JEDDAH: Companies listed on the Saudi stock exchange (Tadawul) reported a 44 percent year-on-year increase in aggregate net profit during the first quarter (Q1) of 2021, after declining for eight quarters, according to a report by financial data platform Argaam.
The listed firm reported total net profit was SR107.88 billion ($28.77 billion) compared to SR74.86 billion achieved during the same period in 2020.
One of the key reasons behind the increase was the accelerated return to normal life after partial or complete lockdown as part of measures implemented during the coronavirus disease (COVID-19) pandemic, economist and financial analyst Talat Zaki Hafiz explained to Arab News.
“The energy and the banking sectors have helped in pushing the total market profitability upward,” Hafiz said, noting that the two prime sectors’ profit grew by 28 and 20 percent respectively in Q1 2021 compared to the same period last year.
In general, energy firms accounted for 74 percent of the total aggregate profit for listed companies in Q1 2021, reporting a 28 percent profit rise year-on-year to SR79.32 billion.
Hafiz said that Saudi Aramco had contributed positively to the total profits of the listed companies due to its 24 percent profit growth of SR78.59 billion this year, compared to SR65.63 billion in the same period in 2020.
FASTFACTS
• The listed firm reported total net profit was SR107.88 billion ($28.77 billion) compared to SR74.86 billion achieved during the same period in 2020.
• One of the key reasons behind the increase was the accelerated return to normal life after partial or complete lockdown as part of measures implemented during the coronavirus disease pandemic, analyst explains.
“This is due to the improvement in the oil prices and the demand as well,” Hafiz said. “Also, the consolidated SABIC financial results have helped improve Aramco’s overall financial results.”
SABIC reported SR4.86 billion net profit in Q1 2021, supported by a 24 percent year-on-year rise in revenue, as average selling product prices increased.
The Argaam report also highlighted that the materials and public utilities sectors turned profitable this year, from losses in Q1 of 2020.
Excluding Saudi Aramco’s financial results, the first quarter’s combined earnings this year show a surge of 159 percent to SR29.29 billion, from SR11.33 billion in Q1 2020.
In the first quarter of this year, 65 companies reported a rise in profits compared to the same period in 2020, while 23 firms turned to profit after reporting losses in Q1 2020.
However, 42 companies posted a drop in earnings, compared to Q1 2020, while 43 firms also posted losses in Q1 2021, including 12 that slipped into the red.
With the net profit of Saudi Arabian Mining Co. (Maaden) at SR761.2 million, the materials sector contributed 9 percent to the market’s total combined earnings, with SR9.64 billion in total profit, compared to losses of SR626.9 last year.
