Saudi Steel Pipe Co. announces its interim Financial results for the period ending on 2019-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 195.31 | 177.14 | 10.257 | 186.29 | 4.841 |
| Total Profit (Loss) | 12.53 | 16.8 | -25.416 | -6.61 | - |
| Profit (Loss) Operational | 2.61 | 6.55 | -60.152 | -21.05 | - |
| Net Profit (Loss) after Zakat and Tax | 0.32 | -5.04 | - | -102.64 | - |
| Total Comprehensive Income | 0.32 | -5.04 | - | -103.95 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after deducting minority equity) | 559.77 | 724.27 | -22.712 |
| Profit (Loss) per Share | 0.01 | -0.1 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 126,469,085 | 510,000,000 | 24.8 |
| Element List | Explanation |
|---|---|
| Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year | Net profit of SR 0.32 million for Q1 2019 compared to a net loss of SR 5.04 million for Q1 2018 is due to the following main reasons:
(a) Share of profit in associate company (Global Pipe Company) for current quarter amounting to SR 3.1 million compared to share of loss for the same quarter last year amounting to SR 8.2 million. (b) Reversal of impairment for receivables amounting to SR 0.63 million compared to a charge for the same quarter last year of SR 0.24 million. (c) Zakat and income tax charge for current quarter of SR 0.16 million, compared to SR 0.82 million, a decrease of 80%, for the same quarter last year. Despite revenue growing to SR 195.31 million in Q1 2019, a growth of 10.26% from Q1 2018, gross profits declined to SR 12.53 million, mainly due to change in sales mix, compared to SR 16.8 million for the same quarter last year. Moreover, borrowing charges for Q1 2019 increased to SR 5.2 million, an increase of 103.2% from the same quarter last year. |
| Reason for increase (decrease) in net profit for current quarter compared to the previous quarter | Net profit of SR 0.32 million for Q1 2019 compared to a net loss of SR 102.64 million for Q4 2018 due to the following main reasons:
(a) Impairment charges for fixed assets of SR 51.99 million accounted for in Q4 2018. (b) Provision against guarantee provided to an investee company of SR 30 million accounted for in Q4 2018. (c) Gross profit increasing to SR 12.53 million in Q1 2019, due to higher sales volume and change in sales mix, compared to a gross loss of SR 6.61 million for the previous quarter. (d) Reversal of impairment for receivables amounting to SR 0.63 million compared to a charge for the previous quarter of SR 2 million.
Net profit for current quarter was partially offset by the decrease in share of profit in associate company (Global Pipe Company) to SR 3.1 million for current quarter compared to SR 5.3 million for the previous quarter. |
| Type of the external auditor's opinion | Emphasis of Matter paragraph |
| External auditor's report containing reservation | Without qualifying our conclusion, we draw attention to note 2 to the accompanying condensed consolidated interim financial statements; where the accumulated losses of TSM Arabia (the subsidiary) as at March 31, 2019 have exceeded its share capital by SR 122.92 million. The Board of Directors of the Group has passed a resolution to continue TSM Arabia's business and to provide sufficient financial support to enable TSM Arabia to meet its financial obligations as and when they fall due. Accordingly, the subsidiary’s financial statements were prepared on a going concern basis. Additionally, the subsidiary was in breach of its loan facilities financial covenants. The management of the subsidiary is in the process of taking the necessary remedial actions to resolve the breach including obtaining the required waiver documents. Accordingly, the loans are continued to be classified as per their original terms of payment. |
| Reclassifications in quarter financial result | Items, elements and notes of the comparatives in the financial statements have been restated, regrouped and reclassified, as applicable, to be consistent with the presentation and accounting policies adopted for the current period |
| Additional Information | Q4 2018 net loss is higher by SR 2 million compared to the announcement made on Tadawul on January 21, 2019 due to the additional provisions for obsolete inventory accounted for in the audited financial statements.
From January 1, 2019, the Company has adopted IFRS 16 for Leases with no material impact on the results of its interim financial statements. |
Comments