SIIG Profits Decrease to SR235 mln during 1Q, by 23%

The net profit after zakat and tax for the Saudi Industrial Investment Group Company (SIIG) decreased to SR235 million during the first quarter, compared to SR305 million during the same quarter of the previous year, by 23%.

This came after SIIG announcement on Tuesday the consolidated preliminary financial results for the period ending on 31.03.2022 (three months).

As for the operational profit, it amounted to SR372 million during the first quarter, compared to SR484 million during the same quarter of the previous year, a decrease of 23%.

Total shareholders’ equity (after excluding minority interests) amounted to SR7.56 billion during the first quarter, compared to SR6.7 billion during the same quarter of the previous year, an increase of 13%.

Profits per share during the current period amounted to SR0.52, compared to SR0.68 during the same period of the previous year.

The reasons for the decrease in net income during the current quarter compared to the same quarter of the previous year are due to:

1. A decrease in SIIG’s share of results, in its jointly managed projects due to an increase in feedstock costs which has lowered their profit margin.

-The reasons for the increase in the net income during the current quarter compared with the previous quarter are due to:

1. An increase in SIIG’s share of results, in its jointly managed projects due to an increase in products selling prices.

2. A decrease in the General and administrative expenses and Zakat expenses.

Certain prior period figures have been re-classified to confirm with the presentation in the current period.

– The issued financial statement on 31.03.2022, had not been affected by the transaction of acquiring Petrochem, as the GA of both companies have approved the transaction on 10.04.2022, therefore the effect of transaction will appear on the second quarter’s financial statement on 30.06.2022.

– In reference to change that National Petrochemical Company “Petrochem” did to the presentation of its financial statements during the year 2021, as it stopped consolidating its financial statements with the Saudi Polymers Company and the Gulf Polymers Distribution Company, and present its investments in the mentioned companies by the equity method and because of the above, SIIG has changed the way it presents its financial statements as well, Therefore, revenue from contracts with customers and gross profit, will not appear in the statement of profit, (loss) income. and this change will not affect by any way the equity of SIIG’s shareholders or the net profits and earnings per share.