Saudi Arabia’s National Industrialization Co (Tasnee) said it hit a net profit in Q2 as opposed to analysts’ forecasts, bringing a run of five straight losses to an end, Reuters reported.
Tasnee’s net profit reached $27.7m from April to June 2016, according to a bourse filing. In contrast, three analysts had expected on average a net loss in the second quarter of around $300,000, Zawya informed. Previously, Tasnee had recorded a loss that stood at around $28.8m in last year’s Q2.
Unlike last year that witnessed impairment charge related to non-current assets, Tasnee cited operational improvements, a decrease in certain feedstock costs, and a rise in other income as factors for the better performance. Those gains have reimbursed low sales prices for certain products, which were tied to falling oil prices and in turn impacted subsidized energy and feedstock costs, and high financial charges.
Commenting on the new restructuring plans Tasnee is implementing, company’s CEO, Mutlaq al-Morished, said he expected to see the benefits soon and had a more positive outlook for the chemicals market.