Sahara International Petrochemical Company (Sipchem) announces its Interim Financial Results for the Period Ending on 31 March 2020 (Three Months)
Monday, May 18, 2020
Back to News List
ELEMENT LIST CURRENT QUARTER SIMILAR QUARTER FOR PREVIOUS YEAR %CHANGE PREVIOUS QUARTER % CHANGE
Sales/Revenue 1,404.1 1,121.6 25.187 1,506.7 -6.809
Gross Profit (Loss) 261.9 405.1 -35.349 380 -31.078
Operational Profit (Loss) 66.3 267.4 -75.205 141.4 -53.111
Net Profit (Loss) after Zakat and Tax -52.8 114.7 - -137.1 -61.487
Total Comprehensive Income -74.7 115.6 - -182.9 -59.158
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENT LIST CURRENT PERIOD SIMILAR PERIOD FOR PREVIOUS YEAR %CHANGE
Total Share Holders Equity (after Deducting Minority Equity) 13,268 5,797 128.877
Profit (Loss) per Share -0.07 0.31
All figures are in (Millions) Saudi Arabia, Riyals
ELEMENT LIST EXPLANATION
Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to Reason for the decrease for the current quarter compared to the same quarter of the previous year is due to:

 

- lower netbacks for most of Sipchem’s products

- lower production volumes primarily due to unplanned shutdown and turnaround maintenance at Al-Waha, as previously announced on Tadawul.

- Impairment loss relating to International Diol Company amounting to SR 100 million

- Impairment loss resulting from classification of certain assets in the “Corporate and others” segment as held-for-sale amounting to SR 180 million

Sipchem’s net loss during the current period also includes results from Sahara Petrochemicals Company whereas prior period does not include Sahara Petrochemicals Company results.

 

This decrease is despite the increased sales volumes of Methanol, as a result of the Methanol Plant Energy Efficiency and Performance Enhancement Project, and relatively lower average price of certain feedstocks.

Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to Reason for the decrease in net loss of Sipchem for the current quarter compared to the previous quarter is due to:

 

- improvement in selling prices of certain products of Sipchem

- lower impairment losses

This is despite lower production and sales volumes of Al-Waha due to unplanned shutdown and turnaround maintenance, as previously announced on Tadawul, and lower sales volumes in most of the company products

Basis of the External Auditor's Opinion Unmodified opinion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion None
Reclassification of Comparison Items None
Additional Information Economic environment and its effects on business

 

Recent development of coronavirus (COVID-19) and global recession due to falling demand are impacting the businesses in form of economic contraction. Management has proactively responded to contain the impact of these developments and established a business continuity committee. The committee has established processes to ensure health and safety of its employees and contractors and is closely monitoring the current situation given global commodity price deterioration.

 

Notwithstanding these challenges, Sipchem business operations currently remain largely unaffected as the Group was successful in maintaining stable operations for the quarter ended 31 March 2020. Further, the Group is having continued supply of essential feedstocks to meet expected demand of its products. Sipchem’s management continues to monitor the situation closely as the situation is fluid and rapidly evolving.

 

Profit/loss Per Share:

The profit/loss per share has been calculated for the period ending 31 March 2020 on the basis of number of shares (733,333,332) after the company capital increase which was approved by the Extraordinary General Assembly’s 16/05/2019 for the purpose of acquiring all the shares of the shareholders of Sahara Petrochemicals Company.