Riyadh – Mubasher: National Petrochemical Company (Petrochem) posted a 42.2% decrease in net profits, as shown by the company’s interim financial results for the period ending on 31 December 2019.

Net profit after Zakat and tax amounted to SAR 673 million in 2019, compared with SAR 1.165 billion in the year before, according to the company’s statement to the Saudi Stock Exchange (Tadawul).

Petrochem said that the reason behind the decline in net profits is lower selling prices and a decrease in other incomes, noting that there was a decrease in sales and distribution expenses, as well as general and administrative expenses, and zakat expenses, and financing costs.

Starting from 1 January 2019 the company has adopted IFRS 16 with no material impact on its interim financial statements, the company added.

Quarterly records showed that Petrochem’s net profit went down by around 44.5% in the fourth quarter (Q4) of 2019 to SAR 131 million, down from SAR 236 million in Q4-18.