Sipchem posts SAR 442.6M loss in 9M 2025, SAR 468.7M in Q3

Sahara International Petrochemical Co. (Sipchem) reported a loss of SAR 442.6 million for the first nine months of 2025, compared to a profit of SAR 406.2 million in the same period of 2024.

Losses were attributed to a decline in the company’s revenues, driven by lower selling prices for some of its products and higher feedstock costs (natural gas, ethane, and ethylene).

In addition, it recognized an impairment loss on assets totaling SAR 300 million, including SAR 200 million related to the cash-generating unit of Sipchem Chemicals Co.’s ethyl acetate plant, and SAR 100 million related to International Diol Co. (a Sipchem subsidiary). In addition, a SAR 91.4 million provision was recorded for the write-off of certain capital projects.

On the other hand, the company’s share of profits from investments in joint ventures and associates increased, mainly due to higher profits in one of its associate companies following the write-off of a commercial loan and related costs. This resulted in an increase of SAR 429 million in Sipchem’s share of profits from associates. However, this positive impact was offset by a SAR 171 million share of loss due to the impairment of an investment in a joint venture.

The company incurred net losses of SAR 468.7 million in Q3 2025, against profits of SAR 103.15 million in Q3 2024.

On a sequential basis, net losses widened by 177% from SAR 169.2 million in Q2 2025.

Total shareholders’ equity, after excluding minority interest, reached SAR 14.41 billion by Sept. 30, 2025, compared to SAR 15.6 billion in the prior-year period.

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