22. Trade And Other Payables

Trade payables are unsecured and are usually paid within 3-12 months of recognition. The carrying amounts of trade payables are considered to approximate their fair values, due to their short-term nature.

Contract liabilities represent advances from customers. Revenue recognised that was included in the contract liability balance at the beginning of the year is Saudi Riyals 18.38 million (2024: Saudi Riyals 10.95 million).

Financial assets and liabilities are offset and the net amount is reported in the statement of financial position where the Company currently has a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The Company has an agreement with Saudi Aramco to purchase feedstock and sell by-product in Jeddah refinery. The settlement of these transactions takes place after 90 days and net payment is made to or received from Saudi Aramco.

The following table presents the recognised financial instruments that are offset, or subject to enforceable netting arrangements:

Effects of offsetting on the statement of financial position

a) Employees’ thrift plan

The movement in employees’ thrift plan is as follows:

Subsequent to the year end, the Company has transferred the plan to a commercial bank for managing on behalf of the Company.