The company was just listed early this year and was targeting at reaching the market capitalization of SAR 10,000,000 millions by 2021. (taking into account the number of shares outstanding of 200,000 million shares)
a.Based on your analysis of the financial statement of the company above, what is the safety level of the company in terms of revenue level?
b.What is the performance potential ofthe company based on the upswing projection in the crude oil price?
c.If crude oil price go down as far as USD 15 per barrel compared to the current USD 25 per barrel, how bad will the company's performance be?
Consolidated statement of cash flows SAR Year ended December 31 Note 2019 2013 Income before income taxes 666,?41 292,895 Adjustments to reconcile income before income taxes to net cash provided by operating activities Depreciation and amortization 5,6 50,266 41,334 Exploration and evaluation costs written off 6 3,21? 2,951 Gain on remeasurement of existing interest in equity investments 24,33 (1,223) (870) Share of resuits of Joint ventures and associates T" 9,455 1,415 Finance income 24 {5.534} {2.340} Finance costs 19 6,026 2,959 Dividends from investments in securities 24 (509] (143) Change in fair value of investments through prot or loss (6203 (594} Change in joint ventures and associates inventory profit elimination 3' 249 103 Other 1.25? 1,417 Change in working capital Inventories 1,369 {6,455} Trade receivables 727 (5,596) Due from the Government 12,083 (7,968} Other assets and receivables 3,268 {2,335} Trade and other payables 3,430 5,343 Royalties payable 2,365 (8,543} Other changes Other assets and receivables (9,951) (1,11?) Provisions 339 (240} Postemployment benefit obligations 1,119 {2,606} Settlement of income and other taxes 8 [323,472] {355,305} Net cash provided by operating activities 416,529 453,201 Capital expenditures 4 (122,832) (131,166) Acquisition of affiliates. net of cash acquired ?, 33 (13,628] (8,521} Distributions from joint ventures and associates 3' 773 1,023 Additional investments in joint ventures and associates 7, 25 (341] (401} Dividends from investments in securities 24 509 143 Interest received 4,561 2,942 Net investments in securities (368] {615) Net(purcl'1ases)I maturities of snorttenn investments (45,213) 5,990 Net cash used in investing activities (121,144) (131,205) Dividends 31,34 {214,3 88] (211500) Dividends paid to noncontrolling interests (35] (902} Interest paid {5315] (2,748} Acquisition of treasury shares 15 (3,150] Proceeds from borrowings 51,960. 11,560 Repayments of borrowings (12,992) (1 1,1396)I Net cash used in financing activities {244,831} {220,536} Net (decrease) increase in cash and cash equivalents {5.446) 101,910 Cash and cash equivalents at beginning of the year 183,152 81,242 Cash and cash Euivalents at end of the gear 127,795 183,152 Consolidated statement of income 5A3 Year ended December 31 Note 1019 2013 Revenue 23 1,105,696 1,194,376 Other income related to sales 131,089 152,641 Revenue and other income related to sales 1,236,285 1,3410] 3' Royalties and other taxes [132,141] (208,505) Purchases 29 {225,120} {201,126} Producing and manufacturing (58,259] (56,202) Selling, administrative and general {36,647} (31,250) Exploration [7,251] (7,928) Research and development {2,150} {2,212} Degradation and amortization 5,5 {50.255} (41334) Operating costs (561,914) (548,612) Operating income 674,871 798,495 Share of results of joint ventures and associates 2 (9,455) (1,415) Finance and other income 24 2,351 3,865 Finance costs 19 [6,026] (2,959) Income before income taxes 566,241 297,896 income taxes 8 [336,043] (381,328) Net income 330,693 116,518 Net income [loss] attributable to Shareholders' equity 330,816 416,195 Non-controlling interests (123] 322 330,693 116,518 Earnings per share (basic and diluted} 35 1.65 2.08 * Supplementary information is converted at a fixed rate of US. dollar 1.00 : EAR 3.75 for convenience only
