Saudi Kayan profits jump 186% during the 4Q to 453 million

The net profit of the Saudi Kayan Petrochemical jumped to SR453 million during the fourth quarter, compared to SR158 million during the same quarter of the previous year, at a rate of 186%. 12 months).

As for the operational profit during the current quarter, it amounted to SR543 million, compared to SRR300 million during the same period last year, an increase of 81%.

The gross profit during the current quarter amounted to SR768 million, compared to SR481 million during the same period last year, an increase of 60%.

The net profit during the current period amounted to SR2.39 billion, compared to losses of SR785 million during the same period of the previous year.

Profits per share during the current period amounted to SR1.6, compared to losses of SR0.52 during the same period of the previous year.

The reason for the increase in net profit is due to an increase in the average selling prices of the company’s products and a decrease in financing costs despite the increase in the average cost of feedstock.

The reason for the decrease in net profit is due to an increase in the average cost of feedstock, despite the increase in the average selling prices of the company’s products.

The reason for achieving the net profit is due to an increase in the average selling prices of the company’s products and a decrease in financing costs, despite the increase in the average cost of feedstock.

As part of the periodic follow-up to evaluating the Company’s investments and adapting its accounting treatments to adequately reflect the relevant partners’ agreement, we would like to note that the Company has re-evaluated some significant management judgments and estimates related to determining whether the Company has control, joint control or significant influence in its investment In Saudi Butanol Company Limited.

Whereas Saudi Kayan Company owns 33.33% of the Saudi Butanol Company’s shares capital, the re-evaluation thereof resulted in a change in the accounting treatment and classification of this investment as a “joint operation” in accordance with IFRS 11 “Joint Arrangements” instead of categorizing it as an investment in an “associate company” in accordance with International Accounting Standard IAS No. 28 “Investments in Associates and Joint Ventures”. This change in the accounting treatment was applied during the fourth quarter of the year 2021 with a retroactive effect.

This change did not have any financial impact on the opening equity balances, as well as the company’s net results in the previous announced periods. Some of the financial effects were confined to the opening balances of some items in the statement of financial position and the presentation of the income statement for the year 2020. This investment was recognized by recording the Saudi Kayan share of assets, liabilities, revenues and expenses in the financial statements for all relevant periods.