Obeikan Glass profit down 98% to SAR 1.3M in 2024; H2 loss at SAR 21.8M

Obeikan Glass Co. posted a 98% drop in the 2024 net profit after minority interest to SAR 1.3 million, from SAR 67.7 million in the previous year.

Before minority interest, the company swung to losses of SAR 3.6 million by 2024-end, against earnings of SAR 64 million a year earlier.

This downturn was attributed to lower revenues during 2024, given the reduced average selling prices of the company's products amid a pullback in global market prices.

Obeikan Glass also reported a SAR 6 million annual increase in general and administrative expenses in 2024, on the back of its entry into a new investment and payment of its share of costs related to setting up and pre-operating of its subsidiary, Saudi Aluminium Casting Foundry.

The aforementioned expenses were computed as per the requirements for financial consolidation and were reflected in Obeikan Glass’ 2024 income statement.

During the same year, the company booked an additional expected credit loss (ECL) provision of SAR 29.5 million, given the heightened aging of receivables related to transactions with a related party. This provision was made in compliance with International Financial Reporting Standards (IFRS), specifically the ECL model, reflecting the company's prudent approach in credit risk management.

Obeikan Glass turned to net loss of SAR 21.8 million in H2 2024, versus a profit of SAR 13.62 million in H2 2023.

The company had reported a net profit of SAR 23.1 million in H1 2024.

Shareholders’ equity, after minority interest, fell to SAR 536.54 million as of Dec. 31, 2024, from SAR 601.99 million a year earlier.

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