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Saudi Basic Industries Corporation (SABIC) is forecast to make a 2021 fourth quarter net profit of 5.50 billion Saudi riyals ($1.46 billion), more than 140 percent higher compared to 2.22 billion riyals it made in the same quarter in 2020, said Al Rajhi Capital (ARC) in a preview of financial results for Saudi equities.
On the sequential quarter basis, however, the petrochemicals giant’s expected net profit is 1.7 percent lower from 5.59 billion riyals it made in Q3. The sequential quarter decline is primarily to the higher feed stock costs, the brokerage said.
SNB Capital (formerly NCB Capital) has forecast 5.49 billion riyals for Q4 while Riyad Capital has penciled in 5.57 billion riyals.
Yanbu National Petrochemical Co.: SABIC affiliate, Yansab, is projected to make 355 million riyals, compared to 333 million riyals net profit in the year-ago period, according to ARC.
SNB Capital has forecast 472 million riyals while Riyad Capital expects 359 million riyals.
Saudi Telecom: The Kingdom’s largest telecom operator’s Q4 is expected at 2.93 billion riyals, 13 percent higher year-on-year, according to Al Rajhi Capital.
Riyad Capital estimates 2.82 billion riyals, 5 percent higher on year “owing to the higher revenues from its subsidiaries”.
SNB Capital has an estimate of 2.88 billion riyals.
Zain KSA: According to Al Rajhi Capital, Zain KSA is set to make 88 million riyals, over 140 percent higher than in the year-ago period. Both SNB Capital and Riyad Capital estimate 59 million riyals.
Almarai: The dairy and food producer’s Q4 is forecast at 309 million riyals by ARC; over 7 percent lower on year. SNB Capital estimates 346 million riyals and Riyad Capital has 356 million riyals.
ARC said Almarai’s revenue is likely to stay under pressure, while structural adjustments to subsidy and higher feed cost will impact margins
Almarai made a net profit of 336 million riyals in Q4-2020.
Savola: The kingdom’s largest food company is likely to make a Q4 profit of 135 million riyals, according to ARC and 75 million riyals by SNB Capital. This compares with 45 million riyals Savola posted in the year-ago period.
“The retail as well as food processing segment may continue to see margin pressure due to higher input costs,” said ARC
Jarir Marketing Co.: The retailer is seen posting a net profit of 279 million riyals by ARC and 301 million riyals by both SNB Cap and Riyad Capital. This compares with the 288 million riyals Jarir made in Q4, 2020.
“As the global supply chain crisis continues, we expect the top-line to decline by -12 percent y-o-y due to a delay in delivering the smartphones, while we expect a 5 percent y-o-y increase in bottom-line on the back of a one-off profit,” said Riyad Cap.
Mouwasat: The hospital operator’s Q4 will come in at 145 million riyals according to ARC, compared with 143 million riyals in the year-ago period as “strong occupancy to aid in both revenue and profitability.”
SNB Capital forecasts a 2.3 percent drop in Q4 net profit to 147 million riyals.
Arabian Cement: The Jeddah-based cement maker will make 28 million riyals compared with 53 million in the year-ago period, according to ARC.
“During Q3 2021, total cement sales volume fell 12 percent y-o-y at the back of lower construction activity during the period. The total volume during the first 11 months of the year grew 0.6 percent y-o-y.”
(Reporting by Brinda Darasha; editing by Daniel Luiz)
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