مؤشر سوق الأسهم السعودية يغلق منخفضاً عند مستوى 11789 نقطة
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00:00 Welcome Mr. Ibrahim and thank you for being here.
00:03 Let's start with the market and its downfalls,
00:07 with levels of 11,800 points today,
00:10 despite the fact that oil prices at the end of the week
00:12 were higher by more than one percent,
00:16 even oil prices today have started to decline.
00:18 And we are separating day one from the end of July.
00:21 In your opinion, what are the reasons that led to this decline today?
00:24 Welcome, Mr. Mays.
00:27 The truth is due to the previous highs that occurred last week.
00:33 We reached the top of 11,900
00:36 and it was supported by the banking sector.
00:38 After the positive results that the banks achieved,
00:42 they reached a total profit of more than 34 billion,
00:48 exceeding 16%.
00:50 The positive was that the shares and the announced results
00:54 and the rise of the share price,
00:59 we reached the top of 11,900.
01:05 Now, we are waiting for the announcements of the previous company, Aramco,
01:11 which will have a great impact on the index,
01:16 which is an important driver in Saudi shares,
01:23 especially after the positive results that have been achieved recently
01:29 on oil prices and reaching the 84-dollar per barrel ceiling.
01:36 We expect that to be reflected in the results,
01:38 of course, not in the second quarter,
01:40 but in the third quarter,
01:41 especially for the previous company, Aramco and its followers.
01:45 Yes, today we watched some shares due to many news.
01:50 We noticed a good liquidity entry, Mr. Ibrahim,
01:53 on metals, which was mentioned that it is resorting to 10% acquisition
01:57 with the Brazilian company Valley Investment Fund.
02:01 The company clarified that the financing process will be from the special resources for metals.
02:06 How much will the company benefit from this financing,
02:10 away from the rising financing cost,
02:12 which is being determined by the recent rise in interest rates?
02:16 How much will the share continue to benefit from this deal?
02:21 Great, I see the benefit in this deal from three aspects.
02:26 The first aspect is the presence of the general investment fund in the deal,
02:30 which is owned by about 49% of the company established to manage the deal.
02:36 This gives a strategic dimension.
02:38 The second thing is that the company owned by the company is characterized by the production of copper,
02:46 nickel, and so acquisition is the acquisition for the purpose of obtaining an important strategic product
02:52 expected to grow in the coming period and provide the source of this product.
02:59 The third point is that it gives the company the ability to finance its investments
03:09 through its cash flow without additional costs,
03:17 especially with the rise in interest rates,
03:19 if the financing is either through the issuance of bonds or through banks.
03:25 This gives a good impression that the deal will have a good return on investment.
03:30 According to what has been announced, the effect will appear in the first quarter of 2024.
03:39 We followed Solutions and I think now it is issuing its own data in STC,
03:46 which also increased STC's profits in the second quarter.
03:52 We will look at the data.
03:54 STC's profits increased by 6% in the second quarter of 2023,
04:00 which reached approximately 3 billion Riyals.
04:04 Good performance, it seems, Mr. Ibrahim.
04:07 It is clear that Solutions contributed to this increase in STC's profits
04:11 as well as the increase in Solutions' profits by more than 25%.
04:15 Your comment.
04:16 Solutions achieved profits that many expected.
04:21 The average expectations were lower than those of Solutions.
04:26 The performance and results were very high.
04:30 STC, as you mentioned, achieved 3 billion Riyals
04:34 and it was expected to reach the 3 billion Riyals in the quarter.
04:40 Secondly, in general, today the two sectors are affected by the season,
04:44 which witnessed the Ramadan season and the Hajj season,
04:49 and the impact of these two months on the communication sector in general
04:57 and STC in particular.
05:00 Yes, we have seen before that there was a consortium
05:04 to provide services to the government sector
05:06 with a number of communication companies,
05:08 including Mobiley and STC, Mr. Ibrahim.
05:10 How many of the contracts that companies may get today
05:16 will be useful at least during this year, in your opinion,
05:20 and how will this affect the results of the companies?
05:22 It will have two impacts.
05:26 On the one hand, the willingness and on the other hand, the costs.
05:30 Because when the contracts are in a stable state and in a certain agreement,
05:34 it will reduce many of the costs that these companies may incur
05:38 to obtain these contracts, which will not be in them for a long time.
05:45 So, I expect that it will have a great impact on the sector in general,
05:51 which is STC, Zain, and Saudi Communications,
05:55 during the coming period, God willing.
05:57 Yes.
05:59 Your report today also shows a good rise in profits.
06:03 We see that there is an increase in revenues in the second quarter,
06:07 reaching 11% per 100.
06:09 The company clarified that this increase in revenues
06:11 came due to the sales of the dairy sector and also food production.
06:13 But the striking thing is that this increase is due to the sales of the agricultural sector
06:19 by more than 8%.
06:21 What do you think of the performance of Nadik today, Mr. Ibrahim,
06:25 despite the fact that it is one of the companies that also announced
06:29 that the financing costs have jumped by 50% due to the profitable prices?
06:33 Is it able to withstand this increase to complete its projects?
06:39 That's right. Today, Nadik's results were two-fold.
06:43 The positive side is the increase in operating profits in the company,
06:47 despite the fact that the increase in revenues did not exceed 11%,
06:51 but the total profit reached 56%.
06:53 This means that the sales cost has decreased significantly.
06:57 Yes, there is a negative increase in financing costs by 50%,
07:05 but this indicates that the increase in financing costs
07:09 may be met in the coming period if the profitable prices decrease.
07:17 As mentioned in its statement, the increase in the value of the dairy products
07:23 means that the company has increased its revenues by re-pricing its products at a higher price,
07:31 which has affected the company's results in the second quarter.
07:37 In the third quarter, if the company continues to gain market share and increase its revenues,
07:45 despite the expected decrease in profitable prices,
07:49 the company's results will continue to be positive in the third quarter.
07:55 Yes, and we thank you, Mr. Ibrahim, for the executive committee of the financial earnings company.
08:00 [Arabic]