Q1 2025 profits of TASI firms ex-Aramco up at SAR 40.2B

*Excluding REITs, Ataa Educational and NCLE due to different fiscal years (FYs), and MRNA on failure to disclose results on time.

**Included net gains from exceptional items totaling SAR 16.5 bln, as follows: SAR 11.6 bln from the distribution of Almarai shares to Savola shareholders; SAR 1.4 bln in provisions related to Savola’s exit from subsidiaries in Iran and Sudan; an incremental provision of SAR 1.2 bln related to SABIC’s subsidiary Clariant; SAR 12.9 bln in gains from the sale of stc’s telecommunications towers subsidiary; and SAR 5.69 bln in losses from recognizing one-off expenses related to the final settlement of Saudi Electricity Co. (SEC).

***Included non-recurring expenses of SAR 1.07 bln on SABIC’s restructuring; SAR 1.06 bln from loan restructuring at Tasnee; SAR 918 mln from a land sale by Jabal Omar Development Co.; SAR 418 mln from the sale of subsidiaries by AYYAN Investment Co.; and SAR 429 mln in restructuring gains; and SAR 200 mln in impairment asset losses by Sipchem.

In detail, 15 listed companies turned a profit and another 97 posted higher earnings in Q1 2025, while 68 others reported declines.

Meanwhile, 47 others recorded losses, of which 23 swung to losses compared to Q1 2024.

Sector-wise, the energy sector was the largest contributor to aggregate net profits in Q1 2025, making up more than 70.4%. The sector’s profit fell by about 7% YoY to reach SAR 95.89 billion as Saudi Aramco's first-quarter earnings contracted by 7% YoY during the first three months of this year.

The banking sector took the second position, representing 16.4% of the first-quarter aggregate profit. The sector's bottom line rose 19% YoY to SAR 22.26 billion, amid collective growth in bank profits, driven by the rise in net special commission income.

The telecommunications sector ranked third, accounting for 3.3% of Tadawul's aggregate profit, with about SAR 4.51 billion in profits, up 12% YoY. The higher profit was aided by elevated profits of all sector players, mainly stc, whose earnings jumped 11% YoY to 3.65 billion.

The basic materials sector came fourth despite a 5% YoY decline in profits. Saudi Arabian Mining Co.’s (Maaden) bottom line jumped 58% YoY to SAR 1.55 billion in the first quarter.

On the other hand, the petrochemicals sector incurred losses of SAR 610 million for Q1 2025, hurt by SABIC’s SAR 1.21 billion losses due to the restructuring of profit margins amid lower product prices.

Meanwhile, most listed cement companies recorded a decline of 16% YoY in profits to nearly SAR 650 million on higher production costs and fuel price hikes.

The real estate management & development sector took the fifth place, making up 1.4% of TASI’s first-quarter combined earnings. The sector recorded profits of SAR 1.94 billion, backed by Jabal Omar which logged SAR 920 million in one-off gains from a land plot sale during the three-month period.

*Excluding REITs, Ataa Educational, East Pipes and NCLE due to different FYs, and MRNA on failure to disclose results.

**The Q1 2025 results included non-recurring losses of SAR 219 mln for stc.

*** The Q1 2025 results included non-recurring costs of SAR 1.07 bln for SABIC restructuring.

****The Q1 2025 results included SAR 918 mln gains from Jabal Omar’s land sale.

*****The Q1 2025 results included SAR 418.1 mln gains from AYYAN’s deal.

Net profits of the top 10 profitable TASI companies accounted for approximately 89% of total market earnings in Q1 2025. Nine listed firms recorded YoY profit hikes for the three-month period, most notably Saudi National Bank (SNB), Al Rajhi Bank and Riyad Bank.