The Clap
The quarterly net profits of Sahara International Petrochemical Co “Sipchem” (2310) decreased to 181.5 million riyals compared to a net profit of 470.3 million riyals in the first quarter of 2023.
Details
The reasons behind Sipchem’s losses in the current quarter include:
– Decrease in sales due to declining prices of the company’s products.
– Scheduled maintenance works for its subsidiary, “Al Waha Petrochemical Company”.
– Increase in feedstock prices (natural gas and ethane), partially compensated by the decrease in prices of other raw materials.
– Decrease in profit share from investment in a joint venture and affiliate companies.
So What
Sipchem witnessed a decrease in its total quarterly sales by approximately 7.8% on an annual basis, reaching 1.9 billion riyals.
Additionally, earnings per share decreased to 0.25 riyals, compared to 0.65 riyals in the first quarter of the previous year.
Some Context
The Saudi company’s assets value is estimated at 6.3 billion dollars according to its website.
Its market capitalization is approximately 5.3 billion dollars.
It has 24 subsidiaries, with its products reaching 100 countries.
