Saudi International Petrochemical Company (Sipchem) announces the Interim Financial Results for the Period Ending on 31 March 2019 (Three Months)
Wednesday, April 24, 2019
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Change %

previous Quarter

Change %

Similar quarter for previous year

Current Quarter

Element

6.5%

1,052.7

-4.2%

1,170.9

1,121.6

Sales/Revenue

98.0%

204.6

-2.3%

414.8

405.1

Total Profit (Loss)

261.4%

74.0

-5.7%

283.6

267.4

Profit (Loss) Operational

187.5%

39.9

-24.2%

151.4

114.7

Net Profit (Loss) after Zakat and Tax

199.5%

38.6

-23.7%

151.5

115.6

Total Comprehensive Income

All Figures are in (Millions) Saudi Arabia, Riyals

 

Current period

Similar period for previous year

change%

Element

-1.0%

5,855.2

5,797.0

Total Share Holders Equity (after deducting minority equity)

-

0.41

0.31

Profit (Loss) per Share

All Figures are in (Millions) Saudi Arabia, Riyals

 

Explanation

Element

Net Profit attributable to shareholders of the company decreased during current quarter compared to the same quarter of the previous year due to lower Sales Revenue as a result of lower selling prices for most of the company’s products, partially offset by increased sales volumes in the quarter. Furthermore, profit was impacted by increase in other income / loss for expenses for proposed merger, including merger integration planning. Finally, the increase in finance cost was mostly driven by increase in effective interest rate cost (EIR) under Sipchem’s and Sipchem’s affiliates loan facilities, which at floating rate cost linked to SAIBOR have been impacted by increasing interest rates.

Reason for increase (decrease) in net profit for current quarter compared to the same quarter of the previous year

Net Profit attributable to shareholders of the company increased during current quarter compared to the previous quarter mainly due to the increase in production and sales volume of company’s products and decrease in the prices of feedstock (butane and ethylene).

Reason for increase (decrease) in net profit for current quarter compared to the previous quarter

Unmodified Opinion

Type of the external auditor's opinion

None

External auditor's report containing reservation

None

Reclassifications in quarter financial result

The Company’s ongoing efforts to improve operating efficiency and to reduce costs, combined with increased production and sales volumes from its majority owned affiliate, International Methanol Company (IMC), provided the platform for increased profit results in Q1 2019 compared to Q4 2018, despite continued challenging market conditions for most chemicals and polymers products sold through its entities.

From 1 January 2019, the Company has adopted IFRS 16 - Leases and did not have any impact on retained earnings as at 1 January 2019. As a result of initially applying IFRS 16, in relation to the leases that were previously classified as operating leases, the Group recognized as right-of-use assets and lease liabilities as at 31 March 2019.

Other notes