National Industrialization Co. (Tasnee) posted robust financial results for Q2 2023, excluding the IFRS based non-recurring adjustment of a valuation allowance related to the deferred asset tax recorded by the associate Tronox Holdings plc, CFO Fawaz Alfawaz told Argaam.
The prices of some products were slightly impacted, compared to the first quarter of the year, declining between 1% and 5%. Some prices saw a significant drop of 35%, compared to Q2 2022.
Alfawaz added that demand in the region, particularly in Saudi Arabia and the GCC, helped absorb some global challenges.
Further, the decline in Tasnee’s profit share from Tronox was due to the headwinds witnessed by the company in late 2022 and early 2023 due to the heavy rains, which weighed on the company’s mines in Australia. This will impact that region’s performance over the next three years, which in turn led to a non-recurring adjustment of about SAR 116 million based on IFRS.
The global economic slowdown, geopolitical factors and higher interest rates impact demand and squeeze product prices in the first two months of the third quarter. A gradual recovery in demand and prices is expected to range between 5% and 15% later, he added.
Tasnee recorded a net profit of SAR 113.5 million in H1 2023, a slump of 81% from SAR 606.1 million in the year-earlier period. The second-quarter bottom line stood at nearly SAR 31.4 million, Argaam reported.
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