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Sahara International Petrochemical Company (Sipchem) announces the Interim Financial Results for the Period Ending on 30 June 2021 (Six Months)

SIPCHEM 2310 -5.22% 30.85 -1.70
Element List Current Quarter Similar quarter for previous year %Change Previous Quarter % Change
Sales/Revenue 2,362.7 950.2 148.652 2,031 16.331
Gross Profit (Loss) 1,477.6 161.6 814.356 956.1 54.544
Operational Profit (Loss) 1,139.9 -23.4 - 733.3 55.447
Net Profit (Loss) after Zakat and Tax 829.9 -99 - 411.5 101.676
Total Comprehensive Income 851 -83.7 - 419.3 102.957
All figures are in (Millions) Saudi Arabia, Riyals
Element List Current Period Similar period for previous year %Change
Sales/Revenue 4,393.6 2,354.3 86.62
Gross Profit (Loss) 2,433.6 434 460.737
Operational Profit (Loss) 1,873.2 42.9 4,266.433
Net Profit (Loss) after Zakat and Tax 1,241.3 -151.8 -
Total Comprehensive Income 1,270.3 -158.4 -
Total Share Holders Equity (after Deducting Minority Equity) 13,330 13,180.9 1.131
Profit (Loss) per Share 1.71 -0.21
All figures are in (Millions) Saudi Arabia, Riyals
Element List Explanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The increase in net profit during current quarter compared to same quarter last year is due mainly to the increase in Revenue as a result of the increase in selling prices for all company’s products which contributed to increase in profit margins in spite of the increase in feedstock prices of Butane, Ethylene and Propane. Also, sales volume increased especially Polypropylene product. In addition, the company share of profit from joint venture and associates increased in spite of plant shutdown of Sahara and Ma'aden Petrochemicals Company (SAMAPCO) during second quarter as announced in Tadawul on 10th May 2021.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is The reason for the increase in net profit during current quarter compared to previous quarter is due mainly to the increase in selling prices for all company’s products as prices continue to increase compared to previous quarter in spite of plant shutdown of Sahara and Ma'aden Petrochemicals Company (SAMAPCO) during second quarter as announced in Tadawul on 10th May 2021..

In addition, during first quarter of current year, an impairment loss of SR 260 Million was recorded which is related to cash generating unit of PBT plant of SR 160 Million and GACI plant of SR 100 Million

The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is The reason for the increase in net profit during current period compared to previous period of last year is due mainly to the increase selling prices for all company’s products in addition to increase in sales volume especially Polypropylene product. In addition, the company share of profit from joint venture and associates increased in spite of plant shutdown of Sahara and Ma'aden Petrochemicals Company (SAMAPCO) during second quarter as announced in Tadawul on 10th May 2021.

As previously announced on Tadawul, the current period results include an impairment loss of SR 260 Million related to cash generating unit of PBT plant of SR 160 Million and GACI plant of SR 100 Million

Statement of the type of external auditor's report Unmodified conclusion
Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion None
Reclassification of Comparison Items Certain comparative figures have been reclassified to comply with the current period presentation of the financial statements
Additional Information - The Company has previously announced its plan to mothball Gulf Advanced Cable Insulation Company (GACI) Plant (an affiliate of Sipchem). This is a continuation of Company’s Strategy of improving profitability, efficiency of operations and financial position.

- Sipchem continued implementing its active prevention programs that aim to minimize the risks related to COVID-19 and ensure business continuity.

- It is worth noting that the net profit for the current quarter and current period are the highest reported since incorporating of the company.

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