Sadara Basic Services records profit of SR229 mln in Q2, down ‎‎62%‎

Sadara Basic Services Company announced that its parent company, Sadara Chemicals, recorded a net profit after zakat and tax in the second quarter of 229.1 million riyals, compared to 606.2 million riyals in the same quarter of last year, a decline of 62.2%, this came after the announcement of the financial results today of its parent company, Sadara Chemicals, for the period ending 06-30-2022 (six months).

The operational profit amounted to 785.1 million riyals in the second quarter, compared to 1.18 billion riyals in the same quarter of the previous year, a decline of 33.6%.

The net profit after zakat and tax in the 6-month period amounted to 275 million riyals, compared to 2.22 billion riyals in the same period last year, a decrease of 87.6%.

The total shareholders’ equity “without minority rights” amounted to 7.5 billion riyals in the current period, compared to 5.19 billion riyals in the same period last year, a growth of 45.5%.

profits per share in the current period amounted to 0.05 riyals, compared to 0.6 riyals in the same period last year.

The decrease in the net profit in the current quarter compared to the last year is mainly attributable to higher production costs due to higher feedstock prices. In addition, there were higher marketing costs and lower revenue resulted from lower sales volume despite the higher average sales prices.

The increase in the net profit in the current quarter compared to the previous quarter is mainly attributable to higher revenue due to higher sales volume and lower marketing costs despite the lower average sales prices and the higher production costs.

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

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.