Aggregate profit of Saudi-listed companies, excluding Aramco, rises to SAR 46.94 bln in Q2 2022

On a sector level, energy firms accounted for 79.5% of Saudi companies' aggregate profit in Q2 2022, reporting a 91% profit rise YoY to SAR 175.37 billion in the three-month period. The strong performance was fueled by a 91% increase YoY in Saudi Aramco’s net profit on higher crude prices, sold quantities, and higher profit margins of refinery and marketing segments.

Materials ranked second, contributing 8.3% to the market’s combined earnings in the three-month period. The sector's combined profit rose 31% YoY to SAR 18.23 billion, thanks to the improved results of petrochemical producers, topped by SABIC Agri-Nutrients and SABIC. Maaden also posted a profit rise by SAR 2.92 billion. 

SABIC accounted for 59% of the petrochemicals sector’s aggregate profit, with SAR 7.93 billion earnings in Q2 2022, up 4% YoY. This was buoyed by the 40% rise in revenues, on continued improvements in average selling prices and sales volume, coupled with a 245% surge in the company's share in the results of joint ventures and non-complementary joint ventures.

Banks took the third place, with 6.9% of the market’s aggregate profit. The sector’s profit rose 34% YoY to SAR 15.16 billion in Q2 2022. The sector was mainly driven by higher earnings of listed banks on higher net special commission income and lower credit loss provisions.

Utilities came fourth, dominating 1.8% of the market’s total earnings. The sector’s earnings fell 6%, as Saudi Electricity Co. (SEC) and National Gas and Industrialization Co. (GASCO) dropped by 8% and 13%, respectively, during the three-month period.

Telecommunications ranked fifth, representing 1.5% of the market’s combined earnings in Q2 2022. The sector posted an 8% profit rise in Q2 2022, backed by the collective increase in profit of its listed companies.

The Saudi market's top 10 companies in terms of profitability accounted for about 94% of the aggregate profit in Q2 2022. These companies’ profits rose collectively YoY, excluding Saudi Electricity that fell 8%.

At the level of H1 2022 aggregate net earnings, they leapt 72% to SAR 405.57 billion, compared with SAR 235.25 billion a year earlier.

The six-month results included non-recurring profits of SAR 5.87 billion as Kingdom Holding Co. (KHC) recorded gains from selling half of its stake in Four Seasons Holding Co. When excluding Aramco’s profits and non-recurring items, H1 2022 combined profits leapt 28% to SAR 83.89 billion, compared to SAR 65.76 billion a year earlier.