PHOTO
Saudi Arabia’s Al Rajhi Capital, Riyad Capital and NCB Capital have given Q3 earnings estimates for top listed companies in the kingdom.
Saudi Basic Industries Corporation (SABIC) is forecast to make a third quarter net profit of 6.77 billion Saudi riyals ($1.8 billion), versus 1.09 billion riyals in the year- ago quarter, said Al Rajhi Capital (ARC) in a preview of financial results for Saudi equities.
However, the petrochemicals giant’s expected net profit is 11 percent lower from 7.6 billion riyals it made in Q2 on the sequential quarter basis due to the higher feed stock costs, the brokerage said.
SNB Capital (formerly NCB Capital) has forecast 6.18 billion riyals for Q3 while Riyad Capital has penciled in 6.66 billion riyals.
Yanbu National Petrochemical Co (Yansab): SABIC affiliate, Yansab, is projected to make 476 million riyals, compared to 196 million riyals net profit in the year-ago period, according to ARC.
SNB Capital has forecast 445 million riyals while Riyad Capital expects 513 million riyals.
Saudi Telecom: The kingdom’s largest telecom operator’s Q3 is expected at 2.93 billion riyals, 6 percent higher year-on-year, according to Al Rajhi Capital.
Riyad Capital estimates 2.85 billion riyals and expects the telecom major to “benefit from continuous growth at its subsidiaries”.
Zain KSA: According to Al Rajhi Capital, Zain KSA is set to make 48 million riyals, over 20 percent lower y-o-y. SNB Capital estimates 57 million riyals and Riyad Capital 39 million riyals.
Almarai: The dairy and food producer’s Q3 is forecast at 537 million riyals by ARC, 510 million riyals by SNB Capital and 536 million riyals by Riyad Capital.
Riyad Capital said it expects a 5 percent y-o-y rise in top-line on the back of higher sales from food service channel from higher demand in KSA and partly from tourism activities pick-up again in Egypt. “Meanwhile, we expect a decline in bottom-line by -13 percent y-o-y as a result of higher costs which have likely affected margins.”
Almarai made a net profit of 615 million riyals in Q3-2020.
Savola: The kingdom’s largest food company is likely to make a Q3 profit of 217 million riyals, according to ARC and 220 million riyals by SNB Capital. This compares with 200 million riyals Savola posted in the year-ago period.
Jarir Marketing Co.: The retailer is seen posting a net profit of 268 million riyals by SNB Cap and 272 million riyals by ARC. Riyad Capital has estimated 318 million riyals compared with the 255 million riyals Jarir made in Q3, 2020.
“As back to school season started and new smartphones were released during the quarter coupled with higher sales from Jarir.com, we expect rise in revenue by 13 year-on-year,” said Riyad Cap.
Mouwasat: The hospital operator’s Q3 will come in at 140 million riyals according to ARC, compared with 161 million riyals in the year-ago period as “revenue and profitability to be impacted by lower patient flow y-o-y basis.”
SNB Capital forecasts a 7 percent drop in Q3 net profit to 150 million riyals.
Arabian Cement: The Jeddah-based cement maker will make 20 million riyals compared with 79 million in the year-ago period, according to ARC,
“Cement companies’ results are likely to be weak during the quarter, due to lower volumes and prices on a y-o-y basis.”
(Writing by Brinda Darasha; editing by Seban Scaria)
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2021
