Saudi Industrial Investment Group turns profitable with SAR 11 million in Q4 of 2023

Saudi Industrial Investment Group has made a significant financial turnaround, reporting a net profit of SAR 11 million during the fourth quarter of 2023. This marks a noteworthy improvement from the loss of SAR 296 million reported in the same quarter of the previous year. The encouraging financial results were disclosed on Thursday in the estimated annual financial results, concluding on December 31, 2023.

The operating profit for the fourth quarter demonstrated a remarkable shift, totalling SAR 24 million, compared to the loss of SAR 308 million in the corresponding quarter of the preceding year.

Despite the positive momentum, the net profit for the overall reporting period experienced a decrease, amounting to SAR 112 million. This represents a 59.5% decline from the SAR 277 million reported in the same period of the previous year.

Earnings per share for the current period were reported at SAR 0.15, down from SAR 0.41 in the previous period.

The reason for the increase in the net income during current quarter compared with the same quarter of last year is:

– SIIG’s share of profit of the joint ventures has increased in the current quarter, as the JVs have made a profit compared to a loss during the same quarter of last year, as a result of a scheduled turnaround maintenance during the same quarter of last year for SIIG’s JV “Saudi Polymer Company”.

Note that there were:

– A decrease in the financing income “Murabaha”.

– An increase in the Zakat expense.

The reasons for the decrease in the net income during the current quarter compared with the previous quarter is:

1- SIIG’s share of profit of the joint ventures has decreased due to:

– An increase in the feedstock costs.

– A decrease in the sales quantities.

2- A decrease in the financing income “Murabaha”.

3- An increase in the Zakat expense.

The reasons for the decrease in the net income during the current period compared with the same period of last year are:

1- SIIG’s share of profit of the joint ventures has decreased due to:

– The unplanned shutdown of the project “Saudi Polymer Company” during the current period of the current year.

– A decrease in the selling prices.

Note that there were:

– An increase in the financing income “Murabaha”.

– A decrease in the general and administrative expenses.