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131 Saudi Companies Achieve $22 Mn Profits in 9 Months

131 Saudi Companies Achieve $22 Mn Profits in 9 Months
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131 Saudi Companies Achieve $22 Mn Profits in 9 Months

131 Saudi Companies Achieve $22 Mn Profits in 9 Months

The financial results of the first nine months of 2018 for 131 Saudi companies, which are listed in the local stock market, were announced on Friday.

The results revealed a profit of SAR82.8 billion ($22 billion), marking a growth of more than 11 percent compared to the same period last year, underlining the strength of the Saudi economy.

More Saudi companies are expected to announce their financial results on Sunday while firms listed on the Saudi stock exchange are expected to achieve profits of more than SAR100 billion ($26.6 billion) in 2018.

In this context, the Saudi Stock Exchange (Tadawul) ended the week on a negative note, as the Tadawul All Share Index (TASI) lost 1.7 percent, and closed at the level of 7,743.39 points, 136 points less.

This came in the wake of natural profit gains after the index rose for three consecutive weeks.

Total traded values fell 19.36 percent to SAR13.85 billion while traded volumes declined by 21.57 percent to 638.35 million shares.

These developments come as Saudi revenues grew during the third quarter of this year by 57 percent compared to the same period last year.

Meanwhile, the total revenues from the beginning of the year to the end of the third quarter amounted to SAR663.1 billion ($176.8 billion), recording a growth of 47 percent compared to the same period last year (the first nine months of 2017).

The Saudi Ministry of Finance published Wednesday on its website the quarterly budget performance report for the third quarter of fiscal year 2018, which emphasizes the government's commitment to transparency and financial disclosure.

Indicators of this report revealed a decrease in the deficit compared to the same period of the previous year, supported by a significant positive growth in oil and non-oil revenues, which emphasizes the effectiveness of economic reforms and fiscal measures aimed at sustaining public finances.

In addition to that, Moody's Investor Service affirmed the Kingdom's “A1” rating with a stable outlook and raised its GDP growth forecasts for the period (2018-2019) to 2.5 percent and 2.7 percent respectively, instead of its previous expectations of 1.3 percent and 1.5 percent for the same period reported in April this year.

These revised numbers from Moody’s even exceed the forecasts of the government announced in the preliminary statement of the 2019 budget announcement on September 30, 2018.

Moody's expects higher oil production to boost the economy and developments in the non-oil sector to contribute to stronger GDP growth.

In its recent review, Moody’s noted that plans to diversify the Kingdom's economy away from oil are likely to contribute to the country's medium and long-term growth.

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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
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Fire, Smoke Upend Western Canada’s Summer Tourism Season

A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)
A helicopter works a forest fire outside of Jasper, Alberta, Canada, on Friday July 26, 2024. (Reuters)

Severe wildfire seasons are increasingly hurting western Canada's lucrative tourism industry, with some visitors beginning to avoid the busy late-summer months due to concerns about uncontrolled blazes, smoke-filled skies and road closures.

After a scorching start to July, nearly 600 wildfires are now ablaze across British Columbia and Alberta, including a huge fire that this week devastated the picturesque tourist town of Jasper in the Canadian Rockies.

Dozens of communities, including popular holiday spots in British Columbia's Kootenay region, are under evacuation orders and several highways are closed.

This year's surge in wildfire activity comes after Canada endured its worst-ever year for wildfires in 2023, when more than 15 million hectares (37 million acres) burned, including parts of the city of West Kelowna in the heart of British Columbia's wine region.

Ellen Walker-Matthews, head of the Thompson Okanagan Tourism Association, said the industry was seeing a lot more last-minute travel decisions instead of booking in advance.

"It's a huge blow. July and August are traditionally the busiest months in the region," said Walker-Matthews, adding that while her region has been relatively unscathed by wildfires this summer, some visitors are choosing to avoid interior British Columbia altogether.

The members of the British Columbia Lodging and Campgrounds Association are reporting a 5-15% drop in bookings from a year ago, with the biggest declines coming from the hotter Okanagan and Cariboo regions, said Joss Penny, who heads the association.

"The concern is that this is something we have to live with and we have it every year now," said Penny.

Although wildfires in Canada's forests are natural and common, scientists say drier, hotter conditions fueled by climate change are leading to more volatile and frequent blazes.

'SMOKEY SKIES'

Some events, like the Salmon Arm Roots and Blues Festival, usually held in August, have now been rescheduled to earlier in the summer to avoid what is now seen as peak smoke season. The festival, which was cancelled last year due to nearby wildfires, was this year moved to July to benefit from "less smokey skies."

Wildfires and extreme climatic events are prompting tourists to "change their plans not just temporarily, but permanently," said Elizabeth Halpenny, a tourism researcher and professor at the University of Alberta, noting that seasonal workers in the sector are often the hardest hit as they have few protections during a bad season or amid a cataclysmic fire.

Tourism contributed C$7.2 billion to the British Columbia economy in 2022, and C$9.9 billion to Alberta in 2023, according to the latest government data.

Jasper National Park is one of Canada's premier tourist destinations, with more than 2 million visitors a year flocking to see its pristine mountain landscapes and abundant wildlife, including grizzly bears, moose and elk.

Kelly Torrens, vice-president of product at international tour company Kensington Tours, described western Canada as a bucket-list destination. But the company now has 49 trips that were supposed to pass through Jasper this season in limbo. Six others were forced to evacuate the park when the fire hit.

Parks Canada has cancelled all camping reservations within Jasper National Park until Aug. 6 and with potentially 50% of the town's structures destroyed by fire, the cleanup and rebuild could take years.

Halpenny is among those hedging their bets.

"I've booked a campsite stay in the mountain parks but at the same time, I booked a campsite out on the prairie somewhere and that's my backup plan because I don't want to miss out on my vacation with my family."