Fawaz Al-Fawaz, Executive VP of Finance at National Industrialization Co. (Tasnee)
Fawaz Al-Fawaz, Executive Vice President of Finance at National Industrialization Co. (Tasnee), said the petrochemical sector-related products witnessed better demand and higher sales volumes, noting that all sector players experienced this improvement, reflecting robust performance in major markets.
Overall, China is a large and strategic market for petrochemical products in the Middle East. Chinese demand contributed to the improvement even if marginally, boosting product consumption, Al-Fawaz added in an interview with Argaam.
Feedstock prices dipped between 5-7%, he stated, underlining that the decline in Tasnee’s revenues was attributed to lower average product prices. The company capitalized on the solid sales value and volumes in Q3 2023, part of which was reflected in the increased production and updated inventory in the previous periods.
Prices remain largely squeezed as they did not improve as hoped for. Tasnee well benefited from the decline in inputs and managed its assets efficiently with respect to production and costs.
Al-Fawaz expected strong and robust demand in the fourth quarter, although preliminary indicators are close to those of the third quarter. December usually sees the emergence of some factors that weigh on consumer demand at year-end, based on financial results and inventory management.
Accordingly, producers and exporters attempt to raise output and sales, reducing inventory levels by the end of the year. “Some improvement could be witnessed. We hope the geopolitical factors do not impact negatively on results in the coming periods,” he added.
Tasnee posted a 69% profit decline in the first nine months of 2023 to SAR 191.7 million, compared to SAR 623.2 million in the year-earlier period. The three-month net profit stood at SAR 78.2 million, Argaam reported.
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