On 2026-08-09 08:01:49 (Saudi Time), National Industrialization Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined 28.856% YoY to SAR 875 million (from SAR 1,229.9 million), primarily driven by decreased sales volumes across most products due to ongoing operational and supply chain challenges, partially offset by higher average selling prices. The company swung to a net loss of SAR 889.1 million from a net profit of SAR 830 million in the prior period, attributable to lower sales volumes, higher share of losses from joint ventures (mainly due to scheduled maintenance and project expansion activities at Saudi Ethylene and Polyethylene Company "SEPC"), higher share of losses from associate Tronox Holdings plc. due to a non-cash deferred tax charge, impairment of non-financial assets related to subsidiaries SAMCO and ASIC, and lower finance and other income, despite increases in average selling prices and decreases in cost of sales, general administrative expenses and zakat charge. Notably, the prior-year comparative period also included a positive one-time impact of SAR 2,029 million from debt restructuring for the Acrylic Complex (Tasnee's share: SAR 1,061 million), which further amplifies the YoY deterioration in net results.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 23.252% to SAR 379.9 million (from SAR 495 million in the previous quarter), driven by lower sales volumes amid ongoing operational and supply chain challenges, partially offset by higher average selling prices for most products. The net loss attributable to shareholders deepened by 60.503% QoQ to SAR 547.8 million (from SAR 341.3 million), primarily due to lower sales volumes, a higher share of losses from associate Tronox Holdings plc. stemming from a non-cash deferred tax charge, and impairment of non-financial assets at subsidiaries SAMCO and ASIC, as well as lower finance income. These negative factors were partially mitigated by higher average selling prices, reduced share of losses from joint ventures, lower cost of sales, and an increase in other income.

Other Items

The external auditor issued an unmodified conclusion on the interim financial results. No additional comments were noted in any other matter, conservation, notice, disclaimer of opinion, or adverse opinion paragraphs. Total shareholders' equity (after deducting minority equity) stood at SAR 6,910.5 million as of 30 June 2026, compared to SAR 10,349.2 million in the same period of the prior year, a decline of 33.226%. Loss per share for the current period was SAR -1.34, compared to SAR 1.24 in the prior period. Certain comparative figures have been re-presented as some of the Group's subsidiaries met the criteria under IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations'. Key events during the quarter include: SEPC completing its scheduled periodic maintenance and commencing pilot production for the Ethylene Cracker Expansion project; the Group executing a Share Purchase Agreement for the sale of a group of subsidiaries in the Downstream segment, with subsequent approval from the General Authority for Competition (GAC) fulfilling one of the condition precedents; and the Group idling Furnace One at the Ilmenite Titanium Smelter Complex in Jazan (owned by ASIC, an 89.5%-owned subsidiary of TASNEE), while continuing to evaluate strategic alternatives in line with TASNEE's stated priorities to maintain strategic focus on Petrochemicals, optimize its asset portfolio, conserve liquidity, accelerate debt reduction, and deliver quality returns to shareholders.

Original announcement:

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.