Amiantit Q1 2024 profit spikes to SAR 474.5M on debt settlement

Saudi Arabian Amiantit Co. posted a net profit of SAR 474.5 million in Q1 2024 from SAR 2 million a year earlier.

Sales continued to grow as the company recorded a 1.4% increase year-on-year (YoY) in revenue during the current quarter, thanks to its efforts to boost the volume of new orders.

The firm recorded an accounting profit of SAR 639 million in Q1 2024, divided into SAR 482.5 million from the transfer of ownership in a subsidiary to an investment fund managed by Alinma Bank's financial subsidiary and relieving the company of all its obligations totaling SAR 572.7 million towards the lender.

In addition, the abovementioned accounting profit also included SAR 156.5 million from settling the entire SAR 313 million debts owed to Saudi National Bank (SNB) at a 50% discount through repaying SAR 156.5 million from its capital increase proceeds and relieving the company of all remaining obligations towards SNB.

Financing costs also dropped in the three-month period compared with the same quarter of the previous year due to the settlement of 77% of its total bank obligations.

Amiantit offset all accumulated losses, reaching SAR 207.4 million as of Dec. 31, 2023, and recorded retained earnings of SAR 244.7 million as of March 31, 2024.

On a sequential basis, the company turned profitable from losses of SAR 36.47 million in Q4 2023, as Q1 2024 sales continued to grow by 2.9% quarter-on-quarter on the company's efforts to boost the volume of new orders.

Total shareholders’ equity, excluding minority interest, stood at SAR 904.58 million as of March 31, 2024, compared with SAR 335.18 million in the year-earlier period.

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