Al Yamamah Steel Industries Co. turned to a net loss of SAR 59.8 million in the first half ended May 30, 2023, against a profit of SAR 69.2 million a year earlier.
| Item | 6m 2022 | 6m 2023 | Change |
|---|---|---|---|
| Revenues | 912.55 | 848.88 | (7.0 %) |
| Gross Income | 133.67 | (10.89) | (108.1 %) |
| Operating Income | 96.42 | (45.17) | (146.8 %) |
| Net Income | 69.17 | (59.79) | (186.4 %) |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | 1.36 | (1.18) | (186.4 %) |
The losses were due to a 26.30% year-on-year (YoY) decrease in selling prices in the construction sector, which led to a decline in sales value by 21.32% YoY. In addition, the financing costs rose by SAR 22.63 million on increase in the balance of short-term loans used to finance the purchase of raw materials, as well as the interest-rate hikes worldwide.
In the second quarter, the steel producer swung to a net loss of SAR 17.89 million from a profit of SAR 35.16 million a year earlier.
This was due to a 24.02% decline YoY in selling prices in the construction sector. The sales volume and value also fell by 11.24% and 32.56% YoY, respectively, in the construction sector. This was besides weak demand for some products in the sector.
Compared with the previous quarter, the company narrowed the second-quarter losses by 57.3% from SAR 41.90 million.
| Item | Q2 2022 | Q2 2023 | Change |
|---|---|---|---|
| Revenues | 448.31 | 387.03 | (13.7 %) |
| Gross Income | 67.47 | 7.06 | (89.5 %) |
| Operating Income | 50.55 | (9.26) | (118.3 %) |
| Net Income | 35.16 | (17.89) | (150.9 %) |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | 0.69 | (0.35) | (150.9 %) |
| Item | Q1 2023 | Q2 2023 | Change |
|---|---|---|---|
| Revenues | 461.85 | 387.03 | (16.2 %) |
| Gross Income | (42.90) | 7.06 | 116.5 % |
| Operating Income | (60.86) | (9.26) | 84.8 % |
| Net Income | (41.90) | (17.89) | 57.3 % |
| Average Shares | 50.80 | 50.80 | - |
| EPS (Riyals) | (0.82) | (0.35) | 57.3 % |
Total shareholders’ equity, after minority interest, stood at SAR 586.75 million at the end of the period, down from SAR 781.71 million a year earlier.
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