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Saudi International Petrochemical Co.’s (Sipchem) decline in profit for Q3 compared to the previous quarter was due to the shutdown of its methanol plant; however, the facility will fully resume operations within 7-10 days, chief executive Ahmad A. Alohali told Al Arabiya.
Third-quarter results were promising, when compared to a year earlier, as all products except for one saw prices increase, he said.
“Product prices varied. Prices of nine of our products rose between 14 percent and 30 percent, as every product has its own dynamics. Production efficiency of Sipchem’s plant also improved,” Al-Ohali said.
Commenting on the impact of the economic situation in China on the company’s profits, Al-Ohali said that Sipchem has companies in Asia, Europe and America, and would certainly be affected by any decline in demand from China.
The ongoing US-China trade war might impact Sipchem, which would make it shift shipments from one market to another, he said.
Asked about Sipchem’s planned merger with Sahara Petrochemical Company, Al-Ohali noted that the deal with Sahara would create a strong entity in terms of products and technical cadres, improving future prospects for the business.
Sipchem posted a net profit after zakat and tax of SAR 543 million for the first nine months of 2018, a surge of 98.9 percent year-on-year (YoY), attributed to higher revenue and an increase in average selling prices of the company’s products, Argaam reported earlier today.
Q3 net profit jumped 48.3 percent YoY to SAR 180.3 million, versus SAR 121.6 million a year earlier, driven by a rise in revenue and improved operating efficiency.
Related News
Sipchem’s profit doubles on higher sales, prices in 9M 2018 |
Sipchem, Sahara sign MoU on planned merger |
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