Aqaseem 9M 2021 net profit up 6% to SAR 6.5 mln; Q3 at SAR 3 mln

Aqaseem Factory for Chemicals and Plastics Co. posted a 6% rise in net profit to SAR 6.5 million for the first nine months of 2021, from SAR 6.1 million a year earlier. 

The profit growth was driven by a 38% rise year-on-year (YoY) in revenue, as revenue from gasoline engine products and hydraulic products increased by 53% and 260% YoY, respectively. This came despite a 36% YoY drop in revenue from diesel engines.

On the other hand, the cost of revenue rose by 45% YoY. Higher general, administrative and marketing expenses, as well as Zakat charges also weighed negatively on the nine-month profit.

The third-quarter net profit jumped 14% to SAR 3 million, from SAR 2.62 million in the year-ago period, thanks to a 61% YoY surge in revenue, despite higher cost of revenue, as well as general, administrative and marketing.

Shareholders’ equity, after minority interest, reached SAR 39.2 million as of Sept. 30, 2021.

Retained earnings came in at SAR 13.3 million, or 53% of the company’s capital.

Aqaseem secured SAR 10 credit facilities during the current period under a sale and purchase agreement (SPA) for securitization. The 39-month agreement took effect on May 19, 2021 and is valid until April 19, 2024.

Gasoline engines account for 74.7% of total revenue, while diesel engine products and hydraulic products make up almost 9.2% and 7.3% of total revenue, respectively. Revenue from transmission oils represented 4.6% of total revenue in the nine-month period.  

View more financial results