Saudi Corporates: First Milling Earns 230.8 Million Riyals, Zoujaj Profit Up 71.4 Percent

By The Edge Research Team

First Milling earned 230.8 million riyals in the first nine months of 2026, up 13.9 percent. Its revenue rose 21.3 percent to 979.9 million riyals. The National Company for Glass Industries, known as Zoujaj, lifted nine-month profit 71.4 percent to 102.5 million riyals. Arabian Pipes’ profit fell 65.5 percent to 35.27 million riyals, and Methanol Chemicals, known as Chemanol, reported a loss of 122.96 million riyals, 71.3 percent smaller than a year earlier. The four companies posted their results on the Saudi Exchange on 27 October. The same day, Al Moammar Information Systems signed a framework agreement with the Saudi Data and Artificial Intelligence Authority. MEDGULF disclosed a government health insurance contract, and ADES Holding announced a jack-up rig contract in Indonesia.

Saudi Exchange Nine-Month Results Filed on 27 October

Net profit or loss attributable to shareholders, in millions of riyals, for the nine months to 30 September against the same period of 2025. A negative figure is a loss. Changes are as printed in the filings, rounded to one decimal place.

First Milling Grows Revenue 21.3 Percent as Feed Sales Rise 57.1 Percent

Feed grew fastest. Feed revenue rose 57.1 percent to 369.3 million riyals over the nine months, which First Milling put down to the integration of Al-Manar Feed Company and Al-Kenan Al-Arabia Trading Company. Flour revenue rose 12.8 percent to 526.1 million riyals, and bran revenue fell 20.5 percent to 84.6 million riyals. For the third quarter, the company credited flour’s gain to resilient demand and disciplined pricing. It linked lower bran sales to using more bran in its own feed production. Feed supplied 37.7 percent of nine-month revenue and flour 53.7 percent, on our calculation.

Profit grew more slowly than sales, 13.9 percent against 21.3 percent. The gap sits below the gross line. Gross margin improved to 44.8 percent from 43.3 percent, the company said, but the distance between gross profit and operating profit widened to 143.76 million riyals from 101.05 million, on our calculation. Operating profit rose 18.4 percent to 294.8 million riyals, and the operating margin eased to 30.1 percent from 30.8 percent, on our calculation. Net margin was 23.6 percent against 25.1 percent a year earlier, also on our calculation.

In the third quarter, revenue rose 20.8 percent to 345.9 million riyals and profit 18.3 percent to 84.8 million riyals. Against the second quarter, profit rose 28.6 percent and feed revenue 35.5 percent. On our calculation, the first quarter brought 332.75 million riyals of revenue and 80.09 million riyals of profit, which makes the third quarter the largest of the year so far on both measures. Shareholders’ equity rose 11.2 percent to 1,101.0 million riyals, and earnings per share were 4.17 riyals against 3.67.

First Milling Revenue by Product, Nine Months

Millions of riyals for the nine months to 30 September 2026. Change is against the same period of 2025, as printed by the company. The share column is our calculation. The three lines add to 980.0 million riyals on our sum, against reported revenue of 979.9 million riyals, a difference from rounding.

Zoujaj Profit Rises 71.4 Percent, Mainly on Its Joint Ventures

Zoujaj’s glass sales grew modestly. Nine-month revenue rose 5.8 percent to 111.2 million riyals on higher volumes, and gross profit rose 26.5 percent to 23.4 million riyals. Gross margin widened to 21.0 percent from 17.6 percent, on our calculation. Operating profit was 2.4 million riyals against 1.4 million.

Net profit was 102.5 million riyals, which exceeded operating profit by 100.1 million riyals, on our calculation. The company credits the rise mainly to a higher contribution from equity-accounted joint ventures and higher gross profit. Net profit equalled 92.2 percent of revenue, on our calculation. That ratio comes from below the operating line, not from glass sales, on our reading. Earnings per share were 3.11 riyals against 1.82, and shareholders’ equity rose 9.7 percent to 874.7 million riyals.

In the third quarter, revenue slipped 1.0 percent to 39.4 million riyals on lower volume, while gross profit rose to 9.9 million riyals from 6.2 million. Gross margin was 25.1 percent against 15.6 percent, on our calculation. The quarter’s operating result swung to a profit of 2.6 million riyals from a loss of 2.2 million, and net profit rose 67.7 percent to 36.4 million riyals. Against the second quarter, revenue rose 15.5 percent on volume and profit 9.0 percent.

The board has already declared a first-half cash dividend of 0.75 riyals a share, or 24.675 million riyals on 32.9 million shares. That equals 24.1 percent of nine-month profit, on our calculation.

Chemanol Narrows Its Loss, Arabian Pipes Profit Falls 65.5 Percent

Chemanol’s nine-month revenue fell 8.1 percent to 432.45 million riyals. Sales volumes fell 24 percent and average selling prices rose 29 percent, the company said, adding that it redirected a significant part of its international sales, an estimated 67 percent of annual sales by its account, through alternative trade routes. Gross profit rose to 40.59 million riyals from 13.59 million, lifting gross margin to 9.4 percent from 2.9 percent, on our calculation.

Last year’s base explains most of the narrower loss. The 2025 period carried impairment losses on the assets of subsidiaries ACC and GCI, of which 279.3 million riyals was attributable to the parent’s shareholders. The loss narrowed by 305.71 million riyals this year, on our calculation. As an illustration on our calculation, not a company-reported adjusted figure, this year’s loss is 17.7 percent smaller than the 2025 loss excluding that charge. Selling and distribution expenses rose 30 percent, the company said. Some comparative figures were restated to correct prior-period errors.

In the third quarter, revenue rose 3.4 percent to 160.11 million riyals as prices rose 29 percent and volumes fell 19.5 percent. The loss narrowed to 41.35 million riyals from 46.97 million. Transport, shipping and insurance costs rose an estimated 140 percent, the company said. Against the second quarter, the loss was 17 percent larger, on a 5 percent fall in selling prices and a 36.1 percent rise in selling and distribution expenses.

Shareholders’ equity fell 51.4 percent to 162.25 million riyals. Accumulated losses stood at 96.4 million riyals, which the company put at 64.2 percent of share capital. The Extraordinary General Assembly of 14 July approved a cut in capital to 150 million riyals. The auditor’s conclusion is unmodified, but it draws attention to a material uncertainty over the group’s ability to continue as a going concern, citing current liabilities that exceed current assets by 405.1 million riyals and legal proceedings. On 30 September Chemanol filed its application with the Capital Market Authority for a 350 million riyal rights issue, equal to 2.33 times its reduced capital, on our calculation.

Arabian Pipes’ nine-month revenue fell 32.6 percent to 496.43 million riyals, which the company put down to lower sales driven by geopolitical situations and supply chain disruptions. Gross profit fell 50.1 percent to 82.48 million riyals, which the company tied to higher shipping costs and a change in sales mix. Gross margin narrowed to 16.6 percent from 22.5 percent, and net margin to 7.1 percent from 13.9 percent, both on our calculation. Revenue fell in each quarter, from 194.56 million riyals in the first, on our calculation, to 142.03 million in the third. Profit fell each quarter too, from 20.11 million riyals in the first, on our calculation, to 6.17 million in the third. Third-quarter profit was 77.8 percent below a year earlier. Shareholders’ equity rose 1.7 percent to 489.39 million riyals.

The order book has new work. Arabian Pipes announced steel-pipe contracts with Saudi Aramco on 28 September and 1 October, at an estimated 96 million and 103 million riyals by the company’s account, each award over ten months. On the company’s estimates, the two awards come to 199 million riyals, equal to 40.1 percent of nine-month revenue, on our calculation.

Net Profit by Quarter

Net profit or loss attributable to shareholders, in millions of riyals, as printed in the nine-month filings. A negative figure is a loss. First Milling’s figures are rounded from the riyal amounts it reports.

Al Moammar, MEDGULF and ADES Add New Contracts

Al Moammar Information Systems signed a framework agreement on 27 October with the Saudi Data and Artificial Intelligence Authority, SDAIA, valued at an estimated 134.84 million riyals including value added tax, the company said. It covers the supply of network devices, workstation accessories including biometric devices and cameras, portable biometric enrolment devices and video communication equipment, delivered to the authority’s warehouses and branches across the Kingdom with warranty services. The agreement runs 36 months, an average of 3.75 million riyals a month, on our calculation. The award dates from 17 March 2026 and was not disclosed then because no value had been set. It follows the 86.13 million riyal SDAIA project award set out on 26 October and a 179.78 million riyal King Saud Medical City project announced on 14 October. On the company’s figures, the three come to an estimated 400.76 million riyals including tax, on our sum.

MEDGULF was awarded a one-year contract on 26 October by a government entity to provide health insurance to the entity’s employees and their dependents. Its value exceeds 5 percent of the company’s total revenue in its audited 2025 statements, and MEDGULF expects a positive financial impact from the fourth quarter of 2026 to the end of 2027.

ADES Holding signed a contract on 26 October with PT Pertamina Hulu Mahakam for the Shelf Drilling Perseverance jack-up rig in Indonesia, which the company says begins a new relationship with that client. The contract runs 406 days firm with a 30-day option, and the company put its total value at an estimated 173.14 million riyals, or 46.17 million dollars, including mobilisation and demobilisation fees. ADES expects operations to start around the end of December 2026, after the rig completes its current short-term campaign in the region.

Why it matters: Chemanol and Arabian Pipes both tie their numbers to shipping costs and supply chain disruption, and both sold less. Chemanol’s volumes fell 24 percent. Arabian Pipes’ revenue fell 32.6 percent. Chemanol partly offset that with prices up 29 percent, while Arabian Pipes’ margins narrowed. First Milling credits its acquired feed operations, the ramp-up of its Qassim mill and resilient demand for its sales growth. The costs between gross and operating profit rose faster than revenue, on our calculation, and profit grew 13.9 percent against 21.3 percent for revenue. Most of Zoujaj’s profit sits below the operating line, on our calculation. Operating profit was 2.4 million riyals and net profit 102.5 million riyals. The company credits the rise mainly to a higher contribution from equity-accounted joint ventures and higher gross profit. For Chemanol, the balance sheet now matters as much as the income statement, on our reading. Equity stands at 162.25 million riyals, and its 350 million riyal rights issue is pending.

Outlook: Zoujaj shareholders on the register on 29 October receive the 0.75 riyal first-half dividend on 10 November. Chemanol awaits the Capital Market Authority’s decision on its 350 million riyal rights issue. Arabian Pipes expects the 28 September award to contribute from the fourth quarter of 2026 to the second quarter of 2027, and the 1 October award in the second and third quarters of 2027. Al Moammar expects the SDAIA agreement to affect fourth-quarter 2026 results, and ADES expects its rig to start work around the end of December.

Sources: Saudi Exchange, First Milling, Zoujaj, Methanol Chemicals, Arabian Pipes, Al Moammar Information Systems, MEDGULF, ADES Holding, The Edge.

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