| Reasons of annual financial results | The reasons for the decrease in the net income and the income from main operations are: 1.The decrease of SIIG portion in the projects managed jointly (SCP, JCP), in this current period it was SR 408 Million compared to SR 633 Million for the same period in the previous year, and this decrease due to the low average prices and the low quantities of sales for those projects because of the planned periodic maintenance shutdowns in the fourth quarter in 2015. 2.The increase of SIIG portion in Petrochemical conversion company (PCC) losses to be SR (90) Million in the current period compared to SR (28) Million for the same period of the previous year, and it was due to the switching of some plants from projects under constructions to starting operation. The reason for the increase in the gross profit is because the increase in the gross profit of Petrochem due to the improved in the profit margin. There was an increase of SIIG portion in Petrochem results, which is SR 453 Million for the current period, compared to SR 387 Million for the same period in the previous year, and this is due to the improved in the profit margin, increase the sales, and lower selling costs and marketing, general and administrative costs in Petrochem subsidiaries companies. |
