Methanol Chemicals Co. announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 132.28 | 113.32 | 16.731 | 98.5 | 34.294 |
| Gross Profit (Loss) | -166.47 | 3.93 | - | 0.33 | - |
| Operational Profit (Loss) | -198.63 | -21.62 | 818.732 | -21.32 | 831.66 |
| Net Profit (Loss) after Zakat and Tax | -202.45 | -32.33 | 526.198 | -31.28 | 547.218 |
| Total Comprehensive Income | -202.45 | -32.59 | 521.202 | -31.28 | 547.218 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 351.08 | 419.03 | -16.216 |
| Gross Profit (Loss) | -161.91 | 69.63 | - |
| Operational Profit (Loss) | -231.31 | -8.49 | 2,624.499 |
| Net Profit (Loss) after Zakat and Tax | -262.34 | -41.25 | 535.975 |
| Total Comprehensive Income | -262.34 | -42.05 | 523.876 |
| Total Share Holders Equity (after Deducting Minority Equity) | 791.48 | 1,099 | -27.981 |
| Profit (Loss) per Share | -2.18 | -0.34 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Accumulated Losses | Capital | Percentage % | |
|---|---|---|---|
| 531.49 | 1,206 | 44.07 | |
| All figures are in (Thousands) 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 increase in net loss is mainly due to impairment of certain assets of the Company by SAR 157 million which represents 92% of the difference between net loss of the current quarter and same quarter of the previous year, in addition to lower prices of products due to the COVID-19 full and partial lockdown in certain global markets, as well as the increase in provisions during the current quarter.
However, the Company increased its sales volume during the current quarter by about 39%, in addition to rationalization of costs which substantially reduced the losses. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | The increase in net loss is mainly due to impairment of certain assets of the Company by SAR 157 million which represents 92% of the difference between net loss of the current quarter and the previous quarter, in addition to the higher provisions booked during the current quarter.
However, the Company increased its sales volume during the current quarter by about 18%, in addition to rationalization of costs which substantially reduced the losses. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | The increase in net loss is mainly due to impairment of certain assets of the Company by SAR 157 million which represents 71% of the difference between net loss of the current period and same period of the previous year, in addition to lower prices of products due to the COVID-19 full and partial lockdown in certain global markets, as well as the higher provisions booked during the current quarter.
However, the Company increased its sales volume during the current period by about 8%, in addition to rationalization of costs which substantially reduced the losses.
It is noteworthy that the sales volume of the current period has been impacted by the scheduled maintenance activities for certain plants of the Company which was announced earlier during the first quarter of the current year. |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Reclassification of Comparison Items | - |
| Additional Information | The accumulated losses as of 30/09/2020 were SAR 531.49 million representing 44,07% of the share capital. The main reasons for such losses which was attained on 30/09/2020 are attributable to impairment of certain assets of the Company during current and previous periods which represents 60% of the total accumulated losses, in addition to lower prices of most of petrochemical products over past years due to the slowdown in global demand, as well as the decrease in sales of certain products due to dumping practices.
Actions to be taken by the Company to reduce the accumulated losses: - Continue negotiations with the lenders regarding the restructuring of outstanding loans as of 30/09/2020. - Writing off the accumulated losses by decreasing the share capital and subsequently increasing it by way of right issues as per the Board recommendation announced on Tadawul website on 11/10/2020.
- Continue the implementation of the Company’s strategy relating to the future projects: Debottlenecking Methanol Plant and setting up of DMDS & MDEA plants. Such projects were announced on Tadawul website on 02/03/2020.
Despite these challenges, the Company increased its sales volume during the current period compared to same period of the previous year. Also, the Company will continue its efforts to explore new markets for its products.
The Company will implement the procedures and instructions issued by the Capital Market Authority (CMA) for the listed companies whose accumulated losses amounted to more than 20% of capital. |
Comments