Financial Results : Advanced profit slumps 74% to SAR 43 mln in Q1 2023

Advanced profit slumps 74% to SAR 43 mln in Q1 2023

09/05/2023 Argaam Exclusive

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Advanced Petrochemical Co. reported a 74% slump in net profit to SAR 43 million in the first quarter of 2023, compared to SAR 164 million in the same period last year.   

 



Current Quarter Comparison (M)

Compared With The
Item Q1 2022 Q1 2023 Change‬
Revenues 866.31 626.87 (27.6 %)
Gross Income 210.80 101.69 (51.8 %)
Operating Income 181.94 64.42 (64.6 %)
Net Income 164.35 42.69 (74.0 %)
Average Shares 260.00 260.00 -
EPS (Riyals) 0.63 0.16 (74.0 %)

The company attributed the year-on-year (YoY) profit decline to a 27% decrease in sales prices and 6% lower sales volumes, in addition to the deepened loss share from SK Advanced Co. by SAR 7 million.  

  

Meanwhile, propane and propylene purchase prices decreased by 15% and 21% YoY, respectively. Moreover, shipping costs were 73% down.  

 

On a Quarter-on-quarter (QoQ) basis, the petrochemical producer recognized a profit versus a net loss of SAR 6.41 million, thanks to 7% higher sales prices, and a SAR 24 million decline in SK Advanced loss share, as well as a 31% fall in shipping costs.  

  

This came despite a 5% decline in sales volume and a 6% rise in propane and propylene purchase prices.  

 

Shareholders' equity, excluding minority interest, declined to SAR 3.11 billion by the end of Q1 2023, from SAR 3.87 billion in Q1 2022.

 

In Q1 2023, total comprehensive income amounted to SAR 20 million, compared to SAR 279 million YoY, and SAR 2 million QoQ.

 

Q1 2023 net profit includes an amount of SAR 22 million, a share of losses from investment in SK Advanced, South Korea, compared to losses YoY and QoQ of SAR 15 million and SAR 46 million, respectively.

 

The change in other comprehensive income is mainly due to unrealized gains/losses on equity investments carried at fair value.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2014 669.17 4.3 % 150.42 13.3 % 138.60 13.8 %
Q2 2014 807.63 17.8 % 192.85 28.0 % 183.19 30.7 %
Q3 2014 819.76 18.1 % 205.69 33.5 % 196.90 37.2 %
Q4 2014 739.82 (3.2 %) 231.78 33.2 % 216.42 35.2 %
Q1 2015 467.94 (30.1 %) 111.12 (26.1 %) 100.34 (27.6 %)
Q2 2015 735.37 (8.9 %) 264.00 36.9 % 253.53 38.4 %
Q3 2015 631.98 (22.9 %) 248.32 20.7 % 240.55 22.2 %
Q4 2015 541.73 (26.8 %) 160.72 (30.7 %) 148.10 (31.6 %)
Q1 2016 488.07 4.3 % 178.90 61.0 % 147.77 47.3 %
Q2 2016 546.41 (25.7 %) 224.96 (14.8 %) 195.04 (23.1 %)
Q3 2016 528.53 (16.4 %) 225.65 (9.1 %) 196.67 (18.2 %)
Q4 2016 576.37 6.4 % 228.95 42.5 % 188.65 27.4 %
Q1 2017 526.24 7.8 % 143.25 (19.9 %) 117.00 (20.8 %)
Q2 2017 604.41 10.6 % 220.13 (2.1 %) 192.07 (1.5 %)
Q3 2017 616.41 16.6 % 221.95 (1.6 %) 195.36 (0.7 %)
Q4 2017 637.48 10.6 % 152.79 (33.3 %) 115.24 (38.9 %)
Q1 2018 503.82 (4.3 %) 119.14 (16.8 %) 94.71 (19.1 %)
Q2 2018 749.67 24.0 % 277.14 25.9 % 246.61 28.4 %
Q3 2018 744.94 20.9 % 218.08 (1.7 %) 190.55 (2.5 %)
Q4 2018 749.79 17.6 % 213.22 39.5 % 168.51 46.2 %
Q1 2019 647.97 28.6 % 193.91 62.8 % 151.74 60.2 %
Q2 2019 680.96 (9.2 %) 246.37 (11.1 %) 207.33 (15.9 %)
Q3 2019 647.18 (13.1 %) 245.26 12.5 % 201.94 6.0 %
Q4 2019 618.40 (17.5 %) 213.67 0.2 % 171.22 1.6 %
Q1 2020 534.52 (17.5 %) 154.37 (20.4 %) 125.20 (17.5 %)
Q2 2020 519.04 (23.8 %) 186.06 (24.5 %) 152.30 (26.5 %)
Q3 2020 544.95 (15.8 %) 171.89 (29.9 %) 140.32 (30.5 %)
Q4 2020 632.85 2.3 % 216.90 1.5 % 174.63 2.0 %
Q1 2021 631.74 18.2 % 201.36 30.4 % 163.51 30.6 %
Q2 2021 768.80 48.1 % 326.79 75.6 % 283.91 86.4 %
Q3 2021 805.33 47.8 % 269.18 56.6 % 231.33 64.9 %
Q4 2021 905.45 43.1 % 245.28 13.1 % 185.92 6.5 %
Q1 2022 866.31 37.1 % 210.80 4.7 % 181.94 11.3 %
Q2 2022 814.02 5.9 % 168.36 (48.5 %) 131.55 (53.7 %)
Q3 2022 656.52 (18.5 %) 89.47 (66.8 %) 55.09 (76.2 %)
Q4 2022 611.63 (32.5 %) 67.67 (72.4 %) 30.39 (83.7 %)
Q1 2023 626.87 (27.6 %) 101.69 (51.8 %) 64.42 (64.6 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2014 137.45 16.5 % 0.53 1.20 136.26 0.52
Q2 2014 184.63 35.1 % 0.71 4.45 180.19 0.69
Q3 2014 228.74 62.3 % 0.88 34.57 194.17 0.75
Q4 2014 200.13 24.1 % 0.77 (13.13) 213.26 0.82
Q1 2015 89.63 (34.8 %) 0.34 - 89.63 0.34
Q2 2015 243.15 31.7 % 0.94 - 243.15 0.94
Q3 2015 234.18 2.4 % 0.90 - 234.18 0.90
Q4 2015 146.08 (27.0 %) 0.56 - 146.08 0.56
Q1 2016 142.86 59.4 % 0.55 (3.42) 146.28 0.56
Q2 2016 192.11 (21.0 %) 0.74 (6.76) 198.87 0.76
Q3 2016 189.10 (19.2 %) 0.73 (14.00) 203.11 0.78
Q4 2016 207.81 42.3 % 0.80 6.98 200.83 0.77
Q1 2017 124.37 (12.9 %) 0.48 - 124.37 0.48
Q2 2017 194.51 1.2 % 0.75 - 194.51 0.75
Q3 2017 208.41 10.2 % 0.80 - 208.41 0.80
Q4 2017 103.83 (50.0 %) 0.40 - 103.83 0.40
Q1 2018 97.55 (21.6 %) 0.38 - 97.55 0.38
Q2 2018 253.34 30.2 % 0.97 - 253.34 0.97
Q3 2018 202.20 (3.0 %) 0.78 - 202.20 0.78
Q4 2018 163.87 57.8 % 0.63 - 163.87 0.63
Q1 2019 161.88 65.9 % 0.62 - 161.88 0.62
Q2 2019 192.31 (24.1 %) 0.74 - 192.31 0.74
Q3 2019 213.12 5.4 % 0.82 - 213.12 0.82
Q4 2019 192.01 17.2 % 0.74 - 192.01 0.74
Q1 2020 104.33 (35.5 %) 0.40 - 104.33 0.40
Q2 2020 154.96 (19.4 %) 0.60 - 154.96 0.60
Q3 2020 156.50 (26.6 %) 0.60 - 156.50 0.60
Q4 2020 179.81 (6.4 %) 0.69 - 179.81 0.69
Q1 2021 171.36 64.2 % 0.66 - 171.36 0.66
Q2 2021 264.62 70.8 % 1.02 - 264.62 1.02
Q3 2021 217.76 39.1 % 0.84 - 217.76 0.84
Q4 2021 161.66 (10.1 %) 0.62 - 161.66 0.62
Q1 2022 164.35 (4.1 %) 0.63 - 164.35 0.63
Q2 2022 109.60 (58.6 %) 0.42 - 109.60 0.42
Q3 2022 26.96 (87.6 %) 0.10 - 26.96 0.10
Q4 2022 (6.41) (104.0 %) (0.02) - (6.41) (0.02)
Q1 2023 42.69 (74.0 %) 0.16 - 42.69 0.16

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 22.36 % 28.05 % 20.45 %
Q2 2014 22.87 % 28.30 % 21.08 %
Q3 2014 23.62 % 28.85 % 21.95 %
Q4 2014 25.71 % 31.08 % 23.84 %
Q1 2015 26.15 % 31.74 % 23.89 %
Q2 2015 29.41 % 35.36 % 26.79 %
Q3 2015 33.21 % 39.71 % 30.30 %
Q4 2015 32.99 % 40.09 % 30.00 %
Q1 2016 35.54 % 41.88 % 32.11 %
Q2 2016 36.81 % 42.47 % 32.85 %
Q3 2016 37.55 % 41.89 % 32.99 %
Q4 2016 40.13 % 42.70 % 35.01 %
Q1 2017 37.79 % 40.45 % 33.39 %
Q2 2017 36.59 % 39.17 % 32.33 %
Q3 2017 35.05 % 37.93 % 31.34 %
Q4 2017 30.95 % 34.04 % 26.47 %
Q1 2018 30.23 % 33.46 % 25.58 %
Q2 2018 30.75 % 33.85 % 26.45 %
Q3 2018 29.10 % 32.22 % 24.92 %
Q4 2018 30.11 % 33.04 % 26.09 %
Q1 2019 31.20 % 33.53 % 27.01 %
Q2 2019 30.87 % 33.03 % 25.51 %
Q3 2019 32.97 % 34.78 % 26.82 %
Q4 2019 34.66 % 36.52 % 29.27 %
Q1 2020 34.65 % 37.15 % 28.28 %
Q2 2020 34.47 % 37.40 % 28.65 %
Q3 2020 32.75 % 36.19 % 27.42 %
Q4 2020 32.68 % 36.27 % 26.69 %
Q1 2021 33.33 % 36.24 % 28.46 %
Q2 2021 35.56 % 37.96 % 29.95 %
Q3 2021 35.73 % 37.82 % 29.36 %
Q4 2021 33.51 % 34.90 % 26.21 %
Q1 2022 31.44 % 33.20 % 24.16 %
Q2 2022 26.35 % 28.25 % 19.27 %
Q3 2022 22.02 % 24.09 % 14.27 %
Q4 2022 18.19 % 20.84 % 9.99 %
Q1 2023 15.77 % 17.91 % 6.38 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 260.00 2.22 2.21 8.42
Q2 2014 260.00 2.40 2.38 8.31
Q3 2014 260.00 2.74 2.58 8.51
Q4 2014 260.00 2.89 2.78 9.14
Q1 2015 260.00 2.70 2.60 8.58
Q2 2015 260.00 2.93 2.85 9.04
Q3 2015 260.00 2.95 3.00 9.31
Q4 2015 260.00 2.74 2.74 9.65
Q1 2016 260.00 2.95 2.96 9.15
Q2 2016 260.00 2.75 2.79 9.93
Q3 2016 260.00 2.58 2.67 10.55
Q4 2016 260.00 2.81 2.88 11.68
Q1 2017 260.00 2.74 2.80 11.22
Q2 2017 260.00 2.75 2.78 10.86
Q3 2017 260.00 2.83 2.80 11.89
Q4 2017 260.00 2.43 2.43 11.97
Q1 2018 260.00 2.32 2.32 11.84
Q2 2018 260.00 2.55 2.55 12.53
Q3 2018 260.00 2.53 2.53 12.43
Q4 2018 260.00 2.76 2.76 12.40
Q1 2019 260.00 3.00 3.00 12.38
Q2 2019 260.00 2.77 2.77 12.42
Q3 2019 260.00 2.81 2.81 12.57
Q4 2019 260.00 2.92 2.92 12.89
Q1 2020 260.00 2.70 2.70 11.37
Q2 2020 260.00 2.56 2.56 11.67
Q3 2020 260.00 2.34 2.34 12.23
Q4 2020 260.00 2.29 2.29 13.15
Q1 2021 260.00 2.55 2.55 12.86
Q2 2021 260.00 2.97 2.97 13.98
Q3 2021 260.00 3.21 3.21 15.35
Q4 2021 260.00 3.14 3.14 14.36
Q1 2022 260.00 3.11 3.11 14.89
Q2 2022 260.00 2.51 2.51 13.99
Q3 2022 260.00 1.78 1.78 12.46
Q4 2022 260.00 1.13 1.13 12.46
Q1 2023 260.00 0.66 0.66 11.99

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 12.12 12.15 3.19
Q2 2014 11.62 11.73 3.36
Q3 2014 13.77 14.59 4.43
Q4 2014 8.78 9.11 2.77
Q1 2015 9.69 10.06 3.05
Q2 2015 12.08 12.43 3.91
Q3 2015 9.76 9.59 3.09
Q4 2015 8.68 8.68 2.47
Q1 2016 8.79 8.75 2.83
Q2 2016 10.89 10.73 3.02
Q3 2016 11.08 10.70 2.71
Q4 2016 12.36 12.08 2.98
Q1 2017 12.73 12.49 3.11
Q2 2017 12.69 12.57 3.22
Q3 2017 12.31 12.43 2.93
Q4 2017 14.32 14.32 2.90
Q1 2018 16.28 16.28 3.20
Q2 2018 16.27 16.27 3.31
Q3 2018 16.45 16.45 3.34
Q4 2018 13.87 13.87 3.08
Q1 2019 14.01 14.01 3.40
Q2 2019 16.48 16.48 3.68
Q3 2019 14.37 14.37 3.22
Q4 2019 14.09 14.09 3.19
Q1 2020 13.74 13.74 3.26
Q2 2020 17.34 17.34 3.80
Q3 2020 21.06 21.06 4.03
Q4 2020 24.37 24.37 4.24
Q1 2021 23.86 23.86 4.73
Q2 2021 20.28 20.28 4.31
Q3 2021 19.49 19.49 4.07
Q4 2021 18.70 18.70 4.08
Q1 2022 22.67 22.67 4.73
Q2 2022 20.39 20.39 3.67
Q3 2022 25.01 25.01 3.58
Q4 2022 37.40 37.40 3.41
Q1 2023 71.91 71.91 3.99

Analysts Estimates (Million)

Item Q1 2023 (e) Q1 2023 (a) Change‬
Average 19.43 42.69 119.66 %

Estimates vs Actual (Million)

Item Q1 2023 (e) Q1 2023 (a) Change
U-Capital 51.00 42.69 (16.3) %
Al Rajhi Capital 52.00 42.69 (17.9) %
SNB Capital 20.10 42.69 112.4 %
AlJazira Capital (6.50) 42.69 756.7 %
Riyad Capital 4.00 42.69 967.2 %
OSOOL AND BAKHEET (4.00) 42.69 1,167.2 %

Current
Market Cap (M Riyal) 8,515.00
Enterprise Value (EV) (M) 16,556.15
Shares Outstanding ((M)) 260.00
EPS ( Riyal) (TTM) 0.20
Book Value (BV) ( Riyal) 12.35
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) More than 100
Price/book 2.65
Return on Average Assets (%) (TTM) 0.4
Return on Average Equity (%) (TTM) 1.6

Share Price

32.75
(0.45) (1.36 %)

Advanced Petrochemical Co. (ADVANCED)


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