Al-Rajhi Capital has stated that Tasnee posted a disappointing set of numbers with its Q4 net income of SAR 160.7 million (down 46.5% y-o-y), missing its conservative SAR 247.2 million forecast.
The bottom-line number fell way short of the consensus estimate of SAR 273.4 million as well.
The company attributed its poor performance to a sharp decline in the petrochemical and TiO2 prices.
Tasnee, which manufactures basic products in the Petrochemical segment, has been hit hard by falling oil prices.
Furthermore, the TiO2 segment’s revenues have been facing a downward pressure due to a dampening demand scenario globally.
Overall, the research firm believes the plants operated at lower-than-anticipated utilization rates as demand remained weak.
Al-Rajhi maintained its ‘Neutral’ rating on the stock, with a target price of SAR 28.8.
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