| Element List |
Explanation |
| Reason for increase (decrease) in net profit for current year compared to last year |
The decrease in net profit for the current year compared with the same prior year is mainly due to the inclusion of the prior year results of a non-recurring income resulted from a reversal of cancelled municipalities fees, which was partially offset by non-recurring costs related to the human resources productivity program. In addition, the current period results was impacted by IFRS 15 application, higher financing charges and energy consumption rationalization, This is despite of improved operational efficiency that resulted in lower fuel, operations and maintenance costs and general and administrative expenses. |
| Type of the external auditor's opinion |
Unmodified opinion |
| Reclassifications in annual financial results |
Some comparative figures have been reclassified |
| Additional Information |
With reference to the above-mentioned impact of IFRS 15 application on operating revenues, the decline in revenues is attributed to the change in the accounting treatment of electricity connection tariff revenues by amortizing it over longer periods than previously, this is in accordance with the new international standard applied as of 2018 beginning. The impact resulted in a decrease in the current period revenues by an amount of SAR 1.34 billion, this is as mentioned in the notes of the financial statements. |
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