Higher costs weigh on Saudi Chemical as profits drop by 5% in FY21

RIYADH: Saudi Chemical Co. has seen a 5 percent drop in profit in 2021 as its cost of revenue soared despite the company making a reduction in general expenses.

The Saudi-listed firm’s net profit dropped to SR70 million ($18.6 million) from SR74 million a year earlier, according to a bourse filing.

The company’s profit took a hit on account of a 3-percent rise in the cost of revenue and expected credit loss on trade receivables provision despite the increase in other income and decrease in general and administration expenses, it said.

The chemical producer’s annual revenue stood at SR3.4 billion, compared to SR3.3 million year-on-year, resulting in earnings per share falling to SR0.83 from SR0.88 recorded the previous year.