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Saudi petrochemical firms to see 22% profit drop in Q1 - AlJazira Capital

Saudi petrochemical firms to see 22% profit drop in Q1 - AlJazira Capital
Banks are forecast to witness higher profit growth of 18% in Q1-19
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STC
7010
-4.35% 39.60 -1.80
ZAIN KSA
7030
-8.68% 12.62 -1.20

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Riyadh – Mubasher: AlJazira Capital expected 37 Saudi-listed companies under its coverage to report a 4.8% year-on-year decline in their consolidated profit for the first quarter of 2019.

Profits of petrochemical firms are expected to decrease by 22%, while banks, especially shariah-compliant lenders, are forecast to witness higher profit growth of 18% in Q1-19, the Kingdom-based research firm added.

Despite higher cement prices, Saudi-listed cement producers are projected to post a 3.1% net profit decline from January to March.

On the other hand, the telecommunications sector will likely report a 9.5% year-on-year net profit growth in the first three months of 2019.

The Saudi Telecom Co (STC) is expected to report a 2.8% year-year-year profit increase to SAR 2.66 billion, while Mobile Telecommunication Company Saudi Arabia (Zain) is projected to turn profitable with a profit of SAR 154 million in Q1-19.

The banking sector is also forecast to witness a robust growth in net profit during the first three months of this year on the back of higher lending rates.

Al Rajhi Bank’s profits are expected to increase to SAR 2.8 billion supported by the growth in deposits.

Additionally, Saudi Basic Industries Corporation’s (SABIC) profits will likely rise to SAR 4.35 billion in Q1-19, compared to SAR 3.2 billion in the year-ago period.