| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 70.1 | 124.1 | -43.51 | 63.1 | 11.09 |
| Gross Profit (Loss) | -6.4 | 16.2 | - | 2.7 | - |
| Operational Profit (Loss) | -11.6 | -8.4 | 38.09 | -13.1 | -11.45 |
| Net Profit (Loss) after Zakat and Tax | -4.2 | -13.1 | -67.94 | -13.2 | -68.18 |
| Total Comprehensive Income | -4.2 | -13.1 | -67.94 | -13.2 | -68.18 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 133.1 | 253.4 | -47.47 |
| Gross Profit (Loss) | -3.7 | 30 | - |
| Operational Profit (Loss) | -22.9 | -3.2 | 615.62 |
| Net Profit (Loss) after Zakat and Tax | -17.5 | -12 | 45.83 |
| Total Comprehensive Income | -17.5 | -12.1 | 44.63 |
| Total Share Holders Equity (after Deducting Minority Equity) | 88.2 | 194.2 | -54.58 |
| Profit (Loss) per Share | -0.43 | -0.33 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| -10.9 | 100 | 10.9 | |
| 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 | The reason for recording a net loss amounted by SR (4.2) MM for the second quarter of 2022 compared to a net loss of SR(13.1) MM for the same quarter of 2021 is due to: |
Decrease in company’s sales for the current quarter of 2022 by around 44% to reach SR 70 MM compared to SR 124 MM for the same period in 2021. The reasons for this are:
1- The company started production of the new awarded projects, however, still did not deliver to the client yet.
2- Completing existing projects and deliver it to the clients.
- the company has built provision in the Q2 2021 compare to Q2 2022 which effected the NP
1- Decrease in sales for the current period of 2022 by around 47% to reach SR 133.1 million compared to SR 253.4 million for the same period in 2021.
2-Selling quantities of old stock, which directly affected costs due to its high cost, which affected the overall profit.
3-The plant stopped at different period during Q1 and the beginning of Q2 because there were no project, due to that , the company incurred costs which effect the NP of this period.
During the period, the Company obtained its shareholders’ approval through Extra Ordinary General Assembly’s Meeting dated February 20, 2022, to restructure its capital by absorbing the accumulated losses with the amount of SR 300 million through reducing its share capital from SR 400 million to SR 100 million.
As per board of directors’ approval dated February 20, 2022, the Company has adjusted SR 39.9 million of accumulated losses against the statutory reserve which bring the accumulated losses to nil as of February 2022.
As per board of directors’ approval dated April 19, 2022, the Company has adjusted SR 77.9 million of accumulated losses against the statutory reserve which bring the accumulated losses to nil as at April,2022.
In addition, the Company has obtained approval of Capital Market Authority dated March 17, 2022, for increase the share capital through right-issue of SR 300 million. However, the request of the increase in share capital was rejected by the majority shareholders.
The management of the Company is currently under advance stages to secure working capital financing from financial institutions. However as of the date of approval of these interim condensed financial statements, we are unable to ensure if such financing will be available for the Company in due course. Accordingly, we are unable to ensure the going concern assumption of the entity to be valid.
Conclusion:
Based on our review, with the exception of the matter described in the above paragraph, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements are not prepared, in all material respects, in accordance with IAS 34 as endorsed in the Kingdom of Saudi Arabia
- Accumulated losses as on June 30, 2022 amounted to by SR (10.9) MM compared to about SR (411.2) MM at the end of year 2021.
-On 20-2-2022 the EGA approved to decrease of the Company’s capital to be SR 100 MM instead of SR 400 MM to reduce SR 300 MM of the accumulated losses. Also, on the same day, board of directors transfers SR 39.9 MM from the reserves to reduce the accumulated losses. On 19-04-2022 , the board of directors transferred SR 77.9 MM to from the reserves to reduce the accumulated losses.
- Total equity (there are no minority rights) during the current period reached to SR 88.2 MM compared to SR 105.7 MM as at the end of 2021.
- At the end of 2021 –beginning of 2022, the company got awarded several projects with value of around SR 700 MM. These projects needs an arrangement with banks, raw materials suppliers (manufacturing – processing and preparation– shipping), due to that, the impact of these projects did not appear in this quarter. Noting that the company started producing during this quarter and do the needed arrangement to deliver this quarter. This expected to improve the sales in the near future
- On 17-07-2022 Board of directors has recommendation to Increase the Capital by Offering Right Issues by SR 150MM to Support working capital, strengthening the company's financial Position, reducing the loans rate, developing and modernizing the company's factories in Riyadh and Jubail, and expanding a number of products supporting pipe services within the company's business. Any updated in this matter will be announced .
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.