Saudi Arabia's Sahara International Petrochemical Co. (Sipchem) on Wednesday reported a Q3 2023 net profit of 233.1 million riyals ($62 million), 70% lower compared to the year-ago period, said Zawya.
The net profit came well below analysts’ mean estimate of SAR 356.7 million, according to LSEG data.
The drop in profit was due to a decline in selling prices for its products, which offset the decline in the prices of raw materials. In addition, Sipchem's share of profits from investment in a joint venture and associates also declined, the petrochemicals producer said in a regulatory statement to Tadawul.
Quarterly sales were SAR 1.79 billion, down 37% compared with the year-ago period.
For the nine-month period ended September 30, Sipchem's net profit fell 67% to SAR 1.02 billion.
Saudi petrochemical producers are seeing a squeeze on margins due to weaker global demand and lower product prices, despite lower prices for some feedstock.
We remind, Sahara International Petrochemical Co. (Sipchem) announced the establishment of a new subsidiary, Sipchem Innovent Investment Co., to achieve sustainable growth by supporting and financing startups in the field of sustainability. The move aligns with Sipchem's strategic pillars for 2030, as it seeks to benefit from new technologies to boost innovations, develop advanced technology, and adopt new business models that contribute to sustainable transformation.
mrchub.com