Riyadh – Mubasher: Saudi International Petrochemical (Sipchem) achieved a net profit of SAR50.7 million ($13.52 million) in the first quarter of 2016, 37% down from SAR80.6 million ($21.49 million) gained a year earlier.
Lower profitability is mainly attributed to lower sale prices as well as higher production costs due to increasing prices of gas feedstock, energy, and electricity, which all in all led to a “decrease in profit margins”, Sipchem clarified in a bourse filing.
Moreover, the company also saw an increase in credit facilities, loans, and zakat provisions, the company added.
The international Petrochemical also registered appropriation amounting to SAR33 million, in which Spichem share amounts to SAR21.5 million, against expected losses from disposals and equipment write off for International Methanol Company’s plant during its shutdown in the previous quarter.
