30 October 2013 14:44 [Source: ICIS news]
LONDON (ICIS)--Saudi Arabia’s National Industrialization Co (Tasnee) on Wednesday reported a 45.8% year-on-year decline in its third-quarter net profit to Saudi Riyal (SR) 226.4m ($60.4m) as its titanium dioxide business slipped into the red on higher production costs and soft pricing, the company said on Wednesday.
Tasnee made SR417.3m during the same period in 2012.
Gross profit for the period fell 11% percent to SR1.2bn, while operating profit fell by 20.9% percent to SR762.2m compared to the corresponding three months in 2012, the company said in a statement to Saudi stock exchange (Tadawul).
The nine-month net profit also fell 41.9% to SR884.9 m. Operating profit for the period down by 29.3% to SR2.342bn.
Tasnee attributed falling prices of its products, higher production cost due to increase in the raw materials prices and increase of the general and administrative expenses as reasons behind the company’s performance in the quarter ending 30 September “in spite of an increase in the profit margin in petrochemical sector.”
“Scheduled shutdown of petrochemical units and one-time payment of SR77.7m to settle a case against one of the subsidiaries also hit profit,” the company added.
Tasnee is the second largest industrial company in Saudi Arabia and the world’s second largest producer of titanium dioxide (Ti02).
Earlier this month Tasnee had signed an Islamic loan facility worth SR4bn with eight Middle Eastern banks to finance the company's stakes in future projects and refinance existing loans.
The company, active in petrochemicals and industrial projects, has partnered with local petrochemical firms to build a butanol plant in Jubail, due to be completed by May 2015.
($1 = SR 3.75)
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