MOSCOW (MRC) -- Saudi International Petrochemical Co (Sipchem) posted a 57.5 percent fall in first-quarter net profit on Sunday, citing shutdowns at a number of plants during the period for the decline in earnings, said Arabnews.
The firm reported a net profit of SR64.5m (USD17.2m) for the three months to March 31, it said in a bourse statement, down from SR151.6m in the corresponding period of 2012.
The profit figure missed estimates. Seven analysts polled by Reuters on average forecast a first-quarter net profit of SR118.1m.
Sipchem attributed the profit drop to shutdowns at four manufacturing plants during the quarter, which in turn reduced product sales, while some product prices also fell.
As MRC wrote earlier, three affiliates of Sipchem (Saudi International Petrochemical Company) have refinanced loan facilities worth 1.04 billion riyals (USD276 mln), which were used to fund their key projects. International Acetyl Company, International Vinyl Acetate Company and International Gas Company have converted dollar-denominated loans raised in 2008 to build respective manufacturing plants into new long-term facilities denominated in riyals. Riyad Bank was the lead arranger of the deal, which carried a "competitive variable interest rate" as well as a six-month grace period. The first instalment is due to be repaid in H2-2013, with the loan to be paid off in four years.
MRC