Saudi Steel Pipe Co. announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 88.48 | 58.26 | 51.87 | 92.08 | -3.909 |
| Gross Profit (Loss) | 4.83 | -14.97 | - | 2.35 | 105.531 |
| Operational Profit (Loss) | -4.96 | -29.82 | -83.366 | -5.76 | -13.888 |
| Net Profit (Loss) after Zakat and Tax | -8.08 | -27.02 | -70.096 | -8.48 | -4.716 |
| Total Comprehensive Income | -8.08 | -27.02 | -70.096 | -8.48 | -4.716 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 180.55 | 169.86 | 6.293 |
| Gross Profit (Loss) | 7.18 | -10.43 | - |
| Operational Profit (Loss) | -10.72 | -46.26 | -76.826 |
| Net Profit (Loss) after Zakat and Tax | -16.56 | -44.79 | -63.027 |
| Total Comprehensive Income | -16.56 | -44.79 | -63.027 |
| Total Share Holders Equity (after Deducting Minority Equity) | 476.63 | 483.27 | -1.373 |
| Profit (Loss) per Share | -0.33 | -0.89 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 77.86 | 510 | 15.26 | |
| 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 (8.08) million for the second quarter of financial year 2021 (“Q2 2021”) compared to a net loss of SR (27.02) million for the second quarter of financial year 2020 (“Q2 2020”) is due to the following main reasons: |
a) Gross profit amounting to SR 4.83 million in Q2 2021 compared to a gross loss of SR (14.97) million in Q2 2020, mainly as a result of higher volumes, enhanced product mix, efficiency improvement and optimization of direct structural cost.
b) Administrative expenses decreased to SR 7.99 million in Q2 2021 from SR 10.87 million in Q2 2020, mainly due to the reduction of structural cost and service indemnity cost.
c) Financial charges decreased to SR 0.83 million in Q2 2021 compared to SR 2.04 million in Q2 2020, mainly as a result of the reduction of net debt and the optimization of financing sources.
The above listed positive changes were partially offset by the share of loss in an associate company (Global Pipes Company) amounting to SR (1.89) million in Q2 2021 compared to a share of profit amounting to SR 3.58 million in Q2 2020.
The EBITDA represent earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges.
SSP recorded a positive EBITDA of SR 6.37 million in Q2 2021, including non-recurring charges, compared to a negative EBITDA of SR (18.98) million in Q2 2020. Excluding non-recurrent charges, adjusted EBITDA is SR 7.86 million in Q2 2021 compared to a negative SR (13.78) million in Q2 2020.
In addition, SSP recorded a positive free cash flows of SR 18.91 million in Q2 2021, compared to 29.77 million in Q2 2020. Net debt decreased to SR 158.56 million as at the end of Q2 2021, the lowest since 2013, from SR 254.85 million as at the end of Q2 2020. This improvement reflects cash discipline measures and working capital management implemented by the company.
a) Gross profit increased to SR 4.83 million in Q2 2021 from SR 2.35 million in Q1 2021, mainly as a result of enhanced product mix and improved margins.
The above listed positive change was partially offset by a loss from discontinued operations amounting to SR (1.10) million in Q2 2021 compared to a profit from discontinued operations amounting to SR 1.08 million in Q1 2021.
The EBITDA represent earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges.
SSP recorded a positive EBITDA of SR 6.37 million in Q2 2021, including non-recurring charges, compared to SR 5.13 million in Q1 2021. Excluding non-recurrent charges, adjusted EBITDA is SR 7.86 million in Q2 2021 compared to SR 6.78 million in Q1 2021.
In addition, SSP recorded a positive free cash flows of SR 18.91 million in Q2 2021 compared to SR 39.17 million in Q1 2021. Net debt decreased to SR 158.56 million as at the end of Q2 2021, the lowest since 2013, from SR 177.74 million as at the end of Q1 2021. This improvement reflects cash discipline measures and working capital management implemented by the company.
a) Gross profit amounting to SR 7.18 million in 1H 2021 compared to a gross loss of SR (10.43) million in 1H 2020, mainly as a result enhanced product mix, efficiency improvement and optimization of direct structural cost.
b) Administrative expenses decreased to SR 15.08 million in 1H 2021 from SR 28.13 million in 1H 2020, mainly due to the reduction of structural costs and service indemnity costs.
c) Trade receivables impairment reversal amounting to SR 1.62 million in 1H 2021 compared to a charge of SR (1.97) million in 1H 2020.
d) Financial charges decreased to SR 2.49 million in 1H 2021 compared to SR 4.51 million in 1H 2020, mainly as a result of the reduction of net debt and the optimization of financing sources.
The above listed positive changes were partially offset by the share of loss in an associate company (Global Pipes Company) amounting to SR (4.88) in 1H 2021 million compared to a share of profit amounting to SR 3.61 million in 1H 2020.
The EBITDA represent earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges.
SSP recorded a positive EBITDA of SR 11.50 million in 1H 2021, including non-recurring charges, compared to a negative EBITDA of SR (24.63) million in 1H 2020. Excluding non-recurrent charges, adjusted EBITDA is SR 14.63 million in 1H 2021 compared to a negative EBITDA of SR (9.11) million in 1H 2020.
In addition, SSP recorded a positive free cash flows of SR 58.08 million in 1H 2021 compared to a negative free cash flows of SR (5.58) million in 1H 2020. Net debt decreased to SR 158.56 million as at the end of 1H 2021, the lowest since 2013, from SR 254.85 million as at the end of 1H 2020. This improvement reflects cash discipline measures and working capital management implemented by the company.
- Note 2 to the accompanying condensed consolidated interim financial statements; where the accumulated losses of TSM Arabia (the subsidiary) as of June 30, 2021 have exceeded its share capital by SR 141.6 million (December 31, 2020: SR 141.6 million). Further, as stated in note 13 to the accompanying condensed consolidated interim financial statements, during the period ended June 30, 2021, TSM Arabia has entered into a definitive asset purchase agreement for the sale of its main operating assets for a selling price of SR 36.3 million, subject to certain approvals.
- Note 15 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 learned during the period ended June 30, 2021.
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.