Riyadh – Mubasher: The National Agricultural Development Company (NADEC) reported a net profit after zakat and tax of SAR 35.65 million in 2020, against net losses of SAR 7.3 million in 2019, as shown by the company’s annual financial results on Tuesday.

The company attributed turning to profits to being granted the ownership for the revived area of land in Hail, Wadi Al Dawasir and Al Jouf by the Ministry of Environment, Water, and Agriculture, which resulted in a net gain of SAR 111.81 million, according to the company’s statement to the Saudi Stock Exchange (Tadawul).

In addition, NADEC noted that in the previous year, it recognized a SAR 42.94 million loss on Callable Inverse Floater (CIF) contracts and USD/SAR cross-currency swap contract which were cancelled subsequently.

Furthermore, revenues increased by 3.50% due to higher sales, while general and administrative expenses decreased by 2.45%, impairment losses on trade receivables were decreased by SAR 2.57 million, finance cost also declined by 42.14% because of lower interest rates and a reduction in loans and borrowings.

The Company also identified the impairment loss of SAR 99.40 million related to a project in Sudan, as well as the rise in the cost of sales, selling and marketing expenses, and zakat expenses.