Tasnee swings to 1.33 billion riyal loss in nine months

Summary

• Tasnee posted a 1.33 billion riyal nine-month loss, against a 271.5 million riyal profit a year earlier.
• Revenue fell 29.7% to 1.31 billion riyals as sales volumes dropped across most products.
• Equity shrank to 6.43 billion riyals, now well above the company's 4.76 billion riyal market value.

The latest

National Industrialization Company (Tasnee) swung to a 1,327.9 million riyal net loss for the first nine months of 2026, reversing a 271.5 million riyal profit in the same period of 2025, according to Argaam. The petrochemicals and industrial investor reported a loss per share of 1.99 riyals against earnings of 0.41 riyals a year earlier.

Details

• The revenue line: Revenue fell to 1,319.4 million riyals from 1,876 million riyals, a drop of 29.7%, according to the financial summary. Tasnee attributed the decline to lower sold quantities across most products, citing operational challenges and supply chain disruption.
• The impairment: The company said it booked an 886 million riyal impairment on non-financial assets at subsidiaries, with Tasnee's share at 494 million riyals. The affected units are Saudi Acrylic Monomers Company (SAMCO) and Advanced Smelting Industries Company, known as ASIC (Slagger).
• Operating performance: Operating income deteriorated to a loss of 1,934.6 million riyals from a loss of 888 million riyals, a 117.9% widening. Gross income flipped to a 74.3 million riyal loss from a 126.2 million riyal gain, a swing of 158.9%, the results showed.
• Joint ventures: Tasnee pointed to a higher share of losses from joint ventures, citing sector-wide pressures and logistical difficulties. It also named scheduled maintenance and project expansion work tied to Saudi Ethylene and Polyethylene Company (SEPC) among the drivers of the weaker result.
• The base effect: The year-earlier period carried a one-off gain from the restructuring of the acrylic complex debt worth 2,029 million riyals, of which Tasnee's share was 1,061 million riyals. That item flattered the 2025 comparison and is absent this year.
• Quarterly picture: The third quarter of 2026 produced a net loss of 438.8 million riyals, narrower than the 558.5 million riyal loss recorded in the third quarter of 2025, an improvement of 21.4%. The quarterly trend runs counter to the nine-month collapse.
• Balance sheet: Shareholders' equity excluding minority interests fell to 6,431.6 million riyals at the end of the period, from 9,842.9 million riyals a year earlier, a decline of roughly 3.41 billion riyals in twelve months.
• Market valuation: Tasnee's current market capitalization stands at 4,755.98 million riyals, below its reported book equity. The company also flagged lower financial and other income as a contributing factor to the nine-month result.
• No guidance: Tasnee did not set out a timeline for the scheduled maintenance and expansion work at SEPC, nor did it quantify the expected impact of the supply chain constraints on future quarters.

Background

Tasnee invests in petrochemical projects and other industrial ventures. Its earnings are heavily exposed to joint ventures and affiliates, meaning impairments and share-of-loss entries at subsidiary level can dominate group results even when quarterly operating trends improve.

Between the lines

Two signals point in opposite directions. The nine-month figure is inflated by the absence of last year's 2,029 million riyal debt-restructuring gain and by an 886 million riyal impairment, both non-operating items. But the 29.7% revenue drop and the widening operating loss are core, and the 3.41 billion riyal fall in equity places book value above the current 4.76 billion riyal market capitalization.

What's next

Watch the fourth-quarter and full-year 2026 disclosure for whether the quarterly narrowing seen in Q3 holds, whether SEPC maintenance and expansion work concludes, and whether further impairments follow at SAMCO or ASIC.

Source: Tasnee