Sign in
We’re officially waist-deep in The Silly Season as companies race to file 2Q / 1H earnings before their deadline.
SABIC AGRI-NUTRIENTS-
Sabic Agri-Nutrients’ net income rose 8% y-o-y to SAR 705 mn in 2Q 2024 on revenue of SAR 2.7 bn (+6% y-o-y), according to an earnings release (pdf). For the first half, the company’s net income fell 5% to SAR 1.5 bn as revenues dipped 4% to SAR 5.2 bn.
IN CONTEXT- The company had said earlier this year that it expected 2Q 2024 to be “challenging,” forecasting weaker demand with the shift “away from the spring agricultural season.” Sabic Agri-Nutrients reported its average sales price drop 15%, with sales volume falling 25% q-o-q in 2Q 2024, it said in the earnings release.
The global fertilizer market faced substantial supply challenges in the last quarter due to gas disruptions in Africa, unexpected shutdowns in Southeast Asia, and China’s export ban. Despite these constraints, demand remained strong in the US, EU, and APAC regions due to seasonal agricultural needs.
The silver lining: Sabic Agri-Nutrients expects to see strong demand in 3Q 2024, driven by seasonal transitions. However, the potential resumption of Chinese exports towards the end of 3Q could create pressure on the average selling price.
YANBU NATIONAL PETROCHEMICAL-
Yanbu National Petrochemical’s net income grew 720% y-o-y to SAR 225 mn in 2Q 2024, it said in a disclosure to Tadawul. Revenues were up 25% y-o-y to SAR 1.7 bn during the quarter. On a 1H basis, the company reversed net losses to record SAR 324 mn in net income, compared to a net loss of SAR 342 mn during the same period last year, while revenues grew 53% y-o-y to SAR 3 bn.
SULAIMAN AL HABIB-
Sulaiman Al Habib Medical Services Group’s net income increased 14% y-o-y to SAR 555 mn in 2Q 2024, with revenues rising 13.3% y-o-y to SAR 2.6 bn, it said in a disclosure to Tadawul. The healthcare provider’s bottom line rose 13.3% y-o-y to SAR 1.1 bn in the first half of the year, while revenues surged 11.3% to SAR 5.1 bn.
DIVIDENDS- Shareholders will receive SAR 409.5 mn in dividends (or SAR 1.17 per per share) for the second quarter, according to a separate disclosure to Tadawul. Dividends will be paid on Monday, 19 August.
BAHRI-
Saudi national shipping company Bahri’s 2Q 2024 bottom line rose 48% y-o-y to SAR 733 mn, up some 61% q-o-q, according to a statement (pdf). The firm’s top line rose 15% y-o-y to reach SAR 2.71 bn.
A wider look at 1H performance: Bahri’s bottom line grew by 20% y-o-y to SAR 1.19 bn in 1H 2024, attributed to cost efficiency solutions, the statement said. The firm’s top line rose 6% y-o-y to SAR 5.03 bn during the first half of the year.
Behind the numbers: The boost to net income was driven by growing operational activities and the improvement of global shipping rates, which caused a spike in revenues across sectors including logistics, chemical transportation, and dry bulk, says the statement. Rising global shipping rates outweighed a drop in oil transportation revenues.
ZAIN KSA-
Telecom operator Zain KSA’s net income dropped 8% y-o-y to SAR 105 mn in 2Q 2024, while revenues rose 6.7% to SAR 2.6 bn, it said in a disclosure to Tadawul. The company’s revenues were buoyed by growth in the B2B, 5G services, wholesale and Tamam segments, according to the disclosure. Compared to 1Q 2024, revenues were up 0.7% and net income rose 53%.
On a year-to-date basis: Net income was down 86.3% y-o-y to SAR 172 mn in 1H 2024 despite a 5.6% y-o-y increase in revenues to SAR 5.1 bn, it said in a disclosure to Tadawul.
What gives? It’s what pundits call a “negative base effect”: Zain KSA booked in 1Q 2023 the full proceeds from its sale of 3.6k towers to Golden Lattice Investment (Glic). There’s no comparable gain on the sale of an investment in 1H 2024.
ELECTRICAL INDUSTRIES-
Electrical Industries’ (EIC) net income doubled y-o-y to SAR 101 mn in 2Q 2024, and revenues rose 32% to SAR 495 mn, it said in a disclosure to Tadawul. EIC saw its bottom line rise 107% y-o-y to SAR 176 mn in 1H 2024, while revenues grew 37.4% y-o-y to SAR 1 bn.
