Tuesday, 16 July 2024

Advanced Petrochemical profits hit 40% by SR218 during third quarter

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Advanced Petrochemical Company’s net profit after zakat and tax jumped to SR218 million during the third quarter, compared to SR156 million during the same quarter of the previous year by 39.7%.

This came after the announcement of the estimated financial results for the period ended on 30 September 2021 (nine months).

The operational profit reached SR231 million during the third quarter, compared to SR140 million during the same quarter of the previous year with a growth of 65%.

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The gross profit reached SR SR270 million during the third quarter, compared to SR172 million during the same quarter of the previous year by an increase of 57%.

Net profit after zakat and tax during the current period reached SR654 million, compared to SR416 million during the corresponding period of the previous year by an increase of 57.2%.

The profit per share during the current period reached SR3.02 compared to SR1.921 during the corresponding period of the previous year.

The reason of the increase in the net profit during the current quarter compared to the same quarter of the last year is that net profit increased by 39% compared to Q3 2020 mainly due to the increase in polypropylene sales prices by 47%.

The above increase in net profit was despite of the increase in propane and outsourced propylene prices by 108% and 27% respectively, the increase in general and administrative expenses by 27%, the decrease in share of profit on SK Advanced investment by SR27 million and the increase in offshore logistic cost by 195%.

The reason of the increase in the net profit during the current quarter compared to the previous period of the current year is the net profit decreased by 18% compared to Q2 2021 mainly due to the, decrease in polypropylene sales prices by 8%, the decrease in share of profit on SK Advanced investment by SR 31 million, the increase in offshore logistic cost by 32%.

The above decrease in net profit was despite of the increase in polypropylene sales volume 14%, the decrease in general and administrative expenses by 22%.

The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is that the net profit increased by 57% compared to a similar period in 2020 mainly due to the increase in polypropylene sales prices by 51% and the increase in share of profit on SK Advanced investment by SR 26 million.

The above increase in net profit was despite of the decrease in sales volume by 14% resulting from 2021 periodic scheduled maintenance, increase in propane and outsourced propylene prices by 70% & 37% respectively, increase in general and administrative expenses by 47% and the increase in offshore logistic cost by 131%.

Net profit for Q3 2021 also includes SR5 million shares in loss on investment in SK Advanced Co. Ltd. in South Korea compared to SR 22 million shares in profit for the same quarter in 2020 and SR26 million profit for Q2 2021.

Net profit for the nine months period of 2021 also includes SR 37 million shares in profit on investment in SK Advanced Co. Ltd compared to SR 11 million shares in profit for the same period in 2020.

As of year to date, the increase in comprehensive income is mainly due to unrealized gain on equity investment at fair value.

Advanced reached an agreement with Zakat, Tax and Customs Authority to settle zakat and income tax assessments for the years 2006, 2008 through 2013 of SR 30 Million.

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