Saudi Arabia Refineries Co. — Earnings Release 2016

Mar 14, 2017

Saudi Arabia Refineries Co. announces the annual financial results for the period ending on 31-12-2016

2030 · 14/03/2017 08:14:12 · Announcement #45946 · View on Saudi Exchange

Saudi Arabia Refineries Co. announces the annual financial results for the period ending on 31-12-2016

Element	Current year	Previous year	% Change
Net profit (loss)	-4,042,979	7,462,227	-
Earning or loss per share, Riyals	-0.27	0.5	-
Gross profit (loss)	-616,653	15,222,705	-
Operational profit (loss)	-3,470,472	8,454,801	-

*All figures are in Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of annual financial results	The reason for the loss is due to that the Saudi Industrial Investment Group (investee company) was not distributing dividends for the year 2015. Also the reduction of the Companys share in the profit of affiliates during the current period (investment loss in Arabian Sulphonates Company Limited)
External auditor's report containing reservation	Observations appeared in external auditors report 1/ The Companys has investment in equity with one of its affiliate and the value of the investment has decreased below its cost during the year ended December 31 2016 and previous years which led to reduction in investment value in investee company as shown in (Note 7). 2/ The investment in Arabian Sulphonates Company Limited (affiliate) was valued based on unaudited administrative financial statements for the year ended December 31 2016 and the Company filed a lawsuit against the management of Arabian Sulphonates Company Limited (Note 7). 3/ As shown in (Note 19) to the financial statements, Al Masafi Saudi Arabian Company (SARCO) has guaranteed Arabian Sulphonates Company Limited (affiliate) to obtain credit facilities from certain Saudi Commercial Banks and as a result of the default from the affiliate side to pay the credit facilities installments the banks claim the Company to pay the amount of SR 7,738,133 the Company has made a provision of only 50% out of the due amount from the affiliate.
Reclassifications in annual financial results	Certain comparative figures have been reclassified to conform with the current period presentation.
Other notes	1/ Total losses from revenue during the current year amounting to SR (616,653) against SR 15,222,705 for the last year 2/ Total Shareholders equity (no minority interest) amounting to SR 361,523,616 against SR 296,407,041 for the last year, with increase of 22% 3/ Zakat provision for the current year was reduced based on the results of the audited financial statements

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