Tuesday, 28 May 2024

Sadara Chemical records SR1.85 losses during 2022‎


Sadara Basic Services Company announced that its parent company, Sadara Chemical Co., recorded losses after zakat and tax of 1.85 billion riyals during the year 2022 AD, compared to a profit of 3 billion riyals in the year 2021 AD. This came after today’s announcement of the annual financial results ending in 2022. -12-31.

The operational profit amounted to 485 million riyals during the year ending in 2022, compared to 4.4 billion riyals in the previous year, a decrease of 89%.

As for the total profit, it amounted to 1.02 billion riyals in the current year, compared to 5 billion riyals in the previous year, with a decrease of 80%.

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The loss per share in the current year amounted to 0.56 riyals, compared to a profit of 0.81 riyals in the previous year.

The decrease in net profit in the current year compared to last year is mainly due to lower product prices and higher feedstock cost despite the higher sales volume, which led to lower margin. In addition, there was a positive impact from debt rescheduling during the past year, which achieved a gain of 1.05 billion riyals compared to the current year.

The company said that there is no detailed material data for Sadara Basic Services, as the main purpose of its establishment is the issuance of sukuk. It will not have any significant obligations or transactions except in relation to the sukuk. On this basis, this announcement reflects the financial results of the parent company, Sadara Chemicals Company.

In light of the accumulated losses, which still exceed 50% of its capital, the company held a meeting of the general assembly and issued a decision to continue it, in accordance with the requirements of the Companies Law and the Ministry of Commerce.