Alujain reports SAR105mn net profit in FY18; auditor concerned with liquidity management
Alujain Corporation announced its FY18 financial results, showing net profit of SAR104.75mn (vs. net profit of SAR136.2mn in FY17, -23.1% Y-o-Y). Revenue and gross profit (which do not consolidate NATPET, the company’s main earnings generator) were SAR25.87mn (-9% Y-o-Y) and SAR4.64mn (-36.6% Y-o-Y), respectively, while operating profit – which includes investment income from NATPET – was SAR105.88mn (-12.5% Y-o-Y). The company highlighted that the decrease in Y-o-Y net profit was due to the lower share of net profit from NATPET (SAR12mn less), which was affected negatively by the fire of 3Q18. The company added that NATPET reported net loss of SAR45mn in 4Q18 as the plant was not operating due to the fire incident.
The release also includes a statement from the auditor drawing attention to “note (1) in the consolidated financial statements related to liquidity management. As stated in note (1), these events or conditions indicate a material uncertainty exists, which may cast significant doubt on the group’s ability to continue as a going concern.” Full financials are not yet available so it is unclear what the specific liquidity concerns are. No further details were provided in the release.