Financial Results : Sipchem profit plunges 67% to SAR 1.01 bln in 9M 2023, Q3 drops to SAR 233.1 mln

Sipchem profit plunges 67% to SAR 1.01 bln in 9M 2023, Q3 drops to SAR 233.1 mln

18/10/2023 Argaam Exclusive

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Sahara International Petrochemical Co. (Sipchem) posted a 67% drop in net profit to SAR 1.01 billion in the first nine months of 2023, compared to SAR 3.11 billion in the prior-year period.



Financials (M)

Item 9m 2022 9m 2023 Change‬
Revenues 8,298.94 5,578.23 (32.8 %)
Gross Income 4,028.43 1,740.36 (56.8 %)
Operating Income 3,430.00 1,218.83 (64.5 %)
Net Income 3,116.33 1,016.34 (67.4 %)
Average Shares 733.33 733.33 -
EPS (Riyals) 4.25 1.39 (67.4 %)

The lower profit was due to a decline in revenues on lower product prices, as well as a fall in sales volumes due to the periodic turnaround maintenance activities of International Methanol Co. and International Diol Co.

 

In addition, the company's share of profits from investments in a joint venture and associates decreased.



Current Quarter Comparison (M)

Compared With The
Item Q3 2022 Q3 2023 Change‬
Revenues 2,853.42 1,789.37 (37.3 %)
Gross Income 1,123.18 457.83 (59.2 %)
Operating Income 909.91 304.68 (66.5 %)
Net Income 774.41 233.09 (69.9 %)
Average Shares 733.33 733.33 -
EPS (Riyals) 1.06 0.32 (69.9 %)

In Q3 2023, the petrochemical producer posted a 70% drop in its net profit to SAR 233.1 million from SAR 774.41 million in Q3 2022.

 

This was due to a fall in the company's share of profits from investments in joint venture and associates as well as lower product prices despite a drop in material prices.

 

Compared with the previous quarter, net profit fell by 25.5% from SAR 312.92 million, mainly due to lower product prices and a decline in the profit share from a joint venture and associates. 

 

Total shareholders’ equity, after minority interest, declined to SAR 15.90 billion by the end of the nine-month period, from SAR 16.40 billion a year earlier. 



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2014 927.45 8.2 % 233.36 29.3 % 167.70 12.0 %
Q2 2014 1,177.63 29.1 % 522.46 41.7 % 479.24 41.2 %
Q3 2014 1,019.33 2.1 % 317.91 (8.0 %) 270.04 (15.3 %)
Q4 2014 999.99 (23.3 %) 322.92 (31.2 %) 260.87 (26.3 %)
Q1 2015 802.03 (13.5 %) 234.08 0.3 % 176.62 5.3 %
Q2 2015 1,006.95 (14.5 %) 287.40 (45.0 %) 227.47 (52.5 %)
Q3 2015 809.93 (20.5 %) 209.37 (34.1 %) 156.89 (41.9 %)
Q4 2015 871.77 (12.8 %) 102.15 (68.4 %) 12.39 (95.2 %)
Q1 2016 923.99 15.2 % 268.86 14.9 % 164.80 (6.7 %)
Q2 2016 923.62 (8.3 %) 215.25 (25.1 %) 106.74 (53.1 %)
Q3 2016 717.85 (11.4 %) 128.24 (38.8 %) 31.56 (79.9 %)
Q4 2016 949.59 8.9 % 249.11 143.9 % 134.24 983.3 %
Q1 2017 1,199.01 29.8 % 352.28 31.0 % 230.72 40.0 %
Q2 2017 918.28 (0.6 %) 281.06 30.6 % 175.49 64.4 %
Q3 2017 1,063.57 48.2 % 367.04 186.2 % 253.50 703.2 %
Q4 2017 1,278.63 34.6 % 425.67 70.9 % 274.99 104.8 %
Q1 2018 1,170.94 (2.3 %) 414.77 17.7 % 283.58 22.9 %
Q2 2018 1,474.46 60.6 % 545.06 93.9 % 410.23 133.8 %
Q3 2018 1,337.75 25.8 % 470.38 28.2 % 327.98 29.4 %
Q4 2018 1,052.66 (17.7 %) 204.57 (51.9 %) 73.99 (73.1 %)
Q1 2019 1,121.61 (4.2 %) 405.07 (2.3 %) 267.43 (5.7 %)
Q2 2019 1,409.42 (4.4 %) 488.57 (10.4 %) 320.44 (21.9 %)
Q3 2019 1,402.02 4.8 % 361.57 (23.1 %) 176.96 (46.0 %)
Q4 2019 1,506.69 43.1 % 380.04 85.8 % 141.44 91.2 %
Q1 2020 1,404.09 25.2 % 272.39 (32.8 %) 66.35 (75.2 %)
Q2 2020 950.24 (32.6 %) 161.65 (66.9 %) (23.42) (107.3 %)
Q3 2020 1,361.94 (2.9 %) 220.28 (39.1 %) 17.70 (90.0 %)
Q4 2020 1,606.75 6.6 % 518.62 36.5 % 299.01 111.4 %
Q1 2021 2,030.98 44.6 % 956.06 251.0 % 733.27 1005.2 %
Q2 2021 2,362.65 148.6 % 1,477.57 814.1 % 1,139.95 4968.3 %
Q3 2021 2,505.60 84.0 % 1,369.30 521.6 % 1,139.50 6339.3 %
Q4 2021 2,787.47 73.5 % 1,539.43 196.8 % 1,448.71 384.5 %
Q1 2022 2,348.11 15.6 % 1,321.34 38.2 % 1,149.14 56.7 %
Q2 2022 3,097.40 31.1 % 1,583.91 7.2 % 1,370.95 20.3 %
Q3 2022 2,853.42 13.9 % 1,123.18 (18.0 %) 909.91 (20.1 %)
Q4 2022 1,954.69 (29.9 %) 810.24 (47.4 %) 616.99 (57.4 %)
Q1 2023 2,087.31 (11.1 %) 754.92 (42.9 %) 561.05 (51.2 %)
Q2 2023 1,701.55 (45.1 %) 527.62 (66.7 %) 353.11 (74.2 %)
Q3 2023 1,789.37 (37.3 %) 457.83 (59.2 %) 304.68 (66.5 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2014 68.66 6.5 % 0.19 - 68.66 0.19
Q2 2014 244.60 40.6 % 0.67 - 244.60 0.67
Q3 2014 160.57 (13.3 %) 0.44 - 160.57 0.44
Q4 2014 132.40 (32.7 %) 0.36 (37.50) 169.90 0.46
Q1 2015 80.62 17.4 % 0.22 - 80.62 0.22
Q2 2015 110.07 (55.0 %) 0.30 - 110.07 0.30
Q3 2015 71.58 (55.4 %) 0.20 - 71.58 0.20
Q4 2015 25.98 (80.4 %) 0.07 - 25.98 0.07
Q1 2016 49.23 (38.9 %) 0.13 (21.50) 70.73 0.19
Q2 2016 11.37 (89.7 %) 0.03 - 11.37 0.03
Q3 2016 (49.38) (169.0 %) (0.13) - (49.38) (0.13)
Q4 2016 31.87 22.7 % 0.09 - 31.87 0.09
Q1 2017 91.65 86.2 % 0.25 - 91.65 0.25
Q2 2017 59.79 425.9 % 0.16 - 59.79 0.16
Q3 2017 121.55 346.1 % 0.33 - 121.55 0.33
Q4 2017 164.40 415.9 % 0.45 - 164.40 0.45
Q1 2018 151.39 65.2 % 0.41 2.86 148.53 0.41
Q2 2018 211.37 253.5 % 0.58 (14.20) 225.57 0.62
Q3 2018 180.27 48.3 % 0.49 (13.96) 194.23 0.53
Q4 2018 39.92 (75.7 %) 0.11 24.83 15.09 0.04
Q1 2019 114.72 (24.2 %) 0.18 (13.00) 127.72 0.20
Q2 2019 210.85 (0.2 %) 0.33 (4.50) 215.35 0.34
Q3 2019 111.05 (38.4 %) 0.17 (2.80) 113.85 0.18
Q4 2019 (137.10) (443.4 %) (0.21) (23.51) (113.60) (0.18)
Q1 2020 (52.83) (146.0 %) (0.07) (188.91) 136.09 0.19
Q2 2020 (98.96) (146.9 %) (0.13) - (98.96) (0.13)
Q3 2020 10.01 (91.0 %) 0.01 - 10.01 0.01
Q4 2020 317.64 331.7 % 0.43 71.36 246.28 0.34
Q1 2021 411.47 878.9 % 0.56 (160.00) 571.47 0.78
Q2 2021 829.88 938.6 % 1.13 (72.10) 901.98 1.23
Q3 2021 1,029.51 10180.7 % 1.40 - 1,029.51 1.40
Q4 2021 1,321.00 315.9 % 1.80 9.40 1,311.60 1.79
Q1 2022 1,078.82 162.2 % 1.47 - 1,078.82 1.47
Q2 2022 1,263.10 52.2 % 1.72 - 1,263.10 1.72
Q3 2022 774.41 (24.8 %) 1.06 - 774.41 1.06
Q4 2022 478.96 (63.7 %) 0.65 (36.40) 515.36 0.70
Q1 2023 470.33 (56.4 %) 0.64 - 470.33 0.64
Q2 2023 312.92 (75.2 %) 0.43 - 312.92 0.43
Q3 2023 233.09 (69.9 %) 0.32 - 233.09 0.32

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 34.22 % 42.01 % 15.08 %
Q2 2014 35.65 % 42.65 % 15.78 %
Q3 2014 34.86 % 41.78 % 15.15 %
Q4 2014 33.86 % 42.36 % 15.61 %
Q1 2015 34.94 % 44.44 % 16.40 %
Q2 2015 30.36 % 40.88 % 13.61 %
Q3 2015 29.12 % 40.95 % 11.94 %
Q4 2015 23.86 % 36.22 % 8.26 %
Q1 2016 24.02 % 36.37 % 7.70 %
Q2 2016 22.54 % 33.34 % 5.09 %
Q3 2016 20.79 % 27.62 % 1.71 %
Q4 2016 24.51 % 33.63 % 1.84 %
Q1 2017 24.93 % 31.95 % 2.26 %
Q2 2017 26.70 % 34.06 % 3.54 %
Q3 2017 30.25 % 38.89 % 7.38 %
Q4 2017 31.98 % 37.10 % 9.81 %
Q1 2018 33.59 % 39.50 % 11.15 %
Q2 2018 35.14 % 40.29 % 13.23 %
Q3 2018 35.27 % 39.61 % 13.93 %
Q4 2018 32.46 % 36.75 % 11.59 %
Q1 2019 32.59 % 36.33 % 11.28 %
Q2 2019 31.87 % 35.20 % 11.22 %
Q3 2019 29.28 % 32.93 % 9.47 %
Q4 2019 30.06 % 31.54 % 6.31 %
Q1 2020 26.26 % 27.08 % 6.15 %
Q2 2020 22.34 % 23.24 % 0.71 %
Q3 2020 19.80 % 21.11 % (1.27 %)
Q4 2020 22.04 % 24.54 % 5.51 %
Q1 2021 31.20 % 32.90 % 12.25 %
Q2 2021 43.09 % 42.55 % 23.49 %
Q3 2021 50.81 % 49.65 % 32.32 %
Q4 2021 55.15 % 56.32 % 39.38 %
Q1 2022 57.05 % 58.67 % 43.20 %
Q2 2022 54.14 % 56.66 % 43.61 %
Q3 2022 50.22 % 52.99 % 39.94 %
Q4 2022 47.19 % 48.47 % 35.42 %
Q1 2023 42.75 % 43.94 % 30.25 %
Q2 2023 37.41 % 39.25 % 24.11 %
Q3 2023 33.86 % 36.34 % 20.33 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 366.67 1.70 1.70 15.35
Q2 2014 366.67 1.90 1.90 15.45
Q3 2014 366.67 1.83 1.83 15.90
Q4 2014 366.67 1.65 1.76 16.28
Q1 2015 366.67 1.69 1.79 15.85
Q2 2015 366.67 1.32 1.42 15.59
Q3 2015 366.67 1.08 1.18 15.78
Q4 2015 366.67 0.79 0.79 15.85
Q1 2016 366.67 0.70 0.76 14.36
Q2 2016 366.67 0.43 0.49 14.38
Q3 2016 366.67 0.10 0.16 14.25
Q4 2016 366.67 0.12 0.18 14.36
Q1 2017 366.67 0.23 0.23 14.61
Q2 2017 366.67 0.37 0.37 14.77
Q3 2017 366.67 0.83 0.83 15.10
Q4 2017 366.67 1.19 1.19 15.55
Q1 2018 366.67 1.36 1.35 15.97
Q2 2018 366.67 1.77 1.80 16.05
Q3 2018 366.67 1.93 2.00 16.04
Q4 2018 366.67 1.59 1.59 16.14
Q1 2019 641.67 0.85 0.88 15.81
Q2 2019 641.67 0.85 0.86 18.89
Q3 2019 641.67 0.74 0.74 18.44
Q4 2019 641.67 0.47 0.54 18.19
Q1 2020 733.33 0.18 0.48 18.09
Q2 2020 733.33 (0.24) 0.05 17.97
Q3 2020 733.33 (0.38) (0.09) 17.94
Q4 2020 733.33 0.24 0.40 17.71
Q1 2021 733.33 0.87 0.99 17.77
Q2 2021 733.33 2.14 2.36 18.18
Q3 2021 733.33 3.53 3.75 19.56
Q4 2021 733.33 4.90 5.20 19.89
Q1 2022 733.33 5.81 5.89 21.37
Q2 2022 733.33 6.40 6.39 21.31
Q3 2022 733.33 6.05 6.04 22.36
Q4 2022 733.33 4.90 4.95 21.56
Q1 2023 733.33 4.07 4.12 22.17
Q2 2023 733.33 2.78 2.83 21.39
Q3 2023 733.33 2.04 2.09 21.69

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 38.15 38.15 4.23
Q2 2014 33.35 33.35 4.09
Q3 2014 46.97 46.97 5.40
Q4 2014 32.10 30.23 3.26
Q1 2015 33.93 31.99 3.61
Q2 2015 47.97 44.52 4.06
Q3 2015 35.01 31.97 2.39
Q4 2015 35.64 35.64 1.77
Q1 2016 37.63 34.72 1.84
Q2 2016 60.60 53.35 1.82
Q3 2016 More than 100 More than 100 1.86
Q4 2016 More than 100 More than 100 2.63
Q1 2017 More than 100 More than 100 2.43
Q2 2017 77.10 77.10 1.91
Q3 2017 37.93 37.93 2.09
Q4 2017 29.26 29.26 2.24
Q1 2018 31.26 31.44 2.65
Q2 2018 25.34 24.91 2.79
Q3 2018 23.41 22.60 2.82
Q4 2018 25.11 25.09 2.47
Q1 2019 27.06 26.28 2.55
Q2 2019 28.03 27.69 1.10
Q3 2019 27.73 28.00 0.98
Q4 2019 43.97 38.36 0.99
Q1 2020 68.23 25.61 0.68
Q2 2020 NEG More than 100 0.80
Q3 2020 NEG NEG 0.92
Q4 2020 72.22 43.29 0.98
Q1 2021 25.32 22.24 1.24
Q2 2021 14.33 12.99 1.69
Q3 2021 12.41 11.68 2.24
Q4 2021 8.57 8.07 2.11
Q1 2022 9.25 9.11 2.51
Q2 2022 7.77 7.78 2.36
Q3 2022 6.92 6.93 1.87
Q4 2022 6.85 6.78 1.58
Q1 2023 9.29 9.18 1.71
Q2 2023 13.12 12.89 1.72
Q3 2023 18.54 18.10 1.74

Business Segments (Million)

Compared With The
Period Marketing Intermediate chemicals Basic chemicals Polymers Corporate and others Petrochemical sector Eliminations
Q1 2014 225.80 - - - - 701.65 -
Q2 2014 143.30 - - - - 1,034.33 -
Q3 2014 128.72 - - - - 890.61 -
Q4 2014 226.62 - - - - 773.37 -
Q1 2015 59.50 - - - - 742.53 -
Q2 2015 99.40 - - - - 907.55 -
Q3 2015 64.73 - - - - 745.20 -
Q4 2015 279.26 - - - - 592.51 -
Q1 2016 - 565.13 341.67 271.08 51.78 - (305.68)
Q2 2016 928.40 603.96 337.22 260.71 - - (1156.44)
Q3 2016 391.59 385.17 276.06 251.18 - - (584.60)
Q4 2016 569.76 416.92 372.05 290.91 1.55 - (701.59)
Q1 2017 899.09 606.65 508.76 318.09 2.55 - (1136.12)
Q2 2017 616.75 513.05 359.97 228.20 74.44 - (874.13)
Q3 2017 599.04 435.32 498.62 285.49 33.22 - (788.11)
Q4 2017 774.81 747.67 494.99 266.44 14.89 - (1020.16)
Q1 2018 731.01 565.18 540.95 296.35 41.82 - (1004.36)
Q2 2018 825.69 693.27 536.49 298.43 40.58 - (920.00)
Q3 2018 781.59 810.39 384.43 407.53 44.84 - (1091.03)
Q4 2018 629.36 746.38 320.81 352.07 17.51 - (1013.48)
Q1 2019 720.42 690.39 414.52 295.77 76.68 - (1076.18)
Q2 2019 791.99 577.35 392.95 590.67 134.60 - (1078.15)
Q3 2019 802.75 360.16 590.10 701.89 (86.24) - (966.65)
Q4 2019 589.67 697.60 442.78 997.51 19.14 - (1240.01)
Q1 2020 1,022.46 591.42 465.32 506.80 12.04 - (1193.95)
Q2 2020 646.72 445.67 370.55 419.67 13.86 - (946.23)
Q3 2020 867.35 588.25 351.95 652.64 18.36 - (1116.61)
Q4 2020 1,122.06 606.62 503.76 755.12 10.16 - (1390.98)
Q1 2021 1,456.57 762.03 648.12 828.79 7.40 - (1671.93)
Q2 2021 1,730.16 1,133.47 753.07 958.38 3.80 - (2216.22)
Q3 2021 1,964.72 1,096.97 841.12 810.62 0.08 - (2207.91)
Q4 2021 2,283.86 1,312.85 903.74 856.89 5.25 - (2575.13)
Q1 2022 1,935.17 1,181.01 873.20 652.58 3.04 - (2296.89)
Q2 2022 2,544.64 1,417.72 912.22 1,010.31 9.10 - (2796.58)
Q3 2022 2,140.18 1,208.16 747.00 1,021.86 10.02 - (2273.78)
Q4 2022 1,428.30 832.54 651.93 676.06 5.91 - (1640.05)
Q1 2023 1,476.57 818.13 654.38 746.82 32.19 - (1640.79)
Q2 2023 1,157.22 727.83 302.88 614.42 21.54 - (1122.33)
Q3 2023 1,329.18 464.48 484.70 733.30 20.54 - (1242.83)

Analysts Estimates (Million)

Item Q3 2023 (e) Q3 2023 (a) Change‬
Average 390.48 233.09 (40.3 %)

Estimates vs Actual (Million)

Item Q3 2023 (e) Q3 2023 (a) Change
Hermes 259.00 233.09 (10.0) %
Bank of America 340.86 233.09 (31.6) %
U-Capital 344.90 233.09 (32.4) %
SNB Capital 350.00 233.09 (33.4) %
AlJazira Capital 357.90 233.09 (34.9) %
OSOOL AND BAKHEET 383.76 233.09 (39.3) %
Riyad Capital 426.00 233.09 (45.3) %
Al Rajhi Capital 433.00 233.09 (46.2) %
Arqaam Capital 477.00 233.09 (51.1) %
Value Capital 532.35 233.09 (56.2) %

Current
Market Cap (M Riyal) 19,359.91
Enterprise Value (EV) (M) 20,875.84
Shares Outstanding ((M)) 733.33
EPS ( Riyal) (TTM) 0.77
Book Value (BV) ( Riyal) 21.28
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) 34.28
Price/book 1.24
Return on Average Assets (%) (TTM) 2.5
Return on Average Equity (%) (TTM) 3.6

Share Price

Sahara International Petrochemical Co. (SIPCHEM)


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