Albilad Capital has projected lower profits for most Tadawul-listed petrochemical companies under its coverage.
Petrochemicals giant Saudi Basic Industries Corp. (SABIC) is likely to report SAR 4.01 billion in earnings for the second quarter, a 35 percent year-on-year (YoY) drop, the brokerage firm predicted in a new report.
Advanced Petrochemical and Saudi Arabian Fertilizer Co. (SAFCO) are expected to post profit declines of 33 percent and 51 percent YoY in Q2, respectively.
Yanbu National Petrochemical Co. (Yansab), however, is the only petrochemical firm under coverage that will see earnings growth for the quarter, with its profit seen to surge 91 percent YoY.
An increase in petrochemical product prices during the second quarter should result in higher profits when compared to Q1, the report said.
In the telecom sector, Etihad Etisalat Co. and Saudi Telecom Co. are forecast to report profits of SAR 27 million and SAR 2.4 billion, respectively, in Q2.
"The demand for telecommunications services increases during Ramadan. That coincided with the second quarter in this year. Therefore, we expect that will reflect positively on the results of sector in Q2 2016", Albilad Capital said.
Lower profits are expected in the cement sector due to lower demand, seasonality factors and Ramadan.
Double digit declines have been projected for Yamama Cement and Yanbu Cement, while Saudi Cement is expected to see a profit drop of 3 percent YoY.
|
Albilad Capital Profit Estimates (SAR mln) |
||
|
Company |
Q2-2016 estimates |
Y-o-Y change |
|
Aljazira |
171 |
(77%) |
|
Al Rajhi Bank |
2,087 |
+8% |
|
Alinma Bank |
417 |
+14% |
|
SABIC |
4013 |
(35%) |
|
SAFCO |
292 |
(51%) |
|
Yansab |
434 |
+91% |
|
Advanced |
163 |
(33%) |
|
Yamama Cement |
141 |
(26%) |
|
Saudi Cement |
247 |
(3%) |
|
Yanbu Cement |
166 |
(33%) |
|
Al Othaim |
56 |
-- |
|
Al Mouwasat |
65 |
+16% |
|
eXtra |
(19) |
-- |
|
Dallah |
40 |
+12% |
|
Care |
30 |
(29%) |
|
Farm Superstore |
29 |
(13%) |
|
Al Hammadi |
15 |
(59%) |
|
Jarir |
146 |
(6%) |
|
Savola |
286 |
(34%) |
|
Almarai |
535 |
+1% |
|
Herfi |
47 |
+1% |
|
Catering |
152 |
(14%) |
|
Nadec |
33 |
(7%) |
|
STC |
2,427 |
(5%) |
|
Mobily |
27 |
-- |
|
Zain Saudi |
(217) |
-- |
|
Maaden |
202 |
(25%) |
|
Bahri |
585 |
+71% |
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