Oil Prices Slip Bad Results for Saudi Oil Cos
Published By : 20 Jan 2015 | Published By : QYRESEARCH
Monday saw a majority of the Gulf equities pulled back while oil prices continued to slip again. The negative earnings from 2014 fours quarter now bear down on the Saudi Arabian oil sector.
Brent crude oil slipped below US$50 per barrel over concerns that the economic outlook of the world was weakening after the announcement of record oil production by Iraq.
There was a 0.6 per cent slide in the Saudi Arabian main index while Saudi Basic Industries, the petrochemical giant, slipped 1.9 per cent.
The kingdom’s largest maker of food, Savola Group, fell 2.3 per cent.
Savola Group revealed a 23 per cent drop in profits in their fourth quarter report earlier this Sunday. The company generated US$115.8 million (434.4 million riyals) during the period. This made the Savola Group fall short of their average forecast of 562.4 million riyals, a statistic posted by Reuters.
The Saudi Industrial Investment Group experienced a 3.6 per cent fall after its profits in the fourth quarter dipped 58 per cent due to the fall in oil and gas prices.
The largest dairy company in the Gulf, Almarai, on the other hand, showed a 2.1 per cent gain after displaying a 15 per cent rise in quarterly profits, which is in accordance with most market analytics.
The indices for Dubai fell 0.2 per cent while construction and property stocks dipped and other sectors including banks did much better. The primary support came from the 2.2 per cent gain earned by Dubai Islamic Bank.