Tronox investment value drops amid titanium sector volatility: Tasnee CEO

Fawaz Al Fawaz, CEO of National Industrialization Co. (Tasnee)

National Industrialization Co. (Tasnee) CEO Fawaz Al Fawaz said the value of its investment in Tronox declined by nearly SAR 367 million due to volatility in the titanium sector, which led to a drop in Tronox’s share price.

In an interview with Argaam, Al Fawaz added that the group adhered to international standards by conducting a valuation based on a discounted cash flow model, which indicated continued impairment of the total investment to SAR 464 million.

The CEO noted that the group conducts a comprehensive evaluation of its investments at the end of each financial period, and any indicators of impairment are recorded in the consolidated financial statements.

Regarding the restructuring of loans for the Acrylic Complex, Al Fawaz said the group successfully completed the rescheduling, as previously announced on Tadawul on Feb. 19, 2025.

Non-recurring, non-cash gains from the restructuring totaled SAR 2.03 billion, of which Tasnee’s share was SAR 1.06 billion, he said.

The CEO explained that these gains represented the difference between the book value of canceled obligations and the fair value of the new obligations, including prepaid amounts and restructuring fees, recorded in the condensed consolidated income statement.

This contributed to improving the company’s consolidated results, he said.

Al Fawaz stated that the petrochemical industry is facing oversupply relative to demand amid the ongoing economic and geopolitical challenges, which have negatively impacted average prices and profit margins.

He expected the situation to persist until the excess supply is absorbed and a balance between supply and demand is restored in the near to medium term, especially with the addition of new production capacities and slower industrial demand in global markets.

The CEO emphasized that Tasnee’s strategy to address these challenges focuses on enhancing operational efficiency and reliability, expanding the share of high-value products, and targeting emerging markets that deliver higher profit margins, ensuring sustainable returns and stable sales.

According to data available with Argaam, Tasnee’s profit increased to SAR 271.5 million in the first nine months of 2025 from SAR 69.8 million in the year-earlier period. However, Q3 2025 recorded a loss of SAR 558.5 million.