Watani Steel returns to profit in Jan-Sep

Saudi Arabia's Watani Iron Steel Company reported a net profit of SAR 31.8 mln (USD 8.5 mln) for the first nine months of 2026, compared with a net loss of SAR 3.55 mln in the corresponding period last year.

Revenue increased by 53.2pct YoY to SAR 455 mln (USD 121.3 mln), while gross profit rose to SAR 53.3 mln (USD 14.2 mln) from SAR 13.1 mln. Operating profit reached SAR 37.1 mln (USD 9.9 mln), compared with SAR 854,000 a year earlier.

In the third quarter, the company recorded a net profit of SAR 6 mln (USD 1.6 mln), reversing a net loss of SAR 4.67 mln in the same quarter last year. Revenue more than doubled YoY to SAR 174.8 mln (USD 46.6 mln).

However, quarterly net profit fell by 74.5pct compared with the previous quarter, despite an 8.7pct increase in revenue.

The company attributed the YoY improvement to higher sales volumes, stronger demand and stable production following the partial disruption caused by a fire at the plant's fuel tanks in the previous year's corresponding period. Higher average selling prices also supported revenue and margins.

For the nine-month period, improved sales volumes, higher retail-sector sales and increased average selling prices contributed to the recovery in profitability. The company said the positive impact was partly offset by an allowance for expected credit losses.

Watani Steel said the quarterly decline in profit was due to lower average selling prices and higher average costs per ton sold. The previous quarter had also benefited from sales of lower-cost finished goods inventory.

Established in 2008, Watani Steel became a closed joint-stock company in 2020 and was listed on Saudi Arabia's Nomu-Parallel Market in February 2021. The company transferred to the Main Market, with trading commencing on October 6, 2026. It has annual production capacities of 280,000 tons of billet and 320,000 tons of rebar.

1 USD / 3.75 SAR