Sipchem International profits fell to SR774.4 mln during Q3, by 25%

Sahara International Petrochemical Company “Sipchem International” revealed that the net profit after zakat and tax in the third quarter decreased to SR774.4 million, compared to SR1.09 billion in the same quarter of last year, by 25%,
This came after the announcement on Tuesday of the preliminary financial results for the period ending on 30 September 2022 (nine months).
The operational profit amounted to SR908.7 million in the third quarter, compared to SR1.13 billion in the same quarter of the previous year, down 20.2%.
The net profit after zakat and tax in the 9-month period amounted to SR3.11 billion, compared to SR2.2 billion in the same period last year, an increase of 37.2%.
The gross shareholders’ equity “without minority rights” amounted to SR16.4 billion in the current period, compared to SR14.3 billion in the same period last year, a growth of 14.3%.
Profits per share in the current period reached SR4.3, compared to SR3.12 in the same period last year.
Net profit decreased during current quarter compared to same quarter of last year which is mainly due to:
– Decrease in most of the selling prices of company’s products during current quarter specially Methanol, Butanediol, Ethyl acetate and Polypropylene.
– Increase in feedstock prices of Butane, Ethylene, Ethanol and Propane.
– Decrease in company share of profit from joint venture and associates.
The reason for the decrease in Net profit during current quarter compared to previous quarter of current year due mainly to the decrease in selling prices of company products in addition to the decrease in company share of profit from joint venture and associates. Such decrease in net profit was compensated by decrease in some of feedstock prices of Butane, Ethylene and Propane and increase in sales volume.
Net profit increased during current period compared to same period of last year which is mainly due to:
– The increase in selling prices of most of company’s products which contributed to increase in Gross Profit in spite of increase in feedstock prices of Butane, Ethylene, Ethanol and Propane.
– Increase in sales volume.
– Increase in company share of profit from joint venture and associates
– Decrease in finance costs mainly due to reduction of loans.
– During the same period of last year, an impairment loss of SR 260 million was recorded related to cash generating unit of PBT and GACI plants when compared the current period with same period of last year.
During the period ended 30 September 2022, the impairment of non-financial assets relating to the nine-months period ended 30 September 2021 amounting to SR260 million was reclassified from “Other income / (expenses), net” to a separate line item in the condensed consolidated interim statement of profit or loss, for a more representative presentation of the operational profit.
During current period, borrowings balance decreased by SR 1,106 million as compared to the balance as at end of 2021 and accordingly the gearing ratio improved and decreased from 34% in 2021 to 24% as at end of current period.