Tasnee announced its consolidated interim financial results for the 2nd Quarter and 1st Half ending on June 30, 2023. The company’s profit decreased during the second quarter, due to the decrease in demand for petrochemical products in general. Mr. Mutlaq Al-Morished, CEO of Tasnee, stated that the company’s financial results during the second quarter 2023 came close to expectations of a decrease in revenues in the petrochemical sector during the period as a result of the decrease in demand for most of petrochemical products due to the slowdown in the global economy, which led to a decrease in the average selling prices of products, despite the decrease in the average cost of feedstock, shipping expenses and supply chains. Tasnee achieved a net profit of SR 113 million during the first half 2023, compared to a net profit of SR 606 million during the same period of 2022. Al Morished hoped that the markets will improve during the coming period so that the global economy will be able to overcome the state of slowdown and avoid the negative impacts of the current and potential geopolitical tensions in Europe and the Pacific.
Mr. Fawaz Al-Fawaz, EVP Finance, referred to the company’s financial results during the second quarter and the first half of 2023, stressing the company’s continuous approach to improving operational performance, reducing expenses, and increasing production rates, as Tasnee achieved a net profit of SR 31 million for the second quarter 2023 compared to a net profit of SR 82 million during the first quarter 2023 and a net profit of SR 297 million for the second quarter of last year. The company’s net profit amounted to SR 113 million during the first half of 2023, compared to a net profit of SR 606 million during the same period last year. The company also achieved an operating profit of SR 52 million during the second quarter of 2023, compared to an operating profit of SR 563 million during the same period last year.
Decrease in net profit during the current quarter compared to the first quarter of 2023 is primarily attributable to decrease in share of profit from associates by SR 147 million (Tasnee share SR 116 million) due to IFRS based non-recurring adjustment of a valuation allowance relating to deferred tax assets recorded by an associate (Tronox Holdings plc.), despite decrease in average feedstock costs, impairment of financial assets, zakat provisions and increase in other income.
Decrease in net profit during the 1st half 2023 compared to the 1st half 2022 is primarily attributable to lower average selling prices of most of the products resulting in decrease in revenue and share of profit from joint ventures and associates, despite decrease in net finance costs, zakat provisions and increase in other income. In addition, share of profit from associates also decreased by SR 147 million (Tasnee share SR 116 million) due to IFRS based non-recurring adjustment of a valuation allowance relating to deferred tax assets recorded by an associate (Tronox Holdings plc.).
On the other hand, Tasnee was recorded in Forbes Middle East’s annual list of the “100 Most Powerful Companies in the Middle East 2023”, among a number of the most prominent companies listed in the stock markets, the most powerful and successful in their sectors. Tasnee also came among the top 10 strong industrial ME companies within the list. In addition, Tasnee came on the Forbes list of “the Most Inspiring Saudi Companies in Developing a Culture of Innovation”, which reflects the company’s keenness to encourage innovators by using its global laboratories for research and innovation, and its endeavor to develop new ways to improve the efficiency of manufacturing processes for petrochemicals, downstream industries, and advanced metals.