Saudi International Petrochemical Co. (Sipchem) reported a net income of SAR 40 million in Q4 2018, missing both Riyad Capital and market consensus of SAR 100 million and SAR 87 million, respectively, the brokerage firm said in a note on Tuesday.
The petchem major posted revenues of SAR 1.05 billion in Q4, missing the brokerage's forecast of SAR 1.20 billion, due to lower methanol prices and an extended shutdown of methanol plant dampening sales.
Margins contracted on a quarterly and yearly basis as a result of the shutdown though expenses managed to decline marginally.
Full year results were positive, however, as revenues increased to SAR 5.04 billion, up 13 percent year-on-year (YoY) and earnings grew to SAR 583 million, rising 33 percent YoY.
Riyad Capital maintained its "buy" rating on the stock, setting the target price at SAR 24 a share.
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