Tasnee’s Q3 lifted by turnaround plan, higher sales: Al-Morished

National Industrialization Co.’s (Tasnee) net profit was driven by a successful restructuring program, which helped the company improve its operating performance, boost sales volumes and cut general and administrative costs, chief executive, Mutlaq Al-Morished told Argaam in an exclusive interview on Wednesday.

The company’s net profit for the third quarter rose 78 percent year-on-year (YoY) to SAR 191.6 million.

The strong performance was also bolstered by higher selling prices of titanium dioxide (TiO2) products and an increase in Tasnee’s profit share from affiliates thanks to improved sales and selling prices of some products.

Al-Morished added Tasnee’s new venture, designed to produce titanium sponge, will start trial operations in Q4 2017, as scheduled.

He also expected to see the pilot operation of the ilmenite smelter project in Jazan to begin in 2018, with commercial production commencing in the second half of the year.

On Tronox’s acquisition of Cristal, Al-Morished said procedures are being finalized and the company is in process of obtaining regulatory approvals in the European Union, the United States and Saudi Arabia.

“Sale of the TiO2 business is a strategic decision. Though higher prices are positively reflected on the company’s Q3 performance, Tasnee will benefit from sales in the long term,” he said, adding that he expected prices to continue rising over the medium term.

Meanwhile, Fawaz Al Fawaz, executive vice president, said the company is currently focusing on operations, leaving the stock price to be defined by the market, given the company’s strong performance.