Al Yamamah Steel Industries Co. reported a net loss after Zakat and tax of SAR 41.9 million for the first quarter ended Dec. 31, 2022, compared to profit of SAR 34 million a year earlier.
| Item | Q1 2022 | Q1 2023 | Change |
|---|---|---|---|
| Revenues | 464.24 | 461.85 | (0.5 %) |
| Gross Income | 66.20 | (42.90) | (164.8 %) |
| Operating Income | 45.87 | (60.86) | (232.7 %) |
| Net Income | 34.01 | (41.90) | (223.2 %) |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | 0.67 | (0.82) | (223.2 %) |
| Item | Q4 2022 | Q1 2023 | Change |
|---|---|---|---|
| Revenues | 315.18 | 461.85 | 46.5 % |
| Gross Income | (23.19) | (42.90) | (85.0 %) |
| Operating Income | (31.82) | (60.86) | (91.2 %) |
| Net Income | (96.38) | (41.90) | 56.5 % |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | (1.90) | (0.82) | 56.5 % |
The earnings decreased on higher raw material prices and lower sales in the construction segment.
The losses were attributed to the continued global decline in steel prices during the current quarter. This led to a 28.25% decrease in the selling prices and weaker demand for construction-related products, particularly reinforcing steel bars, besides logging an increase in the cost of sales, with inventory impairment provision amounting to about SAR 23.1 million.
In addition, financing charges (FCs) jumped year-on-year (YoY) by SAR 10.21 million, or 289%, on higher short-term loans used to back purchases of raw materials and worldwide higher credit interest rates.
When compared to the previous quarter, Al Yamamah Steel narrowed its losses from a SAR 96.38 million loss in Q4 2021/2022.
Total shareholders’ equity, excluding minority interest, fell to SAR 604.6 million as of Dec. 31, 2022, compared to SAR 746.5 million a year earlier.
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