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"Yamamah Steel" returns to a loss for the fiscal year ending September 2022

The preliminary financial results of Al Yamamah Steel Industries Company "Yamamah Steel" revealed that the company turned into a loss for the fiscal year ending September 30, 2022 compared to the net profit recorded in the same period last year.

"Yamamah Steel" returns to a loss for the fiscal year ending September 2022

According to the preliminary financial results of the company, the net loss after zakat and tax was approximately 26.66 million riyals, compared to a net profit of 207.83 million riyals in the comparative fiscal year of last year.

The company said that the reason for the loss was due to the increase in raw material costs for the construction and electricity sectors by 55.78% and 14.74%, respectively. In addition to the decrease in the sales volume and value of the construction sector, there was a decrease of 33.74% and 19.63%.

Due to the sharp fall in global iron ore prices in the third and fourth quarters of fiscal 2022 due to the repercussions of the Russia-Ukraine war and its impact on the global economy, sales prices also decreased.

The company recorded a 99.15% decrease in net profit in the third quarter for the period ending June 30, 2022, as net profit after zakat and tax amounted to approximately 0.55 million riyals compared to 65.06 million riyals in the comparative quarter of last year.

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