Alujain Corp. — Interim / Quarterly Report 2021

Aug 19, 2021

Alujain Holding Corp. announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )

2170 · 19/08/2021 15:42:46 · Announcement #64648 · View on Saudi Exchange

Alujain Holding Corp. announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	5.25	2.61	101.149	4.76	10.294
Gross Profit (Loss)	0.79	0.04	1,875	0.74	6.756
Operational Profit (Loss)	93.38	183.25	-49.042	60.94	53.232
Net Profit (Loss) after Zakat and Tax	91.96	182.98	-49.743	60.3	52.504
Total Comprehensive Income	91.99	183.31	-49.817	60.72	51.498
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	10	7.25	37.931
Gross Profit (Loss)	1.53	0.65	135.384
Operational Profit (Loss)	154.32	137.21	12.469
Net Profit (Loss) after Zakat and Tax	152.26	136.62	11.447
Total Comprehensive Income	152.71	135.54	12.667
Total Share Holders Equity (after Deducting Minority Equity)	1,843.47	1,613.9	14.224
Profit (Loss) per Share	2.2	1.97
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 decrease in net profit during current quarter compared to the same quarter of the previous year is mainly due to that profits of the subsidiary company, National Petrochemical Industrial Company (“NATPET”) during the same quarter of the previous year included non-operating and non-recurring income of SR330 Million, representing the remaining part of the final settlement of insurance for the fire accident which occurred during the last quarter of 2018 (The share of Alujain represents SR189 Million of this non-operating income).
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is	The reason for increase in net profit during current quarter compared to the previous quarter is mainly due to the increase in Alujain Holding Corp’s share in the net profit of NATPET by SR37 Million.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The reason for increase in net profit during current period compared to the same period of previous year is mainly due to the increase in Alujain Holding Corp’s share in the net profit of NATPET. The profits of NATPET during the same period of the previous year included non-operating income of 330 million riyals, representing the remaining part of the final insurance settlement for the fire accident that occurred during the last quarter of 2018.
Statement of the type of external auditor's report	Unmodified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion	Emphasis of Matters

We draw attention to Note (4) of the accompanying condensed consolidated interim financial statements, which indicates that in June 2021, National Petrochemical Industrial Company (“NATPET”) completed all procedures related to the transfer of ownership of Menna Company, Fawasel Advanced Petrochemical Company, Al-Taj Towers for Plastic Industries Company, and Afaq Professional Chemical Company (“the four companies”) as per the directives of the competent authorities and became a 100% owner of these four companies. Accordingly, the investment in the four companies has been consolidated in the condensed consolidated interim financial statements of NATPET for the six months period ended 30 June 2021, and our review opinion has not been modified based on this matter.Reclassification of Comparison Items N/AAdditional Information - On 23 June 2021, NATPET completed all the procedures for transferring the ownership of the four companies (Developed Fawasel Chemical Company, Professional Afaq Company, Mena Company and Abraj Altaj Plastic Industrial Company) to NATPET. Thus, NATPET has 100% ownership of the four companies.

- During 2020, the four companies (Developed Fawasel Chemical Company, Professional Afaq Company, Mena Company and Abraj Altaj Plastic Industrial Company) purchased shares in Alujain Holding Corp, with a fair value of SR1,118 Million as of June 30, 2021, and a unrealized gain of SR491 Million and recorded in comprehensive income in NATPET consolidated financial statements.

NATPET results (For 2nd quarter 2021):

1. NATPET sales during second quarter of 2021 amounted to SR547 Million, an increase of 100% compared to the sales of the same quarter of previous year and an increase of 27% compared to the sales of first quarter of 2021.

2. The net profit of NATPET during second quarter of 2021 amounted to SR178 Million, compared to SR113 Million during first quarter of 2021, with increase of 58%.

3. The main reason for increase in net profit of NATPET during second quarter of 2021 compared to first quarter of 2021 is due to the increase in product prices and lower costs, while continuing to implement programs to raise operating efficiency and reduce fixed costs.

4. The operational performance of the NATPET plant and its subsidiaries continued to improve during the second quarter of 2021, as production rates were maintained close to the maximum capacity of the plant, and more than 91,700 tons of polypropylene and its compounds were produced.

5. The average prices of polypropylene products increased in second quarter of 2021 compared to previous quarter due to the relative recovery of commodity markets in general and in conjunction with the high seasonal demand for polypropylene and reasons related to the irregularity of supply chains globally, which affected prices.

NATPET results (For six months period ended June 30, 2021):

1. NATPET’s sales for current period amounted to SR977 Million, with an increase of 152% as compared to the sales of the same period of previous year.

2. NATPET’s net profit for current period amounted to SR291 Million, as compared to SR264 Million for the same period of previous year (an increase of 10%).

3. The operating profit of NATPET for current period is SR306 Million, as compared to a net loss of SR52 Million for the same period of previous year, without taking into account the insurance settlement of SR330 Million received in second quarter of 2020.

4. NATPET earnings per share for current period is SR2.72 per share, compared to SR2.47 for the same period of previous year.

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.