Al Yamamah Steel turns to profit of SAR 29.5M in Q1 2023/24

Al Yamamah Steel Industries Co. reported a net profit of SAR 25.9 million for the first quarter ended Dec. 31, 2023, against a loss of SAR 41.9 million a year earlier.

The positive performance is primarily driven by a year-on-year (YoY) increase in the volume and value of sales in the electricity segment by 15.13% and 11.89%, respectively. Sales volume and value in the renewable energy segment grew 564.22% YoY and 757.37% YoY, respectively. There was also an increase in the selling prices of products in this segment by 29.08% YoY.

In addition, the company reported a rise in the sold quantities in the construction segment by 3.09% YoY and decline in the cost of sales in the construction and electricity segments by 26.92% YoY and 16.44% YoY, respectively.

This came despite a surge in financing costs by SAR 2.7 million, or 19.67% compared to the same quarter of last year, as a result of the increase in interest rates on financing globally.

Sequentially, the company turned to profit versus losses of SAR 22.98 million in Q4 2022/23.

Shareholders’ equity, excluding minority interest, stood at SAR 547.69 million as of Dec. 31, 2023, from SAR 604.64 million a year earlier.

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