Sahara International Petrochemical Co.’s (Sipchem) net profit of SAR 111 million for Q3 2019 missed Riyad Capital and market estimates of SAR 205 million and SAR 190 million, respectively, the firm said in an earnings report.
The variation was due to shutdowns and a ‘sharp’ drop in product prices, therefore, the results are not seen as a setback in the company’s progress.
“Synergies have yet to be fully realized and management reiterated its intent on growing its portfolio internationally,” the report said.
Riyad Capital maintained a “Buy” recommendation on the stock with a target price of SAR 24 per share, as the expected total return is greater than +15 percent.
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