Alujain Holding profits decline 7% to SR55.8 mln in 1Q

Alujain Holding Corp. announced that its profits after zakat and tax declined 7.4% to SR 55.8 million in the first quarter of 2022 compared to 60.3 million during the same period of 2021.

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

The company’s operational profit rose 49.6% to SR 91 million in the 1^st quarter of the current year from SR 61 million in the same period of the previous year.

Total Shareholders’ equity (after Deducting Minority Equity) of Alujain soared 51.2% to SR 2.64 billion in the first quarter of this year from SR 1.75 billion a year ago, while the profit per share climbed to SR 1.13 from SR 0.87.

The reason for the decrease in net profit during the current quarter compared to the same quarter of the previous year is mainly due to the increase in finance cost.

The reason for the decrease in the net profit during the current quarter compared to the fourth quarter of 2021 is due to gain on remeasurement at fair value of National Petrochemical Industrial Company (NATPET) shares owned by Alujain at the control/consolidation date in accordance with the requirements of International Financial Reporting Standards (IFRS), the recorded gain in the fourth quarter of 2021 was SR 1,352 million.

Additional Information:

On November 11, 2021, Alujain fulfilled all requirements to establish control over NATPET in accordance with the accounting standards, which was previously announced on 30-1-2022 on Saudi Stock Exchange (Tadawul). On establishing control, Alujain started to consolidate NATPET financial statements, and accordingly the comparative figures are way above as compared to previous year.

The current quarter is not comparable with the same quarter of the previous (non-consolidated) due to the consolidation with NATPET, as explained above.

Alujain Holding Corp. increased its ownership in NATPET from 75.37% to 76.40%, (1.03%) during the 1st quarter of 2022.

The main reason for the increase in basic earnings per share as compared with Q1 2021, is the impact of Alujain shares owned by NATPET, which are treated as treasury shares on consolidation as per IFRS.

NATPET results (For 1st quarter 2022):

1. NATPET reported total sales during the current quarter amounted to SR 504 million, an increase of 17% compared to the sales of the same quarter of the previous year and a decrease of 17% compared to the sales of 4th quarter of 2021.
2. NATPET’s net profit for the current quarter is SR 88 million, compared to net profit of SR 113 million for the same quarter of the previous year, and compared to net profit of SR 138 million for the 4th quarter of 2021.
3. The main reason for the decrease in the net profits during the current quarter as compared to the same quarter of last year is due to the increase in propane prices by 38%, increase in logistics costs and lower sales quantities as the plant was under turnaround maintenance. The main reason for the decrease in the net profits during the current quarter as compared to the 4th quarter of 2021 is mainly due to the decrease in selling prices and decreased sales quantities by 19% as the plant was under turnaround maintenance.
4. NATPET retained earnings at the end of the current period amounted to SR 1,926 million compared to SR 1,692 million at the end of the same period of the previous year, an increase of 14%.
5. Total shareholders ‘equity of NATPET at the end of the current period amounted to SR 3,885 million compared to SR 2,944 million at the end of the same period of the previous year.