By: Mohammed Idris
Riyadh - Mubasher: The managing director of Saudi Chemical, Mohammed Saud Al Badr, said that the Egyptian pound's flotation did not have any positive impact on the company’s financial results, since all of its expenditures are in EGP.
Al Badr told Mubasher that this represents a rare case for the company as it sells the products of Suez International Nitrate Company (SINCO) outside projects.
Last November, the Central Bank of Egypt (CBE) decided to liberalise the exchange rates and float the Egyptian pound.
The company’s profits dropped 45% in 2016 to SAR 138 million down from SAR 252 million in the year before, which Al Badr attributed to lower sales and the increase in administrative expenses.
Annual profits also decreased due to the suspension of some projects due to the conflicts near the southern borders, he added, as well as the decline in the number of tenders and cutting government spending.
Saudi Chemical’s strategy is focused on the pharmaceuticals sectors, as it plans alliances with international manufacturers for the AJA Pharma factory to export its products to foreign markets, and to expand by acquiring other factories outside of Saudi Arabia, the managing director explained.