00:00 It seems that Saudi petrochemical companies, which are called the leaders in the Saudi market,
00:06 will be hit hard financially in 2023, and their business results will be affected by a 90% recovery.
00:19 What are the reasons behind these expectations, and which companies will be the most affected by their profits in 2023?
00:29 Let's take a look at the financial results.
00:33 In total, the revenues are expected to be only 26% of the 100, and reach 231 billion Riyals.
00:43 But the net profits, which the news brought, are not the market's concern,
00:49 as the revenues are expected to be 91% of the 100, and between 2023 and 2022,
00:59 the revenues were expected to be 30 billion Riyals, and reach only 2.7 billion Riyals.
01:05 Who will pay the price of these revenues?
01:10 The revenues are expected to be 85% of the 100, and reach 2.5 billion Riyals.
01:20 While the previous feeders, which work in the crude oil sector, are 62% of the 100,
01:25 and the previous ones are 61%, and the production is 55%,
01:28 and the Saudi Industrial Investment Group is 32%, and the previous ones are 41%.
01:34 Four companies are expected to not be affected by the revenues, but to suffer losses.
01:40 The first one is Al-Rabigh, which is expected to suffer 3.3 billion Riyals.
01:43 The Saudi Group is expected to suffer 1.7 billion Riyals, and reach 478 million Riyals.
01:48 And Kimanal is expected to suffer 71 million Riyals.
01:51 The reasons behind the expectations of the revenues and the revenues are,
01:56 let's take them into account,
01:59 are internal reasons related to the prices of the oil and external reasons.
02:03 The decrease in demand and the prices of the products due to the global economic recession,
02:07 and specifically from China, which still has somewhat lower growth rates than expected.
02:13 The prices of the shipping and the supply chain crisis,
02:16 which began in the last years of the year,
02:21 but we did not expect that the companies will be affected by it,
02:25 and their financial status will be shown in the fourth quarter of the year.
02:28 The increase in the prices of raw materials and the cost of the metal,
02:33 which comes from Aramco, will affect the financial status,
02:37 and the financial impact will be shown on these companies.
02:40 The expectations of most companies are affected by the cost of sales.
02:44 Kimanal is expected to suffer 2.9% and the previous one 3.8%.
02:48 Then, the manufacturing of Wasseb Chemo.
02:50 Petrochemical companies receive signals from Aramco that they will increase the prices of metals,
02:56 starting from the first of January of this month,
02:59 which means that the financial impact will be shown in the first quarter of this year,
03:02 and the prices of metals and the production revenues will not be shown in the last quarter.
03:07 And the financial impact will be shown in the first quarter of this year.
03:11 This was our reading of the expectations of the Petrochemical companies in the Saudi market.
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