Saudi Basic Industries Corp. — Interim / Quarterly Report 2024

Aug 1, 2024

Saudi Basic Industries Corporation announces its Interim Financial Results For the Period Ending on 30-06-2024 (six Months)

2010 · 01/08/2024 09:40:21 · Announcement #81653 · View on Saudi Exchange

Saudi Basic Industries Corporation announces its Interim Financial Results For the Period Ending on 30-06-2024 (six Months)

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	35.72	34.1	4.75	32.69	9.268
Gross Profit (Loss)	7.19	5.44	32.169	5.86	22.696
Operational Profit (Loss)	2.1	1.64	28.048	1.21	73.553
Net profit (Loss)	2.18	1.18	84.745	0.25	772
Total Comprehensive Income	2.05	1.2	70.833	-0.47	-
All figures are in (Billions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	68.4	70.53	-3.019
Gross Profit (Loss)	13.06	11.09	17.763
Operational Profit (Loss)	3.31	3.4	-2.647
Net profit (Loss)	2.43	1.84	32.065
Total Comprehensive Income	1.58	2.13	-25.821
Total Shareholders Equity (after Deducting Minority Equity)	163.91	176.78	-7.28
Profit (Loss) per Share	0.81	0.61
All figures are in (Billions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Billions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	In Q2 2024, the company’s revenue increased by 5% year-over-year, with revenue amounting to SAR 35.72 billion which is primarily attributed to the improvements of the average selling prices and a slight increase in sales volume.
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 net profit for this quarter reached SAR 2.18 billion as compared to SAR 1.18 billion same quarter last year, this is mainly attributed to:

• Increased gross profit by SAR 1.76 billion (32%) due to improvement in profit margins for several key products. This was partially offset by an increase in operating expenses driven by certain non-recurring charges.

• Reversal of zakat provision which lead to a positive non-cash benefits of SAR 545 million in 2Q 2024 compared to zakat expense of SAR 440 million in 2Q 2023. The zakat benefit in the current period resulted from the recent updates of the related regulations.

• Lower gains from fair valuation of derivative equity instruments lead to a decrease of SAR 556 million in finance income, which are non-cash in nature.

• Additionally, the current quarter saw a reduction in losses from discontinued operations amounting to SAR 226 million.The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is In Q2 2024, the company’s revenue increased by 9% quarter-over-quarter, with revenue amounting to SAR 35.72 billion which is primarily attributed to the increase in the sales volume offset by a decrease in average selling prices.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is The net profit for this quarter reached SAR 2.18 billion as compared to SAR 0.25 billion in the previous quarter, this is mainly attributed to:

• Increased gross profit by SAR 1.33 billion (23%) driven by higher sales volume and improvement in operating rates due to the completion of scheduled turnarounds of certain plants. This was partially offset by an increase in operating expenses driven by certain non-recurring charges.

• Reversal of zakat provision which lead to a positive non-cash benefits of SAR 545 million in 2Q 2024 compared to zakat expense of SAR 332 million in 1Q 2024. The zakat benefit in the current period resulted from the recent updates of the related regulations.

• Additionally, the current quarter saw a reduction in losses from discontinued operations amounting to SAR 338 million.The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is In first half of 2024, the company’s revenue decreased by 3% year-over-year, with revenue amounting to SAR 68.40 billion which is primarily attributed to the decrease in the sales volume.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 net profit for the period reached SAR 2.43 billion compared to SAR 1.84 billion for the same period of the last year, this is mainly attributed to:

• Increased gross profit by SAR 1.96 billion (18%) driven by improved margins. This was partially offset by an increase in operating expenses driven by certain non-recurring charges.

• Increase in the share of results of associates and non-integral JVs amounting to SAR 245 million.

• Reversal of zakat provision which lead to a positive non-cash benefits of SAR 214 million in first half of 2024 compared to zakat expense of SAR 919 million in first half of 2023. The zakat benefit in the current period resulted from the recent updates of the related regulations.

• Lower gains from fair valuation of derivative equity instruments lead to a decrease of SAR 563 million in finance income, which are non-cash in nature.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) -Reclassification of Comparison Items Certain prior period figures have been re-classified to conform with the current period presentation. Hadeed’s results are being disclosed separately as results from discontinued operations in the consolidated financial statements, in accordance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”.Additional Information Year to date, the earnings before financial expenses, zakat, taxes, depreciation and amortization (EBITDA) amounted to SAR 10.21 billion, compared to SAR 10.06 billion in the previous year, translating to an EBITDA margin of 15% compared to 14% for the same period last year.

Attached 2Q 2024 earnings release and presentation in addition to an update on SABIC innovation and sustainability.Attached Documents        

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