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FINANCIAL NEWS
Saudi’s Sipchem posts drop by 37.1 percent in Q1
19 Apr 2016
(MENAFN) Saudi Intl’ Petrochemical Co. (Sipchem) recorded a 37.1 percent fall in Q1 net profit, influenced by a drop in sales prices of all its products.
Moreover, the firm made a profit of USD 13.5mn in the three months to March 31, decline from USD 21.47mn in the prior year period.
Additionally, product prices are linked to oil, so the lower crude price has cut the margins and competitive advantage over rival producers from non-oil areas.
On the other hand, the kingdom is reforming its energy subsidies in order to bring down a substantial budget deficit, which expects USD 31.97mn of extra costs.
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