Survey: SR1.5 trillion, retained earnings for 148 companies listed on Saudi Stock Market

148 companies listed on Tadawul recorded cumulative retained earnings of SR1.48 trillion at the end of the Q2 of 2022, compared to SR1.15 trillion at the end of the corresponding period of last year, increasing their profits by SR325.66 billion, according to a survey conducted by Maaal newspaper.

Aramco, according to the survey, acquired 81% of these profits, with a value of SR1.19 trillion, which is equal to 15.92 times compared to the capital of SR75 billion. Saudi Telecom Company (STC) came in second place, with a value of SR39.86 billion, after it added SR2.57 billion during a year. Then came the Saudi Electricity Company with a value of SR35.83 billion, then each of SABIC, Alahli, Ma’aden and Al-Rajhi with a value of 28.69, 22.24, 15.93, and 10.66 billion riyals, respectively.

Retained earnings are the backbone of the financial structure of companies, as they are usually used in times of crisis, either to cover an emergency loss or to expand the company’s activities, or to pay off unfavourable debts or lawsuits, especially if these debts or lawsuits are the results of things beyond the company’s control, such as fires or the like.

The retained earnings are formed by accumulating the remaining net profit after cash distributions and deducting other funds such as part of the statutory reserve or others. In the event that the company’s management decides not to distribute cash dividends, this part will be transferred to the retained earnings and thus appear within the shareholders’ equity.

In the event that the company’s management decides not to distribute cash dividends, this part will be transferred to the retained earnings and thus appear within the shareholders’ equity. In the event that the company’s management decides not to distribute cash dividends, this part will be transferred to the retained earnings and thus appear within the shareholders’ equity.

According to the survey, 18 companies were able to raise their retained earnings by more than one billion riyals compared to what they were at the end of a year ago, led by Aramco raised its retained profits by SR260.52 billion, followed by SABIC with a value of SR11.83 billion, and Ma’aden with a value of SR7.44 billion, then each of SABIC’s Agri-Nutrients, Saudi National Bank and Kingdom Holding Company, with an amount of SR6.32, 5.89, and SR5.76 billion.

26 companies were able to raise their capital by more than 100%, either by switching from loss to profitability (8 companies) or by doubling profits (18 companies), while 19 companies were able to raise their retained earnings by more than 50% and less than 100%. 14 companies were able to raise their retained earnings by rates ranging between 25% and 50%, while 38 companies were able to raise their retained earnings by less than 25%, and the retained profits of 51 companies declined.