HB Profits Fell to SR20 mln during 1Q, by 22%

[10:15 am, 09/05/2022] Mr. Yasser: The net profit after zakat and tax for Halwani Bros. Company (HB) decreased to SR20 million during the first quarter, compared to SR25 million during the same quarter of the previous year, by 22%.

This came after Halwani Brothers announcement on Monday the consolidated preliminary financial results for the period ending on 31.03.2022 (three months).

The operational profit amounted to SR31 million during the first quarter, compared to SR35 million during the same quarter of the previous year, a decrease of 11%.

The gross profit amounted to SR96 million during the first quarter, compared to SR99 million during the same quarter of the previous year, down 3%.

Profits per share during the current period amounted to SR0.56, compared to SR0.72 during the same period of the previous year.

The reason for the decrease in net profit during the current quarter compared to the same quarter of the previous year is due to:

1) The increase in the costs of raw materials prices within the global inflation, which had an impact on most companies during the current quarter compared to the same quarter of the previous year.

2) The company’s consolidated profits were affected by the devaluation of the currency exchange rate in the subsidiary company in the Arab Republic of Egypt.

3) Increasing spending on marketing offers to customers and consumers during the current quarter compared to the same quarter of the previous year.

4) An increase in general and administrative expenses during the current quarter compared to the same quarter of the previous year.

The reason for the increase in net profit during the current quarter compared to the previous quarter is due to:

1) The growth in the company’s sales during the current quarter compared to the previous quarter as a result of launching new products in the market in accordance with the company’s general strategy.

2) Improving the sales mix by focusing on the most profitable products.

The figures in the interim financial statements have been grouped to conform to the accounting policies for the current year presentation as per International Financial Reporting Standard as endorsed in the Kingdom of Saudi Arabia. For more information, refer note 14- Comparative figures in the interim Financial Statements for the period ended 31.03.2022.

Earnings per share for the three months period ended 31.03.2021, 31.03.2022 have been calculated by dividing the net income for the period by 35,357,145 shares (including bonus shares) according to the Extra Ordinary General Assembly’s approval on the Capital increase by way of issuing bonus shares in its meeting dated 28.04.2021.

[10:17 am, 09/05/2022] Mr. Yasser: GASCO Signs MOU with MAKEEN Energy to Establish Company to Manage Gas Facilities

The National Gas and Industrialization Company (GASCO), based on its experience in the gas supply chain and with the aim of raising operational efficiency and enhancing the company’s investments in gas supply chains, announced on Monday the signing of a memorandum of understanding (MOU) with MAKEEN Energy to discuss the feasibility of establishing a company to establish, manage, operate and maintain gas facilities, stations and networks, in addition to recycling plastic waste into oil products.

It added that the Memorandum Duration is one calendar year from signing the MOU and can be extended. There are no related parties and the financial impact cannot be currently specified

MAKEEN Energy is a global energy company that is leading in establishing, managing, operating and maintaining gas (bottled or bulk), stations and networks, as well as plastic waste conversion to oil products, MAKEEN Energy is present in more than 140 countries and operates across five continents.