Molan records SAR 31.5 million losses during H1

Molan Steel Co. recorded a net loss after zakat and tax during the first half of SAR 31.5 million, compared to a profit of SAR 2.2 million in the same half of last year. This came after the announcement on Monday of the interim financial results for the period ended on June 30 (six months).

The operational loss amounted to SAR 2.5 million in the first half, compared to a profit of SAR 2.7 million in the same half of the previous year.

Total shareholders’ equity (excluding minority rights) amounted to SAR 31.6 million in the six-month period, compared to SAR 34.8 million in the same period last year, a decrease of 9%.

The loss per share in the current period reached SAR 1.24, compared to a profit of SAR 0.98 in the same period last year.

The decrease in net profit for the current period compared to the previous period is attributed to:

– The sharp decline in global Steel prices resulted in a decrease in average selling prices and a reduction in profit margins.

– An increase in fixed selling costs resulting from the company’s continuation of its expansion plan.

– Increased financing cost.

– Increased allowance for inventory and credit losses to customers by $1.2 million

This decrease in net profit was offset by an increase in the quantities of tons sold by 28%.