Al Yamamah Steel turns to SAR 26.7 mln loss in FY2021/22; Q4 loss at SAR 96.4 mln

Al Yamamah Steel Industries Co. swung to a net loss after Zakat and tax of SAR 26.7 million for the fiscal year (FY) ended Sept. 30, 2022, against a net profit of SAR 207.8 million a year earlier.

The downturn was attributed to a year-on-year (YoY) increase of 55.78% and 14.74% in raw materials costs for the construction and electricity segments, respectively.

In addition, the construction segment reported YoY declines of 33.74% and 19.63% in sales and value, respectively.

Al Yamamah Steel also cited a global sharp drop in steel prices during the third and fourth quarters of FY2022 due to the repercussions of the Russia-Ukraine war and its impact on the world’s economy. This negatively affected demand for steel products locally, influencing progress in under-implementation projects and delaying the awarding of new ones.

Moreover, the cost of goods sold outpaced selling prices, on a steep decline in the prices of main raw materials.

In the fourth quarter, the steel producer turned to a net loss of SAR 96.4 million, versus a net profit of SAR 40.1 million in the prior-year period.

In the previous quarter, it reported a net profit of SAR 550,000.

Total shareholders’ equity, no minority interest, declined to SAR 646.54 million by the end of the period, from SAR 763.33 million a year earlier.

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