Tasnee’s Q1 2022 net profit hit by 45% rise in feedstock costs, demand still robust: CEO

Mutlaq Al-Morished, CEO of Tasnee 

National Industrialization Co. (Tasnee) reported lower profit in Q1 2022, on a remarkable 45% year-on-year (YoY) rise in feedstock costs and a drop in the profit of some associates, CEO Mutlaq Al-Morished told Argaam. 

“A profit drop of 6% is not huge, compared to global markets. Petrochemical prices in the first quarter were almost the same as the fourth quarter of 2021, while profit was hit despite higher sales,” Al-Morished elaborated.

The supply chain crisis delayed March shipments until April, Al-Morished said, adding that higher shipment rates weighed on the company’s profitability but at a lower rate than feedstock prices.   

Global petrochemical prices in the second quarter of the year are expected to be similar to their first-quarter levels, the top executive noted, affirming that “Global demand is still robust.”  

Tasnee reported a net profit after Zakat and tax of SAR 309 million for the first quarter of 2022, down 6% from SAR 327.5 million in the prior-year period, Argaam reported.