‎“Al-Yamamah Steel” records losses of SR18 mln during Q2 ‎ending on March 31, 2023‎

Al-Yamamah Steel Industries Company recorded a net loss after zakat and tax of 17.8 million riyals during the second quarter, compared to a profit of 35.1 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 03-2023- 31 (six months).

The operational loss amounted to 9.2 million riyals during the second quarter, compared to a profit of 50.5 million riyals in the same quarter of the previous year.

The net loss during the 6-month period amounted to 59.7 million riyals, compared to a profit of 69.1 million riyals in the same period last year.

The total shareholders’ equity “without minority rights” amounted to 586.7 million riyals in the current period, compared to 781.7 million riyals in the same period last year, a decrease of 25%.

The loss per share in the current period reached 1.18 riyals, compared to a profit of 1.36 riyals in the same period last year.

– The reason for the company achieving a net loss of 17.89 million Saudi riyals during the current quarter compared to a net profit of 35.16 million riyals during the same quarter of the previous year is due to the decrease in selling prices by 24.02% in the construction sector, and the decrease in the quantity and value of sales by 11.24% and 32.56%, respectively, in the construction sector, weak demand for some products in the construction sector, and the formation of a provision for inventory impairment amounting to about 14.89 million Saudi riyals, in addition to the increase in financing costs by 12.4 million riyals, by 232% as a result of The high balances of short-term loans used to finance purchases of raw materials and the high interest rates on financing globally.

– The reason for the decrease in net loss by 57.59% during the current quarter compared to the previous quarter is due to the increase in selling prices of products by 3.38% and 4.11% in the construction and electricity sectors, respectively, despite the increase in financing costs by 3.99 million riyals, by 3.99 million riyals. 29% as a result of the increase in the balances of short-term loans used to finance purchases of raw materials and the increase in interest rates on financing globally.

– The reason for the company achieving a net loss of 59.79 million Saudi riyals during the current period compared to a net profit of 69.17 million riyals during the same period of the previous year is due to the decrease in the selling prices of products by 26.30% in the construction sector, which led to a decrease in the value of Sales increased by 21.32% in this sector during the current period, and financing costs increased by 22.63 million riyals, or by 254.55%, as a result of the increase in short-term loan balances used to finance purchases of raw materials and the high interest rates on financing globally.