Methanol became the savior of Zagros! / Zagros Petrochemical’s inability to control costs – Tejaratnews

According to Tejarat News, the 6-month financial statements of Zagros Petrochemical show that the company has managed to control only the production price of its products during this period. So that in the first 6 months of this year, the company’s income and cost of sold products have increased by 13%.

Further examination of the 6-month financial statement of Zagros Petrochemicals indicates that the company’s sales revenue in this period compared to the same period last year increased by 13.61% from 12,757 billion tomans to 14,493 billion tomans. On the other hand, the total cost of goods sold by the company also grew by 13% during this period and reached 10,101 billion tomans from 8,935 billion tomans.

In this way, Zagros Petrochemical managed to increase its gross profit by about 15% during this period by controlling the production cost and revenue and increasing this number from 3,822 billion tomans to 4,392 billion tomans.

Decrease in Zagros net profit

But the story of profitability of Zagros in the first half of this year was not as sweet as it was said. If the financial statements of the company are examined in this period, it is clear that the general and administrative expenses of the company in this period have increased by 521 billion tomans, equivalent to 20%, compared to the first 6 months of 2011. On the other side of the story, on the side of “other incomes and expenses”, which generated 25 billion Tomans in the first half of last year, in the first 6 months of this year, it had a loss of 4 billion Tomans!

This issue caused the company’s operating profit to grow by only 1.64 percent in the first half of 2012 and reach 1,208 billion tomans from 1,888 billion tomans in the first half of last year. Zagros lost control of expenses in other sectors; For example, the “Other income and non-operating expenses” section, which was profitable for the company in the previous period, resulted in a loss of 76 billion Tomans in this period.

All these caused the net profit of Zagros not only did not increase during this period, but also decreased by more than 17% and reached 1,131 billion tomans. In this period, EPS of Zagros has reached 471 Tomans with a decrease of 17% from 568 Tomans.

Record of production and sales of Zagros

As it was said at the beginning of the report, the company’s sales revenue increased by more than 13% in this period. However, this increase in the company’s income was not due to the increase in sales and the improvement of production performance of Zagros, but it was only due to the increase in the rate of methanol in this one year.

Because the amount of production and sales of the company in this period has decreased by 2.04 and 1.61 percent respectively and has reached the figures of 4 million 531 thousand tons and 2 million 45 thousand tons.

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