GASCO records profit sure of 47% last year

National Gas and Industrialization Co. (GASCO) said that its profits after zakat and tax rose 47% to SR 202 million in 2021 from SR 137 million in the year earlier.

GASCO’s operational profits jumped 81% to SR 72 million compared to SR 40 million in 2020.

Gross profit of 2021 increased by 15% to SR 257 million from SR 223 million the year before, while profit per share (EPS) rose to SR 2.69 from SR 1.83, the Saudi company added in its financial result statement published on Tadawul.

Higher profits were mainly spurred by the following:

 First: increase in operating income by SR 32 million due to decrease in cost of revenues and general & administrative expenses resulted from the Company’s initiatives, which contributed in improving the efficiency of operations and decreasing costs, including early retirement plan for employees.

Second: increase in investments income by SR 43 million represented mainly by the increase in the dividends received from National Industrial Gases Company.

Despite the decrease in other income by SR 6 million and increase in finance charges by SR 3 million, and zakat expense by SR 2 million.

Included in the accrued expenses and other current liabilities is an unapplied collection account (“the unapplied account”) of SR 27.4 million (2020: SR 27.4 million). As detailed in note 22(c) to the consolidated financial statements; the Group discovered in 2020 that certain transactions totaling SR 25.7 million related to embezzlement transactions committed by a former employee were routed through this account. These transactions were reversed as at 31 December 2020. Other transactions in this account could not be completely traced and the closing balance could not be reconciled as at 31 December 2021 due to lack of audit trail. We were unable to satisfy ourselves with respect to the existence and completeness of this account. Accordingly, we are unable to determine if any adjustments are required to this account and the related impact on these consolidated financial statements.

Additional Information:

In reference to the continuation of the qualification mentioned in the independent auditor report regarding the balance of unapplied collection account amounted to SR 27.4 million, the Company is still working with the external auditor to reconcile this account and to remove the qualification, and expects that such reconciliation will have a positive impact on the Company’s results in the future.