Obeikan Glass profit falls 58% to SAR 29.9M in 9M 2024; Q3 at SAR 8.9M

Obeikan Glass Co. posted a 58% slump in net profits during the first nine months of 2024 to SAR 29.9 million from SAR 71.7 million in the prior-year period.

The decline in profit was attributed to lower revenues, driven by a decrease in the average selling prices of the company's products amid the global decline in prices.

The company also reported an increase in general and administrative expenses by SAR 8 million, attributed to its new investment and its share of the founding costs and pre-operational expenses for the Saudi Aluminum Casting Foundry subsidiary.

The accounting treatment of this investment, involving the consolidation of financial statements, led to additional expenses that were reflected in the company’s income statement for the period.

The third-quarter net profit retreated 49.4% to SAR 8.9 million from SAR 17.7 million a year earlier.

On a sequential basis, net profit fell 10.5% from SAR 10 million in Q2 2024.

Shareholders’ equity, after minority interest, declined to SAR 574.81 million as of Sept. 30, 2024, from SAR 605.71 million a year earlier.