Net profits at Saudi International Petrochemical Co (Sipchem) fell by nearly a quarter in Q3 2019 compared to same period in 2018, its lastest bourse-filed financial results have revealed.
According to a Tadawul filing, net profit for the period after zakat and tax stood at $36m (SAR114.7m), a 24% fall on Q1 2018’s corresponding $40.4m (SAR151.4m) figure.
The Saudi chemicals giant attributed lower sales revenues – a result of lower selling prices for “most of [its] products” – for its lower numbers compared to the first three months of 2018.
Revenues hit $298.7m (SAR1.12bn) in the first quarter of this year, a slight 4% fall on the $312m (SAR1.17bn) in cash brought in during the same period last year.
Sipchem manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, and vinyl acetate monomer, as well as carbon monoxide through its various affiliates.
Its latest financials come four months after it announced a merger with Tadawul-listed chemicals company Sahara. Upon completion of the deal, which is yet to be announced, the latter will be delisted from the Saudi bourse to become a wholly-owned subsidiary of Sipchem.
In a separate merger-related Sipchem filing on Tadawul earlier this month, Sipchem announced that Saleh Mohammed Bahmdan, Sahara’s current chief executive officer, shall be appointed CEO of the combined group.
Abdullah Saif Al-Saadoon, Sipchem CEO and managing director, shall be appointed as the combined group’s chief operating officer after the deal, which is subject to required regulatory approvals.