Sipchem posted on Monday financial results for the 12-month period ending on December 31, 2014.
Q4 net profit reached SAR 132.4 million, falling 32.72% year-on-year from SAR 196.8 million and 17.56% quarter-on-quarter from SAR 160.6 million.
FY14 bottom line amounted to SAR 606.2 million, with a decrease of 2.3% compared with SAR 620.5 million a year earlier.
Q4 profit decline y/y was due to decrease in production and sales quantities as a result of Methanol plant shutdown during the fourth quarter as announced in TADAWUL on 03/11/2014, in addition to decrease in average sales prices of Methanol and Butandiol products.
Q4 profit decrease q/q was due to decline in average product sales prices during the fourth quarter, in addition to loss incurred from foreign currency exchange related to sales in euro.
The company ascribed FY14 profit fall to decrease in production and sales quantities as a result of shutdown of most of plants during the year. In addition, Sipchem incurred costs related to the studies of the evaluation of the proposed merger with Sahara Petrochemicals Company, in addition to increase in Zakat provisions.
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