The financial statements of Sahara International Petrochemical Company (Sipchem International) showed that the company's profits fell in the past year by 41.3% on an annual basis.
According to the company's results for the Saudi market (Tadawul), today, Thursday, last year's profits amounted to about 175.9 million riyals, compared to 2019 profits of 299.5 million riyals. p>
the company clarified that the decline in profits during the comparison years is due to lower revenues, as a result of lower prices for most of the company's products, and lower production in the polypropylene plant due to unplanned shutdown and maintenance. Patrol.
and indicated that the decline in profits is also due to the recording of a loss in the value of two cash generating units worth 280 million riyals, which relates to the International Company for Diol factory (amounting to 100 million riyals ) And the ethylene vinyl acetate film factory for the Saudi Company for Specialized Products (amounting to 180 million riyals).
She also noted that the decline in profit came despite the relatively low average prices of some raw materials, and Sahara Petrochemical Company's contribution to the company's results for a period of 12 months, in exchange for its contribution to the results for a period Only 7 months, in the year 2019.
and the company noted that it has taken measures to improve spending rates, which resulted in a reduction in operating and capital expenditures during 2020.
and she said that the changes in the geographical distribution of Sipchem's customer base helped reduce the demand and recoverability challenges from the Coronavirus (Covid-19).
The company confirmed that it continues to follow up on long-term supplier contracts in order to ensure that there is no interruption in the operation and to ensure that its products are delivered on time.
