Losses chasing Saudi companies in light of economic downturn

The economic stalemate is looming over the Kingdom, with the biggest companies showing record losses and falling profits amid the failure of the Al Saud regime to find solutions.

The net profit of Al-Baha Investment and Development Company in the third quarter of this year decreased by 44% compared to the same period of the previous year to reach approximately 212 thousand riyals.

While the company’s losses at the end of the first nine months of this year decreased by about 98% year on year to reach 211 thousand riyals.

The net losses of the Saudi Fisheries Company in the third quarter of this year increased by 16% compared to the same period last year to reach 10 million riyals.

The company’s losses at the end of the first nine months of this year rose by 38% year-on-year to nearly 30 million riyals.

The company attributed the reason for the increase in its losses in the third quarter of this year due to several reasons, including the increase in general and administrative expenses.

Meanwhile, Saudi Arabia’s Cooperative Insurance Company turned to a loss of SAR 14 million in the third quarter of this year, compared to a profit of about SAR 6 million in the same period last year.

The company also made a loss during the first nine months of the same year, incurring QR 64 million compared to a profit of QR 22 million in the corresponding period of 2018.

The company attributed the reason for the loss during the third quarter to the decrease in net earned premiums, which was partially offset by lower claims incurred.

Emaar, the economic city of Saudi Arabia, lost 34.6 percent in the third quarter of this year to SAR202 million, compared to a loss of SAR150 million in the third quarter of 2018.

The company’s losses for the first nine months of 2019 grew by 54% to QR 303 million from QR 196 million in the same period in 2018.

The company attributed the higher losses in the third quarter to the increase in financing costs as a result of the increase in loan balances and lower capitalization of borrowing costs due to the slow pace of development.

Saudi Arabian Amiantit Co., which has a net profit of SAR 1.4 million for the same period last year, lost 5 million riyals in the third quarter.

During the first nine months of the same year, the company’s losses grew 228% year-on-year to SAR 301 million.

Saudi Indian Company for Cooperative Insurance (Wafa Insurance), National Agricultural Marketing Company (Themar) and Etihad Atheeb Telecommunication Company (GO GO) announced that they could not publish their financial results on time.

Wafa Insurance said in a statement on Tadawul that it will not be able to publish the results of the third quarter for the period ending September 30, 2019, due to the lack of completion of the procedures required for the preparation of the financial statements.

She said it was expected to be announced by December 31, 2019.

Themar, through Tadawul, revealed that it was unable to publish its financial results for the third quarter of 2019 because it did not receive the results of Thimar and Wasmi Markets Company for inclusion in the group’s results.

Atheeb Telecom said in a statement it would not be able to announce its financial results for the six-month period ending September 30, 2019 on time.

The company expected the auditor to complete the examination and publication of the financial statements by the end of January 2020.

The Kingdom’s companies are scheduled to conclude today the period of announcing their financial results for the third quarter of this year, which is the complementary results for the first nine months of this year 2019, while 132 listed companies have announced their financial results so far.

According to the results announced so far, only 71 companies listed in the stock market in the Kingdom have achieved positive progress in terms of financial results for the first nine months of 2019, compared to the same period last year 2018.

The 132 Saudi companies, whose financial results were announced, made a net profit of 64.2 billion riyals ($ 17.12 billion) for the first nine months of 2019, an average profit that was no better than the average profit for the same period last year.

As for the Saudi stock market trading last week, the index ended the week’s trading up 0.7 percent, equivalent to 54 points of gains, closing at 7798 points, compared to the close of the previous week at 7744 points.

The total trading value during the last week’s trading decreased to about 12 billion riyals ($ 3.2 billion), compared to about 12.61 billion riyals ($ 3.36 billion) in the previous week.

Listed companies continued to announce their financial results for the third quarter of 2019, where the number of companies announced during the last week is 51 companies to reach the number of companies announced to 132 companies, and is expected to increase the frequency during Sunday and Monday (Monday, November 11, the last day of the announcement of the results) Finance).