The heavy industry posts 1Q earnings

Another handful of companies are out with their quarterly earnings — Riyadh Cables Group, Marafiq, Sipchem, Gasco, and Saudi Cement.

Riyadh Cables Group

Riyadh Cables Group reported a 10.1% y-o-y increase in net income to SAR 282 mn in 1Q 2026, while revenue rose 11.2% y-o-y to SAR 2.8 bn over the same period, it said in a Tadawul disclosure. The growth was attributed to higher sales volumes and a better product mix.

Marafiq

The Power and Water Utility Company for Jubail and Yanbu (Marafiq) saw its net income rise 8.2% y-o-y to SAR 127.6 mn in 1Q 2026 on the back of lower finance charges and stronger finance income, it said in a Tadawul filing. Gains were offset by higher fuel costs, a dip in other operating income, and a jump in expected credit loss provisions. Revenues increased 6.5% y-o-y to SAR 1.8 bn.

Sipchem

Sahara International Petrochemical (Sipchem) slipped into the red, posting a net loss of SAR 215.3 mn in 1Q 2026, while revenues fell 37.7% y-o-y to SAR 1.2 bn, according to a Tadawul disclosure. The drop was the result of weaker sales volumes and lower selling prices amid supply chain challenges, alongside a shift to losses from equity-accounted investees.

Gasco

National Gas and Industrialization Holding (Gasco) posted a 32.8% y-o-y jump in net income to SAR 82.2 mn in 1Q 2026, buoyed by higher sales, other income, and associate contributions, as well as lower finance and zakat costs. Revenue increased by 14.9% to SAR 962.4 mn on stronger gas and empty-cylinder sales and growth in commercial projects and other services.

Cement companies see lower bottom lines in 1Q

Saudi Cement’s bottom line was down 7.6% to SAR 100 mn in 1Q, due to “lower quantity and value sold.” Revenue also took an 8.5% hit to reach SAR 382.8 mn.

ALSO- Riyadh Cement reported a 21% y-o-y decline in net income to SAR 60 mn in 1Q 2026, due to lower average selling prices and sales volume and higher cost of sales. The company’s revenue also declined by 11.1% y-o-y to SAR 200 mn during the same period.

Cement demand declined by up to 10% versus normal levels since the regional tensions escalated, CEO Shoeil Al Ayed told Aleqtisadia. However, the sector’s limited reliance on long- and medium-term contracts allowed firms to remain flexible, keeping the decline contained within that range.

Logistical constraints drove new demand patterns: Quarterly production levels also stayed almost the same y-o-y at 13.4 mn tons in the first quarter, although logistical disruptions shifted demand patterns, including higher demand for white cement in some GCC markets due to maritime shipping constraints, Al Ayed said.