SIIG’s net profit likely to grow in Q3 2022

In this report, Argaam highlights the expected results of Saudi Industrial Investment Group (SIIG) for the third quarter of 2022, in addition to its key events and feedstock prices.

The group’s revenues are projected to reach SAR 319.0 million.

Key Events in Q3 2022:

SIIG said that 58-day scheduled maintenance works at its joint venture project, Saudi Polymers Co., started on Oct. 1.

The group’s board of directors approved a new strategy that aims to boost and diversify the current business portfolio.

SIIG plans to achieve this by continuing to pursue growth of its petrochemical projects and entering new sustainable business sectors that adopt state-of-art techniques.

Feedstock Prices:

Petrochem uses ethane and propane as main feedstock for its olefins unit to produce 550,000 tons per annum (tpa) of linear low-density polyethylene (LLDPE), 550,000 tpa of high-density polyethylene (HDPE) and 400,000 tpa of polypropylene (PP), along with other products such as hexane.

Jubail Chevron Phillips Co., which is 50% owned by SIIG, produces 150,000 tpa of propylene and 730,000 tpa of styrene.

Meanwhile, SIIG’s 50%-owned affiliate, Saudi Chevron Phillips, produces benzene, cyclohexane and motor gasoline blend stock.

Prices of end products edged lower YoY and QoQ.

Average Forecasts:

SIIG is forecast to report a net profit of SAR 254.5 million in Q3 2022, a 25% rise from SAR 204.0 million a year earlier, based on average estimates compiled by four research firms.