Sipchem expected to post stronger results soon, says CEO

Saudi International Petrochemical Co (Sipchem) is expected to post stronger financial results in the near future backed by the operation of all plants, chief executive officer Saleh Bahamdan told CNBC Arabia on Sunday.

Expansion of the methanol plant’s production capacity to 1.5 million tons from 1 million tons annually will also bolster Sipchem’s earnings going forward, as it enhanced sales.

“In addition, the merger between Sipchem and Sahara is expected to create synergies of SAR 225 million over the next three years,” Bahamdan said.

The petrochemical producer is studying several projects in Asia, the United States and Africa. It will announce more details about those investments and target products in the next few months.

The company’s earnings were hit by the US-China trade war, as well as the temporary shutdown of three of its units for scheduled maintenance.

Sipchem exports products to Europe, India and the Middle East. Asia sales are divided into 52 percent of petrochemicals and 47 percent of polymers, Bahamdan also said. 

Sipchem’s H1 2019 net profit dropped 10.3 percent year-on-year to SAR 325.6 million, Argaam reported.