Advanced profits fell 87.6% during Q3 to SR27 mln

Advanced Petrochemical Company revealed that the net profit after zakat and tax declined in the third quarter to SR27 million, compared to SR218 million in the same quarter of last year, at a rate of 87.6%.
This came after the announcement on Wednesday of the preliminary financial results for the period ending on September 30, 2022 (nine months).
The operational profit amounted to SR55 million in the third quarter, compared to SR231 million in the same quarter of the previous year, a decrease of 76%.
The net profit after zakat and tax in the 9-month period amounted to SR301 million, compared to SR654 million in the same period last year, down 54%.
The gross shareholders’ equity “without minority rights” amounted to SR3.2 billion in the current period, compared to SR4 billion in the same period last year, a decrease of 18.8%.
Profits per share in the current period amounted to SR1.16, compared to SR2.51 in the same period last year.
Net profit decreased by 88% compared to Q3 2021 mainly due to the following:
– Decrease in sales prices by 22%.
– Increase in share of loss in SK Advanced Co. Ltd. investment by SR25 million.
– Increase in propane price by 6%.
The above decrease in net profit was despite the following:
– Increase in sales volume by 4%.
– Decrease in propylene purchase price by 5%.
Net profit decreased by 75% compared to Q2 2022 mainly due to the following:
– Decrease in sales prices by 23%.
– Increase in share of loss in SK Advanced Co. Ltd. investment by SR12 million.
The above decrease in net profit was despite the following:
– Decrease in propane and propylene purchase prices by 18% and 20% respectively
– Increase in sales volume by 5%.
Net profit decreased by 54% compared to a similar period in 2021 mainly due to the following:
– Decrease in sales prices by 9%.
– Decrease in share of profit in SK Advanced Co. Ltd. investment by SR100 million.
– Increase in propane and propylene purchase prices by 32% and 10% respectively.
– Increase in offshore logistics expense by 105%.
The above decrease in net profit was despite the increase in sales volume by 17%.
Some elements of general and administrative expenses have been reclassified to meet the implementation of the shared services in the group to distribute the costs among Advanced subsidiaries. Consequently, the items of the comparison period were reclassified to meet the current period classification.
Net profit for Q3 2022 includes SR30 million share of losses in SK Advanced Co. Ltd. investment in South Korea compared to SR5 million losses for the same quarter in 2021 and SR19 million loss for Q2 2022.
Net profit for the Nine months period of 2022 includes SR63 million share of losses in SK Advanced Co. Ltd investment compared to SR37 million share in profit for the same period in 2021.
As of year to date, the change in comprehensive income is mainly due to unrealized gain/loss on the equity investment at fair value.
Prtofits per share for same period last year is adjusted due to increase in number of shares as a result of issuance of 20.11% bonus shares pursuant to Extraordinary General Assembly approval dated March 20, 2022.