Alujain Holding Company turned to profit in the third quarter of 2020 compared to net losses in the same quarter of 2019, with direct support from NATPET profits.
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According to Arabiya Net, the company recorded a net profit after zakat and tax amounted to 15.92 million riyals in the third quarter compared to recording losses of 108.46 million riyals during the same period of the previous year .
The company clarified that its profitability shift is mainly due to the profits of its associate company, the National Petrochemical Industries Company (NATPET), which owns 57.4% of its shares, which witnessed a positive shift in the results. After rebuilding its plant is completed, it will resume operations.
Al-Lujain indicated that the increase in general and administrative expenses during the third quarter of 2020, compared to the same quarter of 2019, was the result of one-time expenses.
and on a quarterly basis, the company's profits decreased by 91.3%, compared to the profits of the previous quarter, which amounted to 182.98 million riyals.
and the results of Al-Lujain in the first nine months of 2020 revealed a net profit of 152.53 million riyals against net losses of 258.18 million riyals in the same period in 2019.
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The company said in a statement that the reason for achieving net profit during the current period versus net loss during the same period of the previous year is due to the associate company (NATPET) achieving net profit. During the current period compared to net loss during the same period of the previous year. Despite the increase in general and administrative expenses during the current period as a result of non-recurring expenses.
The increase in net profit of NATPET company is due to the receipt by NATPET company of the remaining part of the final settlement of insurance in the amount of 330 million riyals and it was recorded in other profits during the current period 2020. And the resumption of operations Operation and production after rebuilding the NATPET plant is completed.
