00:00 Al Jazeera Capital is expecting to start the recovery of the petrochemical sector in Saudi Arabia in 2024
00:10 with the reduction of the risks of oil demand and the recovery of the economy in many countries around the world.
00:20 Al Jazeera Capital is expecting to continue the risks of oil demand in 2023, which will put pressure on the sector.
00:31 Al Jazeera Capital is expecting to reduce the risks of oil demand in 2024, which will put pressure on the sector.
00:43 It also considered that the decline in global inflation levels in the United States and Europe will support optimism in this sector.
00:53 As for the recommendation of Al Jazeera Capital on many shares of the Saudi petrochemical sector,
01:00 it came to increase the centers, specifically on the previous shares of Sipcom, the leading entity and the company Lugen.
01:09 We also noticed that Al Jazeera Capital's expectations of the profits of these companies
01:15 were expected to increase in profits in the year 2024 compared to 2023.
01:23 For the previous example, we expect the profits to be about 5.6 billion Riyals for 2023,
01:30 and we expect it to rise to more than 15 billion Riyals for 2024.
01:37 For Sipcom, we expect it to rise to more than 1 billion Riyals in 2024 compared to 1.5 billion Riyals in 2023.
01:49 For Cayenne, we expect it to lose more than 1 billion Riyals in 2023,
01:55 but we expect it to turn to profits of about 318 million Riyals in 2024.
02:04 As for the recommendations of Al Jazeera Capital on many shares of the Saudi petrochemical sector,
02:11 it came to limit the shares of Yansab, the manufacturing share and the previous share of Al Mughadiyat.
02:18 It also expected that there would be a rise in profits in the year 2024 compared to the year 2023.
02:27 Moving on to the financial distributions, Al Jazeera Capital also expected that there would be an increase in the average return
02:36 of the distribution of profits of the petrochemical sector from 3.9% in the year 2023 to 4.6% in the year 2024,
02:46 with the support of profit improvement and free financial allocation.
02:53 We also note that Al Jazeera Capital expected that there would be a sharp increase in profits in 2024
03:01 compared to the previous Yansab and Sipcom companies.
03:04 The previous distribution of profits from Al Mughadiyat was expected to reach 4.4%,
03:08 Yansab 4.5% and Sipcom 5.5%.
03:13 Finally, regarding the expectations of revenues and profits for the petrochemical sector in Saudi Arabia,
03:20 Al Jazeera Capital expected a decrease in revenues from 23.7% to 194.2 billion Riyals compared to the current year.
03:30 The sector will still be under pressure and the demand for oil has doubled,
03:36 but in contrast, in the year 2024, it expected that there would be an increase in revenues by more than 11%
03:43 and profits will be reduced by 67% compared to the previous year,
03:53 but it is expected that the profit will increase by 130% compared to the previous year,
03:59 with the support of the expected economic recovery in China,
04:05 and with the return of the shipping costs to a lower level than the level of the pandemic.
04:11 These were the expectations of Al Jazeera Capital for the petrochemical sector in Saudi Arabia.
