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
42.30
0.25 0.59%
ETIHAD ETISALAT
51.70
0.50 0.98%
ACC
24.40
(0.48) (1.93%)
QACCO
51.20
(0.20) (0.39%)
SAUDI CEMENT
39.70
(0.10) (0.25%)
YC
30.25
(0.75) (2.42%)
YCC
22.40
(0.38) (1.67%)
ALMARAI
55.70
0.40 0.72%
TASNEE
10.68
0.02 0.19%
SABIC
72.50
(0.30) (0.41%)
SABIC AGRI-NUTRIENTS
114.00
(0.60) (0.52%)
SAIC
36.65
(0.25) (0.68%)
SAVOLA GROUP
25.65
0.05 0.20%
YANSAB
39.80
0.50 1.27%
JARIR
13.22
0.02 0.15%
BAHRI
28.15
(0.30) (1.05%)
SIPCHEM
26.15
(0.25) (0.95%)
MAADEN
54.90
(1.10) (1.96%)
A.OTHAIM MARKET
11.46
(0.22) (1.88%)
CENOMI RETAIL
12.98
0.00 0.00%
ZAIN KSA
10.48
(0.04) (0.38%)
HERFY FOODS
24.50
(0.50) (2.00%)
DALLAH HEALTH
156.80
(1.40) (0.89%)
MOUWASAT
95.80
0.10 0.10%
SHAKER
26.05
0.10 0.39%
CATRION
126.40
4.00 3.27%
EXTRA
99.20
(0.40) (0.40%)
CARE
187.00
(3.40) (1.79%)
ALHAMMADI
40.20
0.10 0.25%


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