National Petrochemical Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | - | - | - | - | - |
| Gross Profit (Loss) | - | - | - | - | - |
| Operational Profit (Loss) | 251 | 113 | 122.123 | 527 | -52.371 |
| Net Profit (Loss) after Zakat and Tax | 244 | 117 | 108.547 | 603 | -59.535 |
| Total Comprehensive Income | 244 | 117 | 108.547 | 603 | -59.535 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | - | - | - |
| Gross Profit (Loss) | - | - | - |
| Operational Profit (Loss) | 1,107 | 8 | 13,737.5 |
| Net Profit (Loss) after Zakat and Tax | 1,158 | -22 | - |
| Total Comprehensive Income | 1,158 | -22 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 8,914 | 7,886 | 13.035 |
| Profit (Loss) per Share | 2.41 | -0.05 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The main reasons for the increase in net profit during the current quarter compared with the same quarter of last year is due the following:
- Increase in Petrochem jointly managed projects shared profit due to an increase in products’ prices. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is | The main reasons for the decrease in net profit during the current quarter compared with previous quarter is due the following:
1- decrease in Petrochem jointly managed projects shared profit due to a decrease in products’ prices and increase in feedstock cost. 2- Reducing the Zakat provision for previous years by SR 94 million during the previous quarter. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The main reasons for the increase in net profit during the current period compared with same period from last year is due the following:
1- Increase in Petrochem jointly managed projects shared profit due to an increase in products’ prices and depreciation of the Polystyrene unit value, during the same period from last year. 2- Reducing the Zakat provision for previous years by SR 94 million during the current period. |
| Statement of the type of external auditor's report | Emphasis of matter |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | We draw attention to Note 14 to the accompanying condensed interim financial statements, which sets out the impact of restatement on investments in Saudi Polymers Company (“SPCO”) and Gulf Polymers Distribution Company (“GPDC”) that were previously consolidated. Based on management’s reassessment of the contractual arrangements between the shareholders, these investments should have been accounted for as investments in joint ventures using the equity method as the Company exercised joint control over these investments.
Note 14 to the accompanying condensed interim financial statements also sets out the impact of this restatement to the respective: - statements of financial position as of 31 December 2020 and 1 January 2020 and statement of profit or loss and other comprehensive income for the year ended 31 December 2020. - condensed interim statements of financial position as of 30 June 2021 and 31 March 2021, and condensed interim statements of profit or loss and other comprehensive income for the three-month and six-month periods ended 30 June 2021 and the three-month period ended 31 March 2021; and - 2020 comparative periods of these condensed interim financial statements. |
| Reclassification of Comparison Items | Certain figures of the prior year have been re-classified to conform to the current period presentation. |
| Additional Information | In connection with the announced proposed merger between SIIG and Petrochem, which required reviews and analyses that address the alignment of relevant accounting policies, specifically related to evaluating the control of Petrochem’s investments (Saudi Polymers and Gulf Polymers Distribution Company) in which Petrochem owns 65% of their shares, and to determine of whether control, joint control or significant influence is present with respect to investments in non-wholly owned subsidiaries and joint arrangements, and as a result, Petrochem has concluded that two entities which were previously accounted as subsidiaries should now be accounted for as joint arrangements.
As a result of this reassessment, starting from third quarter of 2021 financial, Petrochem will deconsolidate the financial statements of these two ventures and are considered as “Joint Arrangements”; using the equity method. There is no financial impact on the equity attributable to Petrochem shareholders, nor the net income attributable to Petrochem shareholders, and the earning per share. According to the IFRS requirements, the comparative figures for the applicable periods will be restated retrospectively to reflect the deconsolidation of the two ventures on Petrochem financial statement, where applicable, in the condensed interim financial statements for the third quarter of 2021. |
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