Sahara
2260
2260
Al-Rajhi Capital has stated that Sahara Petrochemical Co. (SPC) reported adjusted net income of SAR108.2 million (adjusted for one-off merger expense of SAR 8.3 million), which was well below its estimates of SAR137.8 million as well as the consensus estimates of SAR 158.5 million.
The company attributed its poor performance to the Al Waha shutdown, which spanned across a 17-day period starting Dec 24, 2013.
Considering only 9 days of the shutdown in Q1, the wide earnings miss point toward a weaker ramp-up post commencement.
With Al Waha shutdown behind us and Sahara & Ma’aden Petrochemicals Company (SAMAPCO) coming online in H2, the research firm expects earnings to improve over the medium-term.
As a result, Al-Rajhi revised the target price marginally upward to SAR 21.7, reiterating its ‘Neutral’ rating.
The company attributed its poor performance to the Al Waha shutdown, which spanned across a 17-day period starting Dec 24, 2013.
Considering only 9 days of the shutdown in Q1, the wide earnings miss point toward a weaker ramp-up post commencement.
With Al Waha shutdown behind us and Sahara & Ma’aden Petrochemicals Company (SAMAPCO) coming online in H2, the research firm expects earnings to improve over the medium-term.
As a result, Al-Rajhi revised the target price marginally upward to SAR 21.7, reiterating its ‘Neutral’ rating.
Source:
Mubasher
