Advanced Profits Rise to SR815 Million at End of 2021 by 37%

The net profit after zakat and tax for Advanced Petrochemical Company rose to SR815 million during the year 2021, compared to SR596 million during the year before last, at a rate of 37%.

This came after Advanced Petrochemical Company announcement on Sunday of the estimated annual consolidated financial results for the period ending on 31.12.2021 (12 months).

The gross profit during the current period, amounted to SR1.06 billion, compared to SR729 million during the same period last year, an increase of 45%.

Profits per share during the current period amounted to SR3.767, compared to SR2.751 during the same period last year.

The net profit increased by 37% compared to 2020, mainly due to the increase in the sales prices of the polypropylene product by 51%.

The reason of the increase (decrease) in the net profit during the current year compared to the last year is:

– Decrease in share of profit in SK Advanced (associated company in South Korea) investment by SR24 million.

– Decrease in sales volume by 7% results from 2021 periodic scheduled maintenance.

– Increase in propane and outsourced propylene prices by 83% and 32% respectively.

– Increase in general and administrative expenses by 54% mainly due to the general and administrative expenses of Advanced Polyolefins Company project.

– Increase in financial charges by SR 10 million due to Advanced Polyolefins Company Equity Financing.

-Increase in offshore logistic cost by 200%.

– Settlement of the zakat and income tax assessments for the years 2006, 2008 through 2013, and 2018 of SR34 Million.

The company indicated that these estimated annual consolidated financial results for the year ended December 31, 2021 are prepared by the management of the Company and these results are subject to audit by the external auditors.

The company added that the net profit for year 2021 is the highest annual achieved since incorporating the company.

Net profit for 2021 also includes SR11 million shares in profit in SK Advanced Co. Ltd investment compared to SR34 million shares in profit in 2020.

The increase in 2021 comprehensive income is mainly due to unrealized gain on equity investment at fair value.

Advanced reached an agreement with Zakat, Tax and Customs Authority to settle zakat and income tax assessments for the years 2006, 2008 through 2013 and 2018.