Al Yamamah Steel profit down 58% to SAR 69.7 mln in 9M 2021/22; Q3 dives 99% to SAR 550,000

Al Yamamah Steel Industries Co.’s net profit after Zakat and tax more than halved to SAR 69.7 million for the nine-month period ended June 30, 2022, from SAR 167.8 million a year earlier.

The steel producer cited a 53.48% year-on-year (YoY) increase in the cost of raw materials in the construction sector, which outpaced a YoY rise of 35.48% in selling prices. The company also reported a YoY drop of 40.56% in the construction sector’s sales volumes, along with increased financing costs.

In the third quarter, net profit after Zakat and tax sank 99% to SAR 550,000 from SAR 65 million in Q3 2020/21.

The cost of raw materials in the construction sector jumped 56.71% YoY, while selling prices rose 29.2% YoY. The construction sector’s sales volume decreased by 69.97%.

When compared to the previous quarter, net profit plummeted 98.4% from SAR 35.16 million amid higher cost of raw materials in the construction sector.

Total shareholders’ equity, after minority interest, increased to SAR 744.16 million by the end of the nine-month period, compared to SAR 721.368 million a year earlier.

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