Aldrees net profit declines 5% to SAR 44.7 mln in H1 2020

Aldrees Petroleum and Transport Services Co. (Aldrees) reported a net profit after Zakat and tax of SAR 44.7 million for the first six months of 2020 ending June 30, a 5% year-on-year (YoY) decrease against a net profit of SAR 47.2 million in the same period last year.

The company attributed the decline to lower sales in the transport and petrol divisions. Sales between mid-March to end-June were affected due to the coronavirus precautionary measures, low prices of petrol, unrealized losses from revaluation of investment at fair value through profit and loss, and higher general & administrative (G&A) expenses.

This is despite higher other income, higher joint venture profit, and lower marketing, financial and Zakat expenses, the company said.

For the current quarter, the company reported a net profit after Zakat and tax of SAR 14.4 million, down 17% YoY, due to lower petrol division sales, coronavirus precautionary measures in Q2, lower petrol prices, unrealized losses from revaluation of investment at fair value through profit and loss, and higher G&A and Zakat expenses.

On a sequential basis, net profit after Zakat and tax declined 52.4%.

The company also said that as of June 1, 2020, IFRS 16 was amended to provide a practical expedient for lessees accounting for rent concessions that occur as a result of the COVID-19 pandemic.