Sipchem’s Q1 ‘excellent’, expecting improved prices ahead, says Alohali

Saudi International Petrochemical Co.’s (Sipchem) results for the first quarter of this year were excellent, mainly due to a 13 percent improvement in product prices, Ahmed Alohali, chief executive officer told Alarabiya in a telephone interview.

Methanol prices improved by 50 percent in Q1 compared to a year earlier, while feedstock (ethylene) prices rose 15 percent.

As for his expectations on products prices, he said that the stable oil market promises higher prices in 2017 or at least stable prices for some, especially after China’s closure of some coal mines that the Chinese petrochemical industry depends on.

Meanwhile, Sipchem’s carbon monoxide plant is expected to shut down for scheduled maintenance in the coming months, he added.

The company reported a net profit of SAR 91.7 million in Q1, an 86 percent year-on-year rise.