44.7 million riyals, net losses from Saudi Pipes in the first half of 2020

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The Saudi Steel Pipe Company announced that it recorded a net loss after Zakat and tax of 44.7 million riyals during the first half ended June 30, 2020, compared to a loss of 9.8 million riyals during the same period of the previous year, with a loss of 355%.

The company said that the reasons for the increase in net losses for the first half of the fiscal year 2020 are due to:

1) A total loss of (7.89) million Saudi riyals, compared to a total profit of 13.41 million Saudi riyals in the first half of 2019, as a result of the decrease in the volume of sales and the sales mix.

2) The increase in administrative expenses, which amounted to (31.36) million Saudi riyals compared to (15.44) million Saudi riyals in the first half of 2019, mainly due to the end of service compensation for employees registered in the first half of 2020.

3) The other income decreased to 0.16 million Saudi riyals, compared to other income of 1.68 million Saudi riyals in the first half of 2019, as a result of recording a deduction and reversal of some of the liabilities due in the first half of 2019.

4) An increase in the provision for doubtful debts, which amounted to (1.97) million Saudi riyals, compared to a reversal of the provision of 0.03 million Saudi riyals in the first half of 2019.

5) A decrease in the company’s share of the net profit of the associate (International Pipes) amounted to SAR 3.61 million in the first half of 2020 compared to SAR 4.81 million in the first half of 2019.

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