|Reason for the decrease in net profit of Sipchem for the current period compared to the same period of the previous year is due to:
- lower netbacks for most of Sipchem’s products
- lower sales volumes of Acetic Acid, Vinyl Acetate Monomer, Ethyl Acetate and Carbon Monoxide
- unplanned shutdown and turnaround maintenance at Al Waha, as previously announced on Tadawul
Sipchem’s net loss includes results from Sahara Petrochemicals Company for the full six months in current period whereas prior period only includes Sahara Petrochemicals Company results for one month.
This decrease is despite the increase in 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.
Further, as previously announced on Tadawul, during the current six months period:
- An impairment loss of approximately SR 100 million on International Diol Company cash generating unit
- certain assets in the “Corporate and others” segment were classified as held-for-sale and an impairment loss of SR 180 million was recognized