Al Yamamah Steel Industries Company, which manufactures metal products to serve the construction, electricity and communications sectors, achieved profits of 29.5 million riyals at the end of the first quarter ending in December 2023. This compared to losses of 41.9 million riyals achieved during the same period in 2022.
Quarterly comparison (million)
| item | Q1 2023 | Q1 2024 | change |
|---|---|---|---|
| Revenues | 461.85 | 630.72 | 36.6 % |
| Total income | (17.35) | 72.93 | 520.3 % |
| Operating income | (35.91) | 49.12 | 236.8 % |
| Net income | (41.90) | 29.55 | 170.5 % |
| Average number of shares | 50.80 | 50.80 | – |
| Earnings per share (SAR) | (0.82) | 0.58 | 170.5 % |
The company said that the reason for achieving profits during the current quarter compared to losses in the same quarter of the previous year is due to:
– The quantity and value of sales in the electricity sector increased by 15.13% and 11.89%, respectively.
– The quantity and value of sales in the renewable energy sector increased by 564.22% and 757.37%, respectively.
– The selling prices of products in this sector increased by 29.08%.
– Sales volume in the construction sector increased by 3.09%.
– The cost of sales in the construction and electricity sectors decreased by 26.92% and 16.44%, respectively.
In contrast, financing costs increased by 2,707 million riyals, or 19.67%, over the same quarter of the previous year. As a result of the high interest rates on financing globally.
The company attributed the reason for achieving profits during the current quarter compared to the losses of the previous quarter to:
– The quantity and value of sales in the electricity sector increased by 40.15% and 52.47%, respectively, and in the renewable energy sector by 134.74%, 173.03%, respectively.
– The selling prices of products in the construction, electricity, and renewable energy sectors increased by 5.72%, 8.79%, and 16.31%, respectively.
– The cost of sales in the construction and electricity sectors decreased by 7.34% and 3.77%, respectively.
– A decrease in financing costs by 2,195 million riyals, or 11.76%, compared to the previous quarter, as a result of the decrease in the average balance of short-term loans during the current quarter.
