Saudi’s Kingdom Holding reports H1 profit of $1.7bn

Profits slightly increased by 3.6% in Q2 2022
Saudi’s Kingdom Holding reports H1 profit of $1.7bn
Al Waleed bin Talal

Saudi Arabia’s Kingdom Holding Company (KHC) has seen its profits increase to approximately 6.35 billion riyals ($1.7 billion) after zakat and tax, compared to approximately 503.3 million riyals in H1 2021. Profits of the firm owned by Saudi Prince Al Waleed bin Talal slightly increased during Q2 2022, despite a jump in revenues by 82.9 percent.

Profits increased by 3.6 percent to 427.146 million riyals (roughly $114 million). Meanwhile, revenues amounted to 769.476 million riyals (about $205 million)

In a statement on the Saudi Tadawul today, Kingdom Holding said that the increase in net profit in the second quarter of 2022 is due to an increase in dividend income, as well as hotel and other operating income.

In addition to an increase in other gains and a decrease in Zakat expense, this was offset by an increase in hotel operating costs, a decrease in the company’s share of the results of companies invested in the equity method, an increase in administrative, general, and marketing expenses, an increase in financial burden expenses, a decrease in investment gains through profit and loss, and an increase in tax expense income.

Moreover, KHC’s net profit fell by 92.8 percent in Q2 2022, compared to a net profit of about 5.93 billion riyals in Q1. 

Furthermore, KHC invested 1.37 billion riyals ($365 million) in Gazprom’s US deposit receipts in February, the largest share of investments in Russian companies disclosed so far this year. During February and March, the company also invested 196 million riyals in Rosneft GDRs and 410 million riyals in Lukoil ADRs.