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,
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
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