Alkhorayef Profits Increase to 43 Million Riyals in First Quarter, Up 31.5%

Alkhorayef Water and Power Technologies Company reported a net profit of 43 million riyals for the first quarter, a 31.5% increase from 32.7 million riyals in the same quarter last year. This follows today’s announcement of the preliminary financial results for the period ending on March 31, 2024 (three months).

Operating profit reached 60.7 million riyals in the first quarter, compared to 46.7 million riyals in the same quarter of the previous year, marking a growth of 29.8%. Total shareholders’ equity (excluding minority rights) amounted to 580.6 million riyals for the three-month period, compared to 430.3 million riyals in the same period last year, an increase of 34.9%. Earnings per share in the current period were 1.72 riyals, compared to 1.31 riyals in the same period last year.

The reason for the increase in revenue for the current quarter to 458 million riyals, by 42.5% compared to the same quarter of the last year, is mainly due to the increased revenue in Water segment by 83.5%, due to the revenue generated from the new projects.

Increase in net profit during the current quarter by 31.6% compared to the same quarter of the last year mainly driven by the following:

Revenue:

Revenue increased during the current quarter to 458 million riyals equivalent to an increase of 42.5% compared to the same quarter of the last year due to the revenue generated from the new projects.

Operating profits:

Operating profit increased during the current quarter to 60.8 million riyals, equivalent to an increase of 29.9% compared to the current quarter of the last year 46.8 million riyals, is driven by the new projects that the company has been awarded, despite the increase in pricing of diesel and taking provisions in the amount of 3.7 million related to penalties and credit expected loss

The reason for the decrease in revenue for the current quarter to 458 million riyals, by

-8.9% compared to the last quarter, is mainly due to the completion of existing contracts and awaiting for the start of the recently awarded contracts starting from the second quarter of 2024.

Increase in net profit during the current quarter by 45% compared to the last quarter mainly driven due to the following:

Operating profits:

Operating profit increased during the current quarter to 60.8 million riyals, equivalent to an increase of 23% compared to the last quarter 49.3 million riyals, is driven by the new projects that the company has been awarded, and despite the increase in pricing of diesel