Bawan has confirmed contracts of over SAR 2.8B, sees SAR 30M profit share from Petronash

Speaking to Argaam in a phone call, Al-Balawi said that Bawan embarked on its current strategy in 2022. It started off with exiting the concrete industry sector, followed by increasing its holding in the electrical industries sector, given the promising outlook and attractive profit margins.

Focus was put on achieving growth in high-margin segments, such as the electrical and plastics industries. New products were introduced in the electrical industries segment, and the customer base was expanded to include sectors such as petrochemicals, oil, and gas, while placing extra emphasis on export markets.

All these factors lifted Bawan’s electrical industries segment’s solid performance until Q2 2025. This was evident in the positive profit margin and contributed to the company’s improved results. Similarly, new products were introduced in the plastics segment.

Some of these product ramp-ups were the result of either new factory additions or expansions at existing facilities, including medium-voltage products, data center solutions, and paper-based packaging products. He emphasized that the roll-out of new products to the company’s investment portfolio bolsters both revenues and profit margins.

In the first half of 2025, revenues of Petronash Global Ltd., which was recently acquired by Bawan, reached SAR 506 million, with as much as SAR 334 million consolidated into Bawan’s income statement as of Feb. 13, 2025. Petronash reported a net profit of around SAR 37 million, of which Bawan’s share was SAR 30 million during the period.

He explained that the first-half results are deemed an inaccurate reflection of Petronash’s performance, having factored in phases of design, engineering, and procurement of specialized materials, whereas the bulk of performance is typically realized in the second half of the year on the start of manufacturing and delivery.

On dividends, the CEO said Bawan has invested up to SAR 300 million over the past three years in its existing segments, while making strides in the oil and gas segment. This reflected the company’s strategic transformation.

At present, the company’s main goal is to capitalize on investments made during the past period, in a way that maximizes shareholder returns while reducing debt obligations.

Bawan’s net profit reached SAR 86.9 million in H1 2025, up 66% from SAR 52.3 million in the same period of 2024. The second-quarter profit surged nearly 118% to SAR 50.4 million, Argaam reported.