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Full Announcement

ADDENDUM TO THE ANNOUNCEMENT FROM THE(NADEC) COMPANY REGARDING THE ASSESSMENT OF THE EXPECTED FINANCIAL IMPACT OF THE INCREASE IN PRICES OF FUEL ELECTRICITY AND WATER TARIFFS - 2016/01/12

With reference to the company announcement published on Tadawul site on 19 Rabi Alawal 1437 H corresponding to 30 December, 2015, pertaining to the assessment of the financial impact of the increase in energy, fuel, electricity and water tariffs following the ministerial resolutions of the council of ministers meeting held on Monday 17 Rabi Alawal 1437 H corresponding to 28 December, 2015, NADEC announces its estimate of the expected financial impact as follows:

1-Direct effect:
The increase in prices of fuel, electricity and water tariffs will result in an estimated additional cost of about SR 70 Mio coming mainly from fuel consumption necessary for the company production and logistics operations

2-Indirect effect:
The indirect cost represents the expected price increases from the various local suppliers that will be impacted by the fuel, electricity and water tariff increases which has been estimated to be in the range of SR 30 Mio to SR 40 Mio.

NADEC would like to announce to its respected shareholders that it will continue its strategy to improve efficiency and optimization in the business to reduce the impact of these additional costs.