Riyadh - Mubasher: Sahara International Petrochemical Company (Sipchem) reported a 63.74% decline in profits in 2024 compared to 2023, due to lower revenues and higher feedstock and raw material costs.

The company's results on the Saudi Stock Exchange (Tadawul) on Wednesday revealed a decline in net profit to SAR 426.1 million last year, compared to SAR 1.18 billion the previous year.

The company attributed the decline in net profits to higher feedstock and raw material costs, lower revenues resulting from lower product selling prices, and lower sales volumes due to scheduled periodic maintenance work at some subsidiaries.

It noted that the decline in net profit was also due to a decline in the share of profits from investments in a joint venture and affiliated companies due to lower product prices, in addition to a decline in the share of profits in one of the affiliated companies as a result of a business merger and a decline in the value of goodwill.

She also noted that this was offset by a decrease in zakat expenditures during the year, due to the reversal of a zakat provision of SAR 134 million related to previous years, following the completion of zakat assessments by the Zakat, Tax and Customs Authority.

The company's revenues decreased to SAR 7.06 billion in 2024, compared to SAR 7.62 billion in 2023, a decline of 7.32%.