Al Yamamah Steel turns to profit of SAR 25.4 mln in 9M 2019-20

Al Yamamah Steel Industries Co. posted a net profit after Zakat and tax of SAR 25.4 million for the nine-month period ending on June 30, 2020, versus a net loss of SAR 21.2 million in the year-earlier period.

The company turned to profit due to higher sales revenue on an increase in the quantity and sales revenue from the construction and electricity sectors.

The cement producer also cited prices of raw materials in favor to the cost despite lower operating revenues and an increase in Zakat expenses.

In the third quarter, the company turned to a net profit after Zakat and tax of SAR 930,000 as compared to a net loss of SAR 2 million in the year-earlier period, backed by higher sales revenue.

However, on a quarterly basis, the company reported a 97% decline, due to a decrease in sales revenue as a result of the curfew imposed as a precautionary measure to control the COVID-19 outbreak.

In addition, revenue and sales from the construction and electricity sectors increased year-on-year due to the effect of the precautionary measures applied on land borders, which affected the shipping to Dubai Solar Garden Project.