Alujain Rebounds to Profitability with 5.6 Million Riyals in Q1

Alujain Company announced a net profit of 5.6 million riyals in the first quarter of 2024, a significant turnaround from losses of 21 million riyals in the same quarter last year. This follows today’s release of estimated financial results for the period ending March 31, 2024 (3 months).

Operating profit surged to 34 million riyals in Q1, marking a 231% growth compared to 10 million riyals in the previous year’s quarter. Earnings per share for the current period stood at 0.08 riyals, in contrast to losses of 0.42 riyals in the same period last year.

The increase in revenues is attributed to a 23% rise in sales quantities. This growth, combined with a 9.7% decrease in propane prices, resulted in the notable increase in net profits during the current quarter compared to the same period last year.

Additionally, the net profit improvement from the fourth quarter of 2023 is credited to a 175% increase in quantities sold and a 2.4% decrease in propane prices.

It’s worth noting that certain comparative figures have been reclassified and adjusted to align with the current period. The operational profit for the current quarter is reported at SR 34.49 million. The variance between net profit and operating profit is attributed to non-operating expenses, including SR 14 million amortization on customer relationship (intangible assets) and SR 16 million financing costs.

Moreover, over SR 282 million have been invested in developing a new project for Alujain during 2023. It’s anticipated that the Front-End Engineering Design phase will conclude in the first half of 2024, with execution beginning in the second half of the year.

NATPET Results (For Q1 2024):

1. NATPET’s sales for the current quarter amounted to SR 478 million, a 22% increase compared to the same quarter of the previous year, driven by a 23% rise in sales quantities.

2. NATPET reported a net profit of SR 43.5 million for the current quarter, marking a 241% increase from the same quarter of the previous year, primarily due to increased selling quantities and decreased propane prices.

3. Total shareholders’ equity of NATPET at the end of the current period amounted to SR 2,383 million, compared to SR 3,171 million at the end of the same period of the previous year, primarily due to dividends paid during 2023.