MOSCOW (MRC) -- The National Industrialization Company (Tasnee) has reduced its net losses after Zakat and tax by 94% annually in the first quarter (Q1) of 2020 to reach SAR 76.5 million, said Mubasher.
The company generated SAR 659.4 million worth of revenues in the first three months of 2020, down by 10.8% year-on-year (YoY) when compared to SAR 739.2 million, according to a bourse filing on Sunday.
The decrease in net loss is largely due to the non-cash losses that resulted from re-measurement of discontinued operations of Cristal business classified as held for sale in Q1-19 amounting to SAR 1.45 billion. In addition, financing costs, Zakat provision and income tax declined.
This came despite the drop in average selling prices of all products and slumping demand of some products due to the coronavirus (COVID-19) outbreak, a lower share of profit from investments in associates and joint ventures (JV), decrease in other income, and a rise in general and administrative expenses.
As MRC informed before, in 2013, Clariant, a world leader in specialty chemicals, and Tasnee announced the signing of an agreement to establish a masterbatches joint venture in Saudi Arabia. Within the framework of the agreement, through its 100% subsidiary Rowad National Plastic Company Ltd., Tasnee acquired a 40% stake in Clariant’s masterbatches operations in the country, already operating under the name Clariant Masterbatches (Saudi Arabia) Ltd.
As MRC informed earlier, Russia's output of products from polymers grew in April 2020 by 11.2% year on year due to quarantine restrictions. However, this figure increased by 3.4% year on year in the first four months of 2020. According to the Russian Federal State Statistics Service, April production of unreinforced and non-combined films decreased to 107,000 tonnes from 110,400 tonnes a month earlier. Output of films products grew in the first four months of 2020 by 12.5% year on year to 402,800 tonnes.
Headquartered in Riyadh, Tasnee is primarily engaged in petrochemical, chemical and industrial projects. The
company produces petrochemical products, including polypropylene, polyethylene and acrylic acid, as well as other downstream petrochemical products.