| Element | Current quarter | Similar quarter for previous year | % Change current | Previous quarter | % Change previous |
|---|---|---|---|---|---|
| Net profit (loss) |
-
|
-
|
-
|
-
|
47.85
|
| Gross profit (loss) |
5.36
|
23.46
|
-
|
-
|
-
|
| Operational profit (loss) |
-
|
-
|
-
|
-
|
59.31
|
| Earning or loss per share, Riyals |
-
|
-
|
-
|
-
|
-
|
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element | EXPLAINATION |
|---|---|
| Reasons of increase (decrease) for quarter compared with same quarter last year | The increase in Company losses in quarter 1, 2016 as compared to same quarter of the previous year is due to following reasons The decline in sales prices in the current quarter compared with the same quarter of the previous year amounting to SAR 37.9 million represented by 19 % resulted in decline in gross profit by 77.2 % in the current quarter compared with the same quarter of the previous year. Such result is attributed to the fall in the pricing of major downstream products of the Company influenced by the growing volatility in global economy and continuous decline in oil prices and methanol prices which burst competition in the main Company market areas i.e. local markets India China and East Asia resulting in a decline in the prices and prompting the Company to provide additional discounts in order to maintain market share. It is worth mentioning that despite those negative factors, the Company was successful in maintaining the same level of sold quantities in the current year as they were in the same quarter of the previous year. Decline in some of major raw material prices resulted in decrease in cost of sales by SAR 19.3 million in the current quarter compared with the same quarter of the previous year.Due to fall in finished product prices compared with increase in cost of production, the Company provided a provision of SAR 1 million for finished products.The cost of sales was charged an additional provision of SAR 4 million to account for inventory of slow moving items to comply with the Accounting Standards. |
| Reasons of increase (decrease) for quarter compared with previous quarter | The Company Losses had decreased in Q1 2016 to SAR 31.3 as compared with 60.1 in the previous quarter due to the followingDespite the decline in Sales in current quarter by SAR 7.8 million compared with previous quarter, the gross profit has increased to SAR 5.9 million in the current quarter compared with gross loss of SAR 20.7 million in the previous quarter due to fall in the prices of some imported raw materials by SAR 8 million which resulted in decrease in cost of sales in the current quarter compared with the previous quarter . The cost of sales was charged an additional provision to account for inventory of slow moving items and an additional provision to account for finished products inventories cost difference to their realizable value to comply with the Accounting Standards. The cost of sales was also charged with shutdown costs related to Methanol, DMF and Penta plants as announced on Tadawul on 14/12/2015 which incurred total cost of SAR 11.5 million affecting the results of the previous quarter negatively compared with the current quarter. |
| Reclassifications in quarterly financial results | Comparative figures have been reclassified to conform to the current period presentation. Such reclassification did not affect either net worth or net income |
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