Combined profits for Saudi listed firms plummet 48%, Q109

The combined net profit of Saudi listed companies plummeted 48 percent to SR11.1bn Saudi riyals ($2.96bn) in the first quarter of 2009, according to a recent report.

More than half the total listed firms, numbering 72, have witnessed a decline in their net profit during the period, while about 29 companies reported a net loss, said Argaam Business Info’s report.

The company having the biggest impact in the figures was Saudi Basic Industries Corp (SABIC), the Kingdom’s largest listed company, which made a large profit loss in Q1, according to the report covered in Saudi daily Saudi Gazette.

If the SR974m decline in year-on-year seen at SABIC is excluded, the decline in first-quarter profits for all listed companies would hit just 15 percent year-on-year, Argaam said.

However, compared with financial results for the last quarter of 2008, the Saudi listed companies achieved a significant improvement, the report added.

These companies’ combined net profit for the last quarter of 2008 totalled SR7.39bn, if the losses made by Kingdom Holding Co are excluded.

But if the losses are included the companies’ combined result would be a loss of SR23.59bn, the report noted.

The findings show the affect of the global crisis on Saudi although its leaders have announced that it they have enough funds to meet the financial challenges thrown up by the economic downturn.  

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