Tasnee expects to post good results in Q4, says CEO

National Industrialization Co. (Tasnee) is expected to positive results again in the fourth quarter of this year, chief executive Mutlaq Al-Morished told CNBC Arabia.

The firm reported a 78 percent surge in net profit in the third quarter to SAR 191.6 million, due to higher average sales prices of titanium dioxide (TiO2) and an increase in its share in net profit from associates.

Net profit for the first nine months more than quadrupled to SAR 388.4 million, also due to higher TiO2 prices.

Tasnee is currently considering several investment plans, Al-Morished said, speaking on the sidelines of GPCA 2017 forum in Dubai.

Commenting on the petrochemicals sector in the GCC in general and Saudi Arabia in particular, the chief executive said the industry needs more mergers, as small firms need to grow through mergers to improve their competitiveness.

However, regulations in the region are still not encouraging enough for mergers, when compared to the United States or Europe, the CEO said.

Nonetheless, many mergers are expected in the region going forward, he said, noting that Saudi Arabia’s Capital Market Authority (CMA) is going in the right direction in that regard.

Asked about the upcoming value added tax (VAT) on petrochemical companies, Al-Morished said VAT’s impact will be on liquidity, as firms will collect the tax for the government and the state will then refund the companies back because they are not the end users. 

Companies should be able to get tax refunds within a maximum of two months, as any delay will have a negative impact, especially on small companies, he added.