Saudi Paper Manufacturing Co. (SPM) is expected to post better financial results in Q3 and Q4 2019, chief executive officer and managing director Hassan Asiree told CNBC Arabia.
“The company incurred most losses in Q2 2019 hit by seasonality factors. It was also hit by a halt in one of its major production lines due to a technical glitch,” Asiree said.
Nevertheless, the paper manufacturer saw remarkable improvement in the second quarter when compared to Q2 2018 on increased production efficiency. This was reflected by reducing maintenance processes and selling costs, especially that the costs of production per ton and human resources declined.
For debts, the three restructured loans granted the company an additional grace period and allowed it to postpone repayment with the same interest, he added.
In Q2 2019, the paper manufacturer widened net losses after zakat and tax by 50 percent year-on-year to SAR 15.4 million.
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