Tadawul trading screen
Tadawul-listed companies reported a SAR 153.47 billion aggregate net profit for the fourth quarter of 2022, a rise of 3% from SAR 148.65 billion in the year-ago period.
Excluding Saudi Aramco Oil Co. (Saudi Aramco), Q4 2022 aggregate net earnings declined 12% to SAR 28.13 billion, compared with SAR 32.01 billion a year before, due to the fall in earnings of petrochemical companies, led by Saudi Basic Industries Corp. (SABIC) whose earnings dropped 94% year-on-year (YoY).
Meanwhile, 59 companies operating in different sectors incurred losses, led by Rabigh Refining and Petrochemical Co. (Petro Rabigh) whose losses reached SAR 1.8 billion in Q4 2022. Saudi Kayan Petrochemical Co. (Saudi Kayan) and Emaar The Economic City (Emaar EC) reported losses of SAR 791 million and SAR 530 million, respectively.
On the other hand, a total of 133 companies reported earnings in Q4 2022, of which 22 firms turned profitable, 75 logged profit growth, while 36 recorded a profit drop when compared to Q4 2021. Meanwhile, 59 companies incurred losses in Q4 2022, of which 32 swung to losses, 13 deepened losses, while 14 trimmed their losses year-on-year.
The aggregate profit growth in the fourth quarter was driven by improved performance of the energy, banking and telecommunication services sectors, as well as the utilities sector that turned to profit in Q4 2022.
|
Combined Net Profits Since 2020* (SAR bln) |
||||
|
Period |
Aggregate net profit* |
YoY change (%) |
Aggregate net profit excluding Aramco* |
YoY change (%) |
|
2020 |
||||
|
Q1 |
75.27 |
(27%) |
11.67 |
(39%) |
|
Q2 |
27.72 |
(75%) |
2.31 |
(87%) |
|
Q3 |
65.50 |
(36%) |
21.23 |
(7%) |
|
Q4 |
71.62 |
(18%) |
19.84 |
+66% |
|
2021 |
||||
|
Q1 |
107.04 |
+42% |
28.45 |
+144% |
|
Q2 |
129.47 |
+367% |
38.56 |
+1571% |
|
Q3 |
147.16 |
+125% |
38.06 |
+79% |
|
Q4 |
148.65 |
+107% |
32.01 |
+61% |
|
2022 |
||||
|
Q1 |
185.64 |
+73% |
43.55 |
+53% |
|
Q2 |
221.58 |
+71% |
47.69 |
+24% |
|
Q3 |
194.42 |
+32% |
38.27 |
+1% |
|
Q4 |
153.47 |
+3% |
28.13 |
(12%) |
*Excluding Electrical Industries, Anaam, Red Sea, MEDGULF and Alkhaleej Training, which did not disclose their annual results, and Ataa Educational, NCLE, and Makkah Construction, which have different fiscal years, as well as SIDC that didn’t disclose its financials
On sector level, energy firms accounted for 81.2% of Saudi companies' aggregate profit in Q4 2022, reporting a 6% profit rise YoY to SAR 124.3 billion in the three-month period. The strong performance was fueled by National Shipping Company of Saudi Arabia (Bahri) whose Q4 2022 earnings increased more than five times Q4 2021. Saudi Aramco's profit rose 8% YoY to SAR 125.3 billion, mainly due to higher crude prices and sales.
Banks took the second position, with 10.6% of the market’s aggregate profit. The sector's profit rose 35% YoY to SAR 16.3 billion, as most banks reported profit growth, driven by the rise in net special commission income and lower credit loss provisions.
Materials came third, contributing 2.7% to the market’s combined earnings in the three-month period, with a decline of more than 2.7% YoY, hurt by the decline in the petrochemical producers' Q4 2022 earnings. In addition, most petrochemical companies incurred losses, led by Saudi Kayan and Saudi Industrial Investment Group (SIIG).
This was also due to the 94% YoY drop in SABIC's earnings to SAR 292.7 million, due to the weak performance of its operating segments as well as lower profit margins and average prices.
Meanwhile, the cement producers' Q4 2022 earnings reached 742.4 million, an increase of more than two times compared with Q4 2021, due to strong sales and improved average selling prices of most companies.
Telecommunication services came fourth, representing 2.4% of the market’s combined earnings in the three-month period, as the sector's earnings rose more than 21% YoY.
Utilities sector ranked sixth, generating combined earnings of SAR 680 million in Q4 2022, against losses of nearly SAR 1.95 billion a year before, as Saudi Electricity Co. (SEC) narrowed its Q4 2022 losses YoY from SAR 2.43 billion to SAR 191 million.
|
Aggregate Net Profit by Sector (SAR bln) |
||||
|
Period |
Q4 2021 |
Q4 2022 |
Change |
Sector’s Contribution |
|
Energy |
117351 |
124327 |
+6% |
81.2% |
|
Banks |
12077 |
16306 |
+35% |
10.6% |
|
Materials |
14503 |
4067 |
(72%) |
2.7% |
|
Telecommunications |
2998 |
3613 |
+21% |
2.4% |
|
Healthcare |
672 |
835 |
+24% |
0.5% |
|
Utilities |
(1943) |
680 |
-- |
0.4% |
|
Food & Beverages |
(194) |
647 |
-- |
0.4% |
|
Software & Services |
301 |
502 |
+87% |
0.3% |
|
Food & Staples Retailing |
260 |
491 |
+89% |
0.3% |
|
Diversified Financials |
552 |
438 |
(21%) |
0.3% |
|
Retailing |
438 |
393 |
(45%) |
0.3% |
|
Insurance (After Zakat) |
(338) |
372 |
-- |
0.2% |
|
Consumer Services |
198 |
336 |
+70% |
0.2% |
|
Capital Goods |
305 |
332 |
+9 % |
0.2% |
|
Media and Entertainment |
167 |
194 |
+16% |
0.1% |
|
Commercial & Professional Services |
73 |
143 |
+96% |
0.1% |
|
Real Estate Management & Development |
1504 |
14 |
(99%) |
0.01% |
|
Consumer Durables & Apparel |
(115) |
(43) |
+62% |
(0.03%) |
|
Transportation |
(79) |
(70) |
- |
(0.05%) |
|
Pharmaceutical |
(38) |
(107) |
(181%) |
(0.07%) |
|
Total |
148648 |
153470 |
+3% |
100% |
The Saudi market's top 10 companies in terms of profitability accounted for more than 93% of the aggregate profit, although they reported profit growth in Q4 2022, except for Saudi Arabian Mining Co. (Maaden), SABIC Agri-Nutrients, and Banque Saudi Fansi whose earnings dropped 51%, 22% and 9%, respectively.
|
Top 10 Gainers in Q4 2022 (SAR mln) |
|||
|
Period |
Q4 2021 |
Q4 2022 |
Change |
|
Aramco |
116639 |
125340 |
+7% |
|
Saudi National Bank |
2964 |
4765 |
+61% |
|
Al Rajhi Bank |
4012 |
4404 |
+10% |
|
stc |
2614 |
2757 |
+5% |
|
SABIC Agri-Nutrients |
2777 |
2168 |
(22%) |
|
Riyad Bank |
1617 |
2028 |
+25% |
|
SABB |
427 |
1389 |
+225% |
|
Maaden |
2090 |
1016 |
(51%) |
|
Banque Saudi Fransi |
993 |
903 |
(9%) |
|
Alinma Bank |
619 |
860 |
+39% |
Petro Rabigh recorded the biggest loss of SAR 1.8 billion in Q4 2022, followed by Saudi Kayan (SAR 791 million) and Emaar EC (SAR 530 million).
The fourth-quarter results included one-off profits of SAR 5.87 billion, as Kingdom Holding Co. (KHC) recorded gains from selling 50% of its stake in Four Seasons Holding.
Abdullah Al Othaim Markets Co. also logged earnings from selling its investments in Al Othaim Investment Co. and a land plot for SAR 719 million. In addition, SABIC made a SAR 1.59 billion impairment provision for investment in Clariant.
Meanwhile, SEC recorded a SAR 484.6 million provision for other claims and property, plant, and equipment impairment losses.
Excluding Aramco's profit, 2022 combined earnings rose 15% YoY to SAR 157.63 billion.
|
Aggregate Net Profit in 2022 (SAR bln)* |
|||
|
Period |
2021 |
2022 |
Change (%) |
|
Aggregate Net Profit |
532.28 |
755.11 |
+42% |
|
Aggregate Net Profit Excluding Aramco |
137.01 |
157.63 |
+15% |
|
Aggregate Operating Profit Excluding Aramco and One-Off Items |
138.36 |
152.63 |
+10 % |
*Excluding REITs
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