Sadara Chemical profits down 97% to SR45.9 mln in 1Q

Sadara Chemical Company, Parent of Sadara Basic Services Company, announced that its profits after zakat and tax declined 97% to SR 45.9 million in the first quarter of 2022 compared to 1.61 billion during the same period of 2021.

This came after Sadara Chemical announcement on Tuesday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s operational profit plunged 53.4% to SR 592.3 million in the 1^st quarter of the current year from SR 1.27 billion in the same period of the previous year.

Gross profit of Sadara Chemical was down 46% to SR 735.8 million in the first quarter of this year from SR 1.36 billion a year ago, while total shareholders’ equity (after deducting minority equity) rose 50.4% to SR 6.93 billion from SR 4.61 billion.

The decrease in net profit in the current quarter compared to the same quarter of the last year is mainly attributable to the recognition of modification gain of SAR 1.05 billion from debt reprofiling during the quarter of last year. In addition, the decrease is also due to higher production cost due to higher feedstock prices despite the higher average sales price compared to quarter of last year.

The decrease in net profit in the current quarter compared to the previous quarter is mainly attributable to higher production cost due to higher feedstock prices.

Additional Information:

There are no significant financial details for the listed company.

Sadara Basic Services Company, which was established primarily for the purpose of issuing the Sukuk. Sadara Basic Services Company will not incur any liabilities or undertake any significant transactions other than those relating to Sukuk issuance. Therefore, this

announcement reflects the financial results of the parent company, Sadara Chemical Company.