Alujain Profits Fell to SR63 mln during 2Q, by 31.5%

07 Aug 2022

Riyadh - Maaal

Alujain Company revealed that the net profit after zakat and tax in the 2Q decreased to SR63 million, compared to SR92 million in the same quarter of last year, at a rate of 31.5%.

This came after Alujain Company’s announcement on Sunday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The operational profit amounted to SR87.8 million in the 2Q, compared to SR92.4 million in the same quarter of the previous year, a decrease of 5%.

اقرأ المزيد

The net profit after zakat and tax in the 6-month period amounted to SR118.7 million, compared to SR152.2 million in the same period last year, a decrease of 22%.

The gross shareholders’ equity “without minority rights” amounted to SR2.6 billion in the current period, compared to SR1.8 billion in the same period last year, a growth of 43%.

Profits per share in the current period amounted to SR2.41, compared to SR2.2 in the same period last year.

The reason for the decrease in net profit during the current quarter compared to the same quarter of the previous year is due to the following main reasons:

The decrease in Alujain’s share in net profit of the subsidiary company, National Petrochemical Industrial Company (“NATPET”), which was significantly affected by the rise in propane prices compared to the same quarter of the previous year.
The increase in financing costs as the company obtained Islamic Murabaha facilities in the third quarter of 2021 to be used in acquiring additional shares in NATPET.

The reason for the increase in net profit during the current quarter compared to the previous quarter is due to increase in NATPET’s revenues compared to the previous quarter.

The reason for the decrease in net profit during the current quarter compared to the same quarter of the previous year is due to decrease in Alujain’s share in net profit of NATPET and increase in finance cost

Certain reclassifications were made in comparative numbers to conform to the current period

On November 11, 2021, Alujain fulfilled all requirements to establish control over NATPET in accordance with the accounting standards, which was previously announced on 30-1-2022 on Saudi Stock Exchange (Tadawul). On establishing control, Alujain started to consolidate NATPET financial statements, and accordingly the comparative figures are way above as compared to the previous year.

The current quarter and current period are not comparable with the same quarter and the same period of the previous year (non-consolidated) due to the consolidation with NATPET, as explained above.

Alujain increased its ownership in NATPET from 75.37% to 76.40% by purchasing additional shares in several deals with a total percentage of 1.03% during the first quarter of 2022.

NATPET results (For current quarter):

NATPET sales during current quarter amounted to SR570 Million, with an increase of 4% compared to the same quarter of previous year and an increase of 13% compared to the sales of previous quarter.
The net profit of NATPET during current quarter of amounted to SR128 million.

The reason for the increase in net profit during the current quarter compared to the previous quarter is due to increase in NATPET’s revenues compared to the previous quarter.

Certain reclassifications were made in comparative numbers to conform to the current period

The current quarter and current period are not comparable with the same quarter and same period of the previous year (non-consolidated) due to the consolidation with NATPET, as explained above.

Alujain increased its ownership in NATPET from 75.37% to 76.40% by purchasing additional shares in several deals with a total percentage of 1.03% during the first quarter of 2022.

NATPET results (For current quarter):

NATPET sales during current quarter amounted to SR 570 Million, with an increase of 4% compared to the same quarter of previous year and an increase of 13% compared to the sales of previous quarter.
The net profit of NATPET during current quarter of amounted to SR 128 million:

– with an increase of 45% compared to the previous quarter, due to the increase in sales volumes by 21%, and the increase in income from investments.

– with a decrease of 28% compared to the same quarter of previous year due to increase prices of propane by 58% and decrease in selling prices by 7.3% compared to the prices of the second quarter of 2021.

The production during the current quarter was higher by 33% compared to the previous quarter due to the planned plant shutdown for turnaround maintenance in Q1 of 2022.

NATPET results (For six months period ended June 30, 2022):

NATPET’s sales for current period amounted to SR 1,074 million, with an increase of 10% as compared to the sales of the same period of previous year.
NATPET’s net profit for the current period amounted to SR 216 Million, as compared to SR 291 million for the same period of previous year with a decrease of 26%. The main reason is due to increase in prices of propane by 48%.
The production during the current period was lower by 6% as compared to the same period of last year due to the planned plant shutdown for turnaround and maintenance during the current period.
The company was able to mitigate the financial impact of the large rises in propane prices by adopting marketing and sales strategies and plans that are commensurate with market variables and adopting several initiatives to reduce production costs.
NATPET earnings per share for the current period is SR 2.02 per share, as compared to SR 2.72 for the same period of the previous year.
NATPET retained earnings at the end of the current period amounted to SR 1,848 million compared to SR 1,852 million of the same period of the previous year as interim dividends were distributed for the first half of the fiscal year 2022, amounting to SR 192 million.
Gross shareholders ‘equity of NATPET at the end of the current period amounted to SR 3,691 million compared to SR 3,613 million at the end of the same period of the previous year.