Sahara International Petrochemical Co. (Sipchem) has a solid financial position, as it is set to repay SR1 billion ($266 million) worth of Sukuk next year while maintaining its financial capabilities, said CEO Saleh Bahamdan.
Speaking to CNBC Arabia, the top official expected the company to post strong financial results in the fourth quarter of 2020, as selling prices started to improve.
He also predicts the petrochemical industry to witness strong performance in 2021.
Bahamdan also noted that Sipchem would temporarily suspend operations of two plants due to their weak returns and sales, adding that the plants may be reopened when the market improves. He also stressed that Sipchem is focusing on affiliates that operate in solid markets.
The company announced on Dec. 15 it would mothball its Polybutylene Terephthalate (PBT) plant, owned by its affiliate, Sipchem Chemical Co., and Ethylene Vinyl Acetate (EVA) Film plant that is owned by affiliate firm, Saudi Specialized Products Co., according to Argaam's available data.
The chairman also said that the partnership agreement inked with Linde GMBH would give Sipchem a fresh impetus and would constitute relatively stable savings for the company.
According to data available to Argaam, Sipchem signed yesterday a 20-year strategic partnership agreement with Linde GMBH to set up a 50:50-owned joint venture (JV) to develop industrial gas projects across the Kingdom.
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