Alkhorayef profits fall 6% to SR25.3 mln

Alkhorayef Water and Power Technologies Co. announced that its profits after zakat and tax declined 6% to SR 25.3 million in the first quarter of 2022 compared to 27 million during the same period of 2021.

This came after Alkhorayef announcement on Wednesday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s operational profit climbed 0.985% to SR 30 million in the 1^st quarter of the current year from SR 29.7 million in the same period of the previous year.

Gross profit of Alkhorayef advanced 14.15% to SR 43.6 million in the first quarter of this year from SR 38.16 million a year ago, while the profit per share declined to SR 1.01 from SR 1.08.

The reason for the decrease is due to the following:

The net income decreased for Quarter 1 of year 2022 by 6 % with 1.6 million compared to Quarter 1 of last year and this is mainly due to the following:

• Increase in General and Administrative expenses by 5.3 million during this quarter compared to last year due to increase in provisions, increase in bidding costs of new projects, and cost of subscription fees in Saudi capital market
• Increase in the Zakat provision by 0.5 million during this quarter compared to last year quarter
• Increase of the company revenue by 40.5 million which commensurate with the increase of the cost of revenue by 35.1 million and increase in gross profit by 5.4 million equivalent to 14.2% due to increase in the number of projects of the company.

The reason for the decrease is due to the following:

The net income decreased for Quarter 1 of year 2022 by 21.7% with 7 Million compared to previous quarter is mainly due to the following:

• Increase in General and Administrative expenses by 7.1 million during this quarter compared to last year due to increase in provisions, and cost of subscription fees in Saudi capital market
• Increase in the Zakat provision by 2.8 million during this quarter compared to previous quarter
• Increase of the company revenue by 10.3 million which commensurate with the increase of the cost of revenue by 6.2 million and increase in gross profit by 4.1 million equivalent to 10.3% due to increase in the number of projects of the company.