RIYADH: Saudi International Petrochemical Company (Sipchem) has announced a net profit of SAR 114.7 million for the quarter ended March 31, 2019, down 24.24% compared with the profit of SAR 151.4 million in the corresponding period last year.
The earnings per share (EPS) during the quarter under review clocked in at SAR 0.31 as against EPS of SAR 0.41 in the same quarter last year. Sales revenue during March 2019 quarter stood at SAR 1.121 billion, down 4.21% compared with SAR 1.17 billion in March 2018 quarter.
Net profit attributable to shareholders of the company decreased during current quarter compared to the same quarter of the previous year due to lower sales revenue as a result of lower selling prices for most of the company’s products, partially offset by increased sales volumes in the quarter.
Furthermore, profit was impacted by increase in other income/loss for expenses for proposed merger, including merger integration planning.
Finally, the increase in finance cost was mostly driven by 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.
It may be mentioned here Saudi International Petrochemical Company (Sipchem) and Sahara Petrochemicals Company (Sahara) have reached the finalized details of the business merger of equals between the two companies.