addition to the losses recorded by Petro Rabigh.

The banking sector took the second position, with 14.6% of the market’s aggregate profit. The sector's profit rose 13% YoY to SAR 20.52 billion, amid collective growth in bank profits, driven by the rise in net special commission income.

The telecommunications sector ranked third, accounting for 4% of Tadawul's aggregate profit, with about SAR 5.68 billion profit, up 2% YoY backed by the rise in profit of Zain KSA and Mobily.

The public utilities sector took the fourth position among the most profitable sectors, with a rise by 15% YoY to nearly SAR 5.31 billion. It was backed by the increase in financial results of Saudi Electricity by 20% YoY to SAR 4.69 billion, supported by higher revenues.

The basic materials sector came fifth, with a profit of SAR 4.04 billion, against losses of SAR 1.3 billion, driven mainly by SABIC, Maaden, and Yansab, which turned profitable. In addition, the cement sector's earnings jumped 89% YoY.

*Excluding Ataa Educational and National Company for Learning and Education (NCLE), which have different fiscal years, as well as Ash-Sharqiyah Development and Tihama due to failure to disclose their financial statements on time.

The Saudi market's top 11 profitable companies accounted for about 90% of the aggregate profits in Q3 2024. A total of seven companies posted higher profit YoY, while SABIC turned profitable. Saudi Aramco, stc and BSF posted lower profit.

Petro Rabigh recorded the biggest loss of SAR 1.3 billion in Q3 2024, followed by Emaar EC that turned to losses. Saudi Kayan incurred losses of SAR 296.2 million.

The aggregate profit for 9M 2024 dropped by 5% to SAR 424.3 billion, compared to SAR 448.6 billion in the similar period a year ago.

Excluding Aramco’s profit, the market's aggregate profit increased by 19% to SAR 117.21 billion, compared to SAR 98.74 billion in 9M 2023.