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Kenna
Industries Qatar reported financial results for the first half of this year ending June 30, with a net profit of SAR 1.5 billion, compared to SR 2.5 billion for the same period last year, mainly due to the combined effect of the average decline slightly decreased in sales volume, partially offsetting lower operating costs and higher associate earnings.
Earnings per share for the first half of this year amounted to SAR 0.24, compared to SAR 0.41 for the same period in 2018. Net profit for the second quarter of 2019 is SR 0.8 billion, a significant increase 16% compared to the first quarter of this year. Mainly due to the gradual increase in the prices of products, especially the prices of polyethylene and iron and steel products.
The Group's financial and operating results have been significantly influenced by several factors, including difficult trading conditions and uncertain economic environment since the fall of crude oil prices at the end of 2018. As a result, demand for many of the Group's products remained low. To some extent, product prices have fallen below the uncertainty of the global economy.
On average, product prices fell about 10 percent from the same period last year, contributing to the group's net profit decline from the beginning of the year to about 0.6 billion riyals, while sales also decreased from the beginning of the year. to this day, with a decline in production due to maintenance, which has significantly affected the group's net profit.
Revenue for the period ended June 30, 2019 was SAR 2.3 billion, an average decrease of 24% over the same period in 2018, due to the combined effect of lower sales prices and volumes. Sales in the iron sector and steel decline moderately As domestic market demand declined and international competition increased, leading to a further fall in prices compared to the same period last year.
On the other hand, the revenue reported in the administrative reports for proportional consolidation amounts to SR 6.7 billion, a decrease of SR 1.5 billion or 18% for the same period in 2018. This decrease is due to the combined effect of lower sales prices Sales volumes in all sectors of the group, with prices falling by about 10 percent as a result of falling crude oil prices, while sales also fell by about 9 percent as demand fell, scheduled maintenance and unplanned shutdowns .
The prices of petrochemicals have fallen moderately compared to the first half of 2018, due to the slight fall in crude oil prices and the fall in demand in some major markets.
On the other hand, fertilizer prices rose slightly over the same period in 2018 as demand from some large agricultural countries increased, as did the costs of raw materials and regulatory pressure on producers who did not meet environmental requirements. Sales volumes were slightly lower than the same period last year due to lower production.
All Group companies reported cash balances of SR 10.7 billion after dividends of SR 3.6 billion and operating and capital expenditures for 2018. Total debt decreased to only SR 10.9 million and is expected to be settled in the second half of 2019.
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