Tasnee hasn't deferred loan payments, says CEO

National Industrialization Co.’s (TASNEE) CEO Mutlaq Al-Morished said that the company did not defer or suspend paying back loans, but was able to reschedule a SAR 7 billion loan related to its Cristal Global Co.

Tasnee will extend the period of payment to three or five years, he told Argaam in an interview after announcing the company’s results.

The company plans to export its products to new markets in Africa and Europe to mitigate the drop in demand in other regions, he added.

Its ilmenite smelter in Jazan Economic City is still undergoing technical tests in preparation for operation in the first half of 2017, while the Titanium Dioxide plant is expected to start operation in the second half, Al-Morished said.

Tasnee’s deputy CEO for financial affairs, Fawaz al-Fawaz, told Argaam that the company was able to cut costs through squeezing fixed costs and improving operating efficiency. Low feedstock prices have also helped the company cut costs, he added.

Meanwhile, the financial impact of higher utility and energy prices will be around SAR 190 million in 2016, he added.

Tasnee’s profit for third quarter 2016 reached 122.2 million versus a net loss of SAR 296.3 million in Q3 2015, driven by higher sales volumes and lower costs of feedstock.