Refineries profits jump 114% during the 3Q to SR828 thousand

Saudi Arabia Refineries Company net profit after zakat and tax jumped to SR828 thousand during the third quarter, compared to SR386 thousand during the same quarter of the previous year, at a rate of 114%.

This came following the announcement made by Saudi Arabian Refineries Company of its interim financial results for the period ending on 30-9-2021 (nine Months).

The operational loss amounted to SR606 thousand during the third quarter, compared to a profit of SR346 thousand during the same quarter of the previous year.

The gross loss amounted to SR130 thousand million during the third quarter, compared to a profit of SR864 thousand during the same quarter of the previous year.

The net profit after zakat and tax during the current period amounted to 8 million riyals, compared to 6 million riyals during the same period of the previous year, an increase of 28%.

Profits per share during the current period amounted to 0.55 riyals, compared to 0.43 riyals during the same period of the previous year.

The reason for the increase in profit during the current quarter compared to the same quarter of the previous year is due to the redemption of provisions that were no longer intended (the bank guarantee of the Arab Sulfonate Company) in the amount of 1,529,119 riyals

The reason for the decrease in profit during the current quarter compared to the previous quarter is due to the company receiving in the previous quarter to the dividends due for the first half of 2021 from the Saudi Industrial Investment Group Company (an invested company) amounting to SR7,597,240.

The reason for the increase in net profit during the current period compared to the same period of the previous year is due to the redemption of provisions that were no longer intended (the bank guarantee of the Arab Sulfonate Company) in the amount of 1,529,119 riyals, and also the increase in the company’s share of the profits of the associate company during the current period (profits from the contribution to the Arab Tanker Company).

The company drew attention to the stated in note (19) to the interim condensed financial statements, in respect of the fiftieth ordinary general assembly of the shareholders of the company dated April 21, 2021 (corresponding to Ramadan 9, 1442 H), the following resolutions have been made:

Non-approval of the Board of Directors report and the financial statements for the financial year ended December 31, 2020, and the auditor’s report, as well as not exonerating the Board of Directors’ members from liability for the year 2020.

The company’s management believes that there is no need for a new ordinary general assembly to be held for shareholders because the reason for non-approval was due to the fact that the percentage of voting in the general assembly was the majority for those abstaining from voting. Our opinion has not been modified accordingly.

During the period, the bank guarantee of the Arab Sulfonate Company Ltd. was settled with the Saudi British Bank (SABB), as the bank absolved the Saudi Arabian Refineries Company, as one of the guarantors, from any future claims related to the guarantee.