RIYADH: Energy firms and banks helped fuel a 32 percent year-on-year rise in aggregate profits for listed companies in Saudi Arabia in the third quarter of 2022, according to a report released by Kamco Invest.
The analysis noted that net profits hit $51.9 billion in the three months to the end of September — up from $39.3 billion in the same period of 2021.
The report, however, noted that the aggregate profit of Saudi Arabian firms in the third quarter reported a decline of $7.4 billion compared to the previous quarter this year, where the total net profit stood at $59.3 billion.
Across the Gulf Cooperation Council region, listed firms witnessed a quarter-on-quarter decline of 8 percent at $76.9 billion, due to the fall in the earnings for energy and material companies.
“In terms of regions, only UAE-listed companies showed higher profits during the quarter, whereas aggregates for the rest of the GCC countries showed a quarter-on-quarter decline during the third quarter of 2022,” wrote Kamco in the report.
Companies operating in the Kingdom’s energy sector witnessed the maximum profit during the third quarter at $41.2 billion, driven by crude oil prices and volumes sold.
The report further noted that the profit of the banking institutions in Saudi Arabia increased to $4.4 billion during the third quarter, up from $3.5 billion during the same period in 2021.
In the banking sector, Al Rajhi Bank recorded a profit of $1.2 billion in the third quarter, supported by higher net financing and investment income, fees from banking services, and exchange income.
Saudi National Bank reported a 24.6 percent increase in the net profit to $1.3 billion, driven by a 16.1 percent drop in operating expenses due to a lower net impairment charge for credit losses.
Net profit of telecom companies in the Kingdom also grew by 22.2 percent year-on-year to $1.1 billion in the third quarter, while profits for the food and staples retailing sector almost tripled year-on-year to reach $281.6 million.
According to the Kamco report, Saudi Arabian firms operating in the materials, utilities, pharmaceuticals, biotechnology and life sciences, and consumer durables and apparel sectors witnessed a decline in profit during the third quarter.
In terms of year-on-year performance by GCC companies, net profits continued to show growth in the third quarter of 2022 and were up by almost a quarter to reach $70.7 billion as compared to $57.2 billion during the same period in the previous year.
“Abu Dhabi-listed companies showed the biggest y-o-y profitability improvement during the third quarter of 2022 with net profits almost doubling to $9.1 billion, reflecting both new listings as well as higher profits for the bulk of the listed companies on the Abu Dhabi exchange,” the report added.
Aggregate net profits for Kuwait-listed firms witnessed a year-on-year decline of 74.0 percent in the third quarter to reach $1.5 billion compared to $5.8 billion in the same period of 2021.
According to the report, the decline in the profit of Kuwait-listed firms was mainly led by lower year-on-year profits reported by Agility, which had booked an extraordinary gain of around $3.1 billion in the third quarter of 2021 post the sale of its integrated logistics business to DSV Panalpina.
Net profits for Dubai-listed companies increased by 32.8 percent in the third quarter to reach $4.1 billion, the report added.
Total earnings for Qatari-listed companies increased by 1.7 percent over the same period to reach $3.32 billion as compared to $3.27 billion in the corresponding three months of the previous year.
Net profit of Bahrain-listed companies decreased by 44 percent year-on-year to $405.5 million after six of its 13 sectors — including its two largest sectors by market cap — posted a decrease in net profits during the quarter.
Total net profits for listed companies in Oman increased by 14 percent year-on-year to $457.6 million in the third quarter as compared to $401.4 million in the corresponding quarter in 2021.