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03-Jan-2016

Al-Khodari estimates SAR44.3 million in increased operating costs through 2020 from increased energy and electricity prices

Abdullah A. M. Al-Khodari Sons Company (Al-Khodari) [1330.SE] has sent a release to Tadawul with management’s estimates of the financial impact of increased energy and electricity prices on the company’s operating costs. Management expects the operational costs of the ongoing projects to increase by a total of SAR44.3 million in 2016 through 2020, as follows: SAR22.1 million in 2016; SAR12.4 million in 2017; SAR8.5 million in 2018; SAR0.9 million in 2019; and SAR0.4 million in 2020. The impact is the highest in 2016, representing c75% of our net income estimate of SAR29.5 million for the year - keeping all other factors constant – and c42% of that of 2017, c24% of that of 2018, and is immaterial thereafter. The financial impact of the increased energy and electricity costs gradually decline with the completion of the outstanding projects. The company plans to issue regular monthly requests to clients with claims for compensation for the impact of increases in energy and electricity prices. (Tadawul)   Abdullah A. M. Al-Khodari Sons Company: SAR16.02 as of 31 December 2015, Rating: Neutral, FV: SAR17.55 per share, MCap: USD227 million, ALKHODAR AB / 1330.SE

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