Aggregate profit of Saudi companies falls to 6-year low

The aggregate net profit of Saudi companies decreased by 13 percent year-on-year (YoY), or SAR 2.56 billion, to a six-year low of SAR 17.27 billion for fourth quarter 2015, according to data compiled by Argaam.

Earnings were mainly knocked down by a 72 percent fall YoY in the petrochemical sector’s combined net profit to SAR 1.83 billion for the fourth quarter, compared to a net profit of SAR 6.42 billion in the same period of 2014.

Rabigh Refining and Petrochemical Co. (Petro Rabigh) posted SAR 1.01 billion in net losses for Q4. National Industrialization Co. (Tasnee) and Saudi Kayan Petrochemical Co. suffered net losses of SAR 690.2 million and SAR 624.1 million, respectively. Major petrochemical producer Saudi Basic Industries Corp. (SABIC) reported a 29 percent drop YoY in net profit to SAR 3.08 billion for the same period.

Meanwhile, the banking sector posted 4 percent growth YoY to SAR 10.07 billion for Q4.

Telecom operators posted an aggregate net profit of SAR 1.62 billion, compared to net losses of SAR 19.7 million in Q4-2014. The telecommunication sector figures were bolstered by Etihad Etisalat Co. (Mobily) which turned to a net profit of SAR 11 million in Q4, compared to net losses of SAR 2.11 billion in the same period of 2014.

The net earnings of Tadawul’s top ten players accounted for over 82 percent of market profit in Q4. Gainers were led by The National Shipping Co. of Saudi Arabia (Bahri) which reported a 359 percent surge YoY in Q4 net profit.

Meanwhile, Sabic, Saudi Telecom Co. (STC), Riyad Bank, Arab National Bank and the Saudi British Bank (SABB) posted lower profit for the same quarter.

Aggregate earnings for the full fiscal year (FY15) registered a 25 percent drop YoY to SAR 84.96 billion.