Nama Chemicals Achieve Net Profit of SR4.86 Million during the 3Q

Nama Chemicals Company recorded a net profit after zakat and tax of SR4.86 million during the 3Q, compared to losses of SR9.9 million during the same quarter of the previous year.

This came after Nama Chemicals Company announcement on Sunday about its interim financial results for the period ending on 30-09-2021(Nine Months).

The operational profit amounted to SR5.17 million during the 3Q, compared to SR11.79 million during the same quarter of the previous year.

The gross profit amounted to SR23.66 million during the 3Q, compared to SR3.06 million during the same quarter of the previous year, an increase of 673.84%.

Nama Chemicals Company net profit after zakat and tax during the current period amounted to SR24.4 million, compared to losses of SR20.57 million during the same period of the previous year.

Profits per share during the current period amounted to SR1.05, compared to losses of SR0.88 during the same period of the previous year.

The reason for achieving net profit during the current period compared to the same quarter of the previous year is due to:

• Increase in average selling prices of finished products.
• Reduction in finance cost.
• Decrease in provision for doubtful debts.

However, the increase in selling & distribution expense due to increase in sales quantity and freight charges.

• Increase in major raw material prices.

The reason for the decrease in net profit during the current period compared to the previous quarter is due to

• Decreased of margins profit for some of the company products due to the high prices of major materials prices and high freight charges.
• Decrease in quantities sold.

However, the increase in average selling prices of finished products.

The reason for achieving net profit during the current period compared to the same period of the previous year is due to:

• Increase in average selling prices of all finished products.
• Increase in sold quantities.
• Reduction in finance cost.

However the increase in selling & distribution expense due to increase in sold quantities and freight charges.

• Increase in general and administrative expenses due to additional provisions made during the period.

The company announces accumulated losses amounting to SR46.968 million as on June 30, 2021, which turned into accumulated profits of SR97.345 million as on September 30, 2021. This was done by selling YANSAB shares during 3Q of 2021.

The net proceeds from the sale of YANSAB shares amounting to SR139.65 million were transferred to the Saudi Industrial Development Fund as a one-time partial payment in return for the repayment of the company loans with the Fund, which led to a significant improvement in the company main financial ratios from June 30, 2021 to September 30, 2021.

• The current liquidity ratio: 3Q 2021: 0.82: 1 compared to 0.54: 1 for 2Q 2021
• Debt to Equity Ratio: 3Q 2021 2.54:1 compared to 3.04:1 for 2Q 2021