Watani Steel 2023 profit sinks 91% to SAR 4.2M

Watani Steel 2023 profit sinks 91% to SAR 4.2M

04/03/2024 Argaam Exclusive

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Watani Iron Steel Co. (Watani Steel) reported a net profit slump of 91% to SAR 4.2 million in 2023, compared to SAR 49.6 million a year earlier.



Financials (M)

Item 2022 2023 Change‬
Revenues 595.64 370.11 (37.9 %)
Gross Income 71.37 24.43 (65.8 %)
Operating Income 56.62 10.63 (81.2 %)
Net Income 49.55 4.24 (91.4 %)
Average Shares 181.65 181.65 -
EPS (Riyals) 0.27 0.02 (91.4 %)

The annual profit was hurt by a decline in revenues amid subdued demand, which drove sales volumes in the sector lower. In addition, steel prices witnessed a steep drop, leading to a slump in end products’ profit margins amid higher global inflation and interest rates.

 

Total shareholders’ equity, no minority interest, rose to SAR 242.43 million as of Dec. 31, 2023, from SAR 237.58 million a year earlier.

 

Watani Steel's Interim Financials

Period

Revenue

(SAR mln)

Net Profit

(SAR mln)

EPS

(SAR)

H1 2019

203.35

7.78

0.43

H2 2019

277.71

21.61

1.18

H1 2020

205.92

18.32

1.01

H2 2020

253.49

12.76

0.70

H1 2021

322.02

30.00

1.65

H2 2021

300.87

17.06

0.94

H1 2022

311.36

25.49

1.40

H2 2022

284.28

24.06

1.32

H1 2023

159.79

1.23

0.07

H2 2023

220.32

3.01

0.02


Current Half Annual Comparison (M)

Compared With The
Item H2 2022 H2 2023 Change‬
Revenues 284.29 210.32 (26.0 %)
Gross Income 35.13 12.63 (64.1 %)
Operating Income 27.79 6.31 (77.3 %)
Net Income 24.07 3.01 (87.5 %)
Average Shares 181.65 181.65 -
EPS (Riyals) 0.13 0.02 (87.5 %)

View More Financial Results

 


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
H1 2014 - - - - - -
H2 2014 - - - - - -
H1 2015 - - - - - -
H2 2015 - - - - - -
H1 2016 - - - - - -
H2 2016 - - - - - -
H1 2017 - - - - - -
H2 2017 - - - - - -
H1 2018 - - - - - -
H2 2018 - - - - - -
H1 2019 203.35 - 18.26 - 13.91 -
H2 2019 277.71 - 31.97 - 25.88 -
H1 2020 205.92 1.3 % 28.50 56.1 % 23.27 67.3 %
H2 2020 253.49 (8.7 %) 27.90 (12.7 %) 17.53 (32.3 %)
H1 2021 322.02 56.4 % 40.68 42.8 % 33.82 45.3 %
H2 2021 300.87 18.7 % 27.74 (0.6 %) 20.30 15.8 %
H1 2022 311.36 (3.3 %) 36.25 (10.9 %) 28.83 (14.8 %)
H2 2022 284.29 (5.5 %) 35.13 26.6 % 27.79 36.9 %
H1 2023 159.79 (48.7 %) 11.81 (67.4 %) 4.32 (85.0 %)
H2 2023 210.32 (26.0 %) 12.63 (64.1 %) 6.31 (77.3 %)
2023 370.11 (37.9 %) 24.43 (65.8 %) 10.63 (81.2 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
H1 2014 - - - - - -
H2 2014 - - - - - -
H1 2015 - - - - - -
H2 2015 - - - - - -
H1 2016 - - - - - -
H2 2016 - - - - - -
H1 2017 - - - - - -
H2 2017 - - - - - -
H1 2018 - - - - - -
H2 2018 - - - - - -
H1 2019 7.78 - 0.04 - 7.78 0.04
H2 2019 21.61 - 0.12 - 21.61 0.12
H1 2020 18.32 135.4 % 0.10 - 18.32 0.10
H2 2020 12.76 (40.9 %) 0.07 (1.31) 14.07 0.08
H1 2021 30.00 63.8 % 0.17 - 30.00 0.17
H2 2021 17.06 33.6 % 0.09 - 17.06 0.09
H1 2022 25.49 (15.0 %) 0.14 - 25.49 0.14
H2 2022 24.07 41.1 % 0.13 - 24.07 0.13
H1 2023 1.23 (95.2 %) 0.01 - 1.23 0.01
H2 2023 3.01 (87.5 %) 0.02 - 3.01 0.02
2023 4.24 (91.4 %) 0.02 - 4.24 0.02

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
H1 2014 - - -
H2 2014 - - -
H1 2015 - - -
H2 2015 - - -
H1 2016 - - -
H2 2016 - - -
H1 2017 - - -
H2 2017 - - -
H1 2018 - - -
H2 2018 - - -
H1 2019 - - -
H2 2019 10.44 % 12.38 % 6.11 %
H1 2020 12.50 % 14.24 % 8.26 %
H2 2020 12.28 % 13.18 % 7.05 %
H1 2021 11.92 % 12.35 % 7.66 %
H2 2021 10.98 % 11.86 % 7.55 %
H1 2022 10.45 % 11.26 % 6.95 %
H2 2022 11.98 % 12.85 % 8.32 %
H1 2023 10.57 % 11.70 % 5.70 %
H2 2023 6.60 % 8.25 % 1.15 %
2023 6.60 % 8.25 % 1.15 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
H1 2014 - - - -
H2 2014 - - - -
H1 2015 - - - -
H2 2015 - - - -
H1 2016 - - - -
H2 2016 - - - -
H1 2017 - - - -
H2 2017 - - - -
H1 2018 - - - -
H2 2018 - - - -
H1 2019 181.65 - - 0.81
H2 2019 181.65 0.16 0.16 0.80
H1 2020 181.65 0.22 0.22 0.70
H2 2020 181.65 0.17 0.18 0.77
H1 2021 181.65 0.24 0.24 0.94
H2 2021 181.65 0.26 0.26 1.03
H1 2022 181.65 0.23 0.23 1.17
H2 2022 181.65 0.27 0.27 1.31
H1 2023 181.65 0.14 0.14 1.31
H2 2023 181.65 0.02 0.02 1.33

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
H1 2014 - - -
H2 2014 - - -
H1 2015 - - -
H2 2015 - - -
H1 2016 - - -
H2 2016 - - -
H1 2017 - - -
H2 2017 - - -
H1 2018 - - -
H2 2018 - - -
H1 2019 - - -
H2 2019 - - -
H1 2020 - - -
H2 2020 - - -
H1 2021 18.93 18.36 4.75
H2 2021 17.59 17.59 4.42
H1 2022 15.44 15.44 3.09
H2 2022 11.08 11.08 2.31
H1 2023 25.24 25.24 2.67
H2 2023 More than 100 More than 100 1.99

Business Segments (Million)

Compared With The
Period Sales of rebar and iron blocks Other sales (manufacturing waste)


Financial Ratios
Current
Market Cap (M Riyal) 568.56
Enterprise Value (EV) (M) 650.21
Shares Outstanding ((M)) 181.65
Book Value (BV) ( Riyal) 1.33
Par Value ( Riyal) 1.00
Adjusted P/E (Last12) More than 100
Price/book 2.35
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Share Price

Watani Iron Steel Co.
3.13
0.11 3.64 %

Watani Iron Steel Co. (WATANI STEEL)

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