Tasnee Announced its Interim Financial Results for the 2nd Quarter and 1st Half ending on June 30, 2022. The company has recorded positive results during the second quarter period, benefiting from the improvement in the prices of some of its products and the continued demand for petrochemical products despite the increase in feedstock prices and shipping expenses worldwide. Mr. Mutlaq Al-Morished, CEO of Tasnee, expressed his pleasure for the continuity of achieving profits during the second quarter 2022 and maintaining the gains it achieved during the last year. Tasnee achieved a net profit of SR 606 million during the first half 2022 compared to a net profit of SR 684 million during the same period of 2021, indicating that the results came close to expectations that market conditions would continue to improve in general during the first quarter and the first half of 2022, despite the slight decrease in profits compared to the first quarter 2022 and the same period of 2021, hoping that the markets would continue to improve during the coming period with the clear decline of the Corona virus, and for the global economy to be able to avoid the negative impacts of the current and potential geopolitical tensions in Europe and the Pacific.
For his part, Mr. Fawaz Al-Fawaz, EVP Finance, shed more light on the company’s financial results during the second quarter and the first half of 2022, stressing the company’s continuation in its approach to reducing expenses, increasing production rates and improving operational performance, as Tasnee achieved a net profit of SR 297 million for the second quarter 2022 compared to a net profit of SR 309 million during the first quarter 2022 and a net profit of SR 357 million for the second quarter of last year. The company's net profit amounted to SR 606 million during the first half of 2022, compared to a net profit of SR 684 million during the same period last year. The company also achieved an operating profit of SR 563 million during the second quarter of 2022, compared to an operating profit of SR 609 million during the same period last year.
Decrease in net profit during the current quarter compared to the first quarter of 2022 is primarily attributable the increase in the prices of feedstock and the increase in financing expenses and zakat provision. Despite the increase in the average selling prices and quantities sold for some products, the increase in other revenues and the increase in the company's share in the profits of associates and joint ventures.
Decrease in net profit during the 1st half 2022 compared to the 1st half 2021 is primarily attributable to decrease in sales revenue and share of profit from investments in associates and joint ventures due to lower average selling prices and sales volumes of certain products despite the increase in sales as a result of the improvement in the average selling prices of downstream products, the quantities sold for some products, the decrease in general and administrative expenses, and the increase in other revenues.
On the other hand, Tasnee was recorded in Forbes Middle East’s annual list of the “100 Most Powerful Companies in the Middle East 2021”, where the name of Tasnee advanced 27 places compared to last year’s list among a number of the most prominent companies listed in the capital market, the most powerful and successful in their sectors. For the second consecutive year, Tasnee received the British International Safety Award 2021, which is granted by the British Safety Council to companies that are committed to managing health and safety and reducing risks and injuries worldwide.