Alujain Corp. — Interim / Quarterly Report 2012

Jan 18, 2012

Alujain announces its Interim Consolidated Financial Results for the period ending 31st Dec, 2011 (Twelve Months) (cont)

2170 · 18/01/2012 18:25:52 · Announcement #23756 · View on Saudi Exchange

Alujain announces its Interim Consolidated Financial Results for the period ending 31st Dec, 2011 (Twelve Months) (cont)

8.Quarterly Results:

The decrease of SR 64.5 million in 4th Q profitability as compared to 4th Q of 2010 and decrease of SR 47.6 million as compared to 3rd Q of 2011 is mainly due to decrease in Polypropylene prices, lower sales volume and higher cost of sales. The cost of sales is higher due to higher feedstock prices and unplanned shutdown costs incurred during 4th Q 2011. The plant was shut down from Sept 26 till Oct 18, as previously announced. There were SR 5.1 million write-off of subsidiarys project development expenses during 4th Q 2011.

Annual Results:

A. The subsidiary company had started its commercial operations from Aug 06, 2010 which is the main reason for increase in sales and cost of sales during full year 2011 as compared to full year 2010

B. The decrease of SR 52.1 million in full year 2011 profitability as compared to 2010 is mainly due to;

i. The propylene/polypropylene complex was shut-down during the 2nd quarter of 2011 for a period of Forty Nine (49) days for implementing production and equipment enhancements. This turnaround procedure was part of the subsidiarys operating budget, as previously announced. There were extra costs attributed to the unplanned shutdown from Sept 26, 2011 till Oct 18, 2011

ii. During 2011 the subsidiary incurred SR 58.2 million higher finance charges and SR 5.5 million higher amortization costs as compared to 2010, as the 2010 figures represents only 5 months of commercial operations. Also the subsidiary has written off SR 5.1 million against their project development expenses.

Certain reclassifications were made in the comparative December 31, 2010 interim consolidated financial statements to conform with December 31, 2011 presentation.

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.