Yansab’s Q2 ‘relatively satisfactory’ amid slow demand, low prices: chairman

Yanbu National Petrochemical Company (Yansab) reported “relatively satisfactory” financial results for Q2 2020 amid slow demand, global economic recession and a decline in petrochemicals prices, Abdulrahman Shamsaddin, board chairman, told Argaam in an exclusive.

Yansab maintained normal operations and production, and focused on shareholders’ returns.

Despite a decline in H1 2020 profits, Yansab’s board of directors declared a dividend distribution, Shamsaddin said, noting that the decision reflects the company’s strong capital policies and balance sheet.

The petrochemicals sector usually sees growth or contraction, in light of global economic changes. This in turn leads to volatility in supply and demand for petrochemical products, Shamsaddin explained, expecting product prices to pose a challenge and recover in a longer time.

“The COVID-19 pandemic had no impact on the company’s operations and production,” Shamsaddin noted.

“Yansab is expected to maintain its performance, improve operations, efficiency and reliability,” he added.

The company will also continue to ensure availability of all products, fulfill client demand, control costs, maintain solid balance sheet and boost shareholders’ equity.

Yansab’s H1 2020 net profit after Zakat and tax slumped 79% year-on-year to SAR 149.3 million, Argaam reported.