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RIYADH: Saudi insurer Amiantit has extended its losses in the second quarter of 2019.
According to the company's statement on "Tadawul" on Thursday, losses amounted to about 262.03 million riyals, compared to 53.65 million riyals in the second quarter of 2018.
The company attributed its loss to a number of factors, including extraordinary costs of SR 78.1 million that were not anticipated in the ongoing projects.
Among the causes of the losses, there was a decrease in the value of property, plant and equipment, in accordance with IAS 36 "for impairment of badets" of three local cash flow units of 125.73 million SAR, the performance of these units decreased compared to the 2019 budget, in value based on current data.
The press release adds that the Company recognized a provision of SAR 2,132 million in accordance with IAS 37 "Provisions, Contingent Liabilities and Contingent Assets", which impacted its earnings.
The impact of reducing inventory costs in accordance with IAS 2 "Inventories" has been reduced to a net realizable value of SAR 9.955 million on the Company's financial results.
In the first half of the year, the company lost 303.36 million riyals, against 92.44 million riyals in the same period last year.
The losses of the company in the first quarter of this year amounted to about 41.33 million riyals.
The company noted that the accumulated losses exceeded 70% of the capital to reach 810.5 million riyals.
The company began to record losses as of June 2016 due to the cancellation of certain project awards and the slowdown in new orders, which resulted in lower sales and therefore lower sales. production.
The decrease in sales is due to lower construction and construction activities in general, and in Saudi Arabia in particular, where some projects were canceled or postponed, resulting in a delay in the delivery of orders.
Lower production resulted in higher material costs and lower profit margin, compounded by losses resulting from the $ 150.9 million decrease in property, plant and equipment, consisting of inventory and bad debt provisions.
The fourth quarter of 2016 resulted in a loss of 194 million riyals and ended in 2016 by a loss of 250,795 million riyals.
"The negative results for 2017 continued, with profit margins down by 91.546 million SAR for the whole of 2017. The losses recorded in 2017 are mainly due to the sharp drop in sales, which reached 547 million SAR, compared to 1.16 billion RS for 2016.
In 2018, the Company had exceptional provisions, a decrease in the value of property, plant and equipment of 97.1 million SAR, provisions for debt in accordance with IFRS 9 and provisions for inventories. The same year, Amiron and Sakop In the results of the group, resulting in total losses for 2018, approximately 230.285 million riyals.
In 2019, normal losses in the first quarter were R $ 41 million, while second-quarter losses in the same year were R $ 46 million.
This was attributed to continued pressure on profit margin and lower sales.
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