Sahara Petrochemical Co. on Monday said its net profit in the second quarter 2018 received a boost from an increase in production and sales volumes, which helped offset the impact of higher feedstock prices.
The firm posted a net profit of SAR 221 million for Q2, marking an increase of 150 percent year-on-year (YoY).
In its earnings call with investors, the petrochemicals producer said successful turnaround maintenance (TAM) at its Al Waha and SAMAPCO plants in 2017 resulted in above capacity utilization this year.
Both Al Waha and SAMAPCO completed their turnaround maintenance in Q2 2017, as a result of which the facilities are functioning above nameplate capacities in 2018, Sahara said.
Net income for Al Waha increased in Q2 2018, supporting Sahara’s earnings, it added.
The increase was due to “robust production and sales as well as an increase in netback of polypropylene and lower prices of feedstock compared to Q1 2017,” the firm said.
Sahara’s total from investment in Al Waha surged 210 percent YoY in Q2 2018.
Tasnee and Sahara Olefins Company (TSOC) also contributed with increased income to Sahara’s strong Q2 2018 performance, it added.
TSOC’s total from investment rose 7 percent YoY in Q2 2018, according to the earnings presentation.
Sahara, a Tadawul-listed company incorporated in 2004, has a current capital of nearly SAR 4.4 billion.
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