Red Sea swings to a net loss of SAR 65.3 mln in 2017

22/03/2018 Argaam Exclusive

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Share Price

31.40
(0.35) (1.10 %)

Red Sea International Company (RED SEA)

Red Sea International Co reported a net loss of SAR 65.3 million for 2017 compared to a net profit of SAR 80.1 million a year earlier.



Financials (M)

Item 2016 2017 Change‬
Revenues 1,030.42 773.12 (25.0 %)
Gross Income 263.34 75.15 (71.5 %)
Operating Income 121.01 (47.51) (139.3 %)
Net Income 90.34 (65.30) (172.3 %)
Average Shares 30.23 30.23 -
EPS (Riyals) 2.99 (2.16) (172.3 %)

The company attributed the loss to a reduction in gross profit margin from 25.6% in 2016 to 9.7% in 2017; a drop in building revenues by 27.2%, in rental revenue by 21.7%, and in paint business revenues by 25.8% in comparison to previous year.

 

The company’s sales fell 25 percent to SAR 773.1 million in 2017 compared to SAR 1.03 billion a year earlier.



Current Quarter Comparison (M)

Compared With The
Item Q4 2016 Q4 2017 Change‬
Revenues 240.07 160.77 (33.0 %)
Gross Income 57.94 (23.12) (139.9 %)
Operating Income 20.63 (51.35) (348.9 %)
Net Income 16.91 (55.77) (429.8 %)
Average Shares 30.23 30.23 -
EPS (Riyals) 0.56 (1.84) (429.8 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2008 279.80 91.8 % 81.82 70.1 % 56.27 107.9 % 1.86
Q2 2008 317.56 124.5 % 95.05 218.1 % 67.30 191.6 % 2.23
Q3 2008 259.69 1.4 % 76.45 37.5 % 49.20 28.6 % 1.63
Q4 2008 281.84 92.0 % 52.32 21.9 % 41.27 42.8 % 1.37
Q1 2009 307.63 9.9 % 81.83 0.0 % 57.95 3.0 % 1.92
Q2 2009 155.53 (51.0 %) 41.50 (56.3 %) 18.61 (72.4 %) 0.62
Q3 2009 169.73 (34.6 %) 35.92 (53.0 %) 24.43 (50.3 %) 0.81
Q4 2009 218.67 (22.4 %) 47.05 (10.1 %) 22.72 (44.9 %) 0.75
Q1 2010 147.00 (52.2 %) 46.64 (43.0 %) 24.15 (58.3 %) 0.80
Q2 2010 162.97 4.8 % 34.84 (16.0 %) 14.52 (22.0 %) 0.48
Q3 2010 173.14 2.0 % 42.15 17.4 % (2.30) (109.4 %) (0.08)
Q4 2010 261.60 19.6 % 65.32 38.8 % 24.67 8.6 % 0.82
Q1 2011 205.27 39.6 % 51.53 10.5 % 32.23 33.5 % 1.07
Q2 2011 188.78 15.8 % 37.52 7.7 % 21.38 47.3 % 0.71
Q3 2011 189.04 9.2 % 24.07 (42.9 %) 12.75 653.4 % 0.42
Q4 2011 192.49 (26.4 %) 35.07 (46.3 %) 11.53 (53.3 %) 0.38
Q1 2012 221.00 7.7 % 51.72 0.4 % 31.56 (2.1 %) 1.04
Q2 2012 196.45 4.1 % 46.11 22.9 % 30.72 43.7 % 1.02
Q3 2012 244.47 29.3 % 62.13 158.1 % 25.28 98.2 % 0.84
Q4 2012 202.92 5.4 % 63.70 81.6 % 33.07 186.8 % 1.09
Q1 2013 205.42 (7.0 %) 53.67 3.8 % 31.72 0.5 % 1.05
Q2 2013 223.45 13.7 % 55.04 19.4 % 33.12 7.8 % 1.10
Q3 2013 271.60 11.1 % 80.29 29.2 % 44.42 75.7 % 1.47
Q4 2013 270.94 33.5 % 87.24 37.0 % 43.52 31.6 % 1.44
Q1 2014 268.97 30.9 % 72.41 34.9 % 43.52 37.2 % 1.44
Q2 2014 267.63 19.8 % 67.50 22.7 % 40.78 23.1 % 1.35
Q3 2014 283.60 4.4 % 75.60 (5.8 %) 43.12 (2.9 %) 1.43
Q4 2014 284.75 5.1 % 79.64 (8.7 %) 29.27 (32.7 %) 0.97
Q1 2015 275.44 2.4 % 67.16 (7.3 %) 30.04 (31.0 %) 0.99
Q2 2015 237.15 (11.4 %) 58.82 (12.9 %) 17.02 (58.3 %) 0.56
Q3 2015 228.40 (19.5 %) 48.40 (36.0 %) 1.95 (95.5 %) 0.06
Q4 2015 286.90 0.8 % 80.13 0.6 % 27.10 (7.4 %) 0.90
Q1 2016 271.78 (1.3 %) 74.95 11.6 % 31.77 5.8 % 1.05
Q2 2016 267.32 12.7 % 70.01 19.0 % 31.16 83.1 % 1.03
Q3 2016 251.25 10.0 % 60.44 24.9 % 10.50 439.6 % 0.35
Q4 2016 240.07 (16.3 %) 57.94 (27.7 %) 16.91 (37.6 %) 0.56
Q1 2017 227.33 (16.4 %) 45.28 (39.6 %) 8.70 (72.6 %) 0.29
Q2 2017 198.79 (25.6 %) 29.52 (57.8 %) (5.57) (117.9 %) (0.18)
Q3 2017 186.23 (25.9 %) 23.47 (61.2 %) (12.66) (220.6 %) (0.42)
Q4 2017 160.77 (33.0 %) (23.12) (139.9 %) (55.77) (429.8 %) (1.84)
2017 773.12 (25.0 %) 75.15 (71.5 %) (65.30) (172.3 %) (2.16)

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 25.51 % 24.52 % 17.78 %
Q2 2008 27.53 % 25.03 % 19.07 %
Q3 2008 29.51 % 26.38 % 20.09 %
Q4 2008 26.84 % 24.48 % 18.79 %
Q1 2009 26.20 % 23.82 % 18.49 %
Q2 2009 25.09 % 22.18 % 16.63 %
Q3 2009 23.13 % 21.26 % 15.55 %
Q4 2009 24.23 % 20.94 % 14.53 %
Q1 2010 24.76 % 20.68 % 13.01 %
Q2 2010 23.55 % 20.77 % 12.29 %
Q3 2010 24.32 % 20.64 % 8.42 %
Q4 2010 25.37 % 20.80 % 13.66 %
Q1 2011 24.14 % 19.95 % 13.68 %
Q2 2011 23.71 % 19.80 % 14.08 %
Q3 2011 21.12 % 18.17 % 15.60 %
Q4 2011 19.11 % 17.38 % 10.04 %
Q1 2012 18.75 % 18.31 % 9.76 %
Q2 2012 19.65 % 20.12 % 10.83 %
Q3 2012 22.83 % 21.20 % 11.60 %
Q4 2012 25.86 % 24.17 % 13.95 %
Q1 2013 26.57 % 24.38 % 14.22 %
Q2 2013 26.77 % 24.06 % 14.06 %
Q3 2013 27.97 % 25.56 % 15.75 %
Q4 2013 28.44 % 25.00 % 15.73 %
Q1 2014 28.50 % 24.75 % 15.90 %
Q2 2014 28.49 % 25.28 % 15.96 %
Q3 2014 27.75 % 26.09 % 15.67 %
Q4 2014 26.71 % 26.19 % 14.18 %
Q1 2015 26.08 % 25.83 % 12.89 %
Q2 2015 26.02 % 24.40 % 11.05 %
Q3 2015 24.76 % 21.56 % 7.63 %
Q4 2015 24.76 % 20.33 % 7.40 %
Q1 2016 25.61 % 20.64 % 7.60 %
Q2 2016 25.94 % 21.75 % 8.72 %
Q3 2016 26.51 % 22.60 % 9.33 %
Q4 2016 25.56 % 22.50 % 8.77 %
Q1 2017 23.70 % 21.09 % 6.82 %
Q2 2017 21.06 % 18.07 % 3.33 %
Q3 2017 18.33 % 15.29 % 0.87 %
Q4 2017 9.72 % 7.52 % (8.45 %)
2017 9.72 % 7.52 % (8.45 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 30.23 4.85 4.85 19.35
Q2 2008 30.23 6.31 6.31 19.55
Q3 2008 30.23 6.67 6.67 21.19
Q4 2008 30.23 7.08 7.08 22.54
Q1 2009 30.23 7.14 7.14 24.48
Q2 2009 30.23 5.52 5.52 21.63
Q3 2009 30.23 4.71 4.71 22.44
Q4 2009 30.23 4.09 4.09 23.20
Q1 2010 30.23 2.97 2.97 23.99
Q2 2010 30.23 2.84 2.84 22.49
Q3 2010 30.23 1.95 1.95 22.41
Q4 2010 30.23 2.02 3.37 23.21
Q1 2011 30.23 2.29 3.63 24.28
Q2 2011 30.23 2.51 3.86 24.01
Q3 2011 30.23 3.01 4.36 24.33
Q4 2011 30.23 2.58 2.58 24.54
Q1 2012 30.23 2.55 2.55 25.48
Q2 2012 30.23 2.86 2.86 25.13
Q3 2012 30.23 3.28 3.28 25.99
Q4 2012 30.23 3.99 3.99 27.21
Q1 2013 30.23 3.99 3.99 28.30
Q2 2013 30.23 4.07 4.07 27.54
Q3 2013 30.23 4.71 4.71 28.21
Q4 2013 30.23 5.05 5.05 29.59
Q1 2014 30.23 5.44 5.44 31.03
Q2 2014 30.23 5.70 5.70 29.90
Q3 2014 30.23 5.65 5.65 31.25
Q4 2014 30.23 5.18 5.18 32.11
Q1 2015 30.23 4.74 4.74 32.79
Q2 2015 30.23 3.95 3.95 31.31
Q3 2015 30.23 2.59 2.59 31.31
Q4 2015 30.23 2.52 2.52 32.05
Q1 2016 30.23 2.57 2.57 30.61
Q2 2016 30.23 3.04 3.04 30.07
Q3 2016 30.23 3.33 3.33 30.40
Q4 2016 30.23 2.99 2.99 30.81
Q1 2017 30.23 2.23 2.23 31.18
Q2 2017 30.23 1.01 1.01 29.57
Q3 2017 30.23 0.24 0.24 29.16
Q4 2017 30.23 (2.16) (2.16) 27.03

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 12.95 12.95 3.24
Q2 2008 15.14 15.14 4.88
Q3 2008 13.31 13.31 4.19
Q4 2008 10.48 10.48 3.29
Q1 2009 8.45 8.45 2.46
Q2 2009 12.03 12.03 3.07
Q3 2009 13.13 13.13 2.75
Q4 2009 14.85 14.85 2.62
Q1 2010 20.19 20.19 2.50
Q2 2010 18.71 18.71 2.36
Q3 2010 20.51 20.51 1.79
Q4 2010 26.67 15.99 2.32
Q1 2011 23.33 14.68 2.20
Q2 2011 20.43 13.30 2.14
Q3 2011 14.46 9.99 1.79
Q4 2011 16.83 16.83 1.77
Q1 2012 20.69 20.69 2.07
Q2 2012 13.03 13.03 1.48
Q3 2012 12.55 12.55 1.58
Q4 2012 10.34 10.34 1.52
Q1 2013 11.72 11.72 1.65
Q2 2013 12.14 12.14 1.80
Q3 2013 12.59 12.59 2.10
Q4 2013 14.33 14.33 2.45
Q1 2014 20.60 20.60 3.61
Q2 2014 20.56 20.56 3.92
Q3 2014 21.22 21.22 3.84
Q4 2014 13.85 13.85 2.24
Q1 2015 16.63 16.63 2.40
Q2 2015 19.69 19.69 2.49
Q3 2015 18.17 18.17 1.50
Q4 2015 19.25 19.25 1.51
Q1 2016 18.59 18.59 1.56
Q2 2016 16.51 16.51 1.67
Q3 2016 13.28 13.28 1.45
Q4 2016 19.62 19.62 1.90
Q1 2017 22.48 22.48 1.60
Q2 2017 38.15 38.15 1.30
Q3 2017 More than 50 More than 50 1.40
Q4 2017 NEG NEG 1.40

Business Segments (Million)

Compared With The
Period Manufacture & sale property Leasing Paints
Q1 2008 236.09 43.70 -
Q2 2008 276.44 41.12 -
Q3 2008 211.20 48.50 -
Q4 2008 236.08 45.76 -
Q1 2009 268.12 39.51 -
Q2 2009 125.81 29.72 -
Q3 2009 142.97 26.76 -
Q4 2009 194.03 24.64 -
Q1 2010 123.13 23.86 -
Q2 2010 138.04 24.94 -
Q3 2010 147.60 25.54 -
Q4 2010 232.96 28.64 -
Q1 2011 174.05 31.22 -
Q2 2011 147.47 41.30 -
Q3 2011 137.09 51.95 -
Q4 2011 126.68 65.81 -
Q1 2012 158.87 62.12 -
Q2 2012 124.75 71.70 -
Q3 2012 172.46 72.02 -
Q4 2012 124.61 78.31 -
Q1 2013 133.49 71.86 0.07
Q2 2013 144.10 78.09 1.27
Q3 2013 198.44 70.55 2.61
Q4 2013 187.31 81.05 2.57
Q1 2014 177.96 87.55 3.46
Q2 2014 161.40 101.21 5.02
Q3 2014 190.82 85.23 7.56
Q4 2014 193.96 86.47 4.32
Q1 2015 165.59 101.37 8.48
Q2 2015 125.78 99.86 11.52
Q3 2015 109.04 107.64 11.72
Q4 2015 144.92 129.91 12.08
Q1 2016 144.90 109.31 17.57
Q2 2016 142.61 106.14 18.57
Q3 2016 140.72 99.25 11.29
Q4 2016 135.03 88.92 19.05
Q1 2017 128.22 84.72 14.39
Q2 2017 105.23 81.14 12.42
Q3 2017 98.66 76.24 11.33
Q4 2017 77.69 74.08 9.00

Current
Market Cap (M Riyal) 949.22
Enterprise Value (EV) (M) 1,133.98
Shares Outstanding ((M)) 30.23
EPS ( Riyal) (TTM) (0.75)
Book Value (BV) ( Riyal) 2.57
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 12.22
Return on Average Assets (%) (TTM) (1.41 )
Return on Average Equity (%) (TTM) (25.50 )

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