Arabian Pipes Co. announces its Interim Financial Results for the Period Ending on 2023-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 230 | 61.7 | 272.77 | 223.1 | 3.09 |
| Gross Profit (Loss) | 27.5 | 1.4 | 1,864.29 | 26.6 | 3.38 |
| Operational Profit (Loss) | 15.4 | -12.7 | - | 6.2 | 148.39 |
| Net Profit (Loss) after Zakat and Tax | 13.3 | -13.2 | - | 16.5 | -19.39 |
| Total Comprehensive Income | 13.3 | -13.2 | - | 16.8 | -20.83 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (after Deducting Minority Equity) | 128.3 | 92.5 | 38.7 |
| Profit (Loss) per Share | 1.33 | -1.32 | |
| 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 reason for the increase in net profit of SR 13.3 MM for the first quarter of 2023 compared to net loss of SR (13.2) MM for the same period of 2022 is due to:
1. Increase in the company’s sales for the current quarter by 273% to reach SR 230 MM compared to SR 61.7 MM for the same period in 2022, the reasons of this increase are: • The company stared to produce and deliver the pipes of new awarded projects. • The continuity and stability of production during the last period and the improvement of delivery schedules. 2. An increase in the profit margin percentage for Q1 2023 compared to Q1 2022, reaching 12% compared to 2.3% for Q1 2022, which led to gross profit of SR 27.5 MM compared to SR 1.4 MM for the same period of 2022. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | The reasons for the decrease in net profit to reach SR 13.3 MM for the first quarter of 2023 compared to the previous quarter which was SR 16.5 are increase in General and administrative expenses and increase in shipping costs, noting that the company was able to maintain the profit margin ratio for this period at the same level. |
| 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 | Refer to note no. (2/3), which is related to going concern, the company's current liabilities exceeded its current assets by SAR 149.6 million as at December 31, 2022 (December 31, 2021: SAR 154.4 million). These circumstances indicate the existence of a material uncertainty that may cast doubt on the Company's ability to continue as a going concern.
On July 17, 2022, the Board of Directors issued a recommendation to increase the capital by an amount of SAR 150 million, this recommendation is subject to the approval of the relevant regulatory authorities and the extraordinary general assembly that has not held until the date of approval of the accompanying financial statements by the company’s board of directors.
The company has appointed an "independent" specialized consulting office to prepare a strategic business plan for the company for the next five years (2023-2027). The study showed an improvement in the indicators and performance of the company for this period, and this gives an indication of the company's ability to continue on the basis of the going concern principle. Accordingly, it was approved by the Board of Directors. Accordingly, the financial statements were prepared on the basis of going concern and do not include any adjustments that may be required if the company is unable to continue on the basis of the going concern principle. |
| Reclassification of Comparison Items | N/A |
| Additional Information | - The company's total sales for the first quarter of 2023 increased by around of 273%, to reach SR 230 MM, compared to SR 61.7 MM for the same quarter of the previous year.
- The company achieved a net profit for the first quarter of 2023 of about SR 13.3 MM , compared to losses around SR (13.2) MM for the same period last year. - Total equity (no minority rights) for the current period reached SR 128.3 MM, compared to 92.5 million riyals for the same period of the previous year. - Sales of the current quarter reached to SR 230 MMs, while sales of the last quarter (the fourth quarter of 2022) reached around SR 223 MM, this shows that the company has stability, continuity of production and delivering of the recently awarded projects, this also improved the production costs. Noting that the company has projects on hand with total value exceeding SR 1 billion. - total retained earnings increased to reach SR 27.9 MM for the first quarter of 2023, compared to SR 14.6 MM at the end of 2022 . |
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