The losses of Al-Yamamah Steel Industries Company – Al-Yamama Steel -, which works in the manufacture of metal products to serve the construction, electricity and communications sectors, rose to 130.1 million riyals by the end of the year ending in September 2023, compared to losses of 26.7 million riyals achieved during the same period in 2022.

The company said that the reason for the increase in losses during the current period compared to the same period of the previous year is due to:
– A decrease in selling prices in the construction sector by (27.22%), which led to a decrease in the value of sales in the sector by 7.34% despite an increase in the amount of sales in the sector by 27.30%.
– The consolidated financial statements included the company’s share in the net loss of the subsidiary (Al-Yamama Rebar Company) amounting to 92.278 million Saudi riyals as a result of the sharp decline in the selling prices of rebar.
– An increase in financing costs by 42.879 million riyals, or 164.44% over the previous year, as a result of the increase in interest rates on financing globally.

The company also said that shareholders’ equity (after excluding minority rights) at the end of the period amounted to 518.2 million riyals, compared to 646.5 million riyals as at the end of the similar period of the previous year.

The balance of accumulated losses amounted to 19,051 million riyals, equivalent to 3.75% of the company’s capital as of September 30, 2023, as a result of the net loss for the year. This balance is less than the balance of the statutory reserve of 29,198 million riyals as of the same date, compared to the balance of retained earnings, which amounted to 49.344 million riyals as of September 30, 2022.