) -- Saudi International Petrochemical Company's (Sipchem's) interim financial results for the period ended Dec. 31, 2013, shows its net profit during fourth quarter of 2013 amounted to SR196.8 million compared to SR157.7 million for the same quarter in 2012, with an increase of 24.8% and compared to SR185.2 million for the previous quarter with an increase of 6.3%, said the producer in its press release.
Net profit during 12 months amounted to SR620.5 million compared to SR601.2 million for the same period last year with an increase of 3.2%. Gross profit during 12 months amounted to SR1.30 billion compared to SR1.27 billion for the same period last year with an increase of 2.3%.
Operational profit during the 12-month period amounted to SR1.17 billion compared to SR1.14 billion for the same period last year with an increase of 2.9%.
Earnings Per Share (EPS) during the 12-month period was SR1.69 compared to SR1.64 for the same period last year.
Reasons for increase in the quarter compared with same quarter last year is due to the increase in some of the company products' prices, especially methanol, and accordingly increase in profit margins in addition to decrease in financing costs.
Reasons for increase for the period compared with same period last year is also caused by the slight increase in the profits due to improvements in some of the company products' prices, especially methanol, taking into consideration the decrease in production and sales quantities as a result of the shutdown of company plants during Q1 for planned turnaround activities.
Reasons for increase for the quarter compared with previous quarter is as well due to the increase in most of the company’s products prices in addition to decrease in financing costs. Certain prior period amounts have been reclassified to conform with the presentation of the current period.
As MRC wrote
before, Sipchem Chemicals Company (SCC) signed on July 22, 2013 an incorporation agreement with Hanwha Chemicals Corporation to form a new company, under name of "Saudi Specialty Products Company" for establishing conversion projects in Saudi Arabia.
Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.MRC