Sipchem turns to SAR 215.3M loss in Q1 2026

Sahara International Petrochemical Co. (Sipchem) swung to a net loss of SAR 215.3 million in Q1 2026, against a net profit of SAR 195.3 million a year earlier.

Sipchem said the loss was mainly attributed to lower revenue, on weaker sales volumes amid ongoing supply chain challenges, as well as a decline in average selling prices.

This was partially offset by lower feedstock costs, including butane, ethylene and propane.

The company also recorded losses from its share in joint ventures (JVs) and associates, against profits a year earlier. Last year’s performance was supported by gains at an associate following a financing restructuring agreement, which boosted Sipchem’s share of earnings by SAR 429 million.

In addition, the same quarter last year included an impairment loss of SAR 200 million related to the ethyl acetate plant cash-generating unit at Sipchem Chemicals Co.

Sequentially, Sipchem narrowed net losses by 48.5% from SAR 417.9 million in Q4 2025.

Losses from the company’s share in JVs and associates narrowed, as the previous quarter included an impairment loss and a business combination at an associate, with Sipchem’s share amounting to SAR 125 million.

Sipchem took a provision for a capital project at a joint venture, where Sipchem’s share totaled SAR 56 million.

Meanwhile, revenues declines and feedstock costs rose, including butane, ethylene and propane.

Total shareholders’ equity – after minority interest – stood at SAR 13.41 billion as of March 31, 2026, down from SAR 15.43 billion a year earlier.

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