Tasnee announces the 3rd quarter 2015 results
10/19/2015

 
 
 
 
 
 
 
 
Tasnee announced its financial results for the third quarter ended September 30, 2015, during a press conference held by engineer Mutlaq H. Al-Morished, Chief Executive Officer of the company on Monday morning October 19, 2015. Al-Morished explained the course of restructuring process initiated by the company early in 2015 to reach the organizational structure best suited to achieve the company goals, improve its performance, and reduce costs, so as to increase the profit margin of its products in the future, in light of the challenges facing product prices at global markets.
 
Al-Morished also explained that the financial results of the company have registered a net loss of SAR 296 million in the third quarter of 2015 compared to a net profit of SAR 244 million in the same period of last year, and a net loss during the first nine months of 2015 amounted to SAR 737 million compared to a net profit of SAR 973 million in the same period of last year. Al-Morished attributed the reason to the continuing decline in profit margin in the titanium dioxide sector in addition to lower average selling prices of products at other sectors.
 
With regard to new projects, Al-Morished announced the continuation of preparations for the initial operation in Butanol project, a venture owned equally by Sadara Chemicals Company, Saudi Kayan, and the Saudi Acrylic Acid Company, 52.3% owned by Tasnee. The project’s trial operation is expected to start during the fourth quarter of 2015, while the plant equipment will be tested to assure the efficiency of production according to technical licensing and implementation contracts. The project trial run is expected to last for three to six months to guarantee the plant's capability for commercial production. The new project is intended to contribute in strengthening the Acrylic complex as an integrated complex and achieve positive results in the coming period, while Tasnee is working with partners on a range of solutions that will contribute in performance improvement and revenues increase.
 
This is in addition to the company's projects in Hail region, aimed to provide more job opportunities for the people in that region. This comes as part of downstream industries that reflect Tasnee commitment  to value-added approach to compliment with upstream industries, which contribute to the diversification of the productive base of the national economy in general.
 
Al-Morished pointed out that consolidated total value of sales for the nine months ended September 30, 2015 amounted to SAR 11.71 billion, compared to SAR 15.11 billion for the same period of 2014, due to declined selling prices of products. The company achieved operating profits of SAR 369 million for the nine months of 2015, compared to operating profits of SAR 2.40 billion for the same period of 2014.