Tasnee Q1 2023 profit dips 73% to SAR 82.1 mln

National Industrialization Co. (Tasnee) reported a 73% slump in Q1 2023 net profit to SAR 82.1 million, from SAR 309 million in the year-earlier period.

The company was hurt by lower average selling prices of most products, which lowered revenue and Tasnee’s profit share from associates and joint ventures (JVs). The company also reported higher cost of sales and impairment of financial assets, despite an increase in the sales volume of certain products, higher other income and lower net finance costs.

Tasnee’s first-quarter net profit surged 90.3% from SAR 43.14 million in Q4 2022, thanks to a rise in the company’s profit share from associates and JVs, due to higher sales volumes and improved average selling prices of most petrochemical products. Tasnee also cited a decrease in impairment of assets and Zakat provisions, despite a drop in sales revenue on lower average selling prices of certain products and other income, along with higher general and administrative expenses, as well as net finance costs.

Shareholders’ equity, after minority interest, rose to SAR 9.70 billion as of March 31, 2023, from SAR 9.42 billion a year earlier.

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