Saudi Sipchem Q3 net profit up 54pc
Riyadh, October 17, 2010
Saudi International Petrochemical Co (Sipchem) on Sunday posted a 54-percent rise in third-quarter net profit, partly on higher sales volumes and prices.
Sipchem's results, which came mainly on the back of higher butanediol petrochemical product, bode well for larger rival Sabic's results.
Sipchem said third-quarter operating profit stood at 175.8 million riyals, a 456 percent rise from the year-earlier period. It did not explain the gap between net profit and operating profit.
'The company continues to execute its plans aimed to improve operational processes and rationalising costs,' it said.
Larger rival Saudi Basic Industries Corp, or Sabic, will report its quarterly results before Wednesday and serve as a yardstick for global industry peers such as BASF and Dow Chemical.
Analysts expect Sabic to post an average 5.09 billion riyals in net profit for the third-quarter, which would be 39.6 percent above its level a year earlier and 1.4 percent above the second quarter of 2010, according to a Reuters survey earlier this month.
On Saturday, Sabic shares fell 3.1 percent and closed at their lowest level since Sept 1, dragging the main bourse index to its lowest level since then. Sipchem shares ended 5.8 percent down.
Sabic stock is up 5.5 percent since the start of the year, outperforming by three-times the index and by 80 percent the petrochemical stocks index. - Reuters