Saudi Steel Pipe Co. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 94.69 | 122.34 | -22.6 | 156.99 | -39.684 |
| Gross Profit (Loss) | 3.97 | 4.49 | -11.581 | 9.22 | -56.941 |
| Operational Profit (Loss) | -4.69 | -18.06 | -74.031 | 1.65 | - |
| Net Profit (Loss) after Zakat and Tax | -8.48 | -17.77 | -52.279 | 0.74 | - |
| Total Comprehensive Income | -8.48 | -17.77 | -52.279 | -0.8 | 960 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after Deducting Minority Equity) | 484.71 | 510.29 | -5.012 |
| Profit (Loss) per Share | -0.17 | -0.35 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 69.78 | 510 | 13.68 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Net loss of SR 8.48 million for the first quarter of financial year 2021 (“Q1 2021”) compared to a net loss of SR 17.77 million for the first quarter of financial year 2020 (“Q1 2020”) is due to the following main reasons: |
a) Administrative expenses decreased to SR 7.46 million from SR 18.77 million in Q1 2020, mainly due to the reduction of structural costs and service indemnity costs.
b) Trade receivables impairment reversal amounting to SR 1.50 million compared to a charge of SR (0.75) million in Q1 2020.
c) Financial charges decreased to SR 1.65 million from SR 3.14 million in Q1 2020, mainly as a result of the reduction of net debt and the optimization financing sources.
The above listed positive changes were partially offset by the share of loss in an affiliate (Global Pipes Company) amounting to SR (2.99) million compared to a share of profit amounting to SR 0.04 million in Q1 2020, and the decrease in zakat and tax credit to SR 0.86 million from SR 3.40 million in Q1 2020.
The EBITDA represent earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges.
SSP recorded a positive EBITDA of SR 6.53 million in Q1 2021 compared to a negative EBITDA of SR (6.91) million in Q1 2020. Excluding non-recurrent charges, adjusted EBITDA is SR 8.18 million, in Q1 2021 compared to SR 3.41 million in Q1 2020.
In addition, SSP recorded a positive free cash flows of SR 39.17 million in Q1 2021, compared to a negative SR (35.35) million in Q1 2020. Net debt decrease from SR 285.16 million in Q1 2020 to SR 177.74 million in Q1 2021, the lowest since 2013. This improvement reflects cash discipline measures and working capital management implemented by the company.
a) Gross profit decreased to SR 3.97 million from SR 9.22 million in Q4 2020, mainly as a result of lower volumes and product mix.
b) Share of loss in an affiliate (Global Pipes Company) increased to SR 2.99 million from SR 0.25 million in Q4 2020.
c) Financial charges amounting to SR (1.65) million compared to income amounting to SR 0.22 million in Q4 2020, mainly as a result of the modification gain on rescheduling of a loan booked in Q4 2020.
d) Administrative expenses increased to SR 7.46 million from SR 6.43 million in Q4 2020, due mainly to higher end of service indemnity costs booked in Q1 2021.
The above listed negative changes were partially offset by zakat and income tax credit amounting to SR 0.86 million compared to an expense of SR (0.88) in Q4 2020, and the increase in trade receivables impairment reversal to SR 1.50 million from SR 1.01 million in Q4 2020.
The EBITDA represent earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges.
SSP recorded a positive EBITDA of SR 6.53 million in Q1 2021 compared to SR 12.97 million in Q4 2020. Excluding non-recurrent charges, adjusted EBITDA is SR 8.18 million in Q1 2021 compared to SR 13.54 million in Q4 2020.
In addition, SSP recorded a positive free cash flows of SR 39.17 million in Q1 2021 compared to SR 115.29 million in Q4 2020, mainly due to the decrease in working capital by the end of Q4 2020. Net debt decreased from SR 217.24 million in Q4 2020 to SR 177.74 million in Q1 2021. This improvement reflects cash discipline measures implemented by the company.
- Note 2 to the accompanying condensed consolidated interim financial statements; where the accumulated losses of TSM Arabia (the subsidiary) as at March 31, 2021 have exceeded its share capital by SR 140.5 million (December 31, 2020: SR 141.6 million). The Board of Directors of the Group has resolved to provide sufficient financial support to enable TSM Arabia to meet its financial obligations as and when they fall due. Further, as stated in note 15 to the accompanying condensed consolidated interim financial statements, subsequent to the period end, TSM Arabia has entered into a definitive asset purchase agreement for sale of its main operating assets for SR 36.3 million subject to certain approvals.
- Note 14 to the accompanying condensed consolidated interim financial statements with respect to certain electronic title deeds related to the Group land plots which became inactive due to cancellation by court order which management has learnt during the period ended March 31, 2021.
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