Chart GalleryTotal Revenues (SAR Millions)Net Profit (SAR Millions)012,0009,600-4007,200-8004,800-1,2002,400-1,60002008 1H09-2,0002007 2008 1H08 1H09EBIT and EBITDA MarginNet Profit Margin6%0%0%-6%-6%-12%-12%-18%-18%-24%-30%2008 1H09EBIT MarginEBITDA Margin-24%-30%2008 1H09Total Assets (SAR Millions)Return on Average Assets (RoAA)52,0000.0%41,600-1.2%31,200-2.4%20,800-3.6%10,400-4.8%-2007 2008 1H08 1H09-6.0%2008 1H08 1H09Shareholders' Equity (SAR Millions)Return on Average Equity (RoAE)12,0000%9,600-6%7,200-12%4,800-18%2,400-24%-2007 2008 1H08 1H09-30%2008 1H08 1H09
Size of the <strong>Co</strong>mpanyThe salient features of the balance sheet are: Petro <strong>Rabigh</strong> witnessed a 54.6% increase in assets to SAR 50.80 billion compared to SAR 32.86billion in 1H08 following the completion of the asset transfer from Saudi Aramco’s <strong>Rabigh</strong> refineryin October 2008. As a result, both current and non-current assets witnessed healthy YoY growthduring the first half of 2009.Non-current assets base increased 35.8% to SAR 43.69 billion compared to SAR 32.16 billion in1H08 mainly on account of additions to property, plant and equipment (PPE). Additions onaccount of the <strong>Rabigh</strong> refinery and petrochemicals complex led to PPE expanding to SAR 15.75billion compared to SAR 0.58 billion in 1H08. Leased assets, which include desalination & powerplants and marine terminal facilities were reported at SAR 6.38 billion compared to none in 1H08,leading to an increase in non-current assets. Despite this, the share of non-current assets in thetotal assets base declined from 97.9% in 1H08 to 86.0% in 1H09.Current assets also increased from SAR 0.69 billion in 1H08 to SAR 7.12 billion in 1H09 mainlyon account of transfers pertaining to the <strong>Rabigh</strong> refinery. While trade receivables were carried atSAR 3.18 billion, inventories were valued at SAR 2.84 billion for the first half of 2009. Accordingly,the share of current assets in the total assets base increased from 2.1% in 1H08 to 14.0%.Total liabilities increased 85.5% to SAR 41.81 billion from SAR 22.53 billion in 1H08 with theshare in the balance sheet going up from 68.6% to 82.3%. Non-current liabilities, accounting for64.9% of the total balance sheet increased 54.4% to SAR 32.96 billion led by a rise in long-termloans that increased 2.6% to SAR 21.90 billion. In addition to this, loan from foundingshareholders that stood at SAR 4.58 billion compared to none in 1H08 also contributed to theincrease.Current liabilities also rose from SAR 1.19 billion in 1H08 to SAR 8.84 billion in 1H09, mainly onaccount of the transfer in accounts payable pertaining to the <strong>Rabigh</strong> refinery, which stood at SAR7.42 billion during 1H09. Furthermore, the company also raised a short-term loan of SAR 0.63billion adding to the current liabilities.Shareholders’ equity reduced 12.8% to SAR 9 billion in 1H09 led by rise in accumulated losses forthe period. The company’s accumulated losses increased from SAR 0.81 billion in 1H08 to SAR2.14 billion in 1H09 as a result of rise in net losses for the period. Accordingly, the contribution ofshareholders’ equity to the total balance sheet decreased from 31.4% to 17.7%.Financial Performance Analysis – 1H09Higher expenses negativelyimpacts bottom-line in 1H09Petro <strong>Rabigh</strong> generated SAR 11,776.77 million in revenues from refining activities. However, higher<strong>Co</strong>S of SAR 11,408.85 million (96.9% of total revenues) impacted the company’s financialperformance. The company reported a gross profit of SAR 367.93 million for 1H09, up from the lossreported in 2008. However, depreciation charges of SAR 328.26 million and 35.1% higher G&Aexpenses of SAR 318.63 million led to an operating loss of SAR 278.96 million for 1H09 compared toSAR 236.31 million in 1H08.The company also reported a 54.3% decline in interest & other income to SAR 15.36 million, whileforeign exchange losses stood at SAR 1.04 million as against a gain of SAR 5.16 million in 1H08.Accordingly, net loss for the first half of 2009 increased to SAR 264.65 million compared to a net lossof SAR 197.56 million in 1H08. Adjusted annualised LPS stood at SAR 0.60 compared to SAR 0.45 in1H08. The annualised negative return on average equity stood at 5.8% in 1H09 as against 4.9% in1H08. Similarly, annualised negative return on average assets was reported at 1.1% for 1H09compared to 1.3% in 1H08.
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