Capital goods sector profits rise to SR433 million by end of H1 of 2022

The capital goods sector witnessed a remarkable growth in the results of the first half of this year, coinciding with an improvement in profit from discontinued operations, an increase in the volume and value of sales and gross profit with an increase in the average selling prices of products.

“Maaal” newspaper monitored the change in the results of 11 companies included in the capital goods sector listed on the Saudi financial market. It showed an increase in net profits at the end of the first half of this year by 66.90% to reach SR433.251 million, compared to SR259.589 million in profits for the same period last year.

Astra Industrial topped the list with semi-annual profits estimated at SR317.787 million, compared to profits of SR105.206 million in the same period last year, with a significant increase in profits by 202.06%, the highest growth rate in results among the sector companies.

Bawan Company came in second place with a semi-annual profit of SR94.904 million, compared to SR84.802 million, profits for the first half of last year, an increase in profits by 11.91%.

Saudi Ceramic Company ranked third, with profits of SR89.263 million, but it was down 33.40% compared to the profits of the first half of 2021, which amounted to SR134.029 million at the time.

Al-Omran Company achieved the lowest semi-annual profit among the sector companies, with a value of SR5.878 million riyals, compared to profits of SR7.254 million in the first half of last year, with a decline in profits by approximately 19%.

In terms of losers, “Saudi Cables” was the biggest loser with a value of SR81.644 million, compared to losses of SR55.068 million riyals in the first half of last year, an increase in losses by 48.26%.

The company explained that the increase in losses during the comparison periods is due to the lack of production and the increase in expenses, and the decrease in the share of profits of subsidiary companies, in addition to the decrease in other revenues.

As for Saudi Vitrified Clay Pipes Company (SVCP), it was the least loser in the first half of this year, as the company’s losses at the end of the period amounted to SR9.208 million, compared to SR1.205 million losses in the same period in 2021, with a significant increase in losses of 664.15%, the highest growth rate in losses among the sector’s companies.

The company attributed the significant growth in losses during the comparative periods to the decrease in sales due to the decrease in the volume of demand for pipes in general due to the slowdown in projects and to the high cost of sales.