Sahara International Petrochemical Co. announces its Interim Financial Results for the Period Ending on 2020-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 950.2 | 1,409.4 | -32.581 | 1,404.1 | -32.326 |
| Gross Profit (Loss) | 149.8 | 488.6 | -69.34 | 261.9 | -42.802 |
| Operational Profit (Loss) | -23.4 | 320.4 | - | 66.3 | - |
| Net Profit (Loss) after Zakat and Tax | -99 | 210.9 | - | -52.8 | 87.5 |
| Total Comprehensive Income | -83.7 | 211.8 | - | -74.7 | 12.048 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 2,354.3 | 2,531 | -6.981 |
| Gross Profit (Loss) | 411.7 | 893.6 | -53.927 |
| Operational Profit (Loss) | 42.9 | 587.9 | -92.702 |
| Net Profit (Loss) after Zakat and Tax | -151.8 | 325.6 | - |
| Total Comprehensive Income | -158.4 | 327.4 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 13,180.9 | 13,852.2 | -4.846 |
| Profit (Loss) per Share | -0.21 | 0.76 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | Reason for the decrease in net profit of Sipchem for the current quarter compared to the same quarter of the previous year is due to:
- Lower netbacks for most of Sipchem’s products - Lower sales volumes for Acetic Acid, Vinyl Acetate Monomer, Ethyl Acetate and Carbon Monoxide
Sipchem’s net loss includes results from Sahara Petrochemicals Company for the full quarter in current year whereas prior period quarter only includes Sahara Petrochemicals Company results for one month.
This decrease is despite the increased sales volumes of Methanol, as a result of the Methanol Plant Energy Efficiency and Performance Enhancement Project, and relatively lower average price of certain feedstocks. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | Reason for the increase in net loss of Sipchem for the current quarter compared to the loss in previous quarter is due to:
- further reduction in selling prices of most of Sipchem’s products - lower sales volume of for Acetic Acid and Vinyl Acetate Monomer The loss was partially offset by relatively lower costs of feedstock as compared to previous quarter. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | Reason for the decrease in net profit of Sipchem for the current period compared to the same period of the previous year is due to:
- lower netbacks for most of Sipchem’s products - lower sales volumes of Acetic Acid, Vinyl Acetate Monomer, Ethyl Acetate and Carbon Monoxide - unplanned shutdown and turnaround maintenance at Al Waha, as previously announced on Tadawul
Sipchem’s net loss includes results from Sahara Petrochemicals Company for the full six months in current period whereas prior period only includes Sahara Petrochemicals Company results for one month.
This decrease is despite the increase in sales volumes of Methanol, as a result of the Methanol Plant Energy Efficiency and Performance Enhancement Project, and relatively lower average price of certain feedstocks.
Further, as previously announced on Tadawul, during the current six months period: - An impairment loss of approximately SR 100 million on International Diol Company cash generating unit - certain assets in the “Corporate and others” segment were classified as held-for-sale and an impairment loss of SR 180 million was recognized |
| Basis of the External Auditor's Opinion | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | None |
| Reclassification of Comparison Items | None |
| Additional Information | Economic environment and its effects on business:
Recent development of coronavirus (COVID-19) and global recession due to falling demand are impacting the businesses in form of economic contraction. The company has established a business continuity committee which has established processes to ensure health and safety of its employees and contractors. Management continues to closely monitor the current situation given global commodity price deterioration. Additionally, Sipchem made several operational protective measures in all plants to insure compliance with the health and safety guidelines for the protection of the employees, the customers and the suppliers to insure business continuity.
Notwithstanding these challenges, Sipchem business operations currently remain largely unaffected as the Group was successful in maintaining stable operations for the half year ended 30 June 2020. Further, the Group is having continued supply of essential feedstocks to meet expected demand of its products. Sipchem’s management continues to monitor the situation closely as the situation is fluid and rapidly evolving. The management of the company is evaluating the current measures and will announce any material impact that may affect the company’s or its affiliates assets because of this pandemic to the public
Profit/loss Per Share: The profit/loss per share has been calculated for the period ending 30 June 2020 on the basis of number of shares (733,333,333) after the company capital increase which was approved by the Extraordinary General Assembly’s 16/05/2019 for the purpose of acquiring all the shares of the shareholders of Sahara Petrochemicals Company. However, for the comparative period it was calculated on a weighted average basis |
Comments