Neft Alsharq 2024 profit drops 40% to SAR 2.6M; H2 at SAR 2.3M

Neft Alsharq Co. reported a 40% fall in the 2024 net profit to SAR 2.6 million from SAR 4.4 million in 2023.

The profit decline was attributed to an increase of SAR 1.59 billion in selling and marketing expenses, as the company embarked on investment in vehicle oil change service centers. It incurred higher expenses on new hires, marketing, depreciation, and rentals, along with a need for an operational period to achieve returns.

Nonetheless, the financial performance is expected to improve gradually as revenues stabilize. Additionally, there was an increase in shipping expenses related to export sales.

Exceptional trade receivable provisions rose by SAR 409,286. Neft Alsharq also reported an increase of SAR 373,044 in income and Zakat expenses, along with a rise of SAR 258,200 in finance costs.

Similarly, general and administrative expenses rose by SAR 655,271 on new hires in the executive management.

On the other hand, revenues grew by 1.15% year-on-year (YoY) to SAR 62.76 million in 2024, backed by a 15% leap in sales volumes and despite a 14% YoY drop in average selling prices.

The second-half net earnings more than doubled to SAR 2.3 million from SAR 960,000 in H2 2023.

On a half-on-half basis, net earnings skyrocketed from SAR 320,000 in H1 2024.

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