Saudi Arabia’s Al Yamamah Steel Industries Co. has reported a remarkable financial turnaround, transitioning from a loss of SAR 130.14 mln in FY24, which ended on September 30, 2024, to a profit of SAR 70.8 mln (USD 18.8 mln) for the same period in the previous fiscal year.
The company’s revenue also surged by 25.46pct YoY to SAR 1.956 bln (USD 521 mln), reflecting strong growth across key sectors.
This recovery was largely driven by a significant reduction in the cost of sales in the construction, electricity, and solar energy sectors, which decreased by 20.82pct, 7.56pct, and 10.35pct, respectively. These reductions outpaced the decline in selling prices for construction and electricity products, which dropped by 8.33pct and 4.93pct, respectively. Additionally, the company recorded a dramatic increase in the volume and value of sales in the renewable energy sector, rising by 340.45pct and 303.78pct, respectively.
Further bolstering the company’s performance was a decrease in finance charges, attributed to a reduction in short-term loan balances. These combined factors underline Al Yamamah Steel’s effective cost management strategies and its focus on expanding renewable energy operations, contributing to a strong financial recovery.
Al Yamamah Steel specializes in the manufacturing and sale of a variety of products including welded tubes, sheets, rebars, and three-dimensional space structures, primarily serving the buildings and infrastructure sector. The company also produces galvanized steel lighting and distribution poles, high mast structures, and galvanized steel lattice towers for the electrical and distribution industry. Its production facilities are strategically located in Jeddah, Dammam, and Yanbu.
1 USD / 3.75 SAR
