Tasnee announces its consolidated financial results for First Quarter 2018
4/24/2018

 

 

 

 

 

 

The National Industrialization Company (Tasnee) announced its consolidated financial results for the first quarter ending March 31, 2018, at a press conference hosted by Eng. Mutlaq Al-Morished Tasnee’s CEO, and Mr. Fawaz Al-Fawaz, TASNEE CFO. The conference was held on Tuesday, April 24, 2018, at the company's headquarters in Riyadh.
 
Eng. Al-Morished discussed the operational performance and the financial results. He explained that Tasnee is seeking to maximize its profits, attain growth in all its businesses, sustain the positive results achieved during the last period, enhance the company’s financial and operational performance, and increase its ability to meet Tasnee’s shareholders and employees’ expectation.
 
Mr. Al-Fawaz stated that Tasnee continues to achieve positive results due to increase in Titanium Dioxide average price as well as the improvement of most of products. Furthermore, Tasnee’s consolidated sales increased by 14% during Q1, amounting to SR 2,820 million, compared to SR 2,481 million in Q1 2017. The company registered a net profit of SR 361 million, compared to SR 103 million in Q1 2017. Additionally, operating profit amounted to SR 692 million compared to SR 340 million for the same period last year.

 

The increase in net profits is attributed to the increase in the average selling prices of Titanium Dioxide products and the decrease in financing cost, in addition to the increase in the company share in the sister companies and joint ventures due to improved operational performance, despite the increase in general and administrative expenses.

 

Tasnee’s Q1 2018 net income increased by 10% compared to Q4 2017, these positive results are attributed to the increase in average selling price of Titanium Dioxide products, and the reduction in the financing costs. Moreover, Tasnee has increased its shares in other companies and joint ventures. These results were realized despite the increase in general and administrative expenses, and Zakat and tax allocation.

 

Regarding the company’s ongoing projects, many of Hail downstream projects are already in the production stage mainly to increase the downstream industry added value, and provide career opportunities for Saudi talent, which support the Saudi 2030 Vision that aims at increasing the non-oil industries in the gross domestic products.

 

Similarly, the titanium sponge project in Yanbu is expected to commence the production stage during the second half of 2018, after the construction of the TCL4 unit is finalized. It is also expected that production at Jazan’s smelter will begin during the second half of 2018, following the resolution of some technical issues.

 

On the subject matter of the definitive agreement to acquire Tasnee’s Titanium Dioxide business by Tronox Limited, both companies have agreed to extend the expiration date of the deal period from 21 May 2018 to 30 June 2018.  Additionally the deal will have the option of automatic extension every three months until 31 March 2019. This will allow both companies to work on obtaining the remaining regulatory approvals from the US and the European Union, whilst keeping the main terms and conditions unchanged.