Al-Babtain’s net profit down 8% to SAR 76.1m for the first nine months of 2014

Al-Babtain Power and Telecommunication Company, a manufacturer of outdoor lighting, telecommunication structure steel and galvanizing services, reported a net profit of SAR 76.1m for the nine months ended September 30, 2014, an 8% decrease compared to the same period last year.

The company attributed the decline of the first nine months of 2014’s net profit, compared to the same period last year, to forming provision to face the impairment of the company’s investments in Al Babtain France by amount SAR 70 Million because of the restructuring project for Al Babtain France.

The decline of Q3-2014’s net profit compared to the same period last year was attributed to forming provision to face the impairment of the company’s investments in Al Babtain France by amount SAR 45 Million because of the restructuring project for Al Babtain France.

The decline of Q3-2014’s net profit compared to the previous period (Q2-2014) was attributed to forming provision to face the impairment of the company’s investments in Al Babtain France by amount SAR 45 Million because of the restructuring project for Al Babtain France.

The company’s external auditor drew the attention to the following:

The company’s Board of Directors has decided to restructure, organize and regulate its subsidiary in France, which had losses amounted to SAR 82.6 million for the period ended Sept. 30, 2014. The decision came in compliance with the Saudi Accounting Standards which associated with the Financial Statements consolidation process. The consolidation process will be restarted after completion of the restructuring project.
The subsidiary company in France reported a loss for period ended 30/09/2014 by amounted to SAR 82.6 Million, and although this company suffers from economic problems which may hinder its continually and its restructure plan, its assets and liabilities values were modified, as it is still in restructure process according to external auditor report of Al Babtain France who declined not to give his opinion in its financial statement. The Al Babtain Power and Telecommunication Co. undertaking to support its subsidiary company in France financially and technically up to finish all restructure stages, where al Babtain included provision by amount SAR 70 Million within its financial statement as of 30/09/2014, in same time the company confirm to continue forming provision to face any future problems may happen due to restructure project ended the current year.
comparative numbers include sub’s assets, liabilities and business results.