https://arab.news/44sej
RIYADH: Saudi petrochemicals maker Sipchem witnessed a strong demand for its products in Europe in the second quarter of 2022 leading to a 4 percent rise in its half-year sales.
During the same period, the company managed to reduce its debt to SR4.34 billion ($1.2 billion) resulting in a lower debt-to-equity ratio, CEO Abdullah Al-Saadoon told Argaam.
Sipchem showed a 10 percent increase in average prices as compared to the previous quarter and 23 percent from last year. The CEO attributed it to a significant rise in the prices of raw material including butane, ethanol, ethylene and propane.
He expected that product prices will fall in the third quarter of 2022 due to weak seasonal demand and consumer caution in the second half of the year.
The CEO said Sipchem is well positioned to meet these challenges and limit risks thanks to its diversified product portfolio, customer base, and global reach.
He pointed out that several factors are supporting prices at robust levels, such as the rise in Chinese demand for products due to easing restrictions.
In the fourth quarter of 2022, Sipchem expects higher gas prices to contribute to higher product prices. Al-Saadoon noted that high energy prices in Europe and low feedstock availability may contribute to improving these expectations.
Sipchem reported a net profit of SR2.3 billion in the first half of 2022, a rise of 89 percent from SR1.2 billion during the same period in the previous year. In the second quarter, profit jumped 52 percent to SR1.3 billion.