Al Yamamah Steel turns to losses of SAR 107.2 mln in 9M 2022/23; Q3 at SAR 47.4 mln

Al Yamamah Steel Industries Co. reported a net loss of SAR 107.2 million in the nine months ended June 30, 2023, against a profit of SAR 69.7 million a year earlier.

The losses were attributed to a decrease in sales in the construction segment by 20.45% year-on-year (YoY) and a decrease in the selling prices by 27.79% YoY, which is higher than the 1.88% rate of decline in cost of sales in the same segment.

In addition, the company recorded inventory impairment provision for reinforcing steel bars amounted to about SAR 69.70 million and incurred higher financing costs by SAR 34.51 million due to the increase in the balances of short-term loans used to finance purchases of raw materials and the increase of the financing interest rates worldwide.

The company reported a net loss of SAR 47.4 million in Q3 2022/2023, against a profit of SAR 0.55 million a year earlier.

Sequentially, the company widened its losses from SAR 17.89 million in Q2 2022/2023.

Shareholders’ equity, after minority interest, stood at SAR 539.8 million as of June 30, 2023, from SAR 744.16 million a year earlier.

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