Sipchem’s net profit tumbles 20% in 9M

22/10/2019 Argaam Exclusive

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Sahara International Petrochemical Co. (SIPCHEM)

Sahara International Petrochemical Company (Sipchem) reported a net profit after zakat and tax of SAR 436.6 million for the first nine months of 2019, a 19.59 percent year-on-year (YoY) decrease, driven by lower sales revenue, decreased selling prices and a drop in sales volumes.



Financials (M)

Item 9m 2018 9m 2019 Change‬
Revenues 3,983.14 3,933.04 (1.3 %)
Gross Income 1,430.21 1,255.20 (12.2 %)
Operating Income 1,021.78 764.82 (25.1 %)
Net Income 543.03 436.63 (19.6 %)
Average Shares 366.67 641.67 75.0 %
EPS (Riyals) 1.48 0.68 (54.1 %)

Net profit after zakat and tax for Q3 2019 dropped 38.4 percent YoY to SAR 111.1 million, due to lower selling prices, and decreased production due to the shutdown of some plants.

 

On a sequential basis, Q3 2019 net profit declined 47.3 percent.



Current Quarter Comparison (M)

Compared With The
Item Q3 2018 Q3 2019 Change‬
Revenues 1,337.75 1,402.02 4.8 %
Gross Income 470.38 361.57 (23.1 %)
Operating Income 327.98 176.96 (46.0 %)
Net Income 180.27 111.05 (38.4 %)
Average Shares 366.67 641.67 75.0 %
EPS (Riyals) 0.49 0.17 (64.8 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2010 305.61 91.3 % 148.84 552.9 % 81.20 178.3 % 0.22
Q2 2010 371.88 111.6 % 189.10 652.7 % 87.66 17326.6 % 0.24
Q3 2010 508.59 158.5 % 201.19 311.4 % 84.11 53.8 % 0.23
Q4 2010 806.46 170.5 % 322.22 132.0 % 125.12 121.3 % 0.34
Q1 2011 693.04 126.8 % 267.26 79.6 % 120.90 48.9 % 0.33
Q2 2011 831.65 123.6 % 316.49 67.4 % 165.38 88.7 % 0.45
Q3 2011 865.04 70.1 % 417.16 107.3 % 208.45 147.8 % 0.57
Q4 2011 934.65 15.9 % 425.86 32.2 % 211.18 68.8 % 0.58
Q1 2012 1,058.04 52.7 % 334.73 25.2 % 151.61 25.4 % 0.41
Q2 2012 904.47 8.8 % 314.22 (0.7 %) 136.07 (17.7 %) 0.37
Q3 2012 914.39 5.7 % 314.84 (24.5 %) 155.84 (25.2 %) 0.43
Q4 2012 1,044.97 11.8 % 303.75 (28.7 %) 157.65 (25.3 %) 0.43
Q1 2013 857.39 (19.0 %) 180.54 (46.1 %) 64.45 (57.5 %) 0.18
Q2 2013 912.42 0.9 % 368.77 17.4 % 174.02 27.9 % 0.47
Q3 2013 998.84 9.2 % 345.65 9.8 % 185.19 18.8 % 0.51
Q4 2013 1,302.97 24.7 % 469.59 54.6 % 196.79 24.8 % 0.54
Q1 2014 927.45 8.2 % 233.36 29.3 % 68.66 6.5 % 0.19
Q2 2014 1,177.63 29.1 % 522.46 41.7 % 244.60 40.6 % 0.67
Q3 2014 1,019.33 2.1 % 317.91 (8.0 %) 160.57 (13.3 %) 0.44
Q4 2014 999.99 (23.3 %) 322.92 (31.2 %) 132.40 (32.7 %) 0.36
Q1 2015 802.03 (13.5 %) 234.08 0.3 % 80.62 17.4 % 0.22
Q2 2015 1,006.95 (14.5 %) 287.40 (45.0 %) 110.07 (55.0 %) 0.30
Q3 2015 809.93 (20.5 %) 209.37 (34.1 %) 71.58 (55.4 %) 0.20
Q4 2015 871.77 (12.8 %) 102.15 (68.4 %) 25.98 (80.4 %) 0.07
Q1 2016 923.99 15.2 % 268.86 14.9 % 49.23 (38.9 %) 0.13
Q2 2016 923.62 (8.3 %) 215.25 (25.1 %) 11.37 (89.7 %) 0.03
Q3 2016 717.85 (11.4 %) 128.24 (38.8 %) (49.38) (169.0 %) (0.13)
Q4 2016 949.59 8.9 % 249.11 143.9 % 31.87 22.7 % 0.09
Q1 2017 1,199.01 29.8 % 352.28 31.0 % 91.65 86.2 % 0.25
Q2 2017 918.28 (0.6 %) 281.06 30.6 % 59.79 425.9 % 0.16
Q3 2017 1,063.57 48.2 % 367.04 186.2 % 121.55 346.1 % 0.33
Q4 2017 1,278.63 34.6 % 425.67 70.9 % 164.40 415.9 % 0.45
Q1 2018 1,170.94 (2.3 %) 414.77 17.7 % 151.39 65.2 % 0.41
Q2 2018 1,474.46 60.6 % 545.06 93.9 % 211.37 253.5 % 0.58
Q3 2018 1,337.75 25.8 % 470.38 28.2 % 180.27 48.3 % 0.49
Q4 2018 1,052.66 (17.7 %) 204.57 (51.9 %) 39.92 (75.7 %) 0.11
Q1 2019 1,121.61 (4.2 %) 405.07 (2.3 %) 114.72 (24.2 %) 0.18
Q2 2019 1,409.42 (4.4 %) 488.57 (10.4 %) 210.85 (0.2 %) 0.33
Q3 2019 1,402.02 4.8 % 361.57 (23.1 %) 111.05 (38.4 %) 0.17

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2010 37.06 % 46.47 % 14.64 %
Q2 2010 44.85 % 52.51 % 19.62 %
Q3 2010 45.68 % 58.87 % 20.85 %
Q4 2010 43.23 % 53.67 % 18.97 %
Q1 2011 41.17 % 52.62 % 17.55 %
Q2 2011 38.99 % 50.44 % 17.45 %
Q3 2011 41.40 % 50.97 % 19.39 %
Q4 2011 42.92 % 53.18 % 21.23 %
Q1 2012 40.50 % 49.59 % 19.97 %
Q2 2012 39.66 % 48.73 % 18.80 %
Q3 2012 36.46 % 45.19 % 17.18 %
Q4 2012 32.32 % 42.08 % 15.33 %
Q1 2013 29.92 % 40.69 % 13.81 %
Q2 2013 31.32 % 42.52 % 14.80 %
Q3 2013 31.43 % 42.98 % 15.24 %
Q4 2013 33.51 % 42.25 % 15.24 %
Q1 2014 34.22 % 42.01 % 15.08 %
Q2 2014 35.65 % 42.65 % 15.78 %
Q3 2014 34.86 % 41.78 % 15.15 %
Q4 2014 33.86 % 42.36 % 15.61 %
Q1 2015 34.94 % 44.44 % 16.40 %
Q2 2015 30.36 % 40.88 % 13.61 %
Q3 2015 29.12 % 40.95 % 11.94 %
Q4 2015 23.86 % 36.22 % 8.26 %
Q1 2016 24.02 % 36.37 % 7.70 %
Q2 2016 22.54 % 33.34 % 5.09 %
Q3 2016 20.79 % 27.62 % 1.71 %
Q4 2016 24.51 % 33.63 % 1.84 %
Q1 2017 24.93 % 31.95 % 2.26 %
Q2 2017 26.70 % 34.06 % 3.54 %
Q3 2017 30.25 % 38.89 % 7.38 %
Q4 2017 31.98 % 37.10 % 9.81 %
Q1 2018 33.59 % 39.50 % 11.15 %
Q2 2018 35.14 % 40.29 % 13.23 %
Q3 2018 35.27 % 39.61 % 13.93 %
Q4 2018 32.46 % 36.75 % 11.59 %
Q1 2019 32.59 % 36.33 % 11.28 %
Q2 2019 31.87 % 35.20 % 11.22 %
Q3 2019 29.28 % 32.93 % 9.47 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2010 366.67 0.53 0.39 12.71
Q2 2010 366.67 0.76 0.63 12.82
Q3 2010 366.67 0.84 0.84 12.98
Q4 2010 366.67 1.03 1.03 13.42
Q1 2011 366.67 1.14 1.14 13.79
Q2 2011 366.67 1.35 1.35 14.21
Q3 2011 366.67 1.69 1.69 14.74
Q4 2011 366.67 1.93 1.93 15.36
Q1 2012 366.67 2.01 2.01 14.56
Q2 2012 366.67 1.93 1.93 14.93
Q3 2012 366.67 1.79 1.79 14.87
Q4 2012 366.67 1.64 1.64 15.34
Q1 2013 366.67 1.40 1.40 14.80
Q2 2013 366.67 1.51 1.51 15.31
Q3 2013 366.67 1.59 1.59 15.23
Q4 2013 366.67 1.69 1.69 15.80
Q1 2014 366.67 1.70 1.70 15.35
Q2 2014 366.67 1.90 1.90 15.45
Q3 2014 366.67 1.83 1.83 15.90
Q4 2014 366.67 1.65 1.76 16.28
Q1 2015 366.67 1.69 1.79 15.85
Q2 2015 366.67 1.32 1.42 15.59
Q3 2015 366.67 1.08 1.18 15.78
Q4 2015 366.67 0.79 0.79 15.85
Q1 2016 366.67 0.70 0.76 14.36
Q2 2016 366.67 0.43 0.49 14.38
Q3 2016 366.67 0.10 0.16 14.25
Q4 2016 366.67 0.12 0.18 14.36
Q1 2017 366.67 0.23 0.23 14.61
Q2 2017 366.67 0.37 0.37 14.77
Q3 2017 366.67 0.83 0.83 15.10
Q4 2017 366.67 1.19 1.19 15.55
Q1 2018 366.67 1.36 1.35 15.97
Q2 2018 366.67 1.77 1.80 16.05
Q3 2018 366.67 1.93 2.00 16.04
Q4 2018 366.67 1.59 1.59 16.14
Q1 2019 641.67 0.85 0.88 15.81
Q2 2019 641.67 0.85 0.86 18.89
Q3 2019 641.67 0.74 0.74 18.44

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2010 More than 50 More than 50 3.36
Q2 2010 49.52 More than 50 2.95
Q3 2010 More than 50 More than 50 3.44
Q4 2010 49.01 49.01 3.77
Q1 2011 39.06 39.06 3.23
Q2 2011 31.89 31.89 3.03
Q3 2011 21.36 21.36 2.45
Q4 2011 20.47 20.47 2.57
Q1 2012 23.10 23.10 3.19
Q2 2012 18.77 18.77 2.42
Q3 2012 21.39 21.39 2.57
Q4 2012 23.30 23.30 2.49
Q1 2013 27.25 27.25 2.58
Q2 2013 30.16 30.16 2.97
Q3 2013 31.47 31.47 3.28
Q4 2013 37.59 37.59 4.03
Q1 2014 38.15 38.15 4.23
Q2 2014 33.35 33.35 4.09
Q3 2014 46.97 46.97 5.40
Q4 2014 32.10 30.23 3.26
Q1 2015 33.93 31.99 3.61
Q2 2015 47.97 44.52 4.06
Q3 2015 35.01 31.97 2.39
Q4 2015 35.64 35.64 1.77
Q1 2016 37.63 34.72 1.84
Q2 2016 More than 50 More than 50 1.82
Q3 2016 More than 50 More than 50 1.86
Q4 2016 More than 50 More than 50 2.63
Q1 2017 More than 50 More than 50 2.43
Q2 2017 More than 50 More than 50 1.91
Q3 2017 37.93 37.93 2.09
Q4 2017 29.26 29.26 2.24
Q1 2018 31.26 31.44 2.65
Q2 2018 25.34 24.91 2.79
Q3 2018 23.41 22.60 2.82
Q4 2018 25.11 25.09 2.47
Q1 2019 27.06 26.28 2.55
Q2 2019 28.03 27.69 1.10
Q3 2019 27.73 28.00 0.98

Business Segments (Million)

Compared With The
Period Marketing activities Intermediate chemicals Basic chemicals Polymers Corporate and others Petrochemical sector Eliminations
Q1 2011 - - - - - 693.04 -
Q2 2011 - - - - - 831.65 -
Q3 2011 - - - - - 865.04 -
Q4 2011 - - - - - 934.65 -
Q1 2012 220.26 - - - - 837.79 -
Q2 2012 182.65 - - - - 721.82 -
Q3 2012 151.79 - - - - 762.60 -
Q4 2012 192.98 - - - - 851.98 -
Q1 2013 214.24 - - - - 643.15 -
Q2 2013 176.39 - - - - 736.03 -
Q3 2013 208.84 - - - - 790.00 -
Q4 2013 196.75 - - - - 1,106.22 -
Q1 2014 225.80 - - - - 701.65 -
Q2 2014 143.30 - - - - 1,034.33 -
Q3 2014 128.72 - - - - 890.61 -
Q4 2014 226.62 - - - - 773.37 -
Q1 2015 59.50 - - - - 742.53 -
Q2 2015 99.40 - - - - 907.55 -
Q3 2015 64.73 - - - - 745.20 -
Q4 2015 279.26 - - - - 592.51 -
Q1 2016 - 565.13 341.67 271.08 51.78 - (305.68)
Q2 2016 928.40 603.96 337.22 260.71 - - (1156.44)
Q3 2016 391.59 385.17 276.06 251.18 - - (584.60)
Q4 2016 569.76 416.92 372.05 290.91 1.55 - (701.59)
Q1 2017 899.09 606.65 508.76 318.09 2.55 - (1136.12)
Q2 2017 616.75 513.05 359.97 228.20 74.44 - (874.13)
Q3 2017 599.04 435.32 498.62 285.49 33.22 - (788.11)
Q4 2017 774.81 747.67 494.99 266.44 14.89 - (1020.16)
Q1 2018 731.01 565.18 540.95 296.35 41.82 - (1004.36)
Q2 2018 825.69 693.27 536.49 298.43 40.58 - (920.00)
Q3 2018 781.59 810.39 384.43 407.53 44.84 - (1091.03)
Q4 2018 629.36 746.38 320.81 352.07 17.51 - (1013.48)
Q1 2019 720.42 690.39 414.52 295.77 76.68 - (1076.18)
Q2 2019 791.99 577.35 392.95 590.67 134.60 - (1078.15)
Q3 2019 802.75 360.16 590.10 701.89 (86.24) - (966.65)

Analysts Estimates (Million)

Item Q3 2019 (e) Q3 2019 (a) Change‬
Average 189.98 111.05 (41.5 %)

Estimates vs Actual (Million)

Item Q3 2019 (e) Q3 2019 (a) Change
SNB Capital 166.00 111.05 (33.1) %
Al Rajhi Capital 189.00 111.05 (41.2) %
AlJazira Capital 199.90 111.05 (44.4) %
Riyad Capital 205.00 111.05 (45.8) %

Current
Market Cap (M Riyal) 23,466.56
Enterprise Value (EV) (M) 24,962.10
Shares Outstanding ((M)) 733.33
EPS ( Riyal) (TTM) 1.21
Book Value (BV) ( Riyal) 21.49
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 31.79
P/E (TTM) 26.48
Price/book 1.49
Return on Average Assets (%) (TTM) 3.9
Return on Average Equity (%) (TTM) 5.5

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