SAR 1.016 billion Tasnee net Profits for 9 months ending 30 September 2018
10/24/2018

 
 
 
 
Tasnee announced its consolidated financial results for the 3rd Quarter 2018, in addition to the first three quarters of the year ending September 30, 2018. During this period, Tasnee achieved a net profit of more than a billion Riyals. The conference was hosted by Tasnee’s Chief Executive Officer, Eng. Mutlaq Al-Morished and Chief Financial Officer, Mr. Fawaz Al-Fawaz, and was held on Wednesday, October 24, 2018, at the company's headquarters in Riyadh.
Al Morished commented on the company's profits exceeding one billion riyals during the period, “This achievement enhances Tasnee’s growth opportunities and expansion capabilities, and increases its shareholders’ confidence in Tasnee’s financial and operational performance.”
Al Fawaz also applauded the positive results achieved by the company in the third quarter and the total period of the first nine months of 2018, despite the decline in the value of some non-current assets, confirming the company's ability to develop and achieve more profits.
Mr. Fawaz Al-Fawaz stated that Tasnee’s positive results during this period, despite the decline in some of the non-current assets values, proves Tasnee’s ability to develop the company and achieve more profits. Tasnee registered a net profit of 259.4 million riyals during the third quarter compared to a net profit of 395.8 million riyals for the second quarter of 2018 and a net profit of 191.6 million riyals for the same period last year. Moreover, the net profit reached 1,016.5 million riyals during the first three quarters of 2018 compared to a net profit of 388.4 million riyals for the same period last year. Furthermore, Tasnee’s operating profit reached 682.4 million riyals during the third quarter, compared to an operating profit of 557.2 million for the same period last year.
These positive results are attributed to the increase in average selling price of TiO2 products, despite the increase in the financing cost and Zakat and tax allocation, in addition to the impairment of non-current assets of one of Tasnee’s subsidiaries, a decrease in the income and other expenses which resulted from the liabilities of a subsidiary of the Acrylic Complex.
On the matter of the definitive agreement to acquire Tasnee’s Titanium Dioxide business by Tronox Limited, the company has received all the necessary regulatory approvals except for in the United States where both companies continue to work on obtaining the approval. In addition to the definitive agreement, the deal has the option of automatic extension every three months until 31 March 2019, whilst keeping the main terms and conditions unchanged.
Moreover, the Advanced Metal Industries Cluster (AMIC), which is jointly owned by Tasnee and Cristal, has signed a conditional agreement with Tronox to acquire 90% of the Titanium smelter in Jazan.  This is in addition to a technical services agreement where Tronox will provide technical support to AMIC for the smelter startup, according to the industry standards and procedures. The trial startup of furnace 1 and subsequent production is expected during the first half of 2019, followed by furnace 2.
Similarly the Titanium (Ti) Sponge Project in Yanbu is expected to commence production during the fourth quarter of 2018. The Ti Sponge Plant is the first in the world that is fully integrated with a pigment plant, creating tremendous value through economies of scale and operating synergies. The plant will satisfy the rising demand worldwide for titanium sponge which is used in many industrial applications such as desalination, oil and gas industries, petrochemicals, aviation, military and aerospace industries, covering around 10% of global demand. Additionally the Ti Sponge Plant will support the kingdom 2030 vision in increasing the non-petroleum contribution to the national economy.