Sahara International Petrochemical Co. “Sipchem” (2310) fell by about 61% YoY in the second quarter of this year, reaching SAR 121.5 million.
Driving the Drop
Sipchem suffered from increased quarterly sales costs due to rising feedstock and raw material prices.
This was despite an increase in sales volume.
Additionally, the company’s share of profits from investments in joint ventures and associates decreased.
So What
Sipchem, a leading petrochemical company in Saudi Arabia and the region, reported a rise in its revenues to SAR 1.77 billion during the current quarter.
This is compared to SAR 1.7 billion in the second quarter of 2023.
Some Context
The company mentioned that it received the full and final settlement of an insurance claim amounting to SAR 53 million.
This pertains to all damages resulting from a fire at one of its subsidiary’s factories (the Saudi Specialized product’s company)
On the other hand, Sipchem’s net profit decreased during the first half of the current year.
This was down by 61% YoY, reaching SAR 303 million.
