Riyadh, Saudi Arabia — Sahara International Petrochemical Company (Sipchem) Wednesday posted a 67 percent drop in net profit to SAR 1.01 billion ($269 million) in the first nine months of 2023, compared to SAR 3.11 billion in the prior-year period.
Argaam reported that 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, Argaam said.
In Q3 2023, the petrochemical producer posted a 70 percent 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 percent 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.