Dubai, UAE — Saudi Arabian Amiantit Company has reported a net profit of 1.99 million riyals ($0.5 million) for the first quarter of 2023, down more than 78 percent compared to the previous quarter.
The net loss for the similar period last year was 5.9 million. The revenue increased by more than 65 percent year-on-year to 197 million riyals from 119 million riyals in Q1 2022 and by 36 percent compared to the previous quarter.
In a Tadawul disclosure, the company attributed the net profit in the first quarter to its efforts to increase the volume of new orders, rationalize and control operating costs and maintain them at reasonable levels.
The decrease in the net profit compared to the previous quarter was the result of “reversing an impairment loss of fixed assets of one of the cash-generating units at a value of 37 million Saudi riyals, net of retroactive depreciation” and a decrease in the company’s investment profits.
The company’s accumulated losses reached 33% of share capital due to “applying the international accounting standards, the lack of liquidity in general, the negative effects of the Corona pandemic, and the failure to obtain sufficient sales orders equivalent to the company’s production capacity”.