National Petrochemical Co. (Petrochem) reported a net profit after Zakat and tax of SAR 230 million ($61.33 million) for the fiscal year 2020, a drop of 66% from SAR 674 million in the year-earlier period.
The lower net profit was attributed to the permanent shutdown of the polystyrene unit, and the total depreciation of its value during the current period, which impacted Petrochem’s net income by SAR 254 million.
Moreover, product prices decreased during the current period compared with same period from last year. Lower other income also weighed on the company’s annual profit.
In Q4 2020, Petrochem reported a net profit after Zakat and tax of SAR 251 million, a rise of 89% year-on-year, improved by an increase in average product selling prices, a decrease in the average cost of feedstock along with lower sales and distribution expenses, a decline in financial costs, Zakat expenses, as well as general and administrative expenses.
Net profit also surged 114.5% from SAR 117 million in Q3 2020, thanks to an increase in average product selling prices and lower Zakat expenses.
