The Saudi Public Investment Fund announces a growth in its revenues by more than 100% to reach 331 billion riyals

Beth agency:

The Saudi Public Investment Fund announced that it recorded a growth in its revenues by more than 100% last year compared to 2022 to reach 331 billion riyals, in addition to achieving a net profit of 74 billion riyals during 2023.

The Public Investment Fund has confirmed in its consolidated financial statements its commitment to applying the International Financial Reporting Standards (IFRS) published in accordance with the requirements of listing on the London Stock Exchange, as the fund continued its strong financial and investment performance during the year 2023, achieving growth in its total sustainable financial returns, profits and the value of its assets, which enhanced its contribution to driving the economic transformation in the kingdom in line with the Saudi Vision 2030.

The Public Investment Fund's announcement of its consolidated financial statements comes as part of its commitment to transparency and governance, and in line with the best international practices of major financial institutions and sovereign wealth funds.

The report covers the period between January 1, 2023 and December 31, 2023, during which the fund recorded a growth of more than 100% in its total revenues, as it increased from SR 165 billion to SR 331 billion for 2023, supported by the growth of the market value of its investment portfolio, and the value of its assets increased by 28% to reach SR 3.7 trillion by the end of 2023 compared to SR 2.9 at the end of 2022, supported by a number of acquisitions and the transfer of a percentage of Aramco shares to the purse of the box.

The strong financial and investment performance continued by PIF during 2023 contributed to recording a net profit of SR 74 billion and the net income of the fund – including comprehensive income – reached SR 138 billion, and the year 2023 witnessed the fund strengthening its strategy to diversify its sources of financing through debt instruments, and during that period, it collected an additional SR 45 billion .

Some of the fund's portfolio companies have received financing for a number of acquisitions, as the fund uses various sources of financing, including loans and debt instruments, profits from investments, capital injections from the government and government assets transferred to it.

According to the report, profits after calculating Zakat and taxes increased to reach 64 billion riyals compared to losses of (17) billion riyals in 2022. General reserves and retained earnings from investments increased by 21% to reach SR 707 billion compared to SR 583 billion (USD 155 billion) for 2022.

In terms of non-investment activities, the size of the fund's non-investment portfolio increased by 15%, equivalent to 31 billion riyals, to rise from 207 billion riyals in 2022 to 238 billion riyals in 2023, which is attributed to growth in all sectors, especially financial services and telecommunications, noting that the portfolio was somewhat affected by the decline in the returns of the metals and mining sector due to the global decline in metal and ore prices after an exceptional rise in 2022.

The fund's investment portfolio revenues increased significantly compared to last year, registering 98 billion riyals in 2023, an increase of 135 billion riyals from the results of 2022, during which the portfolio recorded losses of 41 billion riyals. Contributing to these positive results was the transformation of “SoftBank” into a source of profits after suffering losses in market value last year.

The 2023 financial results of PIF are a confirmation of the firmness and strength of the financial position and investment performance of the fund, as it received an A1 rating by Moody's with a positive outlook and an A+ rating by Fitch with a stable outlook.