TASNEE profits post a leap of 357.3% during Q3 to SAR 78.2 million

The National Industrialization Company announced an increase in net profit after zakat and tax in the third quarter to SAR 78.2 million, compared to SAR 17.1 million in the same quarter of last year, by 357.3%. This came after the announcement Sunday of the interim financial results for the period ending September 30, 2023 (nine months).

Operational profit reached SAR 184.2 million in the third quarter, compared to SAR 179 million in the same quarter of the previous year, an increase of 2.9%.

Net profit after zakat and tax in the 9-month period amounted to SAR 191.7 million, compared to SAR 623.2 million in the same period last year, a decline of 69.2%.

Total shareholders’ equity (excluding minority rights) amounted to SAR 9.65 billion in the current period, compared to SAR 9.52 billion in the same period last year, an increase of 1.3%.

Earnings per share in the current period reached SAR 0.29, compared to SAR 0.93 in the same period last year.

Increase in net profit is primarily attributable to increase in share of profit from joint ventures mainly due to increase in sales volumes of most of the products and decrease in average feedstock costs, decrease in net finance costs and increase in other income, despite lower revenue due to decrease in average selling prices of most of the products, losses from investments in associates, increase in general & administrative expenses and zakat provision.

Increase in net profit is primarily attributable to increase in share of profit from joint ventures mainly due to increase in sales volumes of most of the products and slight decrease in average feedstock costs, decrease in net finance costs and reduced share of losses from investments in associates due to IFRS based non-recurring adjustment of a valuation allowance relating to deferred tax assets recorded in the previous quarter by an associate (Tronox Holdings plc.), despite lower revenue due to decrease in average selling prices of most of the products, decrease in other income and increase in general and administrative expenses and zakat provision.

Decrease in net profit is primarily attributable to decrease in sales revenue and share of profit from investments in joint ventures and associates due to lower average selling prices of most of the products and IFRS based non-recurring adjustment of a valuation allowance relating to deferred tax assets recorded in the previous quarter by an associate (Tronox Holdings plc.), increase in general & administrative expenses and impairment of financial assets, despite increase in sales volumes of most of the products, decrease in raw material costs and net finance costs and increase in other income.

Other comprehensive income / (loss) primarily represents the impact of fair value of certain investments in equity instruments held by the Group’s subsidiaries and share of comprehensive income / (loss) from associates.