1320 · 05/05/2019 08:23:00 · Announcement #54773 · View on Saudi Exchange

Saudi Steel Pipe Co. announces the estimated consolidated Financial results for the period ending on 2019-03-31 ( Three Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 195.31177.1410.257186.294.841
Total Profit (Loss) 12.5316.8-25.416-6.61-
Profit (Loss) Operational 2.616.55-60.152-21.05-
Net Profit (Loss) after Zakat and Tax 0.32-5.04--102.64-
Total Comprehensive Income 0.32-5.04--103.95-
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (after deducting minority equity) 559.77724.27-22.712
Profit (Loss) per Share 0.01-0.1
All figures are in (Millions) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
126,469,085510,000,00024.8
Element ListExplanation
Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year Net profit of SR 0.32 million for Q1 2019 compared to a net loss of SR 5.04 million for Q1 2018 is due to the following main reasons:

(a) Share of profit in associate company (Global Pipe Company) for current quarter amounting to SR 3.1 million compared to share of loss for the same quarter last year amounting to SR 8.2 million.

(b) Reversal of impairment for receivables amounting to SR 0.63 million compared to a charge for the same quarter last year of SR 0.24 million.

(c) Zakat and income tax charge for current quarter of SR 0.16 million, compared to SR 0.82 million, a decrease of 80%, for the same quarter last year.

Despite revenue growing to SR 195.31 million in Q1 2019, a growth of 10.26% from Q1 2018, gross profits declined to SR 12.53 million, mainly due to change in sales mix, compared to SR 16.8 million for the same quarter last year. Moreover, borrowing charges for Q1 2019 increased to SR 5.2 million, an increase of 103.2% from the same quarter last year. Reason for increase (decrease) in net profit for current quarter compared to the previous quarter Net profit of SR 0.32 million for Q1 2019 compared to a net loss of SR 102.64 million for Q4 2018 due to the following main reasons:

(a) Impairment charges for fixed assets of SR 51.99 million accounted for in Q4 2018.

(b) Provision against guarantee provided to an investee company of SR 30 million accounted for in Q4 2018.

(c) Gross profit increasing to SR 12.53 million in Q1 2019, due to higher sales volume and change in sales mix, compared to a gross loss of SR 6.61 million for the previous quarter.

(d) Reversal of impairment for receivables amounting to SR 0.63 million compared to a charge for the previous quarter of SR 2 million.

Net profit for current quarter was partially offset by the decrease in share of profit in associate company (Global Pipe Company) to SR 3.1 million for current quarter compared to SR 5.3 million for the previous quarter. Type of the external auditor's opinion Unmodified opinion External auditor's report containing reservation These estimated financial results for the period ended March 31, 2019 are prepared by the management of the Company and these results are not reviewed by the external auditors. Reclassifications in quarter financial result Items, elements and notes of the comparatives in the financial statements have been restated, regrouped and reclassified, as applicable, to be consistent with the presentation and accounting policies adopted for the current period. Additional Information Q4 2018 net loss is higher by SR 2 million compared to the announcement made on Tadawul on January 21, 2019 due to the additional provisions for obsolete inventory accounted for in the audited financial statements.

From January 1, 2019, the Company has adopted IFRS 16 for Leases with no material impact on the results of its interim financial statements.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.