Alujain released its 2Q18 financial results, showing net profit of SAR64mn (+412% Y-o-Y, +2.5% Q-o-Q). The company stated operating profit at SAR64.37mn (+405% Y-o-Y, +2.53% Q-o-Q), while gross profit came in at SAR1.76mn (-30% Y-o-Y, compared to gross loss of SAR0.11mn in 1Q). The company reported sales at SAR7.05mn during 2Q18, a 39% Q-o-Q increase. Despite the improvement in PP prices by 2% Q-o-Q, we highlight that NATPET (Alujain 57.4%-owned PP operation and the main earnings generator for the company) revenues were down 11% Q-o-Q and NATPET earnings were down 5% Q-o-Q. The company noted in the release that the better earnings Q-o-Q were driven by higher sales (at the consolidated level, which does not include NATPET) and lower SG&A expenses. 

Omar Gharabawi, Yousef Husseini