• An increase in fuel costs used in production processes amounting to SAR 580 million by 44%.

• Recording of a provision for expected credit loss for trade receivable amounting to SAR 511 million (See additional information below)

• A decrease in finance income by (26)%.

The decrease has been offset by:

• An increase in revenues due to the increase in the quantities sold for all the main sectors of the company.

• An increase in other operating income by 26% due to the collection of insurance claim.

• A decrees in Zakat provision recorded during the year by 52.54%

The Group has recognized the Power Water Purchase Agreement (PWPA) with JWAP as a lease under the requirement of IFRS 16 which was earlier consolidated proportionally and recorded as owned asset under joint operation accounting of JWAP.

2. The Group has remeasured its lease liabilities with Royal Commission for Jubail and Yanbu in line with the requirements of IFRS 16 Leases from the lease commencement date using the incremental borrowing rate and accordingly adjusted the related right-of-use assets, finance charges on lease liabilities and depreciation charges on right-of-use assets

3. Based on Council of Ministers Resolution No. (111) dated 14/2/1443 AH corresponding to 21/9/2021, which includes approval to introduce a High Intensity Electricity Consumption Tariff for qualified Customers in each of the industrial, commercial and agricultural sectors, and based on Council of Ministers Resolution No. (361) dated 26/5/1444 AH corresponding to 20/12/2022, to implement this tariff as of 8/6/1444 AH corresponding to 1/1/2023.

According to what is stipulated in Article Nine of Council of Ministers Resolution No. (111), the shortfall in electricity sector revenues resulting from the application of High Intensity Electricity Consumption Tariff will be compensated by charging non-qualified Customers in each of the industrial, commercial and agricultural sectors. Accordingly, the company did not record any decreases in revenue for the year 2023 and the first, second, and third quarters of 2024, taking into consideration the aforementioned decision.

Meanwhile, the regulatory authorities did not issue the compensation mechanism therefore, the Company did not implement the tariff for heavy consumption of electricity and has recorded receivables and associated revenue based on the original tariff which is greater than the latest announced high intensity electricity consumption tariff. And since two years have passed from the date specified for implementing the Council of Ministers Resolution and there is no clear time line from the regulatory authorities to resolved this issue until the date of this announcement, it has become necessary to comply with the applicable accounting standards to record the shortfall as Expect Credit Loss Provision amounting to SAR 496 Million.

Management has made all necessary efforts through continuous engagement and correspondences with the regulatory authorities to clarify the expected financial impact on the Company in the event of applying the tariff to eligible customers and the delay in its approval for non-eligible customers to offset the expected shortfall in electricity revenues to ensure that the Company’s financial position and cash flows are not adversely affected in line with Council of Ministers Resolution No. 111. The company confirms that these developments are beyond the control of the company's management and the financial impact of future compensation resulting from tariff changes will be reflected in the financial statements, in accordance with the mechanism approved by the regulatory authorities and in alignment with the adopted accounting standards.

4.Attached 2024 Earning Release.