Stalled projects weighed on Al Yamamah Steel’s Q3, says CEO

Al Yamamah Steel Industries Co.’s drop in sales by 39 percent year-on-year (YoY) in the third quarter ending in June 2017 was the result of stalled projects due to the slowdown in the local economy, its chief executive Youssef Bazaid told Argaam in an interview.

“The quarter’s results were affected by a seasonal slowdown in business during Ramadan and the holidays, in addition to an increase in the cost of sales due to the global steel prices,” Bazaid said.

The company reported a net profit of SAR 17.2 million for the quarter, down by 75 percent YoY, compared to SAR 67.9 million a year earlier.

Commenting on the recent export fees exemption, he said: “The company will not seek an export license for the time being, as exports will be undertaken by companies with high production capacity.”

His company produces 600,000 tons of steel per year, he said, adding that its main segment was rolled steel which targets the local market.