Saudi International Petrochemical Co. (Sipchem) is studying new investments in the United States due to the availability of shale gas there, chief executive Ahmed Al-Ohali told Argaam on Sunday, speaking on the sidelines of the Saudi-US CEO Forum.
When asked about the status of Sipchem’s merger plans with Sahara Petrochemical Co., Al-Ohali said the two firms have not yet revived merger talks.
Sipchem and Sahara signed a memorandum of understanding in December 2013 to start due diligence in preparing for a merger. The plans were halted in mid-2014 because of regulatory difficulties.
However, there is still an opportunity for a merger with Sahara going forward, A-Ohali said.
“We’re still reviewing the draft regulations to evaluate potential mergers,” he added.
Earlier this year, Al-Ohali told CNBC Arabia that Sipchem would seek mergers once regulatory policies in the Kingdom improve.
Commenting on Q1 earnings, Al-Ohali said the company posted a good set of figures, backed by higher sales and better plant performance.
In addition, improved selling prices of some products, particularly methanol, in addition to cost efficiency initiatives also played a significant role.
Sipchem reported a net profit of SAR 91.7 million in Q1 2017, an 86.4 percent surge year-on-year (YoY).
The petrochemical firm saved nearly SAR 100 million in 2016 from restructuring and cost-cutting measures, Al-Ohali said.
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