Alujain Holdings Posted SR56.7 mln Net Profit 

Alujain Holding Company made a net profit after zakat and tax of SR56.74 million, up from SR15.92 million, in the same quarter the previous year, a 256.41% gain.

This came after the preliminary financial results for the period ending September 30, 2021 were released for (9-month).

Operational profit for Q3 was SR59.37 million, up from SR16.45 million, in the same quarter of the previous year, representing a 260.9% rise.

The total profit for Q3 was SR1.32 million, up from SR0.31 million, in the same quarter the previous year, a 325.8% rise.

Earnings per share for the current quarter were SR3.02, compared to a loss of SR2.2 for the same quarter last year.

The following factors contributed to the increase in net profit in the current quarter compared to the same quarter the previous year:

1. Alujain Holding Company’s portion of the National Petrochemical Industries Company’s (NATPET) net profits grew by SR37 million.

1. General and administrative costs were reduced by SR5 million.

Similarly, the following factors contributed to the drop in net profit in the current quarter compared to the prior quarter:

1. NATPET’s net profit was reduced by SR41 million, thanks to Alujain Holding Company.

1. The cost of financing increased by SR2 million.

Furthermore, the following factors contributed to the increase in net profit in the current period as compared to the same time the prior year:

1. The Alujain Holding Company’s part of NATPET’s net profit grew by SR53 million.

1. General and administrative costs were reduced by SR6 million.

We’d like to draw your attention to Note No. (4) in the condensed consolidated interim financial statements, which states that in June 2021, the National Petrochemical Industries Company “NATPET” (an associate company) completed all of the procedures for transferring ownership of Menna Company, Fasil Advanced Chemicals Company, Crown Towers for Plastic Industries, and Afaq Professional Chemicals Company (the “Four Companies”) based on the directives of the Board of Directors. Our conclusion has not changed as a result of that.

• During Q3-2021, Alujain Holding Company boosted its stakeholding in NATPET by 17.58% (from 57.40% to 74.98%) by purchasing 18,811,272 shares for SR896 million. 
• Given that the additional shareholding took place on 8-16-2021 and 9-21-2021, as announced on the Tadawul website, the additional relative financial impact for Q3-2021 amounted to SR9.56 million from NATPET’s net profit, and the financial impact of the entire additional percentage will appear, during Q4-2021.

• During the 2020, the four companies (Fawasel Advanced Petrochemical Company, Afaq Professional Chemicals Company, Menna Company, and Al-Taj Towers Company for Plastic Industries) purchased shares in Alujain Holding Company, with a market value of SR1,343 million, as of June 30, 2021, and net unrealized profits of SR715 million included in comprehensive income in NATPET’s consolidated financial statements.

• NATPET completed all of the procedures for transferring ownership of the four companies (Fawasel Advanced Petrochemical Company, Afaq Professional Chemicals Company, Menna Company, and Al-Taj Towers Plastic Industries Company) to NATPET on June 23, 2021, making NATPET the sole owner of the four.

NATPET results (for Q3-2021)

1. NATPET sales for Q3-2021 totaled SR421 million, up from SR387 million in the same quarter last year, a 9% rise.

1. NATPET’s net profit for Q3-2021G was SR90 million, up from SR42 million in the same quarter the previous year, a 114% gain due to increased sales prices.

1. NATPET sales in Q3-2021 totaled SR421 million, a decrease of 23% from Q2-2021 due to lower product prices and lower sales volume due to emergency cooling system unit malfunctions, which were repaired, and work is underway to determine the causes of the malfunctions in the future.

1. NATPET’s net profit in Q3-2021 was SR90 million, down from SR177 million, in Q2 of this year, owing to a fall in sales volume, a decrease in sales prices, an increase in feedstock prices, and an increase in shipping expenses.

1. The average price of polypropylene products increased in Q3-2021 compared to the same quarter the previous year, owing to the general recovery of commodities markets and factors connected to global supply chain irregularity, which influenced pricing positively.

1. In Q4-2021, NATPET anticipates a relative increase in sales prices and quantities compared to Q3-2021, which will positively impact the company’s results.

The following are the NATPET results for the 9-month period ending September 30, 2021:

1. NATPET’s sales for the current period were SR1,398 million, a rise of 81% over the same period the previous year.

1. NATPET’s net profit for the current period was SR381 million, up from SR306 million in the previous year’s same period, a 25% increase, considering that the profit for the same time in 2020, included insurance compensation of SR330 million.

1. NATPET’s operating profit for the current period was SR532 million, up from SR122 million in the previous year’s same period, a 337% rise (without taking into account the insurance settlement of SR 330 million, which was received during the same period of the previous year).

1. NATPET’s earnings per share for the current period were SR3.56 per share, up from SR2.86 in the previous year’s same period.