Saudi Companies Consolidated earnings up 11% in Q1-2014

Saudi listed companies’ consolidated earnings rose 11% to SAR 25.25bn in Q1-2014 compared to SAR 22.72bn in the same period last year.

Consolidated earnings for Saudi Market (SAR Billion)
Change	Q1-2014	Q1-2013	Item
+11%	22.72	25.25	Consolidated Earnings

Petrochemical and Banking Sectors’ earnings represented about 69% of the market’s net profit for the period.

Petrochemicals sector profits represented 37% driven by SABIC’s net profit of SAR 6.44bn in Q1 as well as Petro-Rabigh’s profit of SAR 413.1m compared to a net loss of SAR 658.1m in the same period last year.

Banking sector contributed 32% of the market’s profit in Q1 with the rise in all bank’s earnings in Q1 except for Al-Rajhi Bank.

Telecommunications sector added 13% to the market’s earnings in Q1 with STC reporting 54% increase in net profit compared to the same period last year.

Consolidated Earnings for Major Sectors in Saudi Market (SAR Million)
Sector’s %	change	Q1-2014	Q1-2013	Period
37%	+16%	9316.4	8044.3	Petrochemicals
32%	+5%	8055.6	7640.6	Banking
13%	+40%	3405.3	2430.4	Telecommunications
7%	(10%)	1644.0	1817.0	Cement

The following table shows quarterly consolidated earnings for listed Saudi Companies since 2011:

Saudi Companies’ Consolidated Earnings since 2011
growth (y/y)	Consolidated earnings (SAR Billion)	period
2011
+26%	22.12	Q1-2011
+31%	26.33	Q2-2011
+24%	26.34	Q3-2011
+6%	20.23	Q4-2011
2012
+15%	25.52	Q1-2012
(7%)	24.44	Q2-2012
+2%	26.90	Q3-2012
(3%)	19.55	Q4-2012
2013
(11%)	22.72	Q1-2013
+4%	25.51	Q2-2013
+11%	29.99	Q3-2013
+26%	24.73	Q4-2013
2014
+11%	25.25	Q1-2014

Net profits of the largest 10 listed companies in the Saudi Stock Exchange Market constituted 70% of aggregated profits as follows:

Largest 10 companies in terms of Earnings Q1-2014 (SAR Million)
Change	Q1-2014	Q1-2013	Period
(2%)	6441.7	6563.4	SABIC
+54%	2391.0	1550.0	STC
(17%)	1706.0	2052.0	Al-Rajhi
+4%	1400.0	1340.0	Mobily
+7%	1241.0	1159.0	SAMBA
+14%	1080.5	947.9	SABB
+13%	1079.0	951.0	RIBL
+25%	856.0	684.0	BSFR
(10%)	843.0	932.0	SAFCO
+5%	712.9	678.7	Arab National

The following two tables indicate the top growing and the most declining companies amongst the largest 50 companies in Q1-2014:

Top 10 companies in terms of profit’s growth
Reason for increase	Growth %	2014	2013	Company
Improvement in the operating performance of Saudi Polymers Company in Q1-2014	+10946%	141.0	(1.3)	Petrochem
halting of Saudi Chevron Philips and Jubail Chevron Phillips for scheduled and unscheduled maintenance. In addition to improved results of Petrochem	+355%	261.0	60.0	SIIG
The company attributed reporting a net profit, compared to a net loss in the same period last year to the stable operations of PRC in Q1- 2014, accordingly production and sales volume were increased. In addition, there was a positive impact of the revised commercial arrangements with Founding Shareholders. Conversely, Q1 2013 operations were low and unstable due to the utilities supplier blackout events occurred at the end of December 2012.	+163%	413.1	(658.1)	Petro Rabigh
Q1- 2013 included non-recurring and non-cash charge of SAR 500 million for impairment of intangible assets pertaining to Aircel, India and SAR 287m losses	+54%	2391.0	1550.0	STC
the increase in sales by almost11% and to the increase in cash dividends received from some of the corporations’ investments.	+45%	91.2	63.1	SPIMACO
realizing gain on sale of investment in Q1-2014	+44%	157.0	109.0	Eastern Province Cement
growth in revenues, decline in financial charges, zakat and income tax and minority interest	+43%	423.0	295.0	SAVOLA
the increase in cements sales and the increase in the profits of the company's investments in Jordan	+42%	60.8	42.8	Northen Region Cement
Improvement in Naftha sector and increase in the company’s earnings from Petredec (30.3% owned by bahari)	+41%	195.1	138.1	BAHARI
18% increase in sales and growth of other revenues	+40%	190.8	135.9	Al-Hokair (Fiscal year ends March 31)

Most declining companies in terms of profit
Reason for increase	Growth %	2014	2013	Company
the Decrease in prices of Gold, Aluminum, DAP and Ammonia	(48%)	125.2	239.2	Maaden
Sales decline and increase in GOGS as a result of high costs of imported clincker	(34%)	175.0	277.0	Yamama Cement
the decrease in sales quantities because of the planned shutdown of ALWAHA affiliate	(20%)	99.9	125.4	SAHARA Petrochemical
the decline in investment income by 48% in addition to realizing SAR 4m gain from liquidating an affiliate in Q1-2013	(19%)	59.5	73.1	Taiba Holding
The increase in the cost of sales as a result of using imported clinker - The increase in maintenance cost due to the furnace overhauling in Bisha and Jazan Plants	(18%)	221.0	269.0	Southern Province Cement
the increase in the cost of goods sold due to the increase in imported clinker price	(17%)	205.0	247.0	Yanbu Cement
Increase in provisions	(17%)	1706.0	2052.0	Al-Rajhi
lower sales prices of certain products, increase of cost of sales due to higher sales volume, periodic maintenance cost and the increase in Zakat provision.	(17%)	555.7	667.1	YANSAB
13% decrease in cement sales due to decline in local demand in addition to the impairment loss of some assets of an affiliated company	(16%)	286.0	340.0	Saudi Cement
the decline in sales and increase in cost of Raw Material.	(12%)	59.9	67.9	AlAbdullatif

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