TASNEE Profits increase to SAR 716 Million in The End of 2017


Tasnee announced its consolidated financial results for the fiscal year ending December 31, 2017, at a press conference hosted by Tasnee’s Chief Executive Officer, Eng. Mutlaq Al-Morished. The conference was held on Tuesday, February 27, 2018, at the company's headquarters in Riyadh.

Eng. AL-Morished explained that Tasnee continues to achieve positive results and positive profits compared with the previous fiscal year 2016. Additionally the operational performance improvements, cost optimization initiatives and TiO2 products price increments among other products, all contributed in achieving these favorable results. 

Mr. Fawaz Al-Fawaz, Tasnee’s CFO, announced that Tasnee sales amounted to SR 10.80 billion, an increment of 25%, compared to SR 8.62 billion in 2016. The company registered a net profit of SR 716 million, compared to SR 101 million in 2016. Moreover, the operating profits amounted to SR 1.62 billion compared to SR 747 million for the same period last year.

These positive results is attributed to the increases in average selling price of some products including TiO2 and in other income. In addition, Zakat and value added taxes were positively impacted by tax refunds due to changes in some tax rates in many of Tasnee’s subsidiaries outside Saudi Arabia. These results were realized despite the increase in impairment of non-current assets for some subsidiaries, and the high cost of financing as a result of loans rescheduling.

Tasnee is working on completing a series of projects to support the Saudi economic diversification, offer sustainable growth and employ Saudi talents in world-class industrial technologies. These projects include the Smelter in Jazan, the commissioning of the smelter is expected during the second half of 2018, following the resolution of some technical issues. The smelter will produce raw materials for titanium industries.  Additionally the production stage for the titanium sponge project in Yanbu is expected to commence during the second half of 2018, after the construction of the TCL4 unit is finalized. As for the downstream projects within the Tasnee complex for plastic industries in Hail, many of these projects are already in the production stage; the complex will provide more job opportunities and coincide with Saudi Arabia’s vision of increasing the share of non-oil industries in the kingdom. 

For the definitive agreement of acquiring the company's Titanium Dioxide business by Tronox, both companies are working on finalizing the deal, which is pending the receipt of regulatory approvals in both the European Union and the United States.

The deal represents a strategic opportunity for Tasnee to reduce loans and strengthen the financial position of the company, with a greater focus on the petrochemical and other manufacturing industries.