Riyadh – Mubasher: Saudi International Petrochemical Co (Sipchem) posted a 24.24% year-on-year profit drop in the first quarter of 2019.

Sipchem’s net profits retreated to SAR 114.7 million ($30.59 million) in Q1-19, compared to SAR 151.4 million ($40.38 million) in the year-ago period, according to a statement to the Saudi Stock Exchange (Tadawul) on Wednesday.

The company ascribed the decline in first-quarter net profit to lower sales revenues on the back of reduced selling prices for most of the company’s products, partly compensated by increased sales volumes.

The net profit drop was also attributed to higher expenses for the potential merger, including merger integration planning costs.

Additionally, financing cost increased on the back of the “increase in effective interest rate cost (EIR) under Sipchem’s and Sipchem’s affiliates loan facilities, which at floating rate cost linked to SAIBOR have been impacted by increasing interest rates,” the statement added.

Quarter-on-quarter, Sipchem’s net profits jumped 187.5% from SAR 40 million in Q4-18.