Advanced Petrochemical Interim Profits Dropped by 58% in Q2 to SAR110 Million

Advanced Petrochemical Co’s net profit after deducting Zakat and tax reached SAR110 million in the second quarter, compared to SAR265 million in the same quarter of the previous year at 58.49%.

As a consequence of today’s announcement, the estimated financial results pertain to the year ended June 30, 2022 (six months).

The operating profits amounted to SAR133 million in the fourth quarter, compared to SAR284 million in the same quarter of the previous year, a decline of 53.17%.

However, the aggregate profits amounted to SAR814 million in the second quarter, compared to SAR769 million in the same quarter of the previous year, equaling a 5.85% rise.

Advanced Petrochemical Co’s net profit after deducting Zakat and tax reached SAR274 million during the current period, compared to SAR436 million during the previous year, a decline of 37.16%.

Earnings per Share during the current period were SAR1.07, compared to SAR1,68 during the same period of the previous year.

A drop in the net profit of 58%, compared to the second quarter of 2021, was mainly due to the following reasons:

–  an increase in propane and propylene prices from external sources at 60% and 15%, respectively.

– a decline in investment income for SK Advanced by SAR45 million.

– a rise in external shipping expenses by 165%.

– A drop in net profit above despite a 13% rise in sales.

A decline in the net profit of 33% compared to the first quarter of 2022 was mainly due to the following reasons:

– Propane prices rise by 13%.

– a decline in loss stake from investment in SK Advance by 4 million Saudi riyals.

A decline in the net profit of 37%, compared to the same period of 2021, was mainly due to the following reasons:

–  an increase in propane and propylene prices from external sources at 51% and 20%, respectively.

– a decline in investment income for SK Advanced by SAR 75 million.

– a rise in external shipping expenses by 174%.

– A drop in net profit above despite a 24% rise in sales.

The following notes pertain to the external auditor’s reservations where he draws attention to some points:

the company’s management has prepared these estimated financial results for the period ended June 30, 2022, which are neither examined nor audited by the company’s external auditor.

Some general and administrative expenses are reclassified to fit into the Group’s common services system to distribute costs between subsidiaries.

The terms of the comparison periods have therefore been reclassified to correspond to the current period.

It is worth mentioning that the net profit for the second quarter of 2022 also amounts to SAR19 million, a stake of losses from investment in SK Advanced Ltd in South Korea, compared to a profit stake of SAR 26 million for the same quarter of 2021 and SAR 15 million for losses for the first quarter of 2022.

Net profit for the six months of 2022 also reaches SAR 33 million, a loss stake of investment in SK Advanced Ltd., compared to a profit of SAR 42 million for the same period in 2021.

The changes in OCI  from the beginning of the year to date are traced back to unrealized profits/losses from equity investments listed at fair value.

Based on the Extraordinary General Assembly’s approval on March 20, 2022, earnings per share were adjusted for the same period of the previous year due to the increase in the number of shares as a result of the issuance of stock grants by 20.11%