The Impact of the Repercussions of the Coronavirus on the Performance of Companies Listed on the Saudi Capital Market (Tadawul): An Applied Study on Industrial Companies

Abstract

The study aimed to identify the impact of the Coronavirus pandemic on performance of the industrial companies listed in the Saudi capital market (Tadawul). Study population consisted of (58) companies that represented all industrial companies listed in the Saudi capital market (Tadawul) are: the basic materials sectors, the energy sector, the food production sector, and the pharmaceutical sector during the period of the Coronavirus crisis that started in the end of 2019. The descriptive analytical approach and secondary data was used in this study that retrieved from companies’ reports. The results found that most Saudi industrial companies have been negatively affected by the Coronavirus pandemic, and results are showed that companies in the basic materials sector loosed approximately 15% and the profit per share decreased by 67%, the energy sector companies were most affected, whereas  the rate of decline reached the net profit between 81% -106%, while there was an increase in losses rate in Petro Rabigh at 230%, and a significant decrease in earnings per share in most companies. Furthermore, the results indicated an increase in the net profit of some companies in the food production sector that ranging between 7% -1314%. The main recommendations of the study were that industrial companies should set an effective plans for supply chains, reconsider insurance contracts and leases, effective risk, financial plans and policies and manage their liquidity to keep continuity their activities during the pandemic and in the future.