Al-Babtain’s net profit down 8% to SAR 76.1m for the first nine months of 2014

30/09/2014 Argaam Exclusive

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Al-Babtain Power and Telecommunication Co. (ALBABTAIN)

Al-Babtain Power and Telecommunication Company, a manufacturer of outdoor lighting, telecommunication structure steel and galvanizing services, reported a net profit of SAR 76.1m for the nine months ended September 30, 2014, an 8% decrease compared to the same period last year.



Financials (M)

Item 9m 2013 9m 2014 Change‬
Revenues 985.97 898.66 (8.9 %)
Gross Income 189.02 203.52 7.7 %
Operating Income 75.03 135.10 80.1 %
Net Income 82.93 76.07 (8.3 %)
Average Shares 63.95 63.95 -
EPS (Riyals) 1.30 1.19 (8.3 %)

The company attributed the decline of the first nine months of 2014’s net profit, compared to the same period last year, to forming provision to face the impairment of the company’s investments in Al Babtain France by amount SAR 70 Million because of the restructuring project for Al Babtain France.

The decline of Q3-2014’s net profit compared to the same period last year was attributed to forming provision to face the impairment of the company’s investments in Al Babtain France by amount SAR 45 Million because of the restructuring project for Al Babtain France.

The decline of Q3-2014’s net profit compared to the previous period (Q2-2014) was attributed to forming provision to face the impairment of the company’s investments in Al Babtain France by amount SAR 45 Million because of the restructuring project for Al Babtain France.

The company’s external auditor drew the attention to the following:

The company’s Board of Directors has decided to restructure, organize and regulate its subsidiary in France, which had losses amounted to SAR 82.6 million for the period ended Sept. 30, 2014. The decision came in compliance with the Saudi Accounting Standards which associated with the Financial Statements consolidation process. The consolidation process will be restarted after completion of the restructuring project.
The subsidiary company in France reported a loss for period ended 30/09/2014 by amounted to SAR 82.6 Million, and although this company suffers from economic problems which may hinder its continually and its restructure plan, its assets and liabilities values were modified, as it is still in restructure process according to external auditor report of Al Babtain France who declined not to give his opinion in its financial statement. The Al Babtain Power and Telecommunication Co. undertaking to support its subsidiary company in France financially and technically up to finish all restructure stages, where al Babtain included provision by amount SAR 70 Million within its financial statement as of 30/09/2014, in same time the company confirm to continue forming provision to face any future problems may happen due to restructure project ended the current year.
comparative numbers include sub’s assets, liabilities and business results.



Current Quarter Comparison (M)

Compared With The
Item Q3 2013 Q3 2014 Change‬
Revenues 319.47 295.02 (7.7 %)
Gross Income 64.56 68.90 6.7 %
Operating Income 20.98 47.95 128.6 %
Net Income 16.35 14.92 (8.7 %)
Average Shares 63.95 63.95 -
EPS (Riyals) 0.26 0.23 (8.7 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2005 - - - - - - -
Q2 2005 - - - - - - -
Q3 2005 155.70 - 33.39 - 15.70 - 0.31
Q4 2005 125.76 - 39.36 - 21.78 - 0.43
Q1 2006 154.43 - 36.26 - 20.57 - 0.34
Q2 2006 152.96 - 30.75 - 9.50 - 0.16
Q3 2006 192.29 23.5 % 31.05 (7.0 %) 15.99 1.9 % 0.26
Q4 2006 172.44 37.1 % 58.37 48.3 % 29.48 35.4 % 0.49
Q1 2007 224.09 45.1 % 42.68 17.7 % 22.92 11.4 % 0.38
Q2 2007 218.60 42.9 % 49.09 59.6 % 24.68 159.9 % 0.41
Q3 2007 179.07 (6.9 %) 43.45 40.0 % 25.66 60.5 % 0.42
Q4 2007 213.92 24.1 % 56.54 (3.1 %) 22.80 (22.7 %) 0.38
Q1 2008 250.92 12.0 % 65.06 52.4 % 41.50 81.1 % 0.68
Q2 2008 219.21 0.3 % 48.47 (1.3 %) 31.34 27.0 % 0.52
Q3 2008 254.13 41.9 % 51.45 18.4 % 28.22 10.0 % 0.46
Q4 2008 288.39 34.8 % 54.74 (3.2 %) 29.96 31.4 % 0.49
Q1 2009 305.71 21.8 % 59.80 (8.1 %) 31.07 (25.1 %) 0.51
Q2 2009 255.31 16.5 % 53.77 10.9 % 25.22 (19.5 %) 0.42
Q3 2009 304.12 19.7 % 63.46 23.3 % 27.84 (1.4 %) 0.46
Q4 2009 257.49 (10.7 %) 58.09 6.1 % 25.26 (15.7 %) 0.42
Q1 2010 230.28 (24.7 %) 50.84 (15.0 %) 24.23 (22.0 %) 0.40
Q2 2010 247.50 (3.1 %) 56.81 5.7 % 25.02 (0.8 %) 0.41
Q3 2010 242.57 (20.2 %) 51.99 (18.1 %) 24.14 (13.3 %) 0.40
Q4 2010 247.54 (3.9 %) 43.10 (25.8 %) 4.94 (80.4 %) 0.08
Q1 2011 235.27 2.2 % 36.51 (28.2 %) 16.14 (33.4 %) 0.26
Q2 2011 274.84 11.0 % 38.98 (31.4 %) 19.52 (22.0 %) 0.31
Q3 2011 228.39 (5.8 %) 44.00 (15.4 %) 22.85 (5.4 %) 0.36
Q4 2011 266.54 7.7 % 36.31 (15.8 %) 18.38 271.8 % 0.29
Q1 2012 276.90 17.7 % 31.35 (14.1 %) 13.06 (19.1 %) 0.20
Q2 2012 371.19 35.1 % 43.03 10.4 % 20.12 3.1 % 0.31
Q3 2012 341.70 49.6 % 69.79 58.6 % 14.14 (38.1 %) 0.22
Q4 2012 362.76 36.1 % (10.11) (127.8 %) 31.03 68.8 % 0.49
Q1 2013 320.05 15.6 % 50.32 60.5 % 15.59 19.4 % 0.24
Q2 2013 346.45 (6.7 %) 74.14 72.3 % 50.99 153.5 % 0.80
Q3 2013 319.47 (6.5 %) 64.56 (7.5 %) 16.35 15.7 % 0.26
Q4 2013 403.00 11.1 % 52.98 624.3 % 27.69 (10.8 %) 0.43
Q1 2014 293.77 (8.2 %) 62.11 23.4 % 22.17 42.2 % 0.35
Q2 2014 309.86 (10.6 %) 72.51 (2.2 %) 38.98 (23.5 %) 0.61
Q3 2014 295.02 (7.7 %) 68.90 6.7 % 14.92 (8.7 %) 0.23

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 23.73 % 17.33 % 11.47 %
Q3 2006 21.97 % 17.23 % 10.85 %
Q4 2006 23.27 % 17.71 % 11.24 %
Q1 2007 21.95 % 16.87 % 10.50 %
Q2 2007 22.44 % 17.63 % 11.53 %
Q3 2007 24.38 % 19.23 % 12.94 %
Q4 2007 22.95 % 17.86 % 11.50 %
Q1 2008 24.83 % 19.48 % 13.29 %
Q2 2008 24.74 % 20.01 % 14.05 %
Q3 2008 23.61 % 18.57 % 13.20 %
Q4 2008 21.70 % 18.33 % 12.94 %
Q1 2009 20.09 % 17.23 % 11.30 %
Q2 2009 19.91 % 16.58 % 10.37 %
Q3 2009 20.09 % 16.71 % 9.89 %
Q4 2009 20.94 % 17.18 % 9.74 %
Q1 2010 21.60 % 17.08 % 9.79 %
Q2 2010 22.05 % 17.50 % 9.85 %
Q3 2010 22.27 % 17.92 % 10.09 %
Q4 2010 20.95 % 16.01 % 8.09 %
Q1 2011 19.37 % 14.70 % 7.22 %
Q2 2011 17.05 % 12.74 % 6.47 %
Q3 2011 16.49 % 12.25 % 6.43 %
Q4 2011 15.50 % 11.63 % 7.65 %
Q1 2012 14.39 % 10.66 % 7.05 %
Q2 2012 13.53 % 8.05 % 6.51 %
Q3 2012 14.37 % 7.68 % 5.23 %
Q4 2012 9.91 % 4.09 % (0.52 %)
Q1 2013 10.96 % 4.36 % (0.33 %)
Q2 2013 13.43 % 7.19 % 1.92 %
Q3 2013 13.26 % 7.16 % 2.12 %
Q4 2013 17.42 % 10.49 % 7.96 %
Q1 2014 18.62 % 11.22 % 8.60 %
Q2 2014 19.02 % 11.75 % 7.93 %
Q3 2014 19.71 % 13.39 % 7.97 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2005 - - - -
Q2 2005 - - - -
Q3 2005 50.63 - - 5.77
Q4 2005 50.63 - - 6.19
Q1 2006 60.75 - - 5.25
Q2 2006 60.75 1.11 1.11 5.42
Q3 2006 60.75 1.12 1.12 5.43
Q4 2006 60.75 1.24 1.24 5.91
Q1 2007 60.75 1.28 1.28 6.29
Q2 2007 60.75 1.53 1.53 6.17
Q3 2007 60.75 1.69 1.69 6.60
Q4 2007 60.75 1.58 1.58 6.97
Q1 2008 60.75 1.89 1.89 6.75
Q2 2008 60.75 2.00 2.00 7.31
Q3 2008 60.75 2.04 2.04 7.72
Q4 2008 60.75 2.16 2.16 8.21
Q1 2009 60.75 1.98 1.98 8.23
Q2 2009 60.75 1.88 1.88 8.68
Q3 2009 60.75 1.88 1.88 9.18
Q4 2009 60.75 1.80 1.80 9.56
Q1 2010 60.75 1.69 1.69 8.94
Q2 2010 60.75 1.68 1.68 9.28
Q3 2010 60.75 1.62 1.62 9.75
Q4 2010 60.75 1.29 1.29 9.92
Q1 2011 63.15 1.11 1.11 9.14
Q2 2011 63.15 1.03 1.03 9.01
Q3 2011 63.15 1.00 1.00 9.25
Q4 2011 63.15 1.22 1.22 9.52
Q1 2012 63.95 1.15 1.15 9.74
Q2 2012 63.95 1.16 1.16 8.99
Q3 2012 63.95 1.03 1.03 9.20
Q4 2012 63.95 1.23 (0.11) 9.05
Q1 2013 63.95 1.26 (0.07) 9.10
Q2 2013 63.95 1.75 0.41 9.93
Q3 2013 63.95 1.78 0.45 10.17
Q4 2013 63.95 1.73 1.73 9.50
Q1 2014 63.95 1.83 1.83 10.30
Q2 2014 63.95 1.65 1.65 10.88
Q3 2014 63.95 1.62 1.62 11.08

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2005 - - -
Q2 2005 - - -
Q3 2005 - - -
Q4 2005 - - -
Q1 2006 - - -
Q2 2006 - - -
Q3 2006 - - -
Q4 2006 21.45 21.45 4.51
Q1 2007 31.20 31.20 6.36
Q2 2007 20.69 20.69 5.14
Q3 2007 17.70 17.70 4.53
Q4 2007 23.96 23.96 5.44
Q1 2008 17.17 17.17 4.80
Q2 2008 24.19 24.19 6.61
Q3 2008 18.36 18.36 4.84
Q4 2008 14.10 14.10 3.71
Q1 2009 14.43 14.43 3.48
Q2 2009 15.31 15.31 3.32
Q3 2009 13.94 13.94 2.85
Q4 2009 13.45 13.45 2.53
Q1 2010 16.59 16.59 3.13
Q2 2010 15.41 15.41 2.80
Q3 2010 14.61 14.61 2.43
Q4 2010 17.96 17.96 2.33
Q1 2011 17.30 17.30 2.19
Q2 2011 19.10 19.10 2.15
Q3 2011 15.12 15.12 1.62
Q4 2011 14.03 14.03 1.77
Q1 2012 18.83 18.83 2.23
Q2 2012 12.40 12.40 1.61
Q3 2012 17.07 17.07 1.91
Q4 2012 12.92 NEG 1.75
Q1 2013 12.62 NEG 1.75
Q2 2013 9.04 38.37 1.59
Q3 2013 12.90 More than 50 2.26
Q4 2013 12.33 12.33 2.25
Q1 2014 12.08 12.08 2.15
Q2 2014 13.75 13.75 2.08
Q3 2014 18.37 18.37 2.69

Business Segments (Million)

Compared With The
Period Towers and metal structures sector Lampposts and lighting sector Design, supply and installation sector Headquarters
Q4 2005 27.81 69.76 28.19 -
Q1 2006 54.59 70.38 29.46 -
Q2 2006 35.57 83.28 34.11 -
Q3 2006 78.11 90.35 23.82 -
Q4 2006 46.88 89.46 36.10 -
Q1 2007 77.96 101.89 44.24 -
Q2 2007 73.29 100.75 44.56 -
Q3 2007 33.22 104.28 41.57 -
Q4 2007 54.25 98.67 61.00 -
Q1 2008 71.52 119.25 60.15 -
Q2 2008 36.75 114.26 68.20 -
Q3 2008 67.22 105.72 81.19 -
Q4 2008 72.79 122.94 92.67 -
Q1 2009 118.66 94.40 92.64 -
Q2 2009 99.45 106.24 49.62 -
Q3 2009 64.61 106.54 132.97 -
Q4 2009 73.96 87.25 96.28 -
Q1 2010 63.85 108.85 57.59 -
Q2 2010 77.96 94.06 74.49 0.99
Q3 2010 84.22 88.87 69.47 -
Q4 2010 66.86 99.50 82.17 (0.99)
Q1 2011 69.84 106.91 58.51 -
Q2 2011 85.97 105.71 83.16 -
Q3 2011 43.26 97.47 87.66 -
Q4 2011 76.47 108.03 82.04 -
Q1 2012 86.69 115.98 74.23 -
Q2 2012 86.01 210.41 74.77 -
Q3 2012 91.08 177.94 72.68 -
Q4 2012 78.18 193.93 90.65 -
Q1 2013 58.43 195.65 65.98 -
Q2 2013 34.16 228.92 83.37 -
Q3 2013 45.82 211.23 62.42 -
Q4 2013 136.42 188.51 78.07 -
Q1 2014 107.84 112.94 73.00 -
Q2 2014 99.45 130.60 79.81 -
Q3 2014 96.74 119.85 78.43 -

Current
Market Cap (M Riyal) 2,733.86
Enterprise Value (EV) (M) 3,814.47
Shares Outstanding ((M)) 63.95
EPS ( Riyal) (TTM) 2.21
Book Value (BV) ( Riyal) 14.15
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 14.13
P/E (TTM) 19.32
Price/book 3.02
Return on Average Assets (%) (TTM) 4.9
Return on Average Equity (%) (TTM) 16.4

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