Tasnee Announces its Consolidated Interim Financial Results for the 1st Quarter 2024

Tasnee announced its consolidated interim financial results for the first quarter ending on March 31, 2024. Mr. Fawaz Al-Fawaz, the CEO of the company, affirmed Tasnee’s commitment to enhancing performance in the areas of safety, plants’ reliability, increasing productivity, and cost optimization to meet the ongoing geopolitical and logistical challenges, as well as the high level of inflation, and to achieve profits in the coming periods. The company achieved a net consolidated loss of SR 72 million during the first quarter 2024, compared to a net consolidated profit of SR 82 million in the same period of 2023. He also expressed his hopes for positive indications of improving global economic growth in the coming period and improving demand for petrochemical products in major markets, wishing the world to overcome the current geopolitical disruptions in the Middle East and Europe.

Al-Fawaz also stated that the company has announced the award of its ethylene cracker plant expansion project to increase the production of olefins by 18% compared to the current production level. The project is expected to start production in the first half of 2026. Additionally, work has begun on implementing enhancement and optimization and modifications to the second furnace, as well as necessary enhancements to the first furnace in the Ilmenite Smelter Project for the production of high-grade titanium feedstock. It is expected to start production in the second half of 2026 to achieve sustainable operational performance for the project. Upon completion of these projects and starting their commercial production, are expected to contribute to enhancing the company’s positive results, inshallah.

Mr. Emad Al-Haji, Chief Financial Officer, assured the company’s efforts to increase its revenues and enhance growth opportunities and business development by maximizing the value of its assets efficiently and sustainably, as well as developing operations and activities in the petrochemical sector. Al-Hajji shed light on the company’s financial results, stating that Tasnee achieved a net consolidated loss of SR 72 million during the first quarter 2024, compared to a net consolidated profit of SR 82 million in the same period of last year, and compared to a net consolidated loss of 17 million Saudi riyals in the fourth quarter of 2023.

Net loss during the current quarter compared to the same quarter of the last year is primarily attributable to the decrease in sales volumes due to scheduled maintenance activities for some of the plants and lower average selling prices for most of the products resulting in decrease in revenue and share of profit from investments in associates and joint ventures, in addition to lower other income and higher net finance costs, despite decrease in cost of sales due to lower sales volumes and no impairment required during this quarter.

Increase in net loss during the first quarter 2024 compared to the fourth quarter 2023 is primarily attributable to the decrease in sales volumes due to scheduled maintenance activities for some of the plants resulting in decrease in revenue and share of profit from investments in associates and joint ventures, in addition to increase in general and administrative expenses and lower other income, despite slightly improved average selling prices for some of the products, decrease in cost of sales due to lower sales volumes and net finance costs and no impairment required during this quarter.