Tasnee Announces its First Quarter Results for 2016
4/18/2016

 

 

 

 

The National Industrialization Company (Tasnee), announced its quarterly financial results for the first quarter of 2016, ending March 31, during a press conference held on Monday, April 18, 2016 by Mutlaq Al-Morished, Tasnee CEO.
 
Eng Al-Morished explained that the company was able to reduce its losses by 86% during the first quarter of 2016 compared to the fourth quarter of 2015 and by 71% for the same period of 2015.  This was a result of the company benefiting from improvements in the overall organizational performance, the increment in the quantities produced and sold despite the decline in average selling prices for most products, the funding rates cost increase and also reductions in operational and administrative expenses as a result of the company restructuring programs coupled with a decrease in the value of assets traded for one of Tasnee’s affiliates.
 
Tasnee recently announced a number of major projects within the Kingdom including the commercial startup of the butanol plant which has commenced and is expected to yield reductions by 40 million riyals in production costs within the company’s Petrochemicals Complex in 2016. Additionally, the establishment of the Advanced Metal Industries and Toho Titanium Co., Ltd. (TTC), (ATTM) had been finalized with a capital of 412.5 million Saudi riyals (US $110 million). ATTM will implement the titanium sponge project with capacity of 15,600 MT/year with an estimated total cost of $440 million in Yanbu Industrial City; the trial startup is scheduled for the second half of 2017.
 
Similarly, the technical repairs and testing for the Smelter project trial startup in Jazan is still ongoing. Therefore, it is expected that the project trial startup will be during the second half of 2016 whilst the commercial production will start during the first half of 2017. Tasnee is also embarking on commissioning other downstream projects in Hail City which reflects the company's strategy of economic diversification and sustainable growth; these projects aim to increase Tasnee’s downstream manufacturing capacity and provide more job opportunities for Saudis.
 
Tasnee registered a net loss of 94.8 million riyals for the first quarter ending March 31, 2016, compared with a net loss of 686.6 million riyals for the fourth quarter of 2015 and a net loss of332.5 million riyals for the same period of 2015.
 
Consequently, Al-Morished attributed these results to the continuous deceleration in the global and emerging economies which resulted in lower than average selling prices for most of the company's products in the global markets.
 
Moreover, the total value of sales for first quarter of 2016 is 3.72 billion riyals, compared with 3.94 billion riyals for the same period of 2015. The company achieved an operating profit during the first quarter of 2016 of 211.8 million riyals compared with 232.5 million riyals for the same period in 2015.