Tasnee has announced its initial financial results for the 3 months period closing at 31/3/2009 as follows:
- The net loss for the first quarter stood at SR(25.8) million against a net profit of SR (148) million for the same quarter of the last year, and against a net profit of SR (81.9) million for the fourth quarter of the last year.
- Total profit for the first quarter stood at SR (228) million compared to SR (489) million for the same quarter of the last year, at 53.3% less.
- The operating profit for the first quarter stood at SR (12.5) million against SR (246.6) million for the same quarter of the last year, at 95% less.
- Share loss for the first quarter stood at three Halala against a share profit of SR (0.42) for the same period of the last year. Share profit was calculated based on a total of 460.7 million shares for the first quarter of 2009, against 349.5 million shares for the first quarter of 2008, thanks to increase of capital.
- The main reason of the loss for the first quarter of 2009 compared to the first quarter of 2008 and the fourth quarter of 2008 is the drop in the production of the poly olivinates from about 126.000 ton for the fourth quarter of 2008 to about 40.000 ton for the first quarter of 2009, which is mainly attributable to periodical maintenance and extension of the polypropylene factories, from an annual design capacity of 450.000 ton to 720.000ton, in addition to change of the sale prices for the fourth quarter of 2008 which stood at SR 57 million, which was declared in the first quarter of 2009, which entailed inclusion thereof in the results of the first quarter pursuant to the accounting standards and principles. Other subsidiaries were also affected by the economic situation due to low demand for some products and low price of these products. We expect that operation of the factories of the Saudi Company for Ethylene and polyethylene, at the commercial level, shall start soon. These factories include the olivinates factory of an annual production capacity of 1.285.000ton of olivinates and 400.000ton of high density polyethylene and 400.000ton of low density polyethylene. It is expected that such situation and the increase in the production capacity of the polypropylene factories shall be positively reflected on the future results of the company in the light of price and demand increase.