Watani Steel H1 2023 profit drops 95% to SAR 1.2 mln

Watani Steel H1 2023 profit drops 95% to SAR 1.2 mln

30/08/2023 Argaam Exclusive

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Watani Iron Steel Co. posted a 95% fall in H1 2023 net profit to SAR 1.2 million from SAR 25.5 million in the year-ago period.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 311.36 159.79 (48.7 %)
Gross Income 36.25 11.81 (67.4 %)
Operating Income 28.83 4.32 (85.0 %)
Net Income 25.49 1.23 (95.2 %)
Average Shares 181.65 181.65 -
EPS (Riyals) 0.14 0.01 (95.2 %)

The profit decline was attributed to lower sales on weak demand for steel, which led to a stagnation in the iron market amid the intense competition witnessed by the entire steel industry. This coincided with higher financing costs and SAIBOR.



Current Half Annual Comparison (M)

Compared With The
Item H1 2022 H1 2023 Change‬
Revenues 311.36 159.79 (48.7 %)
Gross Income 36.25 11.81 (67.4 %)
Operating Income 28.83 4.32 (85.0 %)
Net Income 25.49 1.23 (95.2 %)
Average Shares 181.65 181.65 -
EPS (Riyals) 0.14 0.01 (95.2 %)

Total shareholders’ equity, after minority interest, increased to SAR 238.8 million as of June 30, 2023, compared to SAR 212.7 million a year earlier.

 

Historical Data  

Period   

Revenue  

(SAR mln)   

Net Profit  

(SAR mln)    

EPS  

(SAR/Share)   

H1 2020  

203.35 

7.78 

0.64 

H2 2020  

277.71 

21.61 

1.79 

H1 2021   

205.92 

18.32 

1.51 

H2 2021   

253.49 

12.76 

1.05 

H1 2022   

322.02 

30.00 

2.48 

H2 2022   

300.87 

17.06 

1.41 

H1 2023   

311.36 

25.49 

1.40 
 

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 %)


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

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 %


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

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

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
more

Share Price

Watani Iron Steel Co.
3.13
0.11 3.64 %

Watani Iron Steel Co. (WATANI STEEL)

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