Profits of Saudi companies listed in the local stock market recorded a decline of 76.7 percent (86.3 billion riyals) during the second quarter of this year, to reach about 26.2 billion riyals, compared to about 112.5 billion riyals in the same period last year.
According to the analysis of the reports unit in Al-Eqtisadiah newspaper, based on the data of the Saudi Stock Exchange Company, Tadawul, the decline was mainly due to the repercussions of the Corona pandemic, as the economic closure caused a decline in corporate revenues, while the net profits were affected by the results of the banking sector, which declined. Heavily affected by the crisis, as well as the exceptional losses of SABB.
The basic materials sector was affected by pressure from the petrochemical sector companies, which recorded a net loss for the second consecutive quarter, as a result of the decline in the average selling prices of products during the period, as well as the decline in the amount of sales of some companies, as they face a difficult period due to the decline in prices, and then the Corona crisis, which The sector inflicted further damage.
The profits of the second quarter and first half do not include the results of the units of Real Estate Traded Funds “REIT”, as well as do not include the companies that were unable to declare their profits during the period, which are Al-Khudari, Thimar, and Wafa Insurance, as well as Salama Insurance.
SABIC recorded a net loss during the second quarter of 2.2 billion riyals, compared to a net profit of two billion riyals for the same period of 2019, so SABIC continues to record losses for the third consecutive quarter.
Saudi Aramco’s profits reached 24.62 billion riyals in the second quarter, as the company’s results were affected by the decline in crude oil prices, in addition to the decline in refining profit margins.
The results of the market companies were also affected by the decline in the profits of the banking sector, which decreased by 81 percent, due to the exceptional losses of SABB Bank amounting to 6.8 billion riyals after the bank recorded the provision for losses in the value of goodwill during the second quarter, while the allocations also affected the results of banks, bringing their profits to about 1.9 billion riyals, compared to about 10.12 billion riyals for the same period.
Ten sectors recorded a net loss during the second quarter of 2020, including the basic materials sector, investment and finance sector, as well as the public utilities sector, compared to five sectors that recorded growth in their profits, as insurance profits before zakat jumped by 219 percent, to reach 1.04 billion riyals, then the food retail sector. 147 percent to 145 million riyals.
While four sectors recorded a decline in profits, namely the energy, communications and banking sector, and finally the “media and entertainment” sector, while the pharmaceutical sector achieved net profits compared to a net loss.
With regard to the results of the first half of this year, its profits amounted to about 100.5 billion riyals, compared to net profits for the same period amounting to 216.1 billion riyals, so the profits for the period decreased by about 53.5 percent, or the equivalent of 115.6 billion riyals.
The Big 10
On the top ten profitable companies in the market during the second quarter of this year, Saudi Aramco topped the list with a value of 24.6 billion riyals, while the company “STC” came second with 2.72 billion riyals.
Third, Al-Rajhi Bank with profits of 2.44 billion riyals, then National Commercial Bank of 2.09 billion riyals, Riyad Bank of 1.06 billion riyals, then Samba Financial Group with profits of 0.96 billion riyals.
And in the seventh place, the Bahri Company, as the strong profits of the company during the second quarter pushed it to the list of the big ones, with profits of 0.76 billion riyals, after achieving a growth in profits of 1570 percent, supported by high rates of transport prices.
Eighth, Almarai Company comes with profits of 0.64 billion riyals, ninth Alinma Bank is about 0.57 billion riyals, and finally the Arab Bank with profits of approximately 486 million riyals.
Economic Reports Unit