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.