Alujain Corp. — Earnings Release 2011

Oct 19, 2011

Alujain announces its Consolidated Financial Results for the period ending 30th Sep, 2011 (Nine Months) (Continuing ? )

2170 · 19/10/2011 18:32:58 · Announcement #23122 · View on Saudi Exchange

Alujain announces its Consolidated Financial Results for the period ending 30th Sep, 2011 (Nine Months) (Continuing ? )

The SR 42.1 million increase in net profitability during Q3-2011 in comparison to Q2-2011 is mainly due to a full turnaround procedure (major maintenance) performed on the subsidiarys Propylene/Polypropylene complex during Q2-2011. During the 2nd quarter, the plant was shutdown during May and June 2011 for a period of Forty Nine (49) days for implementing production and equipment enhancement. This turnaround procedure is part of the subsidiarys 2011 operating budget. The increase in profitability was a result of mainly;

Increase in gross profit by SR 69.3 million was mainly due to longer operating period during Q3-2011 as compared to Q2-2011..

SR 4.4 million increase in profitability due to a gain of SR 1.5 million during Q3-2011 in fair value of derivatives as compared to a loss of SR 2.8 million during Q2-2011. The fair value of derivatives is market driven and is being determined by a consortium of subsidiarys bankers.

The above mentioned gains were reduced by SR 30.5 million, due to the change in share attributable to the minority shareholders. It was a loss of SR 11.9 million during Q2-2011, to a gain of SR 18.6 million during Q3-2011.

The SR 12.4 million increase in net profit during the nine months ending 30-Sep-2011 as compared to the nine months ending 30-Sep-2010 was mainly due to the following reasons:

Increase in gross profit by SR 92.5 million due to longer operating period during 2011 reduced by SR 55.3 million higher financing charges and SR 16.9 million change in share attributable to the minority shareholders.

Certain reclassifications in the comparative September 30, 2010 interim consolidated financial statements to conform with September 30, 2011 presentation.

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