National Industrialization Co. — Earnings Release 2016

Mar 16, 2017

National Industrialization Co. announces the annual financial results for the period ending on 31-12-2016

2060 · 16/03/2017 23:21:48 · Announcement #46049 · View on Saudi Exchange

National Industrialization Co. announces the annual financial results for the period ending on 31-12-2016

Element	Current year	Previous year	% Change
Net profit (loss)	208.3	-1,423.1	-
Earning or loss per share, Riyals	0.31	-2.13	-
Gross profit (loss)	3,472.5	2,212.7	56.93
Operational profit (loss)	1,656.4	-372.9	-

*All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The reported profit is attributable to the improvement in operational performance, increase in sales volumes and decrease in general, administrative and marketing expenses and increase in other income despite an increase in financial cost . Note that the impact of the negative fair value of hedging and derivative contracts which were entered into by a subsidiary with several local banks to hedge against foreign currency exposure risk as well as an impairment charge to non-current assets were recorded in the same period of last year.
Reclassifications in annual financial results	Certain corresponding figures for the last year have been reclassified to be aligned with presentation of the current year.
Other notes	The reason for the differences from the unaudited reported net income for the year ended December 31, 2016 is due to reclassification of certain general and administrative expenses and financial charges from capitalized Project Under Constructions to income statement for one of the subsidiaries, The sales for the period ended 31 December, 2016 amounted to SR 15,196,970 K compared to the same period last year of SR 15,145,511 K, a decrease of 0.34%. The total shareholders' equity (before non-controlling interest ) at 31 December, 2016 amounted to SR 8,053,647 K compared to SR 7,968,165 K at 31 December, 2015, a decrease of 1.1%.

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