Al Rajhi Capital expects Saudi corporate profits to remain under pressure in the second quarter due to the decline in commodity prices, reduced government subsidies and lower spending, the brokerage said in an earnings preview.

 

The petrochemical sector will continue to post sharp declines year-on-year (y-o-y) due to lower product prices. However, on a sequential basis, the sector’s profit is expected to remain relatively stable due to the recent recovery in prices, Al Rajhi Capital said.

 

Saudi Basic Industries Corp.’s (SABIC) Q2 profit is forecast to drop 48 percent to SAR 3.23 billion y-o-y on lower selling prices.

 

The cement sector will see profit declines caused by slower construction work during Ramadan and lower selling prices due to the discounts offered by competing firms.

 

Telecommunication companies are expected to see a harsh quarter due to the fingerprint requirements and the slower business activity in Ramadan.

 

Saudi Telecom Co. is expected to see a net profit decline of 13 percent to SAR 2.23 billion y-o-y.

  

                                         Al Rajhi Capital Profit Estimates (SAR mln)

Company

Q2-16 Estimates

YoY change

Petrochemicals

SABIC

3,229

(48%)

SIPCHEM

91

(18%)

SAFCO

274

(54%)

Tasnee

21

--

Yansab

388

+71%

Advanced

198

(19%)

Cement

Arabian Cement

171

+6%

Yamama Cement

135

(29%)

Saudi Cement

243

(4%)

Qassim Cement

106

(37%)

Yanbu Cement

168

(32%)

SPCC

245

(9%)

Telecommunications

STC

2,226

(13%)

Mobily

23

--

Zain

(220)

--

Food and Agriculture

Al Marai

547

+3%

Savola

309

(29%)

Herfy

49

+5%

Catering

156

(12%)

Retail

Jarir

156

+1%

Al Hokair

78

(63%)

Al Othaim

70

+26%

Extra

(16)

(237%)

Healthcare

Dallah

43

+21%

Al Mouwasat

62

+11%

Care

30

(29%)

Al Hammadi

10

(73%)

Other Sectors

Maaden

196

(27%)

Shaker

91

+11%

Bahri

500

+46%

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Quotes

STC
39.95
0.15 0.38%
ETIHAD ETISALAT
54.60
(0.90) (1.62%)
ACC
26.05
(0.10) (0.38%)
QACCO
53.70
(0.80) (1.47%)
SAUDI CEMENT
40.85
(0.55) (1.33%)
YC
31.30
(0.35) (1.11%)
YCC
23.36
(0.24) (1.02%)
ALMARAI
52.70
(0.20) (0.38%)
TASNEE
10.40
(0.08) (0.76%)
SABIC
69.70
(0.20) (0.29%)
SABIC AGRI-NUTRIENTS
112.00
1.20 1.08%
SAIC
35.35
(0.05) (0.14%)
SAVOLA GROUP
24.26
(0.32) (1.30%)
YANSAB
37.85
(0.90) (2.32%)
JARIR
12.72
(0.04) (0.31%)
BAHRI
28.50
(0.20) (0.70%)
SIPCHEM
24.50
(0.50) (2.00%)
MAADEN
53.00
(0.50) (0.93%)
A.OTHAIM MARKET
11.00
(0.04) (0.36%)
CENOMI RETAIL
13.68
(0.20) (1.44%)
ZAIN KSA
10.34
(0.06) (0.58%)
HERFY FOODS
22.94
(0.12) (0.52%)
DALLAH HEALTH
153.00
1.20 0.79%
MOUWASAT
92.40
0.90 0.98%
SHAKER
24.86
0.28 1.14%
CATRION
128.20
(0.80) (0.62%)
EXTRA
96.00
(0.50) (0.52%)
CARE
164.20
2.00 1.23%
ALHAMMADI
39.55
0.15 0.38%


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