Tasnee announced its financial results for the third quarter 2020 and the first nine months ending on 30 September 2020 during a press conference held on Tuesday morning 03 November 2020. The conference was held in the company's headquarters in Riyadh to highlight the consolidated financial results for the third quarter and the first nine months results for the period ended on 30 September 2020 in the presence of Eng. Mutlaq H. Al-Morished, Tasnee CEO, and Fawaz M. Al Fawaz, EVP Finance.
Al-Morished highlighted the company’s keenness to ensure its enhanced operational performance, reduce costs, increase productivity and develop the supply chains efficiency during the previous period to get advantage of the initial improvement of the petrochemicals rates in the coming period after facing a period of challenges due to low demand because of the spread of Covid-19 that impacted the international trading and business sectors all over the world in addition to the continuing trade disputes between the United States of America and China.
Al-Morished emphasized that Tasnee has benefited from the relative improvement in the average selling prices and the increase in sales volume of certain products, as the financial results for the first nine months 2020 recorded a net loss of SAR (314.5) million compared to a net loss of SAR (1,054.7) million during the same period of the year 2019, with the continuing difficulties associated with the spread of the pandemic in the majority of countries in the world entering new waves of the epidemic and delaying the arrival of a vaccine, a situation that makes it difficult to predict how the global economic conditions will be during the coming period.
Al-Fawaz shed more light on the financial results of the company, as Tasnee recorded a net loss of SAR (49.2) million during the third quarter period compared to a net loss of SAR (188.8) million during the second quarter of 2020, and a net profit of SAR 22.4 million for the same period of 2019. The net loss reached an amount of SAR (314.5) million during the first nine months of 2020, compared to a net loss of SAR (1,054.7) million during the same period last year. The company's operational profit reached an amount of SAR 68.3 million riyals during the third quarter of 2020, compared to an operational profit of SAR 188.2 million in the same period last year.
Al-Fawaz attributed the reason for the decrease in the net loss during the first nine months of 2020 compared to the same period last year to lower financial charges, higher other income and “non-cash” net impact of the sale of Cristal business recorded in corresponding period of the previous year, despite the negative impact of lower average selling prices, reduced share of profit from investments in associates and joint ventures, higher general and administrative expenses and zakat provisions.
On the other hand, Tasnee has strengthened its communication with its stakeholders by updating its website, which was launched at the end of September 2020, with the aim of facilitating access to its shareholders, customers and all stakeholders around the world. The site contains the necessary information about the company, its management, its subsidiaries, its investments, its financial performance, and a detailed classification and description of all its products. The site also represents a powerful tool of communication for shareholders and customers alike, allowing them to easily reach the departments and sections concerned with providing their needs and meeting their requirements.