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SABIC-
Aramco petrochem subsidiary Sabic reported SAR 1 bn in net income in 3Q 2024, recovering from a SAR 2.8 bn loss in the same quarter last year, the company said in an earnings release (pdf) and a disclosure to Tadawul. Sabic attributed the reversal to higher margins and gains from divestments and FX changes. Revenues grew 2.5% y-o-y to SAR 36.9 bn over the period as improved average selling prices offset a slight drop in sales volumes.
The petrochem giant’s 3Q results fell below analyst expectations of a SAR 1.6 bn bottomline, Reuters reported citing LSEG data. Net income was also lower than the previous quarter’s SAR 2.18 bn gain. Higher feedstock prices and lower selling prices continue to weigh on earnings, Bloomberg notes. “Overcapacity continues to weigh on the market,” CEO Abdulrahman Al Fageeh said, adding that utilization rates are below long run averages.
On a 9M basis: Sabic reported SAR 3.4 bn in net income for the first nine months of the year, overturning the previous year’s SAR 1.04 bn loss. Revenues fell 1.2% to SAR 105.3 bn during the period as a bump in selling prices was offset by declining sales volumes.
Looking ahead: Sabic has pared down capex guidance for the year to USD 3.3-3.9 bn, down from an earlier USD 5-5 bn floor, Bloomberg said. This comes as Sabic and parent company Aramco cut plans for a new Saudi refining hub, with the pair shifting downstream investments to assets in Asia in a bid to lock-in future demand for Saudi crude. Aramco is set to report its third quarter results today.
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STC-
Stc’s net income fell 5.3% y-o-y to SAR 4.6 bn in 3Q 2024, it said in a disclosure to Tadawul. The decline was attributed to higher operating expenses and reduced other income, partially offset by a SAR 1.5 bn withholding tax reversal. Meanwhile, revenues grew 3.4% y-o-y to SAR 18.6 bn for the same period.
On a 9M basis: The company’s bottom line grew 1.9% y-o-y to SAR 11.2 bn, with revenues up 3.9% to SAR 56.6 bn, reaching an all-time high for the period, according to its earnings release (pdf). The increase was driven by gains from Stc’s commercial, mobility, and residential segments as well as its subsidiaries, which compensated for declines in the business, carriers, and wholesale units.
BUPA ARABIA FOR COOPERATIVE INS.
Bupa Arabia for Cooperative Ins. reported a net income of SAR 356.3 mn in 3Q 2024, a 29.4% increase y-o-y, driven by gains from ins. services (up 35.7%) and net investments (up 22.9%), despite a 32.7% rise in other operating expenses, it said in a disclosure to Tadawul. Meanwhile, revenues rose 11.2% y-o-y to SAR 4.6 bn.
On a 9M basis:The company’s bottom line grew 34.1% y-o-y to SAR 1.1 bn and its revenues increased 15% to SAR 13.5 bn.
ADES HOLDING-
Egypt-born Ades Holding’s net income rose 132.7% y-o-y to SAR 203.3 mn in 3Q 2024, with higher depreciation costs due to the rolling out of new rigs in Saudi, Kuwait, and India limiting the company’s net income growth, according to an earnings release (pdf) and a disclosure to Tadawul. Revenues were up 45.8% y-o-y to SAR 1.6 bn over the same period.
On a 9M basis: The company’s net income increased 114.2% y-o-y to SAR 606.3 mn during the first nine months of the year on the back of revenue growth and higher profitability that were partly offset by higher depreciation costs. Revenues grew 51.3% to SAR 4.6 bn over the period, due to newly deployed and reactivated onshore and offshore rigs across different locations.
Ades had a busy 3Q: The company secured 10-year renewals from Aramco for two of its Saudi onshore rigs, Ades 13 and Ades 14, at some SAR 946 mn, last month. Ades Holding subsidiary Ades International Holding also directly acquired two jack-up rigs in Southeast Asia from Vantage Drilling in a transaction valued at USD 190 mn, earlier in September.
SAL SAUDI LOGISTICS SERVICES-
SAL’s net income increased 34.1% y-o-y to SAR 155.5 mn in 3Q 2024, it said in a disclosure to Tadawul and press release (pdf). Revenues were up 0.4% y-o-y to SAR 367.3 mn, fueled by growth in cargo handling revenue, though this was offset by a decline in the logistics division due to changes in project timing.
On a 9M basis:The company’s bottom line grew 57.8% y-o-y to SAR 519.4 mn and its revenues increased 17.2% to SAR 1.2 bn, driven by higher air cargo volumes and the company’s expansion into the logistics business, alongside effective cost management.
MOUWASAT-
Mouwasat Medical Services’ net income fell 4.3% y-o-y at SAR 149.6 mn in 3Q 2024, on the back of higher debt provision formations and costs, according to a disclosure to Tadawul. Revenues came in at SAR 710.7 mn over the same period, marking a 10.9% increase compared to 3Q 2023.
On a 9M basis:The company’s bottomline remained basically unchanged y-o-y during the first nine months of the year at SAR 473.9 mn, while revenues were up 9.9% at SAR 2.1 bn.
