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Arabian Pipes Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )

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APC
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1445/01/26     13/08/2023 08:01:51

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 26570278.5723015.22
Gross Profit (Loss) 60.9-6.4-27.5121.45
Operational Profit (Loss) 44-11.5-15.4185.71
Net Profit (Loss) after Zakat and Tax 33.2-4.2-13.3149.62
Total Comprehensive Income 33.2-4.2-13.3149.62
All figures are in (Millions) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Sales/Revenue 495133.1271.9
Gross Profit (Loss) 88.4-3.7-
Operational Profit (Loss) 59.5-22.9-
Net Profit (Loss) after Zakat and Tax 46.6-17.4-
Total Comprehensive Income 46.6-17.4-
Total Share Holders Equity (after Deducting Minority Equity) 161.688.283.22
Profit (Loss) per Share 4.66-1.75
All figures are in (Millions) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
0100,000,0000
All figures are in (Millions) Saudi Arabia, Riyals
Element ListExplanation
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 33.3 MM for the second quarter of 2023 compared to net loss of SR (4.2) MM for the same period of 2022 is due to:

1. Increase in the company’s sales for the current quarter by 279% to reach SR 265 MM compared to SR 70 MM for the same period in 2022, the reasons of this increase are:

• During the last period, the company has been successful in obtaining projects

• 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. The gross profit margin percentage for the second quarter of 2023 AD increased by approximately 23% compared to the same quarter of the previous year. This is a significant improvement compared to the (9.1)% loss experienced in 2022 AD. As a result, we have achieved a gross profit of SR 60.9 MM, compared to a loss of SR (6.4) MM.

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 increase in net profit to SR 33.3 MM for the second quarter of 2023 AD, compared to the previous quarter's amount of approximately 13.3 million riyals, can be attributed to the consistent delivery of projects. This resulted in higher sales and lower costs for the current quarter, leading to an increase in the gross profit margin percentage to around 23% compared to approximately 12% for 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 significant increase in net profit for the year 2023, reaching 46.4 million riyals compared to SR 17.5 MM in 2022, can be attributed to a 272% increase in sales. In the first half of 2023, sales amounted to approximately SR 495 MM, while in the same period of 2022, it was SR 133.1 MM. This increase also led to a rise in the gross profit margin to around 17.8% from a loss rate of 2.8%.
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 (2) to the accompanying interim condensed financial statements, which indicates that the Company's current liabilities have exceeded its current assets by SR 109.9 million. The Board of Directors also recommended increasing the Company's capital by an amount of SR 150 million through offering of rights issues. The recommendation to increase the Company's capital is subject to the approval of the relevant supervisory authorities and the extraordinary general assembly pf the Company, which have not been completed as of the date of approving these interim condensed financial statements. These circumstances indicate the existence of a material uncertainty that may raise doubts about the Company's ability to continue its activities in accordance with the going concern principle. The management has made an assessment of the Company's ability to continue its activities as a going concern. Accordingly, these interim condensed financial statements have been prepared by the management on a going concern basis. Our conclusion is not modified in respect of this matter.
Reclassification of Comparison Items N/A
Additional Information - The company's total sales for the second quarter of 2023 increased by an estimated rate of 279% to reach 265 million riyals, compared to 70 million riyals for the same quarter of the previous year.

- The company achieved a net profit of about 33.3 million riyals for the second quarter of 2023, compared to losses estimated at about (4.2) million riyals for the same period of the previous year.

- Sales for the first half of 2023 reached approximately 495 million riyals, a significant increase compared to 133.1 million riyals during the same period in 2022. This rise also led to an improvement in the gross profit margin, which now stands at around 17.8% compared to a negative rate of approximately (2.8)%. Consequently, the gross profit amounted to 88.3 million riyals, a substantial improvement compared to (3.7) million riyals for the same period in 2022.

- The total shareholders' equity (no minority rights) for the current period amounted to 161.6 million riyals, compared to 88.2 million riyals for the same period of the previous year. The main reason for this increase is the rise in retained earnings, which amounted to about 61.2 million riyals.

- Sales for the current quarter reached approximately 265 million riyals, while sales for the previous quarter (the first quarter of 2023) amounted to about 230 million riyals. This indicates the company's ability to continue working on recently acquired projects and delivering them to customers. It also highlights the stability and continuity of production and supply, as well as the improvement in production costs since the third quarter of last year. It's worth noting that the company currently has existing projects worth over 1.5 billion riyals.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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Last Price 182.0
Net Change 7.0 (+4.0%)
Value Traded (Sar) 83,435,939.2
Volume Traded 457,792
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