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Disclosure of the Initial Unaudited Financial Results for the six-month period ended 30 June 2017
Jul 10, 2017 - 05:52PM Company : SMN POWER HOLDING

SMN Power Holding SAOG

 

Disclosure of the Initial Unaudited Financial Results for the six-month period ended 30 June 2017

 

Muscat, Oman, 10 July 2017: SMN Power Holding SAOG is pleased to announce its un-audited consolidated results for the 6-month period ended 30 June 2017.

 

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 6-month period ended 30 June 2017.

 

Unaudited Financial Results

2017

RO ‘000

Un-audited

2016

RO ‘000

Un-audited

Variance

(%)

 

 

 

 

Operating Revenues

44,640

 47,371

-5.8%

Operating costs

(34,089)

 (37,157)

8.3%

Gross Profit

10,551

 10,214

3.3%

Administrative and General Expenses

  (554)

 (458)

-21.1%

Profit from Operations

9,997

 9,756

2.5%

Finance Charges

(4,444)

 (4,757)

6.6%

Profit Before Tax

  5,553

 4,999

11.1%

Taxes**

  (3,773)

 (555)

-579.9%

Net Profit for the Period

  1,779

 4,444

-60.0%

 

 

 

 

Net Earnings per Share (Bzs/Share)

9

 22

-60.0%

 

The Company has recorded a net profit of OMR 1,779 thousand for the six month period ended 30 June 2017. As compared to the prior year same period, the net profit is reduced due to the revaluation of the Deferred Tax Liability following the recent increase in corporate income tax rate from 12% to 15%. The adjustment has caused a significant increase in tax expense of OMR 3,218 thousand in the current period.

 

For information, the recent increase in corporate income tax rate from 12% to 15% was promulgated by Royal Decree 9/2017 issued on 19 February 2017 and published in the Official Gazette on 26 February 2017.

 

This reduction in net result will however not impact the ability of the Company to distribute the projected dividend in 2017 as the Company has sufficient retained earnings.

 

The Company recorded a Profit Before Tax of OMR 5,553 thousand which represents a 11% improvement as compared to the same prior-year period.

 

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 audited consolidated Financial Statements for the 6-month period ended 30 June 2017 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 27 July 2017.