2001 · 05/11/2020 15:26:20 · Announcement #60950 · View on Saudi Exchange

Methanol Chemicals Co. announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Nine Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 132.28113.3216.73198.534.294
Gross Profit (Loss) -166.473.93-0.33-
Operational Profit (Loss) -198.63-21.62818.732-21.32831.66
Net Profit (Loss) after Zakat and Tax -202.45-32.33526.198-31.28547.218
Total Comprehensive Income -202.45-32.59521.202-31.28547.218
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 351.08419.03-16.216
Gross Profit (Loss) -161.9169.63-
Operational Profit (Loss) -231.31-8.492,624.499
Net Profit (Loss) after Zakat and Tax -262.34-41.25535.975
Total Comprehensive Income -262.34-42.05523.876
Total Share Holders Equity (after Deducting Minority Equity) 791.481,099-27.981
Profit (Loss) per Share -2.18-0.34
All figures are in (Thousands) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
531.491,20644.07
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListExplanation
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to The increase in net loss is mainly due to impairment of certain assets of the Company by SAR 157 million which represents 92% of the difference between net loss of the current quarter and same quarter of the previous year, in addition to lower prices of products due to the COVID-19 full and partial lockdown in certain global markets, as well as the increase in provisions during the current quarter.

However, the Company increased its sales volume during the current quarter by about 39%, in addition to rationalization of costs which substantially reduced the losses.Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to The increase in net loss is mainly due to impairment of certain assets of the Company by SAR 157 million which represents 92% of the difference between net loss of the current quarter and the previous quarter, in addition to the higher provisions booked during the current quarter.

However, the Company increased its sales volume during the current quarter by about 18%, in addition to rationalization of costs which substantially reduced the losses.Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to The increase in net loss is mainly due to impairment of certain assets of the Company by SAR 157 million which represents 71% of the difference between net loss of the current period and same period of the previous year, in addition to lower prices of products due to the COVID-19 full and partial lockdown in certain global markets, as well as the higher provisions booked during the current quarter.

However, the Company increased its sales volume during the current period by about 8%, in addition to rationalization of costs which substantially reduced the losses.

It is noteworthy that the sales volume of the current period has been impacted by the scheduled maintenance activities for certain plants of the Company which was announced earlier during the first quarter of the current year.Basis of the External Auditor's Opinion Unmodified opinionReclassification of Comparison Items -Additional Information The accumulated losses as of 30/09/2020 were SAR 531.49 million representing 44,07% of the share capital. The main reasons for such losses which was attained on 30/09/2020 are attributable to impairment of certain assets of the Company during current and previous periods which represents 60% of the total accumulated losses, in addition to lower prices of most of petrochemical products over past years due to the slowdown in global demand, as well as the decrease in sales of certain products due to dumping practices.

Actions to be taken by the Company to reduce the accumulated losses:

- Continue negotiations with the lenders regarding the restructuring of outstanding loans as of 30/09/2020.

- Writing off the accumulated losses by decreasing the share capital and subsequently increasing it by way of right issues as per the Board recommendation announced on Tadawul website on 11/10/2020.

- Continue the implementation of the Company’s strategy relating to the future projects: Debottlenecking Methanol Plant and setting up of DMDS & MDEA plants. Such projects were announced on Tadawul website on 02/03/2020.

Despite these challenges, the Company increased its sales volume during the current period compared to same period of the previous year. Also, the Company will continue its efforts to explore new markets for its products.

The Company will implement the procedures and instructions issued by the Capital Market Authority (CMA) for the listed companies whose accumulated losses amounted to more than 20% of capital.

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.