By Asseel bin Talib
Riyadh-Mubasher: Sipchem Chief Executive Officer Ahmed Al-Ohaly told Mubasher U Program that the shutdown of Methanol and Butanediol for a long time weighed on the company’s earnings in Q4 and FY2014.
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.
Al-Ohaly added that global demand for petrochemical products declines in the first and fourth quarters, as several clients have large inventories at this time.
The 50% drop in oil prices led to a 15-35% decline in petrochemical prices, the CEO said, noting that oil prices do not have a direct impact on petrochemicals.
Al-Ohaly also said petrochemical prices are mainly affected by supply and demand, adding that petrochemical prices will be defined by mid-Q2 2015.
Tumbling oil prices may enhance industrial economies in some European countries, which may boost demand for petrochemical products, the official said.
Al-Ohaly added that Sipchem has nine factories operating in Jubail, and some of these factories operate with maximum capacities, so it was expected to be shut for maintenance one day.
He added that one or two factories would witness scheduled maintenance in 2015.
Translated by Abdul Maguid Aboshahla
Photo Credit: Arabianeye-Reuters