Saudi-listed companies have continued to surpass their Gulf peers in 4Q 2024, reporting 3.1% y-o-y growth in net income at USD 34.8 bn, according to Kamco Invest’s GCC Corporate Earnings report (pdf).

The drivers: A sharp decline in the energy sector’s aggregate earnings was offset by healthy growth in the banking, telecom, and food sectors, helping Saudi companies account for some 61% of the GCC total.

The breakdown: The energy sector saw a 15.4% y-o-y decline in aggregate earnings during the quarter, driven by Aramco’s net income dropping 15.7% y-o-y to USD 24.1 bn. On the other hand, the banking sector’s aggregate earnings rose 20.4% y-o-y to USD 5.6 bn in 4Q 2024, with Saudi National Bank reporting a net income of USD 1.5 bn (+11.7%).

Biggest gainers: The telecom sector managed to lead the gains with a five-fold rise in its aggregate earnings to USD 3.9 bn during the first quarter. The food, beverages, and tobacco sector also logged an eight-fold increase at USD 2.8 bn.

Full-year snapshot: Saudi companies closed FY 2024 with aggregate earnings down 3.2% y-o-y at USD 150.9 bn. The banking and telecom sectors offset the steep decline in the energy sector.

Sector of the year: The telecom sector’s aggregate earnings rose 69.8% y-o-y to USD 7.6 bn in FY 2024. STC led the gains with an 85.7% increase at USD 6.6 bn, followed by Mobily at USD 828 mn (+39.2%). Meanwhile, Zain KSA’s income dropped 52.9% to USD 158.9 mn.

THE REGIONAL PICTURE-

Aggregate net income for GCC-listed companies hit USD 57.3 bn in 4Q 2024, up 2.0% y-o-y and marking a three-quarter low. The energy sector was the biggest drag, with earnings falling 16.6% y-o-y to USD 25.7 bn, while the utilities sector swung to a USD 1.3 bn net loss, driven by deeper losses at Saudi Electricity Co.

Oman led the region in 4Q earnings growth, going up 83.4% y-o-y, followed by Bahrain (+43.2%) and Kuwait (+37.1%). Dubai’s 20.1% gain outpaced both Saudi Arabia and Qatar.

For the full year, GCC-listed companies recorded USD 241.1 bn in net income, down 1.4% from 2023. The steepest declines came from the energy, utilities, and food and beverage sectors. Banking was the region’s strongest performer, with earnings for the year rising 10.3% to a record USD 60.1 bn. Telecoms followed, with a 171% y-o-y increase.

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