Riyadh – Mubasher: Middle East Paper Co (MEPCO) on Monday reported a 79.42% slide in its profits for the second quarter of 2017, compared to the corresponding period of 2016.

MEPCO posted SAR 18.2 million in profits in Q2-17, down from SAR 88.3 million, according to a filing to the Saudi Stock Exchange (Tadawul).

Meanwhile, quarter-on-quarter, profits surged 458.75%.

At the level of the first half of 2017, net profits also fell 79.61% to SAR 21.43 million compared to SAR 105.09 million in H1-16.

MEPCO attributed the profit drop in the first six months of the year to SAR 91.96 million in non-recurring profit achieved in H1-16 from the “claim for expropriated land and premises, as well as higher financing expenses, despite decrease in zakat expenses.”

Gross profits were almost unchanged at SAR 77.088 million in H1-17 versus SAR 77.169 million in the year-ago period.

Meanwhile, operating profits increased 25.42% year-on-year in H1-17 to SAR 36.79 million from SAR 29.33 million. This, MEPCO attributed to lower selling and distribution expenses, as well as a decline in general and administrative expenses, and a rise in other income, despite a decline in the fair value of derivatives.

Earnings per share (EPS) amounted to SAR 0.43 in H1-17 versus SAR 2.1 in the year-ago period.

By 1:57 pm Saudi time, MEPCO’s surged 9.93% to SAR 15.72.