• News
      SMN POWER HOLDING

       Disclosure of the Initial Unaudited Financial Results for the three-month period ended 31 March 2018

      Apr 11, 2018 08:39 AM

      SMN Power Holding SAOG

       

      Disclosure of the Initial Unaudited Financial Results for the three-month period ended 31 March 2018

       

      Muscat, Oman, 10 April 2018: SMN Power Holding SAOG disclosure on the unaudited consolidated results for the three month period ended 31 March 2018.

       

      Pursuant to Circular E/2/2016 Disclosure of Initial Quarterly Financial Results issued by the Capital Market Authority, SMN Power Holding SAOG is pleased to disclose the following unaudited consolidated financial results for the three month period ended 31 March 2018.

       

      Unaudited Financial Results

      2018

      RO ‘000

      Unaudited

      2017

      RO ‘000

      Unaudited

      Variance

      (%)

       

       

       

       

      Operating Revenues

      18,391

       17,211

      6.9%

      Operating costs

      (14,615)

       (12,457)

      -17.3%

      Gross Profit

      3,776

       4,755

      -20.4%

      Administrative and General Expenses

      (324)

       (286)

      -13.1%

      Profit from Operations

      3,453

       4,469

      -22.5%

      Other Income

      10

      -

      100%

      Finance Charges

      (2,174)

       (2,213)

      1.8%

      Profit Before Tax

      1,289

       2,255

      -42.9%

      Taxes

      (201)

       (3,346)

      94.0%

      Net Profit for the Period

      1,088

       (1,091)

      199.7%

       

       

       

       

      Net Earnings per Share (Bzs/Share)

      5

                        (5)                    

      199.7%

       

       

       

       

       

       

       

      The Company recorded revenues of OMR 18,391 thousand which represent a 6.9% increase compared to the same period in 2017. The increase is due to the higher power load factor of both Al Rusail and Barka II plants.

       

      The profit from operations of OMR 3,453 thousand is lower by OMR 1,016 thousand compared to the same period in 2017. The reduction is mainly due to two events as disclosed to the Muscat Securities Market on 15 March 2018:

      -       Algae bloom: the water production of Barka II was severely affected by the presence of phytoplankton in seawater, also called the red tide resulting in high force majeure during February and March 2018. The financial loss amounted to OMR 0.4 million. It shall be noted that the PWPA will be extended in 2024 for an amount of time equivalent to the loss of production and hence any losses occurred on this account will be recovered in the long term.

       

      -       The GT1 combustion system was damaged on 7 March 2018 during the annual performance test carried out at Barka II when the unit completed the test on gas and shifted to fuel oil. The unit was brought back to service on 26 March 2018 and the forced outage loss due to the incident amounted to OMR 0.4 million.

       

       

      Despite these two events, the Company recorded a net profit of OMR 1,088 thousand for the three month period ended 31 March 2018, which represents an increase of OMR 2,179 thousand compared to the prior year same period. The increase in net profit is due to an adjustment in deferred tax liability of OMR 3.1 Million recorded in 2017 following the change in corporate income tax rate from 12% to 15% promulgated by Royal Decree 9/2017 last year.

       

      The above reported numbers represent initial unaudited consolidated results and are subject to approval and confirmation by SMN Power Holding SAOG Audit Committee and Board of Directors.

       

      Disclosure of the approved unaudited consolidated Financial Statements for the three month period ended 31 March 2018 shall be issued in accordance with the Executive Regulation of the Capital Market Law after the Board of Directors meeting of SMN Power Holding SAOG to be held on 3 May 2018.

       

      X
      X