| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 1,251,835 | 2,539,760 | -50.71 | ||
| Gross Profit (Loss) | -20,699 | 686,504 | - | ||
| Operational Profit (Loss) | -403,320 | 416,018 | - | ||
| Net Profit (Loss) after Zakat and Tax | -454,295 | 423,353 | - | ||
| Total Comprehensive Income | -446,704 | 422,259 | - | ||
| Total Share Holders Equity (after Deducting Minority Equity) | 2,499,184 | 2,945,888 | -15.163 | ||
| Profit (Loss) per Share | -2.42 | 2.25 | |||
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | The total comprehensive loss for the year amounts to SAR 446.7 million which is a drop of 205.8% compared to previous year due to the temporary suspension of domestic and international commercial flights from mid March 2020, as a result of precautionary measures taken by the government, which has gradually resumed to certain destinations to reach 56% of the pre-COVID-19 annual volume of operations. The temporary suspension of flights led to a direct impact on the company's operations with a decrease in revenue by 50.7% (amounting to SAR 1,288 million). The COVID-19 has also indirectly impacted the equity accounted investment in Saudi Amad Airport Services Company resulting in a loss amounting to SAR 22.3 million this year. |
Despite the challenges faced by the company in light of the pandemic, the company has executed several initiatives aimed at increasing the efficiency of operation and thus reducing the impact of the pandemic on company’s profitability by ensuring its continuity and competitiveness are achieved which led to a reduction in operating cost of SAR 581 million in the current year (out of which permanent cost reduced by SAR 31 million per quarter). These initiatives contributed to reduce the losses to SAR 446.7 million (out of losses that were estimated at SAR 1,027 million in the absence of these initiatives).
In addition to cost reduction initiatives, the company has taken certain initiatives such as the opportunity to increase sales by providing disinfection services for aircraft in addition to other services which also contributed to reducing the impact of the pandemic on the company's profitability.
Domestic flights began to return gradually in the beginning of June 2020, bringing the cumulative volume of operations at the end of the current period to 57% compared to operations before the pandemic.
(2) Total revenue for the year amounted to SAR 1,251.8 million compared to SAR 2,539.8 million last year which is a decrease of 50.7%. The net loss for the current year amounts to SAR 454.3 million compared to net profit of SAR 423.3 million for last year which is a decrease of 207.3%. The comprehensive loss for the current year SAR 446.7 million compared to comprehensive income of SAR 422.3 million for last year which is a decrease of 205.8%. The Company has no minority interest with total shareholders' equity reaching to SAR 2,499.2 million for the current year compared to SAR 2,945.9 million for last year which is a decrease of 15.2%.
(3) Basic earnings (Loss) per share is calculated based on the distributable profit (Loss) for ordinary shares using the weighted average number of ordinary shares outstanding at the date of the financial statements.
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