It was another busy day for earnings in Saudi Arabia, with Sabic Agri-Nutrients, First Mills, and Zain among those releasing their 2024 financials.

SABIC AGRI-NUTRIENTS-

SabicAgri-Nutrients saw its net income fall 9.1% y-o-y in 2024 to SAR 3.33 bn, according to an earningsrelease (pdf). The falling net income was “primarily due to lower average sale prices and higher cost of goods,” including feedstocks, CEO Fahad Al Battar said. Despite the drop, the figure surpassed analyst expectations of SAR 3.24 bn, according to Asharq Business. Revenues for the year edged up 0.3% y-o-y to SAR 11.06 bn, supported by a 3% rise in sales volumes to 7.2 mn tons, partially offset by a 3% decline in average selling prices.

In 4Q 2024, the company’s net income fell 2% y-o-y to SAR 954 mn, while revenue grew 2% to a little over SAR 3 bn.

Looking ahead: A seasonal slowdown in 4Q 2024 in fertilizer demand “left fourth quarter urea trade largely dependent on tender-based sales,” the company said, but demand is expected to pick up in 2025. The outlook is driven by high import tenders and supply constraints amid winter gas shortages and limited Asian exports.

REMEMBER- Sabic was among the companies that S&P Global expected to be relatively insulated from Aramco’s fuel and feedstock price hikes, with marginal increases in production costs anticipated from 1Q 2025. The company is well-positioned to absorb these hikes with minimal strain, leveraging operational efficiency and some cost pass-through, S&P said.

In the pipeline: The company is conducting feasibility and technical studies to finalize its investment decision for a low-carbon ammonia plant in Jubail Industrial City. The facility will produce 1.2 mn tons of low-carbon ammonia and 1.1 mn tons of urea and specialized agri-nutrients annually. It has already lined up approval from the Energy Ministry in July 2024.

ZAIN-

Zain KSA’s net income fell 53% y-o-y to SAR 596 mn in 2024, it said in a disclosure toTadawul. The telecom company’s net income fell y-o-y due to rising operating expenses and ECL costs, as well as an unfavorable base effect on the back of a SAR 1.1 bn one-off gain in 2023 from tower sale and leaseback agreements. Zain’s EBITDA was up 11.6% in 2024 to SAR 3.3 bn. 2024 revenues hit SAR 10.4 bn, rising 4.9% y-o-y and marking an all-time high.

On a 4Q basis: Zain KSA rebounded into the black in 4Q 2024, posting net income growth of 607% y-o-y at SAR 274 mn, according to Argaam. Revenues followed the positive trend with 6% y-o-y growth at SAR 2.7 bn.

ALSO- The telco’s board greenlit the distribution of SAR 449.4 mn in dividends to shareholders for 2024 at SAR 0.5 apiece, it said in a separate disclosure to Tadawul. The distribution date and eligibility criteria will be decided at the company’s next shareholders meeting.

REMEMBER- Zain KSA lined up a SAR 1.93 bn shariah-compliant loan with AlRajhi Bank lastweek to refinance its outstanding murabaha facility with the Finance Ministry. The five-year facility is backed by a promissory note and will be repaid in a single payment upon maturity in February 2030.

FIRST MILLS-

First Mills Company reported a 13.9% y-o-y increase in 2024 net income to SAR 250.9 mn, buoyed by higher feed and flour sales, expanding margins for small-packed products, improvements in cost-efficiency, and optimization of liquidity management, it said in a statement. Meanwhile, revenues for the year grew 8.8% y-o-y to SAR 1.1 bn, pushed by stronger feed and flour sales, higher gross income (up 10.4% y-o-y), and better product mixes and pricing strategies.

On a quarterly basis, First Mills’ net income grew 16% y-o-y in 4Q 2024 to SAR 57.5 mn, pushed up by across-the-board stronger sales and lower operating costs, while revenues saw 9% growth to SAR 269 mn, thanks to higher bran, feed, and flour sales.

REMEMBER- First Mills was the first milling company to go public in May 2023 with a USD 266 mn IPO as part of the government’s efforts to privatize the sector.

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