‎“Al Yamamah Steel” records SR42 mln losses in quarter ending ‎in December 2022‎

Al Yamamah Steel Industries Company recorded losses after zakat and tax of 42 million riyals during the first fiscal quarter, compared to a profit of 34 million riyals in the same quarter of last year. This came after today’s announcement of the preliminary financial results for the period ending in 12-2022. 31 (three months).

The operational loss amounted to 36 million riyals in the third quarter, compared to a profit of 46 million riyals in the same quarter of the previous year.

As for the total loss, it amounted to 18 million riyals in the third quarter, compared to a profit of 66 million riyals in the same quarter of the previous year.

The loss per share in the current period amounted to 0.82 riyals, compared to a profit of 0.67 riyals in the same period last year.

The reason for the company achieving a net loss of 41.9 million Saudi riyals during the current quarter compared to a net profit of 34 million riyals during the same quarter of last year is due to the continued decline in iron prices globally during the current quarter, which led to a decrease in the selling price by 28.25% and weak demand On the products of the construction sector, especially reinforcing steel, the increase in the cost of sales, and the formation of a provision for inventory impairment amounted to about 23.1 million Saudi riyals, in addition to the negative contribution to the increase in financing costs by 10.21 million riyals, or 289% compared to the same quarter of last year as a result of the increase in balances Short-term loans used to finance purchases of raw materials, as well as high interest rates on financing globally.

The reason for the decrease in the net loss of the current quarter compared to the previous quarter by 56.5% is due to the use of the provision for inventory decrease during the current quarter in the amount of 48 million riyals out of about 56 million Saudi riyals that were formed during the previous quarter, which contributed to reducing the effect of the provision that was made Its formation during the current quarter amounted to 23.1 million Saudi riyals as a result of the continued impact of the decline in the prices of iron ores during the current quarter. Despite the decrease in the selling prices of products in the construction sector by 6% as a result of the decrease in demand locally and globally for many products.

The company said that some comparative numbers have been reclassified to conform to the offer for the current period.