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We may have hit peak earnings season this morning — particularly with the country’s banks — as companies release their 2Q 2024 earnings. Among those reporting their results: Cenomi Centers, Al Hammadi Holding, Luberef, Ades Holding, Arabian Drilling, Dallah Healthcare, Banque Saudi Fransi, Alinma Bank, Al Rajhi, Bank Albilad, Bank Aljazira, Arab National Bank, and Mouwasat Medical.
CENOMI CENTERS-
Our friends at Cenomi Centers reported a net income of SAR 353.8 mn in 2Q 2024, up 5% y-o-y, according to an earnings release (pdf). Revenues were also up 3.8% to SAR 586.5 mn. The Kingdom’s largest lifestyle destinations operator and developer attributed the strong 2Q report to contributions form U Walk Jeddah, along with an increase in media sales, occupancy rates, and net gains from investment properties including “major progress on the Jawharat Riyadh and Jawharat Jeddah flagship developments.” This in addition to a hike in revenues from non-core business activities.
On a 1H basis: The retail giant’s bottom line rose 25.6% to SAR 590 mn during the first half of the year, compared with the same period in 2023, after adjusting for the company’s SAR 50.6 mn write off non-amortized financing costs and 2024 sukuk in 1H 2023. The top line increased 2.7% y-o-y to SAR 1.2 bn in 1H 2024.
Occupancy + footfall: ”Our occupancy rate remains robust at 92.5% whilst we continue to focus on a proactive tenant rotation to ensure we continually deliver the best retail mix. This is resonating with our customers as footfall has increased by 4.6% year-on-year with 66 mn customer visits, continuing a record-level momentum,” said CEO Alison Rehill-Erguven.
What’s in the pipeline for Cenomi’s flagships: Construction at the company’s Jawharat Jeddah and Jawharat Riyadh have exceeded 90% completion rates, up from 35% in April of this year. Initial unit handovers are penciled in for early 2025 and full operation scheduled for the 4Q 2025. Jawharat Riyadh is expected to reel in 20 mn visitors annually, and 15 mn visitors at Jawharat Jeddah, with both investments expected to lead Cenomi’s performance.
AL HAMMADI HOLDING-
Al Hammadi Holding reported a net income increase of 44% y-o-y to SAR 117.9 mn in 2Q 2024, attributing the boost to a one-time gain of SAR 55.3 mn from the sale of a land plot completed during the quarter, the company said in a disclosure to Tadawul.
Seasonal fluctuations impact revenues: The company’s top line declined 4.8% y-o-y to SAR 263.5 mn, on the back of fewer outpatient visits due to both Eids taking place during the quarter, as well as a drop in pharma sales to subsidiaries.
On a 1H basis:The healthcare group’s net income rose 11.4% y-o-y to SAR 182 mn in 1H 2024, while revenues were down 6% y-o-y at SAR 540.5 mn.
ALSO- The company is distributing SAR 56 mn in dividends for 2Q 2024 at SAR 0.35 per share, it said in a separate disclosure to Tadawul. Distribution is scheduled for Wednesday, 21 August.
LUBEREF-
Saudi Aramco Base Oil Co. (Luberef) saw its net income fall 34.3% y-o-y to SAR 299 mn in 2Q 2024, while revenues grew 4.4% during the quarter to SAR 2.7 bn, it said in an earnings release (pdf). Luberef’s net income dropped 40.3% y-o-y to SAR 538 mn in 1H 2024 “due to a decline in base oil and by-products crackmargins,” while revenues saw an 11.4% increase to SAR 4.9 bn.
Freecash flow declined 20% y-o-y to SAR 879 mn in 1H 2024. FCF is a measure of a company’s financial performance and represents the liquidity that a company generates from its operations after subtracting capex needed to maintain or expand its asset base. It shows how much liquidity is available to be distributed to investors, repay debt, or reinvest in the business.
What’s next? “Our strategic HVGO project is progressing according to plan. The pipeline is currently undergoing pre-commissioning, with anticipated online operations by mid-August. This investment will enhance our production slate and drive profitability,” CEO Samer Al Hokail added.
Dividends: Luberef’s board approved the distribution of SAR 605.7 mn in dividends for 1H 2024, at SAR 3.6 per share, the company said in a separate disclosure to Tadawul. Distribution is set for Tuesday, 15 October.
ADES HOLDING-
Egypt-born Ades Holding saw its net income rise 90% y-o-y to SAR 202 mn in 2Q 2024, it said in an earnings release (pdf). Revenues were up 48.7% to SAR 1.5 bn during the same period. On a 1H basis, Ades’ bottom line more than doubled y-o-y to SAR 403 mn, while revenues grew 54.3% y-o-y to SAR 3.1 bn.
Driving the rally: The company attributes its higher performance in 1H of this year to an increase in revenues from its businesses in Saudi Arabia, Kuwait, Algerian, and Tunisia. It also reported revenue contributions from India and Indonesia. Meanwhile, revenues from its businesses in Egypt and Qatar declined y-o-y during the first half of this year.
A closer look at domestic operations: All 19 rigs of the mega tender here at home were operational as of March 2024, a significant increase from just seven rigs in the first half of 2023. Ades also secured a 10-year extension for a standard jackup rig last July, which is set to begin this quarter.
ALSO- Ades Holding will distribute SAR 237.5 mn in dividends for 1H 2024, at SAR 0.2 per share, it said in a disclosure to Tadawul.
ARABIAN DRILLING-
Arabian Drilling’s net income fell 85.6% y-o-y to SAR 20 mn in 2Q 2024, despite a 19% increase in revenues to SAR 939 mn, it said in an earnings release (pdf). The decline is attributed to a SAR 105 mn one-off noncash assets impairment charges, start-up costs for unconventional land rigs, and higher finance and depreciation expenses.
On a 1H basis:Arabian Drilling’s net income fell 41% y-o-y to SAR 166.4 mn in 1H 2022, while Revenues rose 21.4% to SAR 1.9 bn.
ALSO- Arabian Drilling will distribute SAR 120.2 mn in dividends for 1H 2024, at SAR 1.35 per share, it said in a separate disclosure to Tadawul. Distribution will be on Thursday, 22 August.
DALLAH HEALTHCARE-
Dallah Healthcare saw its net income rise 111% y-o-y to SAR 112 mn in 2Q 2024, it said in a disclosure to Tadawul. Revenues rose 14% y-o-y to SAR 765 mn, driven by increased operational capacity and higher patient count at the group’s hospitals. On a 1H basis, Dallah’s bottomline rose 56.5% y-o-y to SAR 231 mn in 1H 2024, while revenues were up 11.7% to SAR 1.5 bn.
ALRAJHI BANK-
Al Rajhi Bank reported a net income of SAR 4.7 bn in 2Q 2024, up 13.2% y-o-y, it said in a disclosure to Tadawul. Its total income from financing rose 18% y-o-y to SAR 9.5 bn, while total income from investments grew 39.5% to SAR 1.8 bn.
Al Rajhi Bank’s bottom line grew 9.7% y-o-y to SAR 9.1 bn in 1H 2024. Income from financing rose 19.2% to SAR 18.7 bn, while income from investments increased 40.4% to SAR 3.4 bn.
BANQUE SAUDI FRANSI-
Banque Saudi Fransi (BSF) saw its net income increase 5.2% y-o-y to SAR 1.1 bn in 2Q 2024, it said in a disclosure to Tadawul. BSF attributed the gains to a 6.2% decrease in operating expenses on the back of lower impairment charges. The bank’s total income from financing grew 24.5% to SAR 3.6 bn during the period, while total income from investment rose 66% y-o-y to SAR 616 mn.
On a 1H basis:BSF saw its net income increase 6% to SAR 2.3 bn in 1H 2024, the disclosure said. Meanwhile, total income from financing grew 24.3% to SAR 6.8 bn, while total income from investment rose 60% to SAR 1.1 bn.
ALSO- BSF is distributing SAR 1.2 bn in dividends for 1H 2024, at SAR 1.0 apiece, it said in a separate disclosure. Distribution is set for Monday, 26 August.
ALINMA BANK-
Alinma Bank reported SAR 1.4 bn in net income for 2Q 2024, up 15.6% y-o-y, it said in a disclosure to Tadawul. Total income from financing grew 25.7% at SAR 3.5 bn, while total income from investment surged 18% at SAR 473 mn. The bank’s bottom line increased 24.4% y-o-y to SAR 2.7 bn in 1H 2024, the disclosure said. Meanwhile, income from financing rose 31% to SAR 6.8 bn, while income from investments increased 25.3% to SAR 933 mn.
ALSO- Alinma is distributing SAR 621.4 mn in dividends for 2Q 2024, at SAR 0.25 per share, it said in a separate disclosure. Distribution is set for Sunday, 1 September.
BANK ALBILAD-
Bank Albilad’s net income came in at SAR 671 mn in 2Q 2024, up 14.5% y-o-y, it said in a disclosure to Tadawul. Its total income from financing rose 14.1% to SAR 1.7 bn, while total income from investments grew 15.5% to SAR 366 mn. Bank Albilad’s bottom line grew 14.7% y-o-y to SAR 1.3 bn in 1H 2024. Income from financing rose 16.8% to SAR 3.4 bn, while income from investments increased 22 % to SAR 735 mn.
BANK ALJAZIRA-
Bank Aljazira reported a net income of SAR 318 mn in 2Q 2024, up 22% y-o-y, it said in a disclosure to Tadawul. Its total income from financing rose 30% to SAR 1.4 bn, while total income from investments grew 23% to SAR 520 mn.
Bank Aljazira’s bottom line grew 33% y-o-y to SAR 618 mn in 1H 2024. Income from financing rose 34% to SAR 2.8 bn, while income from investments increased 30% to SAR 1 bn.
ARAB NATIONAL BANK-
Arab National Bank (ANB) reported a net income of SAR 1.2 bn in 2Q 2024, up 25% y-o-y, it said in a disclosure to Tadawul. Its total income from financing rose 17% to SAR 2.9 bn, while total income from investments grew 9% to SAR 620 mn. ANB’s net income grew 20% to SAR 2.5 bn in 1H 2024. Income from financing rose 20.7% to SAR 5.8 bn, while income from investments increased 10.4% to SAR 1.2 bn.
MOUWASAT MEDICAL SERVICES-
Mouwasat Medical Services’ net income inched up 1.4% y-o-y to SAR 152.7 mn in 2Q 2024, it said in a disclosure to Tadawul. Meanwhile, revenues rose 10% y-o-y to SAR 690 mn over the same period. Net income increased 2.2% y-o-y to SAR 324.3 mn in 1H 2024 while revenues grew 9.4% to SAR 1.4 bn.
