Alujain Corporation 2013 Net Profit Increases by 112.52%

20/01/2014 12:47 AST

Net profit of Alujain Corporation (ALCO) during the 4th Q 2013 amounted to SAR 33.82 million versus SAR 17.12 million for the same quarter of last year with an increase of 97.55%, compared to SAR 56.96 million for the previous quarter with a decrease of 40.63 %.

Gross profit during the 4th Q of 2013 added up to SAR 111.46 million versus SAR 86.67 million for the same quarter of last year, an increase of 28.6 percent.

Operating profit increased 31.3 % to SAR 85.19 million during 4thQuarter of 2013 versus SAR 64.88 million for the same quarter of last year.

While, net profit during 2013 showed an increase of 112.52 percent with SAR 109.83 million versus SAR 51.68 million for the last year 2012.

EPS of ALCO during 2013 recorded as SAR 1.59 per share versus 0.75 SAR/Share for the same period last year 2012.

The total gross profit during 2013 is recorded as SAR 343.85 million versus SAR 292.42 million for the last year 2012, showing increase of 17.59%.

The total operating profit of ALCO during 2013 amounted to SAR 259.69 million versus SAR 215.01 million for the last year 2012, increasing 20.78 %.

The reason for increase in net profit for quarter compared with same quarter last year is due to the higher sales prices, lower financial charges and lower provisions against projects under study/investments. The selling & distribution expenses increased by SR 4.1 million mainly due to higher sales and advertising expenses.

The yearly net profit is higher mainly due to better margins, although sales quantities were low due to the planned shutdown and screen cleaning process of the plant during 1st quarter 2013. The other major reasons are (1) lower financial charges and (2) receipt of insurance compensation of SR 75 million against a claim for PDH plant crash shutdown during third quarter of 2011. The insurance settlement comprises of SR 24.78 million pertaining to capital repairs and SR 50.22 million to compensate for the loss of profit arising from lower production until final repairs were carried out. The general & administrative expenses increased by SR 4.3 million mainly due to legal and other consultancies incurred for re-financing activities, corporate and travelling expenses. Sales & marketing expenses also increased by 2.38 million due to advertising expenses incurred during 4th quarter 2013, as explained above.

Gulfbase.com