SAUDI STEEL PIPES COMPANY 1443/03/29 Thu Nov 4, 2021 08:04:31
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| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
| Sales/Revenue | 83.32 | 150.31 | -44.567 | 88.48 | -5.831 |
| Gross Profit (Loss) | 7.58 | 21.46 | -64.678 | 4.83 | 56.935 |
| Operational Profit (Loss) | -0.69 | 12.5 | - | -4.96 | -86.088 |
| Net Profit (Loss) after Zakat and Tax | 15.92 | 9.58 | 66.179 | -8.08 | - |
| Total Comprehensive Income | 15.92 | 10.72 | 48.507 | -8.08 | - |
| All figures are in (Millions) Saudi Arabia, Riyals |
| Element List | Current Period | Similar period for previous year | %Change |
| Sales/Revenue | 263.87 | 320.17 | -17.584 |
| Gross Profit (Loss) | 14.76 | 11.03 | 33.816 |
| Operational Profit (Loss) | -11.41 | -33.76 | -66.202 |
| Net Profit (Loss) after Zakat and Tax | -0.64 | -35.21 | -98.182 |
| Total Comprehensive Income | -0.64 | -34.07 | -98.121 |
| Total Share Holders Equity (after Deducting Minority Equity) | 492.55 | 493.99 | -0.291 |
| Profit (Loss) per Share | -0.013 | -0.697 | |
| All figures are in (Millions) Saudi Arabia, Riyals |
| Accumulated Losses | Capital | Percentage % |
| 61.94 | 510 | 12.15 |
| 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 |
Net profit of SR 15.92 million for the third quarter of financial year 2021 ("Q3 2021") compared to a net profit of SR 9.58 million for the third quarter of financial year 2020 ("Q3 2020") is due to the following main reasons:
a) Profit from discontinued operations increased to SR 19.21 million in Q3 2021 from SR 0.06 million in Q3 2020, mainly as a result of the gain recorded on the sale of the main operating assets of company's wholly owned subsidiary; Titanium Steel & Manufacturing Co. Ltd. b) Administrative expenses decreased to SR 6.35 million in Q3 2021 from SR 7.68 million in Q3 2020, mainly due to the reduction of structural cost and service indemnity cost. c) Decrease of net zakat and income tax expense to SR 0.54 million in Q3 2021 from SR 1.86 million in Q3 2020. d) Other income amounting to SR 0.72 million in Q3 2021 compared to other expense amounting to SR (0.11) million in Q3 2020. The above listed positive changes were partially offset by decrease in gross profit to SR 7.58 million in 3Q 2021 from SR 21.46 million in Q3 2020, mainly as a result of the lower volume and product mix, trade receivables bad debt provision amounting to SR (0.39) in Q3 2021 compared to trade receivables bad debt provision reversal amounting to SR 0.99 million in Q3 2020, decrease in share of profit in an associate company (Global Pipes Company) to SR 0.13 million in Q3 2021 from SR 1.41 million in Q3 2020. The EBITDA represents earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges. SSP recorded an EBITDA of SR 10.60 million in Q3 2021, including non-recurring charges, compared to SR 23.43 million in Q3 2020. Excluding non-recurring charges, adjusted EBITDA is SR 12.33 million in Q3 2021 compared to SR 26.96 million in Q3 2020. In addition, SSP recorded a positive free cash flow of SR 14.38 million in Q3 2021, compared to a negative free cash flow of (78.49) million in Q3 2020. Net debt decreased to SR 138.61 million as at the end of Q3 2021 from SR 332.36 million as at the end of Q3 2020. This improvement reflects cash discipline measures and working capital management implemented by the company. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is |
Net profit of SR 15.92 million for the third quarter of financial year 2021 ("Q3 2021") compared to a net loss of SR (8.08) million for the second quarter of financial year 2021 ("Q2 2021") is due to the following main reasons:
a) Profit from discontinued operations amounting to SR 19.21 million in Q3 2021 compared to a loss from discontinued operations amounting to SR (1.10) million in Q2 2021, mainly as a result of the gain recorded on the sale of the main operating assets of company's wholly owned subsidiary; Titanium Steel & Manufacturing Co. Ltd. b) Gross profit increased to SR 7.58 million in Q3 2021 from SR 4.83 million in Q2 2021, mainly due to improved mix of sold products. c) Share of profit in an associate company (Global Pipes Company) amounting to SR 0.13 in Q3 2021 million compared to a share of loss amounting to SR (1.89) million in Q2 2021. d) Administrative expenses decreased to SR 6.35 million in Q3 2021 from SR 7.99 million in Q2 2021, mainly due to the reduction of structural cost. The above listed positive changes were partially offset by an increase in financial charges to SR 2.19 million in Q3 2021 from SR 0.83 million in Q2 2021, net zakat and tax expense amounting to SR (0.54) million in Q3 2021 compared to net zakat and tax benefit amounting to SR 0.70 million in Q2 2021. The EBITDA represents earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges. SSP recorded a positive EBITDA of SR 10.60 million in Q3 2021, including non-recurring charges, compared to SR 6.37 million in Q2 2021. Excluding non-recurring charges, adjusted EBITDA is SR 12.33 million in Q3 2021 compared to SR 7.86 million in Q2 2021. In addition, SSP recorded a positive free cash flow of SR 14.38 million in Q3 2021 compared to SR 18.91 million in Q2 2021. Net debt decreased to SR 138.61 million as at the end of Q3 2021 from SR 158.56 million as at the end of Q2 2021. This improvement reflects cash discipline measures and working capital management implemented by the company |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is |
Net loss of SR (0.64) million for the nine months period of financial year 2021 ("current period") compared to a net loss of SR (35.21) million for the nine months period of financial year 2020 ("similar period of year 2020") is due to the following main reasons:
a) Profit from discontinued operations amounting to SR 19.19 million in current period compared to a loss from discontinued operations amounting to SR (1.04) million in the similar period of year 2020, mainly as a result of the gain recorded on the sale of the main operating assets of company's wholly owned subsidiary; Titanium Steel & Manufacturing Co. Ltd. b) Administrative expenses decreased to SR 21.43 million in current period from SR 35.81 million in similar period of year 2020, mainly due to the reduction of structural costs and service indemnity costs. c) Gross profit increased to SR 14.76 million in current period from SR 11.03 million in the similar period of year 2020, mainly due to improved mix of sold products. d) Financial charges decreased to SR 4.68 million in current period from SR 7.04 million in the similar period of year 2020, mainly as a result of the reduction of net debt and the optimization of financing sources. e) Trade receivables bad debt provision reversal amounting to SR 1.23 million in current period compared to a charge of SR (0.99) million in the similar period of year 2020. The above listed positive changes were partially offset by the share of loss in an associate company (Global Pipes Company) amounting to SR (4.75) million in current period compared to a share of profit amounting to SR 5.02 million in the similar period of year 2020. The EBITDA represents earnings before interest, tax, depreciation and amortization. Adjusted EBITDA excludes non-recurrent charges. SSP recorded a positive EBITDA of SR 22.10 million in current period, including non-recurring charges, compared to a negative EBITDA of SR (1.20) million in the similar period of year 2020. Excluding non-recurring charges, adjusted EBITDA is SR 26.96 million current period compared to SR 17.85 million in the similar period of year 2020. In addition, SSP recorded a positive free cash flow of SR 72.46 million in current period compared to a negative free cash flow of SR (84.07) million in the similar period of year 2020. Net debt decreased to SR 138.61 million as at the end of current period from SR 332.36 million as at the end of the similar period of year 2020. This improvement reflects cash discipline measures and working capital management implemented by the company. |
| 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 |
Without qualifying our conclusion, we draw attention to the followings:
- Note 2 to the accompanying condensed consolidated interim financial statements; where the accumulated losses of TSM Arabia (the subsidiary) as of September 30, 2021 have exceeded its share capital by SR 122.4 million (December 31, 2020: SR 141.6 million). - Note 15 to the accompanying condensed consolidated interim financial statements with respect to certain electronic title deeds related to the Group land plots which became inactive due to cancellation by court order which management has learned during the period ended September 30, 2021. |
| Reclassification of Comparison Items | In addition to matter defined in note 13, certain comparative figures have been reclassified, split or merged to conform with the presentation in the current period. |
| Additional Information | For further information, please see attached highlights. |
| Attached Documents | [Link] |
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SSP - Saudi Steel Pipes Company SJSC published this content on 04 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 November 2021 07:51:02 UTC.
