Dubai, UAE — A 22 percent drop in net profit was reported by Tadawul-listed companies in the first quarter of 2023, from SAR 186.24 billion ($49.66 billion) in the same quarter in 2022 to SAR 145.72 billion this year.
Argaam reported the decline in net profit was due to a drop in Saudi Aramco’s first quarter earnings by more than 17 percent, as well as lower earnings of petrochemical companies.
The first-quarter results included SAR 5.87 billion one-off gains generated by Kingdom Holding Company (KHC) from selling half of its stake in Four Seasons Holding.
Excluding Kingdom Holding Company’s one-off gains and Aramco’s Q1 2023 earnings, the aggregate net earnings declined 26 percent year-on-year (YoY), as earnings of petrochemical companies, led by Saudi Basic Industries Corporation (SABIC) and Saudi Arabian Mining Company (Maaden) dropped 90 percent and 81 percent YoY, respectively.
As many as 37 companies operating in different sectors incurred losses, led by Saudi Electricity Company, which reported a loss of SAR 1.4 billion, followed by Rabigh Refining and Petrochemical Company, Saudi Kayan Petrochemical Company and Yanbu National Petrochemical Company, which reported losses of SAR 960 million, SAR 670 million and SAR 370 million, respectively.
A total of 133 companies reported earnings in the first quarter. While thirteen of these firms turned profitable, 69 logged profit growth and 51 recorded a profit drop YoY.