| Element List |
Explanation |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to |
The reason for increase in net loss for current quarter compared to the same quarter of the previous year is mainly due to the fact that PRC complex was under total shutdown for Test & Inspection work early in the quarter, resulting the average throughput for the refinery was 48% lower than the same period of last year and overall refined products revenue dropped by 78%; while Petrochemical products volumes dropped by 23%. In addition, product margins have been lower during the current quarter due to challenging economic conditions. This has been made worse by the on-going global pandemic, putting further downward pressure on prices. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to |
The reason for decrease in net loss for current quarter compared to the previous quarter is mainly due to improved market conditions which have witnessed an uptick in global market demand, as normalcy (despite the on-going pandemic) is cautiously being restored.The average throughput for the refinery was 19% higher. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to |
The reason for increase in net loss for current period compared to the same period of the previous year is mainly due to the fact that PRC complex was under total complex shutdown for Test & Inspection work for two months during the period. In addition, product margins have been lower during the current period due to challenging economic conditions. This has been made worse by the on-going global pandemic, putting further downward pressure on prices.The average throughput for the refinery was 54% lower; while Petrochemical products volumes dropped by 15%. |
| Basis of the External Auditor's Opinion |
Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion |
Not Applicable. |
| Reclassification of Comparison Items |
Not Applicable. |
| Additional Information |
(1)- The accumulated losses as at June 30, 2020 according to the unaudited condensed interim financial statements for the quarter ended June 30, 2020 amounted to Saudi Riyals 2,198 million representing 25.09% of the Company's share capital of Saudi Riyals 8,760 million. The main causes of these accumulated losses is attributed to a depressed global economic outlook & a broader uncertainty in the market (made worse by the on-going Covid-19 pandemic). The Company will implement the procedures and instructions issued by the Capital Market Authority for Companies listed in the Saudi Stock Exchange, whose accumulated losses amounted to more than 20% or more of its capital. (2)- During the three-month period ended June 30, 2020, pursuant to the issuance of the Royal Order M/153 amending Article 2(a) of the Saudi Arabian Income Tax Law, shares in the Kingdom of Saudi Arabia’s resident listed companies held directly or indirectly by Saudi Aramco are no more subject to income tax. Accordingly, zakat has been recognised for Saudi Aramco’s owned interest in the Company and has further resulted in reduction of deferred tax asset of Saudi Riyals 403 Million relating to Saudi Aramco’s owned interest. |
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