Riyadh - Mubasher: Saudi International Petrochemical Company (Sipchem) reported net losses of SAR 59 million ($15.73 million) in the third quarter of 2016 against a net profit of SAR 71.6 million ($19 million in the third quarter of 2015.
Losses are attributed to the decline in sales prices of all products, especially the chemicals where prices dropped in the range of 23% to 34%, and the increase in production costs due to the increase in gas feedstock, fuel and energy prices, Sipchem said in a bourse filing.
Losses were slightly offset by the success of the 2016 initiatives that focused on manpower reduction, lower distribution costs, and amended marketing agreements where margin savings are estimated at SAR 20 million in Q3-16.
Net profits went down by 93.25% to SAR 17.7 million in the nine-month period that ended on 30 September, from SAR 262.3 million in the same period last year.
