TASNEE Announces its Consolidated Financial Results for the Second Quarter 2019
7/28/2019

 

 

 

 

 

Tasnee held a press conference on Sunday morning 28 July 2019 to announce its financial results for the second quarter ended on 30 June 2019 where it continued to make profits, reflecting its strength and confirming its ongoing quest for development and growth.
 
The conference was held in the presence of Eng. Mutlaq H. Al-Morished, Tasnee CEO, and Fawaz M. Al Fawaz, EVP Finance. Al-Morished stressed that the company is continuing to achieve more positive results, confirming its capabilities and enhancing its abilities to grow, where it achieved a net profit of SAR 297 million during the second quarter 2019 with an increase of 86% for a net profit of SAR 160 million during the first quarter 2019 as a result of recording of gain resulted from the transaction closure between Cristal and Tronox and decrease in financials costs.
 
 
Al-Morished attributed the decreased net profit of the second quarter 2019 to an amount of SAR 297 million compared to a net profit of SAR 396 million during the same period of the past year to the decrease in the Company’s share of income from associates and joint ventures as a result of the decrease in average selling prices of petrochemicals and titanium dioxide products, as well as the cancelation of certain projects in Advanced Metal Industries Cluster Company which are not economically feasible in future after closing the transaction between Cristal and Tronox.
 
Tasnee profit during the period of the second quarter rose significantly as a result of completion of acquisition transaction of Tronox on Cristal’s Titanium Dioxide Business, reflected in the net profit of the company for the first time since the completion of the transaction where the assets and liabilities of Cristal Company were excluded from the initial consolidated financial statements of Tasnee and the financial impact was recorded as profits in the net consolidated income of Tasnee within investment in the associates and joint ventures, confirming the right path of the strategy of the company towards growth and achieving more future  positive results through benefiting from the available investment opportunities.
 
Mr. Al Fawaz shed further light on the consolidated financial results of the company during the period of the second quarter, expressing his pleasure at the achievement of such positive results under the current circumstances and the challenges facing the industry, stressing the strong performance of the company and its growing capabilities in expansion and growth. He stated that the initial consolidated financial statements have been issued for the first time without consolidating the financial statements of Cristal Company and the investment in Tronox Company was classified within the item of investment in the associates and the joint ventures in accordance with the international accounting standard no. 28.
 
The sales of Tasnee amounted to SAR 731 million during the period of the second quarter compared with sales of SAR 716 million during the same period of the past year and compared with sales of SAR 739 million in the period of the first quarter of 2019.
 
The net profit during the period of the first half of 2019 decreased to an amount of SAR 456.2 million compared to an amount of SAR 757.2 million achieved in the same period of last year. This is attributed to the decreased in Company’s share of income from associates and joint ventures due to the decrease in average selling prices of petrochemical and titanium dioxide products, increase in selling and distribution expenses, financial costs and Zakat provisions, as well as the cancelation of certain products related to the Advanced Metal Industries Cluster Company which are not economically feasible in future after closing of the transaction between Cristal and Tronox, despite recording the share of the company of the financial impact in the net profit as a result of sale of businesses and assets related to Titanium Dioxide Business in Cristal Company to Tronox Company.
 
During the current period, Tasnee management is studying some available investment opportunities in the field of petrochemicals inside and outside Saudi Arabia in a manner consistent with its strategy and achieving the ambitions of its shareholders in expansion, growth, diversification of activities, improving results and enhancing the pride of the company management and personnel in its achievements, confirming the family cohesion of Tasnee and reflecting the positive working environment of the company.
 
The press conference was held at the headquarters of the company in Riyadh in the presence of a number of executives of the company.