National Industrialization Co. (Tasnee) reported strong, in-line set of results for the fourth quarter due to its operating performance, despite marginal improvement in average selling prices, Fawaz Al-Fawaz, the company’s deputy chief financial officer said on Wednesday at a press conference.
Tasnee’s outlook is upbeat for 2017, even if market conditions remain unchanged, he added.
Al-Fawaz added that the company is maintaining its share in the markets where it currently operates, amid high demand for its products. Tasnee is also eyeing other promising markets in Africa.
Al-Fawaz said the stake acquired by Advanced Petrochemical in the titanium dioxide producer, the deal was good for Tasnee and would help improve operational efficiency.
Cooperation with Advanced or any industry peer going forward is related to non-strategic operations, including procurements, accounting and similar issues that aim to cut costs in a competitive environment.
Meanwhile, the company has reached advanced stages in its restructuring process, and has started adopting several programs to enhance productivity and performance.
Al-Fawaz added that Tasnee is working on completing several projects, such as its ilmenite smelter in Jazan and the titanium sponge production facility in Yanbu, which will likely begin production by the end of 2017.
Tasnee swung to net profit of SAR 123.4 million in Q4-2016, compared to net loss of SAR 686.6 million in the same period of 2015. On an annual basis, the petrochemical producer also turned to net profit of SAR 254.6 million, compared to a loss of SAR 1.4 billion in 2015.
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