The National Petrochemical Company (Petrochem) achieved 88.7% growth in profits for the fourth quarter of 2020 to reach 251 million riyals compared to 133 million riyals in the same quarter of the year. 2019.
According to Arabiya Net, the company's profits increased by 114.5%, compared to what the company achieved in the previous quarter, which was 117 million riyals.
Petrochem achieved operating profits in the fourth quarter amounting to 372 million riyals, compared to 254 million riyals, in the corresponding period of last year with a growth of 46.4%.
The reason for the increase in net profit during the current quarter compared with the same quarter of the previous year is due to an increase in the average prices of the subsidiary's products, a decrease in the average prices of feedstock, in addition to a decrease In selling and distribution expenses, financing costs, zakat expenses, and general and administrative expenses.
During the past year, the value of profits was 230 million riyals, compared to 674 million riyals, in 2019, a decrease of 65.8%.
The decrease in annual net profits is due to the depreciation of the entire value of the polystyrene unit, which was suspended during the current period, as Petrochem's share of this depreciation amounted to 254 million riyals, and a decrease In the average prices of the subsidiary's products during the current period compared to the average prices for the same period of the previous year, and to the decrease in other revenues.
