National Aluminium Products Company SAOG ($NAPI)

Okay. Thank you, ladies and gentlemen. We welcome you to -- for having a discussion session for the audited account financials for the year ended 2025. I just wanted to confirm that if the screen is visible. Thank you very much. Thank you. I'll go ahead. So the discussion will take place that we will start with the sort of a disclaimer first, then there will be introduction of the company, Aluminium Extrusion Market Insights, which is basically currently happen -- happening right now, the financial result, obviously, for the discussions session that the purpose that we have and future outlook. Then close at the end, there will be a question-and-answer session that if you have any sort of a question, during the presentation you had noted out, you can just ask, we can accordingly answer that. So let's start with the disclaimer part that the information presented here is provided for information purpose only and subject to change without prior notice. While we strive to ensure the accuracy and reliability of information contained within this presentation, we make no guarantee or warranty, expressed or implied regardless its accuracy, completeness or suitability for any particular purposes. The content of this presentation may not encompass all material information pertaining to the company. We disclaim any responsibility or liability for any errors, inaccurate or omissions, permission that may be presented in this information provided herein. Any distribution, reproduction or [indiscernible] of the presentation in whole or part without the explicit or written consent of the management of National Aluminium Products Company SAOG is strictly prohibited. We reserve the right to take a legal action against any unauthorized distribution of use of this presentation. The information and opinions presented in this document do not constitute investment advice, financial recommendation or any guidance. Individuals should seek professional advice and conduct their own due diligence before making any decision based on the information contained in this presentation. By accessing and reviewing this presentation, you acknowledge and agree to the terms of this display. So this is as far as the small disclaimer that we have put it over here. Now let's move to the presentation part. National Aluminium Products Company, one of the leading GCC's renowned company, established in 1984. And previously, it was only a public listed company in the GCC itself, now the company has listed themself in KSA. So now there are 2. So we are among them. The company listed in GCC, the company during its -- more than a factory years production has participated in infrastructure, not only in Oman but other than Oman also in the whole GCC, rather internationally, we have done some major projects and in the downpipe project also. The company intact the percentage of performanizations also. The -- 80% of the company's export normally as a percentage of the whole -- the 80% is a normal usually trend that we are exporting to the country -- sorry, to the other countries and 20% locally being sold. The company products are used in many serious projects that I have just mentioned earlier also. Renowned are mainly the airports, mainly major airports in GCC and main certain towers in UAE and other GCC countries also. Let's move to the product that we are offering. We are offering mainly 5 major projects, which is called mill finish, powder coated, anodized, thermal brake and [ root finish ]. So these are major products that we are directly dealing with. We have other facilities such as fabrication and we are keeping some CNC machines for the customers just to have their relevant related requirement to be fulfilled also. But mainly, we are producing mill finish, powder coating, root finish and anodized. These are products, basically portfolio that we have. Moving to the next slide, and in marketing slides. So I just wanted to brief you about the current situation. As you people are aware of current geopolitical situation that is happening in the GCC itself, this is -- this has caused internationally and GCC some sort of instability. And that has created some sort of problems related to the supply chains also and the abnormality increase in the prices. You can see in the graph, which has been reflected and it's available to all on the sources available that the LME prices, which was OMR 2,875 in the month of December, now reached to OMR 3,500. It has crossed OMR 3,500 level. So almost OMR 600 to OMR 700 metric tonne per dollar -- I mean, dollar per metric tonne has increased, and this is basically a normal increase. That is basically affecting all the extrusion, not only the extrusion in the country itself. Secondly, as I mentioned, supply chain hurdles are being faced by a number of companies, especially from Qatar, Bahrain. You might have seen the news of that, that certain production has been reduced because of it. So this is 1 of the situations that being faced by the aluminum industry. Secondly, the USA tariff. You know people have waived that 50% tariffs are put -- being put by the U.S. country duty to all extrusion related items to be imported in the U.S. That has caused some sort of problems, I would say, to the aluminium industries, which were exporting to those markets. We were one of -- the one which was slightly affected because we don't have much of the support to the U.S. market but it is basically -- that has happened also. Now moving to the presentation to the results. I would say that the key challenges currently now company is facing that we have still a negative equity of OMR 4.736 million because of the couple of losses that we have accumulated. The high interest rate is still there, lack of equity funding, lack of additional funding from the banks, raw material prices increased that we are trying to -- I would say that try to -- we are trying to cater all our possible options, just to notice all those challenges that we have. The key milestone that we achieved in the year 2025 that we got the funding of OMR 800,000 from the shareholder, OMR 2 million bank facility from new bank that we have got with basically our government bank that we got the facility of it. The -- in the year 2025, our current banks have supported us by not asking us to pay the interest. They have postponed the interest payments up to 2027 mid of June. And there are -- you could see that this above 3 measures has reflected the improvement in our reserves that we have reduced our losses by 54% and our EBIT improved by 114%. So I'll move to the next slide, which will reflect you all the relevant details into it. So this is basically the summary of [indiscernible]. In 2025, we have made a revenue of OMR 25.759 million as compared to OMR 20.851 million in the same period last year. The cost of goods sold, OMR 23.828 million. which was OMR 19.744 million in last year. The GP is OMR 1.931 million, which is improved from the last year, which was OMR 1.107 million. The other income, OMR 126 million. That's basically our operational related items also from OMR 112 million. The expense that we have reported, which includes the G&A, it's OMR 1.259 million, which was OMR 1.90 million last year. So you could see a little bit enhancement despite increase in the revenue and decrease in dispatches. The EBIT is basically reached to OMR 798,000, which was OMR 71,000 negative last year. So a substantial improvement that's done by this company. The financing cost, OMR 1.468 million, which was OMR 1.392 million. As we have mentioned that we have taken the shareholder role and also the new big facility that has caused a little bit increase in the financing cost this year in 2025. So you could see that we have reported a loss of OMR 673 million, which was OMR 1.464 million last year. So there is a substantial improvement, which we are recruiting here, OMR 1.653 million in EBITDA, which was OMR 773 million. So it's the same thing, which I have mentioned that revenues increased by 24%. The cost of sales increased by 21%, which is not proportionate accordingly, due to the lean related aspect that we have mentioned in our earlier press conferences also and news briefings. So that has -- we are still considering -- we are still going with the right direction of cost containments in the company itself. The gross profit has improved by 72%. EBIT, as I said, [indiscernible] the EBITDA improved by 113%. The capacity utilization, 42%, which was 33% last year. So all those as are the main contributors that has related to the company's enhancement of its -- I would say that the resources and reduction of losses. So in details, if you need, I just presented, the parent and the group itself. So you could see there is -- in the group, our details our descriptions are available that by 2025 December, we have reported a revenue of OMR 25.759 million against OMR 20.859 million, which is almost OMR 4.9 million, which is OMR 5 million increase, 24% increase. Similarly, the cost of sales, OMR 23.827 million against OMR 19.744 million, which is 21% increase. The GP is OMR 1.931 million against OMR 1.106 million, OMR 824,000 increase, 74%. You can see that OMR 145,687 and OMR 121,000, OMR 23,000 increase, 20%. The general and administrative expense OMR 778 million and OMR 802 million last year, so OMR 24,000, reduction, 3%. OMR 480 Is basically selling expenses, which is OMR 487, so another OMR 6,000 decrease degrees. Despite this increase in the quantity of dispatches, we managed to control our selling expenses also. So similarly, net financing cost is OMR 1.8 million against OMR 13,393 million, which I mentioned because of the fundings that we have got in the year 2025. There is a small reduction in the fair value of our land, which is a property investment, which is reduced by OMR 20,000, which was last year, OMR 10,000. So OMR 670,000 and OMR 1.463 million is basically an income tax impact of our subsidiary of OMR 2,300. So the losses become OMR 672,966 against OMR 1,463,868. So you could see that down the description is the same that we -- OMR 797,000, against OMR 71,000, which was negative last year, OMR 1.653 million of EBITDA in OMR 773 million. So you could see that EBITDA is 62.42% against 3.7% last year. Now moving towards the balance sheet, so you can see that the group at the level of balance sheet in fact we have the total asset of OMR 21.662 million against OMR 19.967 million. Property plant is OMR 9.54 million against OMR 9.952 billion. OMR 449,000 basically there is addition of more than [indiscernible] against the depreciation, so it's an offset and tangible asset basically related to the ERB. So it's basically completed 5 years, so it's reduced and you could see the value of OMR 1,992 is balance over there right of use assets is related to our AIBs and basically IFRS 16 calculation it's there. Investment of property, which we have mentioned that we have reduced value based on new valuation from OMR 390 to OMR 370. So the deferred tax impact is 2,000, as we have mentioned in the part. The inventories is basically enhanced a little bit as we have mentioned that we have increased the quantity over a period of last year from 33% to 42%. The enhancement of the dispatches. The production so ultimately, a little bit increase in there in the inventory side. Accounts receivables increased OMR 7.9 million from OMR 6.192 million again. I just particularly mentioned that there is an increase in -- substantial increase receivables because of the revenue. And then revenue has 2 impact. One is dispatches, the other LME. The LME is also almost increased by $200 as compared to last year on an average. So that has caused both -- has factored it to increase in the receivable part also. So the bank balance is increased because of the last collections that has been reported. So it's increased by OMR 434. Just moving towards the total equity side, equity is basically to OMR 4.7 million against OMR 4.863 million is basically because of the losses that we have reported. The noncredit portion of a term loan, it's OMR 8.24 million against OMR 8.44 million. In fact, it's basically I would say that classification from short term to the long term. [indiscernible]. So the employee and services at OMR 270,000 OMR 256,000 because of the increase of aspects that we do for the graduate related aspects, lease liabilities IFRS 16. Shareholder loan, which was not there and reached OMR 825,000 because shareholder loan has got an interest factor. So from OMR 800,000 funding that we got, we recorded a OMR 25,000 interest in that part. So it became OMR 825,000. So accounts and other payables has increased from OMR 6 million to OMR 7 million, so almost OMR 888,000 increase is there because of the production that I had mentioned. Similarly, the bank borrowing has increased from OMR 8 million to OMR 8.85 million because of the new funding that we have got. So overall, that -- I would say that the total equity and liability increased from OMR 19 million to OMR 21 million, which is OMR 1.694 million addition that we have done in the year 2025. Now a little bit talking about the future outlook. I would say that we have mentioned that in the last couple of -- our previous presentation that we are working on the 10-years plan. And in the 10 years plan that there was additional funding was required of OMR 5 million, which we are still striving for and we are working with it to get some sort of funding from an investor or from the banks to enhance our capacity utilization, which is at the level of 42% and our target is to reach 82%. So the highlight of the new plan that we are taking it. That sales quantity, 50% utilization will enhance and then increasing to 82% for the plan that we have kept it [indiscernible] is considered, rate of interest, we have kept at 6%. We will be getting the credit from the [indiscernible] in the GCC itself. As we mentioned, that majorly OMR 5 million are required as additional funding to reach that level of capacity utilization. And 2 years moratorium basically is mentioned. And besides this, I'll just mention that we have signed a CTO with 3 banks this year itself, which include [indiscernible] Bank, which has let us have a breathing, I would say, that part that we start paying our reach the installment of the loan from 2027 onward and the interest from 2026 June onward. So this is something that will be part of the 10-years project that we are started implementing last year itself. Old bank term loans will be settled within 10 years starting from 2027, which I have mentioned right now. So this is basically the outlook, that, we have the conclusion, I would say that this company is along the year progressing, reducing its losses substantially. And the way that we have targeted to achieve our capacity from this 42% to 82%, almost 82%, we need further working capital funding, either in form of equity injections or the bank funding also. We are expecting the raw material prices to be stabilized because this is something which we are saying is basically unrealistic prices that we -- it's not a market normal price that we are just looking -- seeing right now. But we are optimistic that the situation will soon normalize, and we'll just be having the similar pattern that we have projected. Interest rates, certainly, we are just expecting that it has to be within the limit that we have planned accordingly. So this is the conclusion that we have about the presentation that we have for the discussion today itself. So I'll just ask the team to ask any sort of a question if they have related to this presentation, just please let me know, so I can answer it accordingly. If anybody has any questions, just let us know so that we can address accordingly on the financials.

Any questions? Do you have any questions?

If nobody has any questions, so we can end the session right now over here. And we very -- appreciate your attendance, and thank you very much for the participation in this discussion session. Thank you very much.

Thank you very much for your attendance.