The profits of Watani Steel, which works in the production and manufacture of iron blocks and rebar, decreased to 4.2 million riyals by the end of 2023, by 91%, compared to the profits of 49.6 million riyals that the company had achieved last year. The company said that the reason for the decrease in profits during the current period compared to the similar period of the previous year is due to:
Item | 2022 | 2023 | Change |
Revenues | 595.64 | 370.11 | -37.90% |
Total income | 71.37 | 24.43 | -65.80% |
Operating income | 56.62 | 10.63 | -81.20% |
Net income | 49.55 | 4.24 | -91.40% |
- A decrease in revenues for the current year, 2023, compared to the previous year, 2022, due to a decrease in demand rates, which led to a decrease in sales volume in the sector and a sharp decline in the selling prices of rebar, which led to a decrease in profit margins for the final product, due to the rise in global inflation rates and the rise in interest rates.