Sipchem Profits Jump Over 10,000% during the 3Q to SR1.02 billion

The net profit after zakat and tax of Sahara International Petrochemical Company (Sipchem) jumped to SR1.02 billion during the third quarter, compared to SR10 million during the same quarter of the previous year, at a rate of 10195%.

This came after the announcement on Wednesday of the interim financial results for the period ending on 30 September 2021 (9 months).

The gross profit amounted to SR1.36 billion during the third quarter, compared to SR220 million during the same quarter of the previous year, an increase of 522%.

The operational profit amounted to SR1.13 billion during the third quarter, compared to SR18 million during the same quarter of the previous year, an increase of 6338%.

The net profit after zakat and tax during the current period amounted to SR3 billion, compared to a loss of SR142 million during the same period of the previous year.

Profits per share during the current period amounted to SR3.12, compared to a loss of SR0.19 during the same period of the previous year.

Net profit increased during current quarter compared to same quarter last year due mainly to the increase in revenue as a result of the increase in selling prices for all company’s products which contributed to increase in profit margins in spite of the increase in feedstock prices of Butane, Ethanol, Ethylene and Propane, in addition, the company share of profit from joint venture and associates increased and Finance cost decreased.

The reason for the increase in net profit during current quarter compared to previous quarter of current year was due to the increase in Revenue as a result of the increase in selling prices of some company’s products in spite of the increase in feedstock prices of Butane, Ethanol, Ethylene and Propane in current quarter compared to previous quarter in addition to the decrease in administrative expenses, finance costs and zakat provisions also share of profit from joint venture and associates increased.

Net profit increased during current period compared to previous period of last year due mainly to the increase in Revenue as a result of the increase in selling prices for all company’s products which contributed to increase in profit margins in spite of the increase in feedstock prices of Butane, Ethanol, Ethylene and Propane, in addition, the company share of profit from joint venture and associates increased.

As previously announced, the current period results include an impairment loss of SR260 Million related to cash generating unit of PBT plant of SR160 Million and GACI plant of SR100 Million.

It is worth mentioning that the net profit for the current quarter and current period are the highest reported since incorporating of the company with current quarter net profit breaking the previously reported highest net profit in Q2 2021 by an increase of 24%.