Saudi Chemical’s Profits Soar 183% to SAR 91.4 Million in First Quarter

Saudi Chemical Holding Company reported on Sunday a significant increase in net profits, reaching SAR 91.4 million during the first quarter of 2024, up 183.3% from SAR 32.2 million in the same quarter of the previous year. This substantial growth accompanies the release of the estimated financial results for the period ending March 31, 2024.

Operating profits also saw a robust increase, reaching SAR 119.2 million, up 70.5% from SAR 70 million in the prior year’s first quarter. Earnings per share rose to SAR 0.11, up from SAR 0.04 in the same period last year.

Total revenues for the quarter surged by 58%, amounting to SAR 605.6 million, primarily driven by increased product sales volumes.

The notable rise in net income is attributed to several factors:

• A higher operating profit bolstered by increased sales volumes.

• A revaluation gain on derivative financial instruments tied to interest rate exposure.

• A reduction in zakat and tax provisions.

Additionally, compared to the previous quarter, revenues grew by SAR 236 million, a 17% increase, again due to heightened sales volumes. The improvement in net income reflects several positive developments:

• Enhanced revenue streams.

• Lower expected credit losses on trade receivables.

• Reduced finance costs.

• Continuation of gains from revaluation of interest rate exposure derivatives. Despite these gains, the company faced increased selling and general expenses along with a rise in zakat and tax provisions