JUBAIL, 19 October 2006 — Saudi International Petrochemical Company (Sipchem) has posted lucrative financial results and optimal growth in profits, assets and shareholders’ equity during the first nine months ended Sept. 30.
During this period, Sipchem realized SR318 million in net profits compared to SR253 million during the same period of 2005, which accounts for a 26 percent rise in profits. Net profit realized during the third quarter amounted to SR98.5 million. By the end of September, Sipchem’s assets rose to SR5.07 billion from SR4.26 billion at the same time last year. Further, shareholders’ equity rose to SR2.23 billion from SR1.84 billion last year at the same period. Sipchem President Ahmed Abdulaziz Al-Ohali said that profits were achieved due to the starting of commercial operation of butanediol plant early this year, and increase in prices of products and sales. In addition, sales revenue increased to SR854 million compared to SR571 million for the same period of last year with an increase of 50 percent.
Sipchem currently operates a one million tpa methanol plant and a 75 thousands tpa butanediol plant in Jubail Industrial City.
Early this year, Sipchem signed engineering and construction contracts with international construction firms for building an acetic acid plant with an annual capacity of 460,000 tons, a vinyl acetate monomer plant with 300,000 tons, and a carbon monoxide plant with 345,000 tons. Initial phases of construction in these three projects have already started in Jubail Industrial City and commercial production is scheduled to commence by the beginning of 2009. In addition, third quarter of this year had witnessed the initial public offering of 30 percent of Sipchem shares to Saudi citizens.
