MOSCOW (MRC) -- Sipchem's net profit fell by 41.3% year on year to Saudi riyal (SR) 175.9m last year, partly weighed by lower selling prices for most of its products, the Saudi Arabia-based producer said in a stock exchange filing, said Argaam.
Sahara International Petrochemical Co. (Sipchem) reported a net profit after Zakat and tax of SAR 175.9 million in 2020, down 41% compared to a net profit of SAR 299.5 million a year earlier.
The profit drop was attributed to lower sales revenue and selling prices for most of Sipchem’s products, along with lower production in the polypropylene plant, due to unplanned shutdown and turnaround maintenance.
Sipchem also recorded an impairment loss of SAR 280 million in 2020 from cash generating units, namely International Diol Company (IDC) (SAR 100 million) and EVA Film Plant, owned by Saudi Specialized Products Company (SAR 180 million).
As per MRC, Sahara International Petrochemical Co. (Sipchem) is planning to mothball the Polybutylene Terephthalate (PBT) plant, owned by its affiliate, Sipchem Chemical Co., and Ethylene Vinyl Acetate (EVA) Film plant that is owned by affiliate firm, Saudi Specialized Products Co. Steps to implement the decision are underway, Sipchem said in a statement to Tadawul, adding that the suspension of both plants will start on Jan. 1, 2021, until further notice. The company expects a positive financial impact starting from Q1 2021 results.
According to ICIS-MRC Price report, on Wednesday, 10 March, 1,500 tonnes of Turkmenbashi refinery's PP raffia grade were put up for export sale at the State Commodity and Raw Materials Exchange of Turkmenistan. The starting price was set at USD1,515/tonne FOB/FCA. PP prices were growing dynamically during the trades and finally reached another record - USD1,775/tonne FOB/FCA, the total volume of PP was sold in one day.