Tasnee announced its Consolidated Interim Financial Results for the 3rd Quarter and 1st 9 months ending on September 30, 2023, as the company has recorded an increase in its net profit during the third quarter compared to the second quarter 2023, while it has recorded a decrease in its profit during the first nine-months period 2023 compared to its net profit during the same period last year.
Mr. Mutlaq Al-Morished, CEO of Tasnee, addressed that the company achieved a net profit of SR 191 million during the first 9 months of 2023 compared to a net profit of SR 623 million during the same period of 2022, indicating that the results are acceptable due to the decline in the selling prices of most petrochemical products, as a result of the contraction in demand for many products depending on petrochemicals during the third quarter, with the increase of the pace of geopolitical tensions and economic recession in most countries and the sharp rises in interest rates, hoping that market conditions will improve during the remainder of the 2023, and that the global economy can recover from the current slowdown as quickly as possible while avoiding the expansion of the negative impact of the current geopolitical tensions in the Middle East, Europe, and the Pacific.
Mr. Fawaz Al-Fawaz, EVP Finance, stressed the company’s keenness to continue in its approach of rationalizing expenses, increasing production rates, and improving operational performance, as Tasnee achieved a net profit of SR 78 million for the third quarter 2023 compared to a net profit of SR 31 million during the second quarter 2023 and a net profit of SR 17 million for the third quarter of last year. The company’s net profit amounted to SR 191 million during the first 9 months of 2023, compared to a net profit of SR 623 million during the same period of last year. The company also achieved an operating profit of SR 184 million during the third quarter of 2023.
Increase in net profit during the current quarter compared to the second quarter of 2023 is primarily attributable to increase in share of profit from joint ventures mainly due to increase in sales volumes of most of the products and slight decrease in average feedstock costs, decrease in net finance costs and reduced share of losses from investments in associates due to IFRS based non-recurring adjustment of a valuation allowance relating to deferred tax assets recorded in the previous quarter by an associate (Tronox Holdings plc.), despite lower revenue due to decrease in average selling prices of most of the products, decrease in other income and increase in general and administrative expenses and zakat provision. Decrease in net profit during the 1st 9 months of 2023 compared to the same period of 2022 is primarily attributable to decrease in sales revenue and share of profit from investments in joint ventures and associates due to lower average selling prices of most of the products and IFRS based non-recurring adjustment of a valuation allowance relating to deferred tax assets recorded in the previous quarter by an associate (Tronox Holdings plc.), increase in general & administrative expenses and impairment of financial assets, despite increase in sales volumes of most of the products, decrease in raw material costs and net finance costs and increase in other income.
On the other hand, Advanced Smelting Industries Company (ASIC), one of Tasnee affiliates, succeeded in exporting its first shipment exceeding 37 thousand tons of pig iron to the United States of America, through the Jazan City for Primary and Downstream Industries Port, to be the first exporter through the Port to the United States. This reflects Tasnee efforts to include the Kingdom’s name among the list of countries specialized in strategic and advanced industries, through investing in the value chain of titanium metals and cooperating with international partners to localize the technologies of these strategic industries, developing national talents and contributing to the development of the aviation sector industry and other related industries according to the Saudi Vision 2030.
Tasnee was also included in Forbes Middle East magazine’s list of the “Top 100 Sustainable Leaders in the Middle East 2023”, among a group of the most prominent companies in the region, that have significant initiatives to advance the harnessing of clean energy sources, innovations in waste management, and water conservation.