Al Yamamah Steel posts net profit of SAR 102.7 mln in H1 2020/21

Al Yamamah Steel Industries Co. posted a net profit after Zakat and tax of SAR 102.7 million for the first half ended March 31, 2021, compared to a net profit of SAR 24.5 million a year earlier.

The steel producer’s net earnings were buoyed by a 19.86% rise year-on-year (YoY) in selling prices in the construction sector, which offset a 1.43% YoY increase in the cost of sales.

Al-Yamamah also reported a decrease of 45.95% YoY in financial charges amid lower loan balances and interest rates.

In Q2 2020/21, the company’s net profit after Zakat and tax soared 87% year-on-year (YoY) to SAR 60 million, thanks to higher selling prices in the construction sector, which offset an increase in the cost of sales.

In addition, Zakat expenses dropped by 55.89%, due to recording some Zakat differences for previous years in the first quarter, in which the modified Zakat assessments have been received.

When compared to the previous quarter, net profit jumped by 40.6%.

Shareholders’ equity, excluding minority interest, increased by 12.6% to SAR 694.409 million by the end of the first half, compared to SAR 616.73 million in the year-ago period.