Sahara International Petrochemical Co's (Sipchem) 2021 net profit surged on the back of higher product prices despite, said Argaam.
Sahara International Petrochemical Co, or Spichem, reported a net profit increase of 1,942 percent in 2021. The company's net income reached SR3.59 billion (USD957 million), compared to a loss of SR175 million in 2020, according to a bourse filing.
Sipchem also succeeded in reducing the long-term loans by SR2.1 billion compared to the end of the year 2020. The gearing ratio went down to 34% in 2021. In 2020, the gearing ratio of the company was 54%.
Sipchem distributed a total dividend of SR1.64 billion equivalent to SR2.25 per share, which is considered the highest in the company's history.
Sahara International Petrochemical Co (Sipchem) and industrial gas firm Linde signed an exclusive agreement to set up a joint venture for developing industrial gas projects and networks in Saudi Arabia. Under a 50/50 joint venture, Linde and Sipchem said they intend to connect existing hydrogen and syngas plants owned and operated by the two parties in Jubail Industrial City.
As MRC informed earlier, 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.
MRC