Correction announcement from Jazan Energy and Development Co. in regards to announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )

The increase in profits is related to the growth in sales by 3.03%, as the agricultural & the aquaculture sectors sales grew by 5.4%, supported by an increase in sales of shrimp and fruits. Furthermore, revenues from Real estate operation rose by 8.5% as a result of an increase in the occupancy rate, while the sales of the industrial sector (water factory) declined by 6%. The increase in net profits is led by the increase of the gain on revaluation of vital assets, as a result of the company’s plan to increase the productivity force in the shrimp farm in addition to the reduction in cost of revenue, which contributed in a higher gross profit by 13.26% as a result of a higher efficiency and reduction in operating costs in the agricultural sector. Furthermore, the performance improvement of the associates and subsidiaries has also contributed to the increase in net profits. Therefore, all the aforementioned reasons contributed to the growth of net profits for this quarter compared to the same quarter from the previous year.

Mentioned in the previous announcement paragraph, The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is :

The reason for the increase in net profits during the current quarter compared to the previous quarter despite the decrease in sales is due to the increase of the gain on revaluation of vital assets, as a result of the company’s plan to increase the productivity force in the shrimp farm in addition the reduction in the cost of sales as a result of the decrease in the cost of sales in the current quarter at the cost of outstanding shrimp stock (livestock).

The reason for the decrease in net profits is because the rise in cost due to the company's expansion in the production of the shrimp stock, note that there is an increase in sales by 3.03%, as the agricultural & the aquaculture sectors sales grew by 5.4%, supported by an increase in sales of shrimp and fruits. As well as revenues from the Real-estate sector rose by 8.5% as a result of an increase in the occupancy rate, while the sales of the industrial sector (water factory) declined by 6%. The increase of the gain on revaluation of vital assets, as a result of the company’s plan to increase the production force in the shrimp farm. Furthermore, the performance improvement & profitability growth of the associates and subsidiaries has also contributed to the improvement of the businesses results.

Correcting what was mentioned in the previous announcement paragraph, The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is :

The reason for the decrease in net profits during the current quarter compared to the previous quarter despite the increase in sales is due to the increase of the gain on revaluation of vital assets, as a result of the company’s plan to increase the production force in the shrimp farm in addition to the increase in the cost of sales as a result of the decrease in the cost of sales in the current quarter at the cost of outstanding shrimp stock (livestock).