Riyadh – Mubasher: Advanced Petrochemical Company has logged a net profit after Zakat and tax worth SAR 104.3 million during the first quarter (Q1) of 2020, 35.5% less than SAR 161.8 million in the same period in 2019.
Sales fell by 17.51% in Q1-20 to reach SAR 534.5 million, compared with SAR 647.9 million in Q1-19, according to a disclosure to the Saudi Stock Exchange (Tadawul) on Monday.
The decline in net earnings was primarily due to lower sales volume and prices of Polypropylene by 8.1% and 10.3%, respectively, and higher Propane consumption by 10.3%.
The lower profits came despite the drop in Propane prices by 4.3%, cut in outsourced Propylene consumption by 71%, and a decrease in fixed production costs and general and administrative expenses by 19% and 35% respectively, the statement added.
Moreover, the Saudi firm incurred a share of loss from investment in SK Advanced Co. worth SAR 18.19 million over the three-month period, against a share of profit of SAR 20.70 million during the same period in 2019.
On 5 April, the estimated financial results of the company showed a 35.75% plunge in net profit in the quarter ended on 31 March 2020.
It is noteworthy that in fiscal year (FY) 2019, Advanced Petrochemical reported a 5.6% annual increase in net profit at SAR 759.31 million, the highest in the company's history.
