Chemanol narrows losses by 90% in Q2

26/07/2017 Argaam Exclusive

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Share Price

14.52
(0.56) (3.71 %)

Methanol Chemicals Co. (CHEMANOL)

Methanol Chemicals Co. (Chemanol) narrowed its first half net loss by nearly 90 percent year-on-year (YoY) to SAR 2.99 million from SAR 27.4 million in the same period last year.  The decrease in loss was attributed to improvement in sale prices and operating expenses, along with the company’s cost reduction program.

 

The company also noted an increase in cost of financing and prices of energy products, as well as a decrease in the sales volume of major products due to dumping practices and a decline in public expenditure on construction sector.



Financials (M)

Item 6m 2016 6m 2017 Change‬
Revenues 337.96 355.22 5.1 %
Gross Income 41.03 71.90 75.2 %
Operating Income (39.56) 2.80 107.1 %
Net Income (27.37) (2.99) 89.1 %
Average Shares 67.45 67.45 -
EPS (Riyals) (0.41) (0.04) 89.1 %

On a sequential basis, the second-quarter net profit jumped significantly to SAR 2.6 million, compared to a profit of SAR 80,000 in Q2 2016, due to improvement in sale prices and operating expenses, along with the $ 5.5 million added to the company account (under other income) following the settlement with a marketing agent.

 

Chemanol had reported a net loss of 5.6 million in Q1 2017.



Current Quarter Comparison (M)

Compared With The
Item Q2 2016 Q2 2017 Change‬
Revenues 170.75 175.80 3.0 %
Gross Income 22.74 31.42 38.2 %
Operating Income (19.65) (4.68) 76.2 %
Net Income 0.08 2.62 3170.0 %
Average Shares 67.45 67.45 -
EPS (Riyals) 0.00 0.04 3170.0 %


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2008 128.77 - 29.21 - 8.04 - 0.24
Q2 2008 145.99 - 30.64 - 7.49 - 0.22
Q3 2008 158.26 34.6 % 34.94 26.3 % 13.18 123.8 % 0.20
Q4 2008 137.65 8.8 % 28.55 15.1 % 9.53 129.3 % 0.14
Q1 2009 105.91 (17.8 %) 25.72 (11.9 %) 5.04 (37.3 %) 0.07
Q2 2009 102.33 (29.9 %) 25.50 (16.8 %) 5.60 (25.2 %) 0.08
Q3 2009 97.55 (38.4 %) 23.23 (33.5 %) 5.70 (56.8 %) 0.08
Q4 2009 96.51 (29.9 %) 22.90 (19.8 %) 5.71 (40.1 %) 0.08
Q1 2010 111.84 5.6 % 30.38 18.1 % 9.06 79.8 % 0.13
Q2 2010 113.18 10.6 % 30.48 19.5 % 8.61 53.8 % 0.13
Q3 2010 174.92 79.3 % 19.96 (14.1 %) (15.63) (374.2 %) (0.23)
Q4 2010 189.56 96.4 % 38.09 66.3 % 4.00 (29.9 %) 0.06
Q1 2011 192.43 72.1 % 41.32 36.0 % 9.65 6.5 % 0.14
Q2 2011 197.40 74.4 % 42.49 39.4 % 10.60 23.1 % 0.16
Q3 2011 213.76 22.2 % 55.02 175.7 % 26.65 270.5 % 0.40
Q4 2011 226.15 19.3 % 52.99 39.1 % 23.31 482.8 % 0.35
Q1 2012 235.42 22.3 % 61.94 49.9 % 25.26 161.8 % 0.37
Q2 2012 237.93 20.5 % 62.80 47.8 % 25.83 143.7 % 0.38
Q3 2012 223.86 4.7 % 58.72 6.7 % 25.16 (5.6 %) 0.37
Q4 2012 223.53 (1.2 %) 49.58 (6.4 %) 15.19 (34.8 %) 0.23
Q1 2013 215.29 (8.6 %) 52.58 (15.1 %) 14.07 (44.3 %) 0.21
Q2 2013 177.92 (25.2 %) 34.91 (44.4 %) 0.04 (99.8 %) 0.00
Q3 2013 220.07 (1.7 %) 58.80 0.1 % 22.01 (12.5 %) 0.33
Q4 2013 260.45 16.5 % 68.91 39.0 % 36.00 137.0 % 0.53
Q1 2014 231.55 7.6 % 63.62 21.0 % 24.21 72.1 % 0.36
Q2 2014 222.60 25.1 % 46.56 33.4 % 15.86 39550.0 % 0.24
Q3 2014 220.18 0.0 % 47.85 (18.6 %) 10.34 (53.0 %) 0.15
Q4 2014 210.33 (19.2 %) 29.08 (57.8 %) (18.21) (150.6 %) (0.27)
Q1 2015 196.44 (15.2 %) 23.46 (63.1 %) (15.14) (162.5 %) (0.22)
Q2 2015 196.26 (11.8 %) 25.72 (44.8 %) (21.55) (235.9 %) (0.32)
Q3 2015 174.28 (20.8 %) (10.79) (122.5 %) (42.93) (515.2 %) (0.64)
Q4 2015 166.35 (20.9 %) (20.95) (172.0 %) (60.29) (231.1 %) (0.89)
Q1 2016 167.21 (14.9 %) 18.29 (22.0 %) (27.45) (81.3 %) (0.41)
Q2 2016 170.75 (13.0 %) 22.74 (11.6 %) 0.08 100.4 % 0.00
Q3 2016 133.91 (23.2 %) 9.49 188.0 % (36.93) 14.0 % (0.55)
Q4 2016 164.17 (1.3 %) 18.02 186.0 % (37.33) 38.1 % (0.55)
Q1 2017 179.42 7.3 % 40.48 121.3 % (5.61) 79.6 % (0.08)
Q2 2017 175.80 3.0 % 31.42 38.2 % 2.62 3170.0 % 0.04

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2008 - - -
Q2 2008 21.65 % 11.54 % 4.93 %
Q3 2008 21.37 % 12.80 % 5.87 %
Q4 2008 21.61 % 12.77 % 6.70 %
Q1 2009 21.88 % 12.42 % 6.43 %
Q2 2009 22.75 % 12.88 % 6.62 %
Q3 2009 23.23 % 13.04 % 5.83 %
Q4 2009 24.20 % 14.58 % 5.48 %
Q1 2010 24.99 % 16.18 % 6.39 %
Q2 2010 25.53 % 16.23 % 6.94 %
Q3 2010 20.89 % 17.99 % 1.56 %
Q4 2010 20.17 % 24.18 % 1.02 %
Q1 2011 19.38 % 26.97 % 0.99 %
Q2 2011 18.81 % 29.76 % 1.14 %
Q3 2011 22.31 % 33.82 % 6.42 %
Q4 2011 23.12 % 32.82 % 8.46 %
Q1 2012 24.34 % 33.28 % 9.83 %
Q2 2012 25.49 % 33.78 % 11.06 %
Q3 2012 25.61 % 33.02 % 10.78 %
Q4 2012 25.31 % 32.12 % 9.93 %
Q1 2013 24.84 % 31.58 % 8.91 %
Q2 2013 23.29 % 30.28 % 6.48 %
Q3 2013 23.41 % 29.74 % 6.13 %
Q4 2013 24.63 % 31.81 % 8.19 %
Q1 2014 25.42 % 32.34 % 9.18 %
Q2 2014 25.45 % 32.40 % 10.43 %
Q3 2014 24.28 % 31.79 % 9.18 %
Q4 2014 21.15 % 27.80 % 4.20 %
Q1 2015 17.30 % 24.42 % (0.25 %)
Q2 2015 15.32 % 22.01 % (4.04 %)
Q3 2015 8.68 % 16.11 % (11.13 %)
Q4 2015 2.38 % 10.09 % (18.22 %)
Q1 2016 1.74 % 8.22 % (20.72 %)
Q2 2016 1.37 % 5.84 % (23.44 %)
Q3 2016 4.63 % 6.81 % (23.98 %)
Q4 2016 10.78 % 11.00 % (20.45 %)
Q1 2017 14.00 % 13.35 % (16.70 %)
Q2 2017 15.22 % 14.23 % (14.98 %)


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2008 33.73 - - 20.35
Q2 2008 33.73 0.76 0.76 20.57
Q3 2008 67.45 0.49 0.49 20.56
Q4 2008 67.45 0.57 0.57 20.61
Q1 2009 67.45 0.52 0.52 20.68
Q2 2009 67.45 0.49 0.49 20.76
Q3 2009 67.45 0.38 0.38 20.83
Q4 2009 67.45 0.33 0.33 20.91
Q1 2010 67.45 0.39 0.39 21.04
Q2 2010 67.45 0.43 0.43 21.16
Q3 2010 67.45 0.11 0.11 20.92
Q4 2010 67.45 0.09 0.09 20.98
Q1 2011 67.45 0.10 0.10 21.11
Q2 2011 67.45 0.13 0.13 21.26
Q3 2011 67.45 0.75 0.75 21.65
Q4 2011 67.45 1.04 1.04 21.99
Q1 2012 67.45 1.27 1.27 22.36
Q2 2012 67.45 1.50 1.50 22.74
Q3 2012 67.45 1.48 1.48 23.11
Q4 2012 67.45 1.36 1.36 23.32
Q1 2013 67.45 1.19 1.19 23.53
Q2 2013 67.45 0.81 0.81 22.63
Q3 2013 67.45 0.76 0.76 22.95
Q4 2013 67.45 1.07 1.06 23.47
Q1 2014 67.45 1.22 1.21 23.82
Q2 2014 67.45 1.45 1.45 22.98
Q3 2014 67.45 1.28 1.27 23.13
Q4 2014 67.45 0.48 0.55 22.85
Q1 2015 67.45 (0.11) (0.03) 22.59
Q2 2015 67.45 (0.66) (0.49) 22.28
Q3 2015 67.45 (1.45) (1.28) 21.64
Q4 2015 67.45 (2.07) (1.98) 20.75
Q1 2016 67.45 (2.26) (2.16) 17.62
Q2 2016 67.45 (1.94) (2.36) 17.62
Q3 2016 67.45 (1.85) (2.27) 17.07
Q4 2016 67.45 (1.51) (1.93) 16.63
Q1 2017 67.45 (1.18) (1.60) 16.44
Q2 2017 67.45 (1.15) (1.45) 16.48

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2008 - - -
Q2 2008 - - -
Q3 2008 54.87 54.87 1.30
Q4 2008 35.17 35.17 0.97
Q1 2009 37.82 37.82 0.96
Q2 2009 54.79 54.79 1.31
Q3 2009 75.99 75.99 1.40
Q4 2009 84.23 84.23 1.32
Q1 2010 71.70 71.70 1.32
Q2 2010 59.93 59.93 1.22
Q3 2010 More than 100 More than 100 1.30
Q4 2010 More than 100 More than 100 1.38
Q1 2011 More than 100 More than 100 1.18
Q2 2011 More than 100 More than 100 1.17
Q3 2011 27.13 27.13 0.95
Q4 2011 20.78 20.78 0.98
Q1 2012 28.39 28.39 1.62
Q2 2012 16.47 16.47 1.09
Q3 2012 17.02 17.02 1.09
Q4 2012 17.61 17.61 1.02
Q1 2013 20.74 20.74 1.05
Q2 2013 27.46 27.46 0.98
Q3 2013 30.44 30.44 1.01
Q4 2013 25.50 25.70 1.16
Q1 2014 24.04 24.21 1.23
Q2 2014 19.85 19.96 1.26
Q3 2014 24.12 24.27 1.34
Q4 2014 44.31 38.36 0.93
Q1 2015 NEG NEG 1.09
Q2 2015 NEG NEG 1.05
Q3 2015 NEG NEG 0.75
Q4 2015 NEG NEG 0.62
Q1 2016 NEG NEG 0.58
Q2 2016 NEG NEG 0.71
Q3 2016 NEG NEG 0.56
Q4 2016 NEG NEG 0.86
Q1 2017 NEG NEG 0.76
Q2 2017 NEG NEG 0.72

Analysts Estimates (Million)

Item Q2 2017 (e) Q2 2017 (a) Change‬
Average (17.00) 2.62 115.39 %

Estimates vs Actual (Million)

Item Q2 2017 (e) Q2 2017 (a) Change
HSBC (22.00) 2.62 111.9 %
Hermes (12.00) 2.62 121.8 %

Current
Market Cap (M Riyal) 979.37
Enterprise Value (EV) (M) 1,365.09
Shares Outstanding ((M)) 67.45
EPS ( Riyal) (TTM) (2.27)
Book Value (BV) ( Riyal) 15.06
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 0.96
Return on Average Assets (%) (TTM) (8.34 )
Return on Average Equity (%) (TTM) (14.02 )

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