Sahara recorded strong results in 2017, despite plant stoppages, challenges: CEO

Sahara Petrochemicals Co. managed to achieve a satisfactory net profit of SAR 444.5 million in 2017, despite a significant decline in Q4 results, and a series of plant stoppages, CEO Saleh Bahamdan told Argaam.

He considered the board of directors’ recommendation of a cash dividend as evidence of strong past performance, and a confidence in the business going forward.

He said 2017 was a prosperous year for the company, in which its investments fulfilled planned targets.

"Given the currently improved prices of polypropylene and polyethylene, We seek to operate at high capacity utilization rates to meet the expectations of stakeholders," he said.

Sahara posted a net profit of SAR 444.5 million in FY17 -- 3 percent above 2016, while its net income in Q4 dropped by 43 percent to SAR 94.84 million.

Bahamdan attributed the modest performance in Q4 to a one-time loss of SAR 43 million from affiliated unit, Saudi Acrylic Polymers Co., which incurred an asset impairment loss of SAR 132 million. He said also that a 25 percent rise in feedstock prices had an adverse impact on sales.

The company took advantage, however, from higher polypropylene prices in Q3 2017, which raised its profit margins and helped lift aggregate results.

Bahamdan expected a robust performance in 2018.