Sipchem’s First Quarter Profits Plummet by 61.4% to SAR 181.5 Million Riyals

Sahara International Petrochemical Company, known as Sipchem, reported a significant decline in net profit to 181.5 million riyals during the first quarter of 2024, down from 470.3 million riyals in the same period last year, marking a decrease of 61.4%. The announcement of these estimated financial results for the period ending on March 31, 2024, was made today.

Operating profit for the quarter stood at 294.3 million riyals, compared to 561 million riyals in the corresponding quarter of the previous year, reflecting a decrease of 47.5%. Earnings per share for the current period were reported at 0.25 riyals, down from 0.65 riyals in the same period last year.

The decline in revenue during the current quarter, compared to the previous year, was attributed to reduced sales volumes resulting from scheduled turnaround maintenance activities at Al Waha Petrochemical Company, as previously announced on TADAWUL. However, the company managed to achieve a higher net profit in this quarter compared to the previous quarter of last year, primarily due to a decrease in general and administrative costs, as well as a reduction in the cost of production at Al Waha Petrochemical Company.

Despite the increase in feedstock prices, including natural gas and ethane, and the revenue decrease from the periodic maintenance activities at Al Waha Petrochemical Company, the company noted a decrease in the share of losses from investment in joint ventures and associates.