Chemanol Records Net Profit of SR244 mln at End Of 2021

The Methanol Chemicals Company “Chemanol” recorded a net profit after zakat and tax of SR244 million during 2021, compared to losses of SR276 million during the year before last.

The operational profit during the current period amounted to SR286 million, compared to losses of SR236 million during the same period of the previous year.

The gross profit during the current period, it amounted to SR413 million, compared to losses of SR139 million during the same period of the previous year.

Profits per share during the current period amounted to SR3.62, compared to losses of SR4.09 during the same period last year.

The reason of the increase (decrease) in the net profit during the current year compared to the last year is that the Company achieved net profits during the current year compared to previous year primarily due to an increase in the average selling prices, as well as the continued efforts exerted by the Company to explore new markets with higher profit margins which contributed to increase in revenues. Also, the significant improvement in plants reliability resulted in reduction of unplanned shutdowns which led to increase in quantities sold and reduction in fixed cost per metric ton. This was despite the increase in costs of certain raw materials and supply chain in general. However, this year’s profit was affected by the impairment of Company’s certain assets by SR25 million. Also, finance costs significantly dropped during the year after the Company successfully restructured its outstanding loans as well as due to decrease in interest rate.

The estimated financial results for the year ended 31 December 2021 have been prepared by the management of the Company and have not yet been reviewed or audited by the external auditor.

The company said in a statement that certain prior year figures have been reclassified to conform to current year’s presentation.

On January 24, 2022, the Company announced that it had signed an agreement for engineering designs to expand the Methanol plant to increase its annual output by 100,000 metric tons. The Company primarily aims from this process to sustain profitability and enhance its financial position. Such expansion will also lower production costs for all the Company’s products and enable the Company start to implementing its future projects as announced earlier to align with the growth and economic changes occurring in the Kingdom of Saudi Arabia as part of its ambitious vision 2030.

This comes with reference to the net profit for the current year is the highest achieved since the establishment of the Company despite the increase in certain raw materials cost and supply chain. This is attributed to the fact that the accelerated growth of demand in the global market, which positively reflected on the revenues increase.

Profits per share for the year ended December 31, 2020, has been calculated retroactively as a result of a change in the number of shares after reducing the Company’s capital in accordance with the Extraordinary General Assembly resolution dated 28.06.2021, the company concluded.