Saudi Basic Industries Corp. announces its Interim Financial Results for the Period Ending on 2020-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 24.62 | 34.9 | -29.455 | 30.19 | -18.449 |
| Gross Profit (Loss) | 3.47 | 8.54 | -59.367 | 4.71 | -26.326 |
| Operational Profit (Loss) | -1.26 | 4.02 | - | -0.06 | 2,000 |
| Net Profit (Loss) after Zakat and Tax | -2.22 | 2.03 | - | -1.05 | 111.428 |
| Total Comprehensive Income | -2.91 | 2.24 | - | -1.91 | 52.356 |
| All figures are in (Billions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 54.81 | 70.91 | -22.704 |
| Gross Profit (Loss) | 8.18 | 17.95 | -54.428 |
| Operational Profit (Loss) | -1.32 | 9.18 | - |
| Net Profit (Loss) after Zakat and Tax | -3.27 | 5.35 | - |
| Total Comprehensive Income | -4.82 | 4.25 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 163.51 | 180.4 | -9.362 |
| Profit (Loss) per Share | -1.09 | 1.78 | |
| All figures are in (Billions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | The net loss in 2Q 2020 is mainly attributable to the lower average selling prices and sales volume in addition to impairments provisions in certain capital assets in the amount of SAR 1.18 billion. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The increase in net loss is mainly attributable to the lower average selling prices in addition to impairments provisions in certain capital assets in the amount of SAR 1.18 billion. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | The net loss for the period is mainly attributable to the lower average selling prices and sales volume in addition to impairments provisions in certain capital and financial assets in the amount of SAR 2.28 billion including what had been announced on February 18, 2020 for the impairment provision in the ULTEM™ polymers plant in Cartagena, Spain by SAR 713 million |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Reclassification of Comparison Items | Certain prior period figures have been re-classified to confirm with the presentation in the current period |
| Additional Information | In line with what was announced on 10/25/1440 (corresponding to 06/17/2020) with respect to the alignment of the accounting policies and critical accounting judgments related to the reassessment of SABIC's control over certain investments in ventures retrospectively as a result of Saudi Aramco acquisition of 70% of SABIC shares. During the second quarter of 2020, SABIC retrospectively reassessed the control over other investments related to SADAF and ARRAZI, which SABIC has acquired additional shares in SADAF and ARRAZI in 2017 and 2019 respectively, where SABIC increased its shareholding from 50% to 100 % and 75% respectively. SADAF and ARRAZI were not classified among the existing ventures that had been announced in our aforementioned announcement. Accordingly, SABIC has performed retrospective control reassessment over SADAF and ARRAZI prior to the acquisitions of additional shares and classified them as joint arrangements. This resulted in revaluation of SABIC's shares prior to the acquisition of the additional shares in SADAF and ARRAZI and applying the IFRS 3 (Business Combination), and accordingly purchase price allocation has been applied to the applicable financial items.
The significant financial impacts resulted from retrospective control reassessment, which are non-cash in nature, have been retrospectively recognized and included in the opening balances of 2019, and mainly comprise of a recognition of goodwill of SR 8.9 billion and a step up of property, plant and equipment of SR 2.6 billion against a recognition of an increase of retained earnings, net of SR 10.7 billion and an increase in non-controlling interests of SR 627 million. The acquisition date of SADAF and ARAZI has been determined to be during 2017 and 2018, respectively. The step up in property, plant and equipment resulted to an increase in the depreciation charges of SR 373 million recorded retrospectively and included in the opening balances of 2019; SABIC's net profit for 2019 has been restated and reduced by SR 365 million (first half 2019 net profit reduced by SR 171 million and the second quarter of 2019 reduced by SR 86 million). Additionally, SABIC has restated and increased the net losses of the first quarter of 2020 by SR 97 million. |
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