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Saudi Arabia's Sahara International Petrochemical Co. (Sipchem) on Wednesday reported a Q3 2023 net profit of 233.1 million riyals ($62 million), 70% lower compared to the year-ago period.
The net profit came well below analysts’ mean estimate of SAR 356.7 million, according to LSEG data.
The drop in profit was due to a decline in selling prices for its products, which offset the decline in the prices of raw materials. In addition, Sipchem's share of profits from investment in a joint venture and associates also declined, the petrochemicals producer said in a regulatory statement to Tadawul.
Quarterly sales were SAR 1.79 billion, down 37% compared with the year-ago period.
For the nine-month period ended September 30, Sipchem's net profit fell 67% to SAR 1.02 billion.
Saudi petrochemical producers are seeing a squeeze on margins due to weaker global demand and lower product prices, despite lower prices for some feedstock.
(Reporting by Brinda Darasha; editing by Seban Scaria)
