Sipchem hits significant drop in net profit for second quarter of 2024
Date
7/21/2024 9:05:24 AM
(MENAFN) Saudi Arabia's Sahara International Petrochemical Company (Sipchem) has reported a substantial decline in its net profits for the second quarter of 2024. In a statement released to the Saudi market on Sunday, Sipchem disclosed that it achieved net profits of 121.5 million riyals (USD32.39 million) during this period, a sharp decrease of 61.2 percent compared to the 312.9 million riyals reported in the same quarter of the previous year. The company attributed this significant drop in profits to several factors, including increased sales costs driven by higher prices for feedstock and raw materials, as well as a reduction in profit shares from investments in joint ventures and affiliated companies.
Additionally, the statement mentioned that Sipchem had received the full and final settlement of an insurance claim worth 53 million riyals, which was related to damages caused by a fire at a subsidiary company's factory. Despite this settlement, the overall financial performance remained impacted.
The decline was also evident in the company's half-year results. Net profits for the first half of 2024 fell by 61.3 percent, reaching 303 million riyals, compared to 783.3 million riyals during the same period the previous year. This ongoing decrease in profitability highlights the challenges faced by Sipchem in managing rising costs and investment returns within its operational landscape.
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