Saudi Arabia’s TASNEE Q2 net profit falls 17% on higher costs

Pearl Bantillo

04-Aug-2022

SINGAPORE (ICIS)–Saudi Arabia’s National Industrialization Co (TASNEE) posted a 17% year-on-year decline in its second-quarter net profit on a combination of higher costs and lower average selling prices of some products.

in million Saudi riyal (SR) Q2 2022 Q2 2021 % change H1 2022 H1 2021 % change
Sales    1,077.1       780.4          38.0    2,056.3    1,505.8          36.6
Operating income       563.2       608.7          (7.5)    1,106.3    1,170.6          (5.5)
Net income       297.1       356.7        (16.7)       606.1       684.3        (11.4)

Its share of profit from investments in joint ventures for the period shrank also due to higher feedstock and logistics costs, the company said in a statement.

Increased provisions and financial charges also hit profitability for the three months to June 2022.

Second-quarter revenues increased on higher prices and sales volumes of some downstream products, it said.

TASNEE’s petrochemical subsidiaries are Saudi Polyolefins Co (75%) and Saudi Acrylic Acid Co (52.29%), while its affiliates include Saudi Ethylene and Polyethylene Co (45.34%), Saudi Acrylic Monomers Co (39.22%), Saudi Acrylic Polymer Co (39.22%), and Saudi Butano Co (17.43%), according to the company’s website.

($1 = SR3.75)

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