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Saudi Industrial Export Co.’s (SIECO) solid performance in Q3 2018 was bolstered by higher sales and sulfur exports through state-run Saudi Aramco, chief executive Hazem Al-Dossari told CNBC Arabia.
The financial results were also driven by a major turnaround this year, as the company reduced general and administrative expenses, as well as shipping costs and almost offset the capital hike charges.
Profit margins were hit by sulfur prices, which jumped 40 percent in Q3 2018. The prices are likely to hover around the current level of $160 per ton in Q4 2018.
“SIECO is looking to purchase sulfur now to hedge against potential price hikes in the coming months,” he said.
China and India were SIECO’s largest sulfur importers with 120,000 tons in the third quarter, Al-Dossari said, adding that the company will maintain sulfur exports until the end of this year.
The company trimmed Q3 losses by 96.46 percent year-on-year to SAR 0.38 million, Argaam earlier reported.
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