Expectations of “Riyadh Capital” for the profits of Saudi companies in the fourth quarter

Riyad Capital has published recent research on its expectations for the economic results of listed Saudi companies in stock market, which showed evident changes and variable effects on companies.

The report predicts that the total net profit of listed companies in the petrochemical sector will increase 189% in the last quarter of 2021 to 10.295 billion riyals, compared to 3.562 billion riyals in the same quarter of 2020.

The report said petrochemical prices continued to rise during the last quarter of last year, after commodity prices prime have seen a sharp increase.

The report tracked increases in propane, butane and naphtha prices of 26%, 22% and 10%, respectively.

The report suggested that the increase in commodity prices prime during the fourth quarter it would put pressure on the profit margins of most petrochemical producers as the global supply chain crisis continues.

The report predicts that the revenues of the companies in the sector will increase by 49% in the fourth quarter of 2021 to 60.06 billion riyals, compared to 40.282 billion riyals in the same period of the previous year.

As for the expectations of the banking sector, which includes 7 listed banks, the report predicts that net profit will increase by 14% to 10.368 billion riyals in the fourth quarter, compared to 9.069 billion riyals in the same three months of the previous year. .

The report predicted a decrease in profits of listed cement companies (5 companies) of 52% in the last quarter of 2021 to 259 million riyals, from 541 million riyals in the same quarter of the previous year.

The report suggests that the net profit of telecommunications companies listed on the Saudi market in the last quarter of 2021 increased by 7% to 3.179 billion riyals, compared to 2.965 billion riyals in the fourth quarter of 2020.

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