Show report For Kamco InvestThe profits of listed Gulf companies increased by 111% in 2021 to record $196.5 billion, compared to $93.1 billion in the previous year.
The report indicated that the recovery from the repercussions of the “Covid-19” pandemic and the easing of restrictions worldwide contributed to greatly affecting the economies of the Gulf Cooperation Council countries and enhancing the strong performance of profits for the fiscal year 2021.
The report stated that the recorded growth in profits amounted to 103.5 billion dollars mainly due to the strong growth recorded by Aramco’s profits.
He pointed out that the improvement in the profits of the banking sector, basic materials and public utilities, and these sectors, along with Aramco, accounted for 85% of the total net profit for the whole of 2021.
According to the report, the total net profit of companies listed on the Saudi stock market grew by more than 120% in the fiscal year 2021 to reach $143.0 billion, compared to $64.8 billion in 2020.
The increase in profits came on the back of the increase in the profits of the energy, basic materials, banking and public utilities sectors, which was offset by the decline in the profits of the food production, insurance and food retail sectors.
The Saudi energy sector came at the forefront of other sectors and was the largest contributor to the net profits of the Saudi market during this period, with a net profit of $106 billion.
Aramco recorded a net profit of $105.4 billion for the 2021 fiscal year, compared to $49.3 billion in the previous year, supported by higher oil prices and improved refining and chemicals margins.
Al-Drees Petroleum and Transport Services Company recorded a growth in profits during the year by 46.1% to reach $47.1 million, while Rabigh Refining and Petrochemical Company announced a profit of $543.0 million compared to a loss of $1 billion in the previous year.
The remaining two companies in the sector, the Saudi National Shipping Company and the Saudi Arabian Refineries Company, recorded a decline in profits on an annual basis.
The Saudi National Shipping Company recorded the largest decrease in profits for the fiscal year 2021, to reach $51.3 million, despite the increase in profits for the fourth quarter of the year 2021 by 19% to reach $24.5 million on the back of increased revenues supported by higher rates of transportation and freight operations.