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

11/11/2024 Argaam Special
Tadawul trading screen

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.

 

Aggregate Net Profit Since 2023* (SAR bln)

Period

Saudi Market (TASI)

Change (%)

TASI ex-Aramco

Change (%)

2023

Q1

147.74

(21%)

30.27

(32%)

Q2

143.24

(35%)

34.36

(29%)

Q3**

157.41

(19%)

33.88

(13%)

Q4***

126.85

(17%)

23.98

(13%)

2024

Q1

136.16

(8%)

32.80

+8%

Q2

147.00

+3%

40.84

+19%

Q3

140.85

(10%)

43.22

+28%

*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.

 

Aggregate Net Profit by Sector (SAR mln)*

Current Rank

Rank

YoY

Sector

Q3

2023

Q3

2024

Change (%)

Sector’s Contribution

1

1

Energy

122909

97185

(21%)

69%

2

2

Banks

18084

20523

+13%

14.6%

3

3

Telecommunications

5545

5680

+2%

4%

4

4

Public Utilities

4617

5311

+15%

3.8%

5

21

Materials

(1301)

4035

--

2.9%

6

8

Insurance

935

1260

+35%

0.9%

7

5

Food & Beverages

1102

1219

+11%

0.9%

8

6

Healthcare

1080

1217

+13%

0.9%

9

9

Software & Services

681

1011

+48%

0.7%

10

17

Capital Goods

112

650

+479%

0.5%

11

10

Financial Services

578

579

--

0.4%

12

15

Consumer Discretionary Distribution & Retail

242

510

+111%

0.4%

13

12

Consumer Staples Distribution & Retail

446

403

(10%)

0.3%

14

13

Transport

361

396

+10%

0.3%

15

11

Consumer Services

473

367

(22%)

0.3%

16

14

Media and Entertainment

313

206

(34%)

0.1%

17

16

Commercial & Professional Services

157

141

(11%)

0.1%

18

18

Pharmaceuticals

46

91

+97%

0.1%

19

7

Real Estate Management & Development

965

65

(93%)

0.1%

20

19

Household & Personal Products

14

22

+59%

0.02%

21

20

Consumer Durables & Apparel

(7)

(27)

--

(0.02%)

Total

157352

140845

(10%)

100%

*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.

 

Top 11 Gainers in Q3 2024 (SAR mln)

Company

Q3 2023

Q3 2024

Change (%)

Saudi Aramco

123534.0

97621.0

(21%)

SNB

5009.6

5366.1

+7%

Al Rajhi Bank

4155.3

5103.4

+23%

Saudi Electricity

3912.8

4688.2

+20%

stc

4904.0

4643.0

(5%)

Riyadh Cement

2089.4

2654.1

+27%

SAB

1830.3

1883.2

+3%

Alinma Bank

1323.9

1571.5

+19%

ANB

1076.2

1243.1

+16%

BSF

1245.5

1148.1

(8%)

SABIC

(2876.4)

1000.0

--

 

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.

 

Top 10 Losers in Q3 2024 (SAR mln)

Company

Q3 2023

Q3 2024

Change (%)

Petro Rabigh

(1145.1)

(1300.0)

(14%)

Emaar EC

27.2

(458.9)

--

Saudi Kayan

(449.0)

(296.2)

+34%

Jabal Omar

305.5

(203.6)

--

SVCP

(3.6)

(57.3)

(1474%)

Nama Chemicals

(49.9)

(48.1)

+4%

Saudi Printing

(21.9)

(37.7)

(72%)

Ayyan

(56.4)

(34.7)

+39%

Herfy

11.0

(33.4)

--

Saudi Fisheries

(34.4)

(28.7)

+17%

 

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.

 

Aggregate Net Profit of Saudi Companies (SAR bln)

Period

9M

 2023

9M 2024

Change (%)

Aggregate Profit

448.63

424.35

(5%)

Aggregate Net Profit Excluding Aramco and One-off Items

98.74

117.21

+19%

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.