SAR 498 million Tasnee Net Profits for First 9 Months of 2019






TASNEE announced its financial results for the third quarter of 2019 and the first nine months ended 30 September 2019, during the press conference held by the company in the presence of the CEO Eng. Mutlaq Al Morished & the CFO Mr. Fawaz Al-Fawaz on Sunday, October 27, 2019 at its HQ in Riyadh, to shed more light on the consolidated financial results for the third quarter and the first nine months ended 30 September 2019.
Eng. Mutlaq Al-Morished has expressed his satisfaction with the company's profits during the first nine months of 2019 despite the decline in profits during the third quarter compared to the previous quarter and the corresponding quarter of last year, referring to the global markets and the trade tensions faced especially the trade war between the United States and China, resulting in the instability of demand for petrochemical products in the main markets, especially the Chinese market, which negatively affected the selling prices of the products. Al-Morished predicted a gradual improvement in the prices of petrochemical products sales by the beginning of 2020 with the return of demand growth after the breakthrough in the US-China relations during the G20 summit in Japan.
Mr. Fawaz Al-Fawaz emphasized on TASNEE keenness to continue improving operational performance and increase production and reduce cost rates to take advantage of opportunities to improve the prices of products during upcoming period. He casted light on the company's financial results as TASNEE achieved a net profit of SAR 41.2 million during the third quarter compared to a net profit of SAR 296.7 million during the second quarter of 2019 and a net profit of SAR 259.4 million for the same period last year. Net profit reached SAR 497.5 million during the first nine months of 2019 compared to SAR 1,016.5 million in the same period last year. The company's operating profit reached SAR 212.1 million during the third quarter compared to SAR 270.2 million in the same period last year.
He pointed out that the main reasons for the decline in net profit during the current quarter compared with the same quarter of the previous year is the decrease in the average selling prices and the higher cost of sales volume of certain products, decrease in company’s share of income from associates and joint ventures due to lower product sales prices, in addition to the deconsolidation of Cristal commercial business and assets sold to Tronox (as announced in Tadawul in the second quarter of 2019), despite the decrease in general and administrative expenses, financial costs, zakat and tax provisions, impairment of non-current assets for one of the subsidiaries and increase in other income.
The third quarter of 2019 also witnessed the commissioning production of Titanium Sponge project as one of the most important TASNEE projects. It is a joint venture between Advanced Industries Co., Ltd. (AMIC) by 65% and Toho Titanium of Japan by 35%. The new project makes a leap in the growth of non-oil industries and supports the state's direction and the Kingdom's Vision 2030 aimed at increasing the contribution of specialized industries to the GDP. The project produces 15,600 tons per year of sponge material in the industrial world in the desalination industries, petroleum and petrochemical industries and in modern and advanced industries such as aviation and military industries.
The press conference was held at the company's HQ in Riyadh in the presence of number of executives of the company.