Saudi-Jordanian mining, pharma ties to advance thanks to ministerial visit

RIYADH: The Public Investment Fund and Goldman Sachs Asset Management signed a non-binding memorandum of understanding in Riyadh on Monday. The agreement designates the PIF as an anchor investor for new private and public funds in Saudi Arabia and other GCC countries.

An anchor investor is an institutional investor that backs a business or asset before it goes public on the stock market, to add value and help establish its name and reputation.

The aim of the new partnership is to help position the Kingdom as an investment hub and grow the Saudi asset management sector by leveraging the institutional strength of the PIF and the expertise of Goldman Sachs, the organizations said. A goal is to attract equity capital from international investors, a significant portion of which will be earmarked for investments within the Kingdom.

Yazeed Al-Humied, deputy governor and head of Middle East and North Africa investments at PIF, said asset management forms part of the fund’s broader efforts to diversify the Saudi economy and strengthen local capital markets.

He described the agreement with Goldman Sachs as “another element in PIF’s strategy of attracting global capital and expertise from a wide range of investors to the region, while facilitating knowledge-transfer and capacity-building within Saudi Arabia.”

Their private-credit strategy will focus on senior and junior loans (representing higher or lower priority debts) for companies in the GCC region, officials said. Their public equity strategies will target investments in publicly listed companies associated with the Kingdom.

Goldman Sachs recently expanded its presence in Saudi Arabia, opening a new office in Riyadh in October. Marc Nachmann, global head of asset and wealth management, said the company is proud to collaborate with the PIF to develop investment strategies.

“Drawing on our decades of experience investing in public and private markets, our aim is to help clients access the dynamic opportunities created by Saudi Arabia and the wider GCC’s rapid economic transformation,” he added.

“We are excited to see this partnership expand and to continue building our presence in Saudi Arabia.”

The PIF said it aims to support Saudi Arabia’s Vision 2030 plan for national development and diversification through a wide range of investments and partnerships. Since 2017, it has established 103 companies to create investment opportunities in the Saudi economy.

RIYADH: Saudi Arabia’s Tadawul All Share Index increased on Monday, gaining 88.36 points, or 0.73 percent, to close at 12,123.81.

The total trading turnover of the benchmark index was SR6.1 billion ($1.6 billion), as 138 of the listed stocks advanced, while 99 retreated.

The MSCI Tadawul Index also increased by 13.74 points, or 0.91 percent, to close at 1,525.96.

The Kingdom’s parallel market Nomu gained 113.62 points, or 0.36 percent, to close at 31,695.97. This came as 39 of the listed stocks advanced while 36 retreated.

Sustained Infrastructure Holding Co. was the best-performing stock of the day, with its share price surging by 6.82 percent to SR32.10.

Other top performers included BAAN Holding Group Co., which saw its share price rise by 6.11 percent to SR2.43, and Al-Baha Investment and Development Co., which saw a 5.26 percent increase to SR0.40.

Riyad Bank rose 4.91 percent to SR29.90, while Lazurde Co. for Jewelry gained 4.87 percent to SR13.78.

SAL Saudi Logistics Services Co. saw the steepest decline of the day, with its share price easing 7.45 percent to close at SR203.80.

ACWA Power Co. fell 5.56 percent to SR353.20, while the Power and Water Utility Co. for Jubail and Yanbu dropped 4.83 percent to SR46.30.

Saudi Cable Co. also faced a loss in today’s session, with its share price dipping 4.56 percent to SR125.60, while East Pipes Integrated Co. for Industry saw a 3.57 percent to settle at SR151.40.

On the announcement front, Balady Poultry Co. released its financial results for the fiscal year 2024, reporting a net profit of SR118.11 million, marking a 17.04 percent increase from SR100.91 million in the previous year.

The company attributed the rise to increased production capacity, with average daily output growing to 192,000 birds per day in 2024, compared to 164,000 in 2023.

Total revenue for the year reached SR887.11 million, reflecting a 16.58 percent increase from SR760.97 million in 2023.

Gross profit also saw a significant rise of 21.8 percent, reaching SR144.45 million, while operational profit climbed 15.95 percent to SR121.38 million.

Balady Poultry’s total shareholders’ equity, after deducting minority equity, surged by 46.96 percent to SR308.94 million from SR210.22 million in the previous year.

Listed on Nomu, Balady Poultry’s share price dropped 8 percent on Monday to settle at SR322.

The Power and Water Utility Co. for Jubail and Yanbu, also known as Marafig, reported a significant decline in net profit for 2024, falling 97.08 percent to SR17.15 million from SR587 million in the previous year.

The sharp drop was attributed to rising fuel costs, increased provisions for credit losses, and lower finance income.

Revenue for the year increased 7.83 percent to SR6.88 billion, driven by higher sales volumes across all main business sectors.

However, gross profit fell 11.07 percent to SR1.52 billion, while operational profit declined 40.57 percent to SR948 million. Total comprehensive income also dropped 93.96 percent to SR34.32 million.

The company cited a 44 percent rise in fuel costs, amounting to SR580 million, as a key factor impacting profitability.

Additionally, Marafig recorded a provision of SR511 million for expected credit losses on trade receivables and reported a 26 percent decline in finance income.

These factors were partially offset by increased revenues, a 26 percent rise in other operating income from insurance claim collections, and a 52.54 percent reduction in zakat provisions.