Amiantit losses down 93% in Q2 in lower costs ‎

The financial statements of the Saudi Arabian Amiantit Co. showed a decrease in the company’s net losses – after zakat and tax – by 93.17% at the end of the second quarter of this year, reaching 4.038 million riyals, compared to losses for the same period last year, which amounted to 59.105 million riyals.

The company said in a statement to the Saudi market, “Tadawul”, today, Sunday, that the decrease in losses during the comparison periods is due to the continued growth in sales, as the company recorded an increase in revenues during the current quarter of 10.5 million riyals, an increase of 9% over the revenues of the same quarter of the year. The previous one due to the cumulative balance of the carry-over business during the Corona pandemic period and an increase in the volume of new orders, and the company’s efforts to reduce sales costs by 18.9 million Saudi riyals compared to the same quarter of the previous year.

The company also recorded accounting profits in the current quarter of 21.2 million riyals, which were not recorded in the same quarter of the previous year, in addition to a decrease in the zakat provision in the current quarter by 5.5 million riyals compared to the same quarter of last year.

The company achieved net losses of 10.018 million riyals in the first half of this year, compared to losses for the same period in 2021 of 60.450 million riyals, with a decrease in losses of 83.43%.

A decrease in net loss for the current quarter was achieved by 95% compared to the same quarter of the previous year, mostly due to:

• Continued sales growth, as Amiantit Company recorded an increase in revenues during the current quarter amounting to 10.5 million Saudi riyals, an increase of 9% over the revenues of the same quarter of the previous year due to the cumulative balance of business carried over during the Corona pandemic period, and an increase in the volume of new orders, and the company’s efforts to reduce costs Sales of SAR 18.9 million compared to the same quarter of the previous year.
• Accounting profits were recorded in the current quarter in the amount of 21.2 million Saudi riyals, which were not recorded in the same quarter of the previous year.
• A decrease in the provision for zakat in the current quarter by 5.5 million Saudi riyals compared to the same quarter of the previous year.

A decrease in net loss for the current quarter was achieved by 61% compared to the previous quarter, mostly due to:

• Accounting profits were recorded in the current quarter amounting to 21.2 million Saudi riyals, compared to accounting profits recorded in the previous quarter amounting to 12.8 million Saudi riyals.

Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to

A decrease in net loss for the current quarter was achieved by 83% compared to the same period of the previous year, mostly due to:

• Continuing sales growth, as Amiantit Company recorded an increase in revenues during the current period amounting to 15.5 million Saudi riyals, an increase of 7% over the revenues of the same period of the previous year due to the cumulative balance of business carried over during the Corona pandemic period, and an increase in the volume of new orders, and the company’s efforts to reduce costs Sales amounted to 41.4 million Saudi riyals compared to the same period of the previous year.
• Accounting profits were recorded in the current period amounting to 35.5 million Saudi riyals, compared to accounting profits recorded in the same period of the previous year amounting to 36.4 million Saudi riyals.

Additional Information:

1. a) Earnings per Share:

The (loss) per share for the six-month period ended June 30, 2022G was SAR (1.02), calculated by dividing the net (loss) attributable to shareholders of the company of SAR (10.018) million on the weight average number of outstanding shares 9,851,647, and the (loss) per share for the comparative six-month period ended June 30, 2021G was SAR (6.14), calculated by dividing the net (loss) attributable to shareholders of the company of SAR (60.450) million on the weight average number of outstanding shares 9,851,647.

With respect to calculating the earnings per share (loss), the earnings per share (loss) has been calculated in accordance with “International Accounting Standard 33 (IAS 33): Earnings per share.”, Which requires that the number of ordinary shares outstanding before the event be adjusted proportionally to the number of ordinary shares The list is as if the event occurred at the beginning of the earliest displayed period (i.e. comparative figures) and, accordingly, the earnings per share (loss) was calculated by dividing the profit (loss) for the period as if the reduction was made on January 1, 2021G, and accordingly the number of issued shares is calculated 9,900,000 shares according to the new capital, minus the number of shares held on the Employee Ownership Program, which amounts to 48,353 shares.

1. b) It is worth noting that in the announcement introduction, the (loss) after zakat and foreign income tax and total comprehensive (loss) have been added only for shareholders of the company, whereby in the six-months period ended 30-06-2022G, the net (loss) after zakat and foreign income tax is SAR (10.237) million, includes SAR (0.219) million for non-controlling interests and SAR (10.018) million for shareholders of the company, and in the three-months period ended on 30-06-2022G, the net (loss) after zakat and foreign income tax is SAR (2.860) million includes SAR 1.178 million for non-controlling interests and SAR (4.038) million for shareholders of the company.

While in the six-months period ended 30-06-2021G, the net (loss) after zakat and foreign income tax is SAR (61.751) million, includes SAR (1.301) million for non-controlling interests and SAR (60.450) million for shareholders of the company, and in the three-months period ended on 30-06-2021G, the net (loss) after zakat and foreign income tax is SAR (59.463) million includes SAR (0.358) million for non-controlling interests and SAR (59.105) million for shareholders of the company.

For the total comprehensive (loss) in the six-months period ended 30-06-2022G is SAR (42.707) million, includes SAR 0.603 million for non-controlling interests and SAR (43.310) million for shareholders of the company, and in the three-months period ending on 30-06-2022G, the total comprehensive (loss) is SAR (26.401) million includes SAR 1.030 million for non-controlling interests and SAR (27.431) million for shareholders of the company.

While the total comprehensive (loss) in the six-months period ended 30-06-2021G is SAR (72.487) million, includes SAR (1.228) million for non-controlling interests and SAR (71.259) million for shareholders of the company, and in the three-months period ending on 30-06-2021G, the total comprehensive (loss) is SAR (51.660) million includes SAR (0.324) million for non-controlling interests and SAR (51.336) million for shareholders of the company.

1. c) Apply the fair value or revaluation model to measure real estate and investment properties:

In addition to what the company announced on the Tadawul website on December 28, 2021G regarding the decision of its board of directors to use the fair value or revaluation model to measure real estate and investment properties, this policy has started to apply as of the second quarter of 2022, and as a result, the company would like to note that the financial impact over the net assets increased by 375.780 million Saudi riyals and that it does not result in a cash flow within the company.

1. d) Accumulated Losses reaching 33.95% of Share Capital:

The company came to know on this announcement publishing date that its accumulated losses have reached 33.95% of its share capital, the total accumulated losses reached 33.612 million Saudi riyals, and the company will apply the procedures and instructions in this regard.

So according to article three of the procedures and instructions related to listed companies with accumulated losses reaching 20% or more of their share capital, the company should, immediately and without delay, disclose to the public in a separate announcement when its Accumulated Losses reach 20% or more and less than 35% of its Share Capital. The announcement should reflect the total Accumulated Losses, its percentage of the capital, and the main reasons that caused the losses as mentioned above, with reference that these procedures will be applicable.

In case the announcement coincides with the interim or annual financial results announcement, the company is exempt from the disclosure as a separate announcement if it disclosed the required information as per this paragraph in the interim or annual financial results announcement.