Petrochem tops Q2 forecast on higher sales, profit margins: Aljazira Capital

National Petrochemical Co.’s (Petrochem) Q2-2015 net profit (SAR 305.4 million) exceeded Aljazira Capital’s expectation by 57 percent and a consensus estimate by 69 percent, the brokerage firm said in a report.

Results during the period were boosted by higher sales volumes and an improvement in profit margins.

The investment arm of Bank AlJazira maintained an “overweight” rating on the stock, and raised its target price to SAR 29.80 from SAR 27.80.

The company is expected to maintain strong sales growth in 2015, as its operating rate is set to reach 85 percent of total production capacity.

Petrochem’s “strong” financial position and cash flows would also enable it to repay outstanding debts and push forward with expansions, the report added.