One of Alujain Holding Corp.'s factory
Alujain Holding Corp. announced receiving an email from its external auditor, on January 29, regarding its decision to consolidate the company's financial statements with those of its subsidiary, National Petrochemical Industrial Company (NATPET), for 2021, instead of using the equity method for the investment in NATPET, according to a bourse filing.
The company added that Alujain’s audit committee endorsed this decision after discussing it with the external auditor, fulfilling all conditions including complete influence and control and other relevant requirements.
The consolidation of financial statements according to the international accounting standards requires a full valuation of the subsidiary company and its assets on the date of control by an independent qualified evaluator and the issuance of two financial statements of NATPET before and after the date of control.
The firm expects these requirements and the audit work will be completed, including the announcement of the financial results of Alujain for 2021 before the due date set by the Capital Market Authority of March 31, 2022.
The consolidation of the financial statements will not have any impact on its profitability as compared to the equity method, the statement said, adding that NATPET’s estimated (unaudited) net profit for 2021 will reach SAR 521 million with earnings per share of SAR 4.87.
Meanwhile, Alujain Holding's estimated (unaudited) net profit will be approximately SAR 305 million, with earnings per share of SAR 4.41.
Alujain owns a 75.37% stake in NATPET, according to Argaam's data.
The company's profit rose 37% to SAR 209 million in the first nine months of 2021, compared to SAR 152.5 million in the same period a year ago.
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