Sipchem Announce the Interim Financial Results for the Period Ended 30th June 2016 (Six Months)
Wednesday, July 27, 2016
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Element Current quarter Similar quarter for previous year % Change current Previous quarter % Change previous
Net profit (loss) 26 110.1 -76.39 50.7 -48.72
Gross profit (loss) 163.6 287.4 -43.08 229.3 -28.65
Operational profit (loss) 99 227.5 -56.48 159.3 -37.85
All figures are in (Millions) Saudi Arabia, Riyals
Element Net profit (loss)
Current period 76.7
Similar period for previous year 190.7
% Change -59.78
Gross profit (loss)
Current period 392.9
Similar period for previous year 521.5
% Change -24.66
Operational profit (loss)
Current period 258.3
Similar period for previous year 404.1
% Change -36.08
Earning or loss per share, Riyals
Current period 0.21
Similar period for previous year 0.52
% Change -
All figures are in (Millions) Saudi Arabia, Riyals
Element Current period Similar period for previous year % Change
Net profit (loss) 76.7 190.7 -59.78
Gross profit (loss) 392.9 521.5 -24.66
Operational profit (loss) 258.3 404.1 -36.08
Earning or loss per share, Riyals 0.21 0.52 -
All figures are in (Millions) Saudi Arabia, Riyals
Element Reasons of increase (decrease) for quarter compared with same quarter last year
EXPLAINATION The decrease is due to several factors:
1. Decrease in profits margins due to the decrease in sales prices of all companys products in spite of increase in production and sales quantities and increase in production costs due to the increase in gas feedstock and energy prices and electricity tariffs.
2. Non-recurring expenses represents compensation cost for the employees who have been included in the early retirement program and the non-renewal of some contracts and the restructuring of some the companys operations to improve performance and reduce future costs.
3. Increase in financial expenses as a result of increased SAIBOR and increased bridge loans supporting a maturing Sukuk.
Reasons of increase (decrease) for period compared with same period last year
EXPLAINATION 1. Decrease in profits margins due to the decrease in sales prices of all companys products in spite of increase in production and sales quantities.
2. Increase in production costs due to the increase in gas feedstock and energy prices and electricity tariffs.
3. Non-recurring expenses represents compensation cost for the employees who have been included in the early retirement program and the non-renewal of some contracts and the restructuring of some the companys operations to improve performance and reduce future costs.
4. Increase in financial expenses as a result of increased SAIBOR and increased bridge loans supporting a maturing Sukuk.
Reasons of increase (decrease) for quarter compared with previous quarter
EXPLAINATION The decline is primarily due to the decline in profit margins as a result of the continuing decline in average product prices (especially Butanediol product) as well as reduced production and sales quantities as a result of scheduled shutdown of carbon monoxide plant, acetic acid plant and Ethyl Acetate plant for periodic scheduled maintenance as announced in TADAWUL site on 28 April 2016. In addition, the increase of feedstock prices during the quarter.
Other notes
EXPLAINATION Since the commercial operations of International Polymers Company plant and Gulf Advanced Cable Insulation Company plant started during second quarter of last year, the first quarter of the same period last year did not include the expenses and financial results of these plants.
Element EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year The decrease is due to several factors:
1. Decrease in profits margins due to the decrease in sales prices of all companys products in spite of increase in production and sales quantities and increase in production costs due to the increase in gas feedstock and energy prices and electricity tariffs.
2. Non-recurring expenses represents compensation cost for the employees who have been included in the early retirement program and the non-renewal of some contracts and the restructuring of some the companys operations to improve performance and reduce future costs.
3. Increase in financial expenses as a result of increased SAIBOR and increased bridge loans supporting a maturing Sukuk.
Reasons of increase (decrease) for period compared with same period last year 1. Decrease in profits margins due to the decrease in sales prices of all companys products in spite of increase in production and sales quantities.
2. Increase in production costs due to the increase in gas feedstock and energy prices and electricity tariffs.
3. Non-recurring expenses represents compensation cost for the employees who have been included in the early retirement program and the non-renewal of some contracts and the restructuring of some the companys operations to improve performance and reduce future costs.
4. Increase in financial expenses as a result of increased SAIBOR and increased bridge loans supporting a maturing Sukuk.
Reasons of increase (decrease) for quarter compared with previous quarter The decline is primarily due to the decline in profit margins as a result of the continuing decline in average product prices (especially Butanediol product) as well as reduced production and sales quantities as a result of scheduled shutdown of carbon monoxide plant, acetic acid plant and Ethyl Acetate plant for periodic scheduled maintenance as announced in TADAWUL site on 28 April 2016. In addition, the increase of feedstock prices during the quarter.
Other notes Since the commercial operations of International Polymers Company plant and Gulf Advanced Cable Insulation Company plant started during second quarter of last year, the first quarter of the same period last year did not include the expenses and financial results of these plants.