The profits of Saudi International Petrochemical Company (Sipchem) decreased by 63.74% during the year 2024, compared to the company's profits in 2023. This decline is attributed to several main reasons, the most significant of which is a 7.32% drop in the company's revenues, reaching 7.06 billion riyals in 2024, compared to 7.62 billion riyals in 2023.
Additionally, the costs of raw materials have increased, product selling prices have decreased, and sales volumes have declined due to scheduled periodic maintenance work at some subsidiary companies. Furthermore, the share of profits from investments in joint ventures and affiliated companies decreased due to falling product prices, and the share of profits in one of the affiliated companies decreased as a result of a business merger and a decline in goodwill value.
On the other hand, the company witnessed a reduction in Zakat expenses during the year, due to the reversal of a Zakat provision of 134 million Saudi riyals related to previous years, following the closure of Zakat ties by the Zakat, Tax, and Customs Authority.
Additionally, Saudi International Petrochemical Company (Sipchem) announced the issuance of a board of directors' decision on March 18, 2025, to suspend production operations at the ethyl acetate plant of Sipchem Chemicals (a subsidiary of Sipchem) until further notice. The company clarified that the board's decision aligns with Sipchem's strategy aimed at enhancing profitability and performance efficiency, ensuring liquidity and stability, and maintaining financial structure integrity.
In trading activities, the Sipchem stock ( TADAWUL: 2310) fell by 2.62% during trading on Wednesday, trading at levels of 20.84 Saudi riyals.
