Al Yamamah Steel turns to loss of SAR 59.8 mln in H1 2022/23; Q2 loss at SAR 17.9 mln

Al Yamamah Steel Industries Co. turned to a net loss of SAR 59.8 million in the first half ended May 30, 2023, against a profit of SAR 69.2 million a year earlier.

The losses were due to a 26.30% year-on-year (YoY) decrease in selling prices in the construction sector, which led to a decline in sales value by 21.32% YoY. In addition, the financing costs rose by SAR 22.63 million on increase in the balance of short-term loans used to finance the purchase of raw materials, as well as the interest-rate hikes worldwide.

In the second quarter, the steel producer swung to a net loss of SAR 17.89 million from a profit of SAR 35.16 million a year earlier.

This was due to a 24.02% decline YoY in selling prices in the construction sector. The sales volume and value also fell by 11.24% and 32.56% YoY, respectively, in the construction sector. This was besides weak demand for some products in the sector.

Compared with the previous quarter, the company narrowed the second-quarter losses by 57.3% from SAR 41.90 million.

Total shareholders’ equity, after minority interest, stood at SAR 586.75 million at the end of the period, down from SAR 781.71 million a year earlier.

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