Watani Iron and Steel Company (Watani Steel), which specializes in the production and manufacturing of steel billets and rebar, reported losses of SAR 3.5 million for the first nine months of 2025, compared to a profit of SAR 2.2 million during the same period of the previous year.
The company explained that the losses were mainly due to lower sales volumes, as a result of declining market demand compared to the same period last year.
Operations were also affected by a partial fire incident involving the plant’s fuel storage tanks, which led to a temporary production disruption and consequently higher unutilized direct costs.
The company further noted that the average selling price decreased during the current period, accompanied by a slight decline in the average cost per ton sold, but this was not sufficient to offset the negative impact of reduced production and sales.
In the third quarter of 2025, the company recorded a loss of SAR 4.7 million, which it attributed to exceptional losses arising from the fire incident and its impact on production operations.