Al Yamamah Steel Industries Co. swung to a net loss after Zakat and tax of SAR 26.7 million for the fiscal year (FY) ended Sept. 30, 2022, against a net profit of SAR 207.8 million a year earlier.
| Item | 2021 | 2022 | Change |
|---|---|---|---|
| Revenues | 1,619.03 | 1,464.98 | (9.5 %) |
| Gross Income | 364.17 | 134.09 | (63.2 %) |
| Operating Income | 280.30 | 74.19 | (73.5 %) |
| Net Income | 207.83 | (26.66) | (112.8 %) |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | 4.09 | (0.52) | (112.8 %) |
The downturn was attributed to a year-on-year (YoY) increase of 55.78% and 14.74% in raw materials costs for the construction and electricity segments, respectively.
In addition, the construction segment reported YoY declines of 33.74% and 19.63% in sales and value, respectively.
Al Yamamah Steel also cited a global sharp drop in steel prices during the third and fourth quarters of FY2022 due to the repercussions of the Russia-Ukraine war and its impact on the world’s economy. This negatively affected demand for steel products locally, influencing progress in under-implementation projects and delaying the awarding of new ones.
Moreover, the cost of goods sold outpaced selling prices, on a steep decline in the prices of main raw materials.
In the fourth quarter, the steel producer turned to a net loss of SAR 96.4 million, versus a net profit of SAR 40.1 million in the prior-year period.
In the previous quarter, it reported a net profit of SAR 550,000.
| Item | Q4 2021 | Q4 2022 | Change |
|---|---|---|---|
| Revenues | 325.63 | 315.18 | (3.2 %) |
| Gross Income | 80.15 | (23.19) | (128.9 %) |
| Operating Income | 57.19 | (31.82) | (155.6 %) |
| Net Income | 40.08 | (96.38) | (340.4 %) |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | 0.79 | (1.90) | (340.4 %) |
| Item | Q3 2022 | Q4 2022 | Change |
|---|---|---|---|
| Revenues | 237.25 | 315.18 | 32.8 % |
| Gross Income | 23.61 | (23.19) | (198.2 %) |
| Operating Income | 9.59 | (31.82) | (431.7 %) |
| Net Income | 0.55 | (96.38) | (17614.2 %) |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | 0.01 | (1.90) | (17614.2 %) |
Total shareholders’ equity, no minority interest, declined to SAR 646.54 million by the end of the period, from SAR 763.33 million a year earlier.
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