Petrochem changes accounting treatment of investments, uses equity method

A Petrochem factory

National Petrochemical Co. (Petrochem) announced changing the accounting treatment of its investments, as it stopped since Q3 2021 the consolidation of the financial statements of investments in joint ventures using the equity method. 

The company said in a bourse statement that the financial items (sales and gross profit) for the joint ventures do not appear in Petrochem’s statement of profit, loss and other comprehensive income.

There is no financial impact on the equity, net income and the earnings per share attributable to Petrochem shareholders.

According to data compiled by Argaam, the company reported a surge in its 2021 net profit after Zakat and tax to SAR 1.367 billion, compared to SAR 229.8 million a year earlier.