Alkhorayef Water 9M 2021 net profit dips 14% to SAR 71 mln

Alkhorayef Water and Power Technologies Co. (AWPT) reported a net profit after Zakat and tax of SAR 71 million for the first nine months of 2021, a fall of 14% from SAR 82.3 million in the year-earlier period.

The profit drop was attributed to Zakat fees worth SAR 7.21 million, which were charged by AWPT for the the first time. The Zakat declaration was previously issued on a consolidated basis on the parent company level. The parent company pledged to the Capital Market Authority (CMA) to pay any charges related to Zakat. Accordingly, no Zakat-related fees were charged for the previous periods.

AWPT also cited higher general and administrative expenses along with a rise in the cost of creating administrative positions and the cost of allowances for the board of directors and independent committees.

In Q3 2021, net profit after Zakat and tax saw a decrease of 10% to SAR 22.3 million from SAR 24.7 million a year earlier, as the company charged Zakat fees of SAR 2.2 million for the the first time.

When compared to the previous quarter, Q3 net profit grew by 3% from SAR 21.7 million, thanks to lower general and administrative expenses.

Total shareholders’ equity, after minority interest, jumped by 25% to SAR 327.515 million as of Sept. 30, 2021, from SAR 261.764 million a year earlier.

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