Tasnee 9M 2023 profit down 69% to SAR 191.7 mln; Q3 at SAR 78.2 mln

National Industrialization Co. (Tasnee) posted a 69% profit decline in the first nine months of 2023 to SAR 191.7 million, compared to SAR 623.2 million in the year-earlier period.

The decrease in profit is attributed to lower sales revenue and the share of profit from investments in joint ventures and associates as a result of lower average selling prices for the majority of products, as well as an International Financial Reporting Standards (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.).

This is in addition to the increase in general and administrative expenses and impairment of financial assets, despite the increase in sales volumes of most of the products, a decrease in raw material costs and net finance costs, and an increase in other income.

Net profit increased 356% to SAR 78.2 million in Q3 2023, up from SAR 17.13 million in Q3 2022, owing to a higher share of profit from joint ventures, higher sales volumes of most products, lower average feedstock costs and net finance costs, and an increase in other income.

This came despite lower revenue due to a decrease in average selling prices of most of the products, losses from investments in associates, an increase in general and administrative expenses, and Zakat provision.

On a sequential basis, the bottom line grew by 149% from SAR 31.41 million in Q2 2023.

Shareholders’ equity, excluding minority interest, reached SAR 9.65 billion as of Sept. 30, 2023, up from SAR 9.52 billion a year earlier.

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