Saudi Arabia’s listed companies record $39.1bn in net profit, up 2.6% y-o-y

Listed companies in Saudi Arabia saw a modest increase in net profit by 2.6 percent year on year, reaching $39.1 billion in the second quarter of 2024, according to a report.

The latest study from Kuwait-based asset management company KAMCO Invest showed that the key sectors contributing to this growth included banks, basic materials, and telecommunications, which experienced robust profit growth. Conversely, sectors such as energy, consumer services, media and entertainment, food retail, and basic commodities saw declines in their annual profits.

For the first half of 2024, Saudi Arabia’s performance was somewhat less favorable, with net profit declining by 2.7 percent to $75.2 billion.

The energy sector faced the most significant downturn, with net profit falling 7.4 percent to $55.7 billion. The real estate sector also struggled, with a 22.8 percent drop in net profit to $249.3 million. However, gains in the banking, basic materials, and capital goods sectors partially offset these declines.

Overall, the Gulf Cooperation Council region’s companies showed minimal growth, with net profit inching up by 0.1 percent to $116.9 billion in the first half of 2023.

This slight increase masks more pronounced declines in Saudi Arabia and Abu Dhabi, with their listed firms experiencing net profit reductions of 2.7 percent and 2.2 percent, respectively. These declines were counterbalanced by higher revenues in other GCC countries.

Saudi Aramco, a major player in the energy sector, reported a 2.5 percent decline in net profit for the second quarter of 2024, impacted by lower crude oil sales and weaker refining margins. However, this decrease was moderated by higher average crude oil prices and reduced production revenues compared to the same period in 2023.

In contrast, companies listed on the Abu Dhabi Securities Exchange experienced a 4.7 percent increase in net profit to $8.3 billion in the second quarter of 2024. Yet, for the first half of the year, their net profit declined by 2.2 percent to $16.2 billion.

Overall, the report underscores a complex financial landscape across the GCC, with sector-specific trends and varying regional performances influencing overall profitability.