Tasnee Recognizes Net Profit of SR 175 million during 2023

Tasnee has announced its 2023 consolidated and audited financial results during the fourth quarter period and the entire fiscal year ending on December 31, 2023. Eng. Mutlaq Al-Morished, CEO of Tasnee, addressed that the company achieved a net profits of SR 175 million for the period ending on December 31, 2023, compared to net profits of SR 666 million for 2022 indicating that the decline in profits during the period is attributable to decrease in the average selling prices as a result of the contraction in demand on petrochemical products due to the slowdown in global economy in general and the Chinese economy in particular in addition to trade roads problems and increase in logistical and supply chain costs.

Mr. Fawaz Al Fawaz, EVP – Finance, indicated that the company has continued to improve its performance, production rates, and sales, achieving further successes across all its business units. He added that Tasnee achieved a net loss of SR 17 million for the fourth quarter of 2023, compared to a net profit of SR 78 million during the third quarter of 2023, and a net profit of SR 43 million riyals for the fourth quarter of last year. The company’s net profit amounted to SR 175 million during the whole year 2023, compared to a net profit of SR 666 million during the previous year.

The decrease in net profit during 2023 compared to the previous year 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, non-cash tax charge due to change in accounting estimates with respect to the deferred tax assets related to an associate (Tronox Holdings plc.) and increase in cost of sales, selling and distribution expenses and financing costs, despite increase in sales volumes of most of the products, decrease in general & administrative expenses, impairment of non-financial assets, zakat provisions and higher Murabaha income.

Furthermore, Tasnee started the expansion project of the Ethylene Cracker plant, of Saudi Ethylene and Polyethylene Company (SEPC), by awarding the contract for engineering, procurement, and construction (EPC) for the project. The year also witnessed the success of the Advanced Smelting Industries Company (ASIC), one of Tasnee affiliates, in exporting its first shipment exceeding 37 thousand tons of pig iron to the United States of America, through the Jazan City for Primary and Downstream Industries Port, to be the first exporter through the Port to the United States.

Tasnee has been awarded with King Khalid Award for Excellence in Standards in the field of governance and has been honored by HRH Prince Faisal bin Khalid bin Abdulaziz, Advisor to the Custodian of the Two Holy Mosques, Chairman of the Board of Trustees of the King Khalid Foundation, and President of the King Khalid Award, during the ceremony of honoring the winners. Tasnee has also won the the Occupational Safety and Health Pioneers Award in its third edition 2023, granted by the Ministry of HRSD as part of the competition among national companies in the private sector.

Tasnee was recorded in Forbes Middle East’s annual lists in 2023 for the “100 Most Powerful Companies” among the top 10 industrial companies in the Middle East, and the “Most Inspiring Saudi Companies in Developing a Culture of Innovation”, and the “Top 100 Sustainable Leaders in the Middle East”.