Tadawul trading screen
Tadawul-listed companies reported SAR 147.85 billion aggregate net profit for the fourth quarter of 2021, a rise of 105%, or SAR 75.61 billion, from SAR 72.24 million in the year-ago period, extending their positive performance for the fourth straight quarter.
A total of 121 companies reported profit in Q4 2021, of which 23 firms turned profitable, 53 logged profit growth, while 45 recorded a profit drop when compared to Q4 2020. On the other hand, 69 companies incurred losses in Q4 2021, of which 23 swung to losses, 21 deepened losses, while 25 trimmed their losses compared to Q4 2020.
The aggregate profit growth in the fourth quarter was driven by improved performance of most sectors, mainly materials and energy, which rose by 161% and 126% YoY, respectively. The banks sector also recorded a 39% YoY rise in profit.
Moreover, Saudi Arabian Oil Co. (Saudi Aramco) reported a 125% profit surge to SAR 116.64 billion in Q4 2021, compared to SAR 51.75 billion a year earlier, on higher crude oil prices, the consolidation of SABIC’s results and a remarkable increase in margins from refinery and chemicals segments.
Excluding Saudi Aramco's financial results, the fourth-quarter aggregate earnings would have climbed 52% to SAR 31.21 billion, from SAR 20.50 billion in Q4 2020.
This was spurred by the profit growth reported by SABIC, SABIC Agri-Nutrients Co., Saudi Arabian Mining Co. (Maaden), Sahara International Petrochemical Co. (Sipchem), Banque Saudi Fransi and Al Rajhi Bank. Meanwhile, Jabal Omar Development Co., National Industrialization Co. (Tasnee), Kingdom Holding Co. (KHC), Bank AlJazira, Saudi Real Estate Co. (Al Akaria), Methanol Chemical Co. (Chemanol) and Saudi Airlines Catering Co. (SACC) turned profitable, compared to Q4 2020.
|
Combined Net Profits (SAR bln) |
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|
Period |
Aggregate net profit* |
YoY change (%) |
Aggregate net profit excluding Aramco* |
YoY change (%) |
|
2020 |
||||
|
Q1 |
74.96 |
(27%) |
11.43 |
(40%) |
|
Q2 |
27.17 |
(76%) |
1.80 |
(91%) |
|
Q3 |
65.42 |
(36%) |
21.14 |
(9%) |
|
Q4 |
72.24 |
(18%) |
20.50 |
+55% |
|
2021 |
||||
|
Q1 |
106.73 |
+42% |
28.14 |
+146% |
|
Q2 |
128.95 |
+375% |
38.05 |
+2014% |
|
Q3 |
146.09 |
+123% |
37.02 |
+75% |
|
Q4 |
147.85 |
+105% |
31.21 |
+52% |
*Excluding Wafa Insurance, Thimar and Saudi Cable, which did not disclose their annual results, and NCLE, East Pipes and Makkah Construction, which have different fiscal years
On sector level, energy firms accounted for 79% of Saudi companies' aggregate profit in Q4 2021, reporting a 126% profit rise YoY to SAR 117.23 billion in the three-month period. The strong performance was fueled by a 125% rise YoY in Saudi Aramco’s net profit.
Materials came in the second position, contributing 10% to the market’s combined earnings in the three-month period, with a hike of 161% YoY to SAR 13.28 billion, thanks to the improved results of petrochemical producers, and Maaden.
SABIC accounted for over 40% of the petrochemicals sector’s aggregate profit, with SAR 4.93 billion earnings in Q4 2021.
Banks took the third place, with 8% of the market’s aggregate profit despite a 39% rise in the sector’s profit to SAR 12.45 billion in Q4 2021. The sector was mainly driven by the higher earnings of eight banks. Bank AlJazira also turned to profit in the three-month period.
Telecommunication services came fourth, representing 2% of the market’s combined earnings in the three-month period, generating SAR 3.00 billion profit. Etihad Atheeb Telecommunication Co. swung to losses, after being profitable in Q4 2020.
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Aggregate Net Profit by Sector (SAR bln) |
||||
|
Period |
Q4 2020 |
Q4 2021 |
Change |
Sector’s Contribution |
|
Energy |
51930.7 |
117232.4 |
+126% |
79% |
|
Materials |
5073.9 |
14416.6 |
+184% |
10% |
|
Banks |
8974.6 |
12450.1 |
+39% |
8% |
|
Telecomunications |
3001.1 |
2998.5 |
(0.1%) |
2% |
|
Real Estate Management |
(995.1) |
1152.5 |
+216% |
1% |
|
Healthcare |
550.2 |
619.6 |
+13% |
0.4% |
|
Investment & Financing |
79.1 |
552.3 |
+598% |
0.4% |
|
Retailing |
303.1 |
386.3 |
+27% |
0.3% |
|
Food & Staples Retailing |
415.3 |
353.4 |
(15%) |
0.2% |
|
Software & Services |
218.9 |
247.0 |
+13% |
0.2% |
|
Capital goods |
(0.9) |
128.1 |
+14333% |
0.1% |
|
Media and Entertainment |
61.2 |
167.1 |
+173% |
0.1% |
|
Food Production |
354.7 |
(206.7) |
(158%) |
(0.1%) |
|
Utilities |
3358.4 |
(2022.5) |
(160%) |
(1.4%) |
|
Other |
(1081.3) |
(659.6) |
+ 39 % |
(0.4%) |
|
Total |
72243.9 |
147815.1 |
+ 105 % |
100% |
The Saudi market's top 10 companies in terms of profitability accounted for more than 95% of the aggregate profit, although they reported profit growth in Q4 2021, except for Saudi National Bank (SNB), which saw a marginal profit decline.
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Top 10 Gainers in Q4 2021 (SAR mln) |
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|
Period |
Q4 2020 |
Q4 2021 |
Variation |
|
Aramco |
51746.0 |
116639.0 |
+125% |
|
SABIC |
2248.2 |
4933.5 |
+119% |
|
Al Rajhi Bank |
3121.4 |
4012.3 |
+29% |
|
SNB |
3359.8 |
3357.2 |
(0.1%) |
|
SABIC Agri-Nutrients |
233.6 |
2762.8 |
+1083% |
|
stc |
2592.38 |
2613.6 |
+1% |
|
Maaden |
571.9 |
2090.2 |
+265% |
|
Riyad Bank |
879.5 |
1617.4 |
+84% |
|
Alujain |
54.8 |
1413.3 |
+2481% |
|
Sipchem |
317.6 |
1321.0 |
+316% |
The aggregate net profit skyrocketed 121% to SAR 529.77 billion in 2021, from SAR 240.09 billion a year earlier.
Excluding Saudi Aramco, the aggregate net profit would have soared 144% to SAR 134.56 billion in 2021, from SAR 55.16 billion in 2020.
|
Aggregate Net Profit in 2020-2021 |
|||
|
Period |
2020 |
2021 |
Variation (%) |
|
Aggregate Net Profit (SAR bln) |
240.09 |
529.77 |
+121% |
|
Aggregate Net Profit Excluding Aramco (SAR bln) |
55.16 |
134.56 |
+144% |
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