A busy day on the earnings front

Aldrees picks up speed with more stations and trucks

Aldrees Petroleum and Transport Services’ net income grew 22.3% y-o-y to SAR 137.6 mn in 3Q, outpacing a 16.4% rise in revenue to SAR 7.98 bn, according to a Tadawul filing. The fuel retailer and transport operator attributed the sales growth to more service stations in operation and a larger truck fleet.

The gains extended beyond the top line: Gross income rose 19.6% to SAR 282.3 mn, and operating income grew by the same rate to SAR 180.6 mn. Higher sales across the company’s petrol and transport divisions, alongside stronger sukuk income, lifted earnings. Lower income from bank deposits and joint ventures, coupled with rising selling and administrative expenses, financing costs, and zakat, offset part of those gains.

Over 9M 2026, Aldrees’ net income rose 19.8% y-o-y to SAR 371.6 mn on revenue of SAR 22.13 bn, up 17.2%. Operating income increased 15.8% to SAR 507.1 mn. Income from bank deposits and sukuk investments also grew over the period, although higher expenses and weaker joint-venture income weighed on the gains.

Saudi Kayan trims losses, but the red ink stays

Saudi Kayan Petrochemical narrowed its net loss to SAR 94.2 mn in 3Q from SAR 336.3 mn last year, it said in a Tadawul disclosure, as higher selling prices, cost cuts, and a one-off provision reversal lifted it back into a positive operating result even as the bottom line stayed in the red. Revenue edged up 1.6% y-o-y to SAR 2.2 bn.

Over nine months the loss narrowed to SAR 1.4 bn from SAR 1.6 bn. Revenue, however, was down 11.8% y-o-y, as supply-chain problems cut volumes despite higher prices.

Saudi Kayan is still loss-making, with accumulated losses of SAR 7.3 bn, or 48.5% of capital — just below the 50% threshold that triggers additional disclosure and board/shareholder action under Saudi rules. The question for 4Q is whether operating performance holds without the SAR 129 mn provision reversal.

SAB holds up against a provision spike

Saudi Awwal Bank’s (SAB) net income barely moved in the third quarter, its modest gains leaning on a tax refund and a surge in investment income while core lending income held flat. The bank reported net income of SAR 2.17 bn in 3Q 2026, up 1% y-o-y, according to a Tadawul filing. Total income from financing grew 3.7% to SAR 4.7 bn, and total investment income was down 12.5% to SAR 1.1 bn.

What moved the needle: Operating income rose 5.3% to SAR 3.84 bn, carried by the investment book, while operating expenses edged up just 0.8%. Net investment income jumped 157% off a low base, and the bank booked gains on the sale of FVOCI debt instruments as it trimmed its investment portfolio 9.3% over the year to SAR 97.8 bn.

Provisions jumped, and the bank pushed back: The net charge for expected credit losses rose to SAR 362 mn in the quarter from SAR 82 mn a year earlier — a move the bank called idiosyncratic and tied to revised forward-looking models, stressing that asset quality remains robust. Over the nine months, the charge rose a more measured 21% to SAR 534 mn. A regulatory change also weighed, cutting credit-card fee income after new rules raised card-scheme costs.

The book grew where it lends: The loan book expanded 11% y-o-y to SAR 325.2 bn as of September, while customer deposits grew 3.3% to SAR 325.4 bn and investments shrank 9.3% to SAR 97.8 bn. Total assets rose 6.4% to SAR 474 bn.

SAB’s 9M net income grew 2.8% y-o-y to SAR 6.58 bn on a lower tax charge after a refund on qualifying government sukuk and bond investments. Total income from financing was up 3.8% y-o-y to SAR 13.6 bn and total income from investment was down 6% y-o-y to SAR 3.4 bn.

ICYMI- SAB’s 2Q net income rose 9.6%, mainly because credit-loss charges fell 97.7%.

SAIB slips as costs rise

Saudi Investment Bank’s (SAIB) net income slipped 2.2% y-o-y to SAR 506.9 mn in 3Q 2026 as higher operating costs outweighed a marginal increase in income, the bank said in a Tadawul filing. Total income from financing edged down 0.3% to SAR 1.9 bn, while total investment income rose 1.8% to SAR 648.8 mn. Total operating income edged up 0.3% to SAR 1.05 bn, while operating expenses before provisions rose 4.1% to SAR 438.3 mn.

Core income held up: Net special commission income rose 5.1% y-o-y, which SAIB tied to lower funding costs, and provisions eased 10.9% to SAR 53.9 mn on improved credit quality. The composition shifted sharply underneath — net income from financing fell 21.8% to SAR 541 mn while net investment income more than doubled to SAR 360.4 mn.

What weighed on earnings: Total operating expenses, including provisions, increased 2.2% y-o-y on higher administrative and employee-related costs, partly offset by lower depreciation and amortization expenses. Weaker FX income and unrealized losses on financial instruments kept total operating income mostly flat despite the core gain.

The 9M picture held up better: Net income rose 1.5% y-o-y to SAR 1.56 bn on a 1.4% increase in operating income to SAR 3.21 bn, which the bank attributed to higher net special commission income (up 2.0%), banking-service fees, and gains on debt-security disposals, partly offset by weaker exchange income. Total financing income was up 2.2% y-o-y to SAR 5.5 bn and investment income was up 6.1% y-o-y to SAR 1.9 bn.

Deposits outpaced lending: Customer deposits grew 14.8% y-o-y to SAR 120.76 bn as of September, nearly twice the 7.6% growth in the loan and advances portfolio to SAR 119.04 bn. Total assets expanded 8.5% to SAR 189.93 bn.

REMEMBER- Deposit growth outpaced lending across the sector in 2Q, giving Saudi banks more headroom to lend.

Tadweeer’s cost squeeze eases

National Environmental Recycling Co. (Tadweeer) nearly tripled its net income to SAR 31.5 mn in 3Q, a 186.5% y-o-y jump, as revenue more than tripled (up 202%) to SAR 780.9 mn, according to a Tadawul filing.

What powered the surge: Expanded production capacity lifted sales volumes by 73% y-o-y, while export sales value jumped 212%, and domestic sales value rose 174%; recycling-services revenue added more.

Earnings are closing in on sales. The gap between net income growth and revenue growth has narrowed every quarter this year, from net income up 12.1% y-o-y on 84.5% higher revenue in 1Q, to 154.5% on 183.6% in 2Q, to this quarter’s near-match. Better collection of receivables cut expected credit-loss charges, and financing costs eased, helping the bottom line catch up.

But the 9M picture still shows the strain. Net income rose 94.7% y-o-y to SAR 73.3 mn over the first nine months of 2026, against a 154.8% jump in revenue to SAR 1.92 bn. Most of that shortfall dates to 1H, when Tadweeer said higher shipping and ins. costs — which it tied to geopolitical developments and market volatility — held back earnings growth.

A one-off boost for Electrical Industries

Electrical Industries’ net income rose 10.3% y-o-y to SAR 177.7 mn in 3Q, but a one-off refund did the lifting, according to a Tadawul filing. The figure includes SAR 26.1 mn the company recovered from the General Authority for Competition after an appeals court overturned a fine. Strip it out and net income was some SAR 151.6 mn — down c. 6% from SAR 161.1 mn a year earlier, by our math.

Revenue rose 12.6% y-o-y to SAR 630.5 mn, on demand across sectors, particularly high-voltage substations, infrastructure, and new industrial projects including oil and gas. The company credited a richer product mix and better margins on some products.

Geopolitics is starting to bite: Revenue fell 11% q-o-q from SAR 708.6 mn as project deliveries were delayed by the geopolitical situation, the company said. Net income fell 16% from SAR 211.5 mn, which it attributed to lower sales, higher shipping and ins. costs, and supply-chain disruptions.

The 9M read was stronger: Net income rose 37.7% y-o-y to SAR 580 mn, while revenue increased 25.2% to SAR 2 bn on the same demand drivers, partly offset by higher selling and distribution expenses and finance costs.

Volume bumps United Carton’s 3Q

United Carton Industries Company (UCIC) saw net income rise 40.5% y-o-y to SAR 29 mn in 3Q 2026, according to a Tadawul filing. Revenue rose 9.1% y-o-y to SAR 405.1 mn, on higher sales volumes across all segments and a higher average selling price. The offset was on the cost side: higher raw-material prices, mainly paper, plus freight and logistics costs in local and international markets.

The 9M picture was stronger, with net income climbing 73.1% y-o-y to SAR 81.9 mn on revenue of SAR 1.14 bn, up 8.2% y-o-y, again on broad volume growth and better pricing.

Supply snags halve East Pipes’ earnings

East Pipes Integrated Industry’s net income fell 50.8% y-o-y to SAR 78 mn in 2Q of FY 2026/27 (July-September), as revenue dropped 39.6% to SAR 344.8 mn, the company said in a Tadawul filing. Delays in receiving raw materials — which the company tied to regional geopolitical developments — cut production and sales volumes, while material costs per ton, including higher freight and ins., rose faster than selling prices, according to its earnings release (pdf).

The six-month read was milder: Net income fell 19.3% y-o-y to SAR 200.9 mn in 1H (April-September), and revenue declined 9.5% to SAR 865.5 mn. A stronger 1Q, with revenue up 35% y-o-y, offset part of the 2Q slump.

What cushioned the blow: The balance sheet got stronger during 1H, with liquidity hitting a record SAR 995.2 mn at the end of September, up from SAR 680.9 mn at the end of FY 2025/26, when the company repaid all its bank debt. The order book is also filling up: East Pipes signed three Aramco contracts worth SAR 837 mn (including VAT) in September — the largest haul among the Kingdom’s four listed pipe makers, which have booked more than SAR 3 bn in contracts this year, about 85% of it since the war began.

Dividends: The board approved a 1H dividend of SAR 63 mn, equivalent to SAR 2 per share, with distribution to take place on 5 November, according to another disclosure.

REMEMBER- East Pipes said in July that the regional conflict had forced it to reroute raw-material shipments to Jeddah and Yanbu, with some vessels waiting up to four weeks to berth and shipping costs up 15-20%.