According to the Tadawul announcement dated 04/03/2024, Sahara International Petrochemical Co.(2310.SA) (Sipchem) has reported its financial results for the year ended 31 December 2023, revealing a downturn in its financial performance. The company's sales/revenue decreased by 25.7% from the previous year, totaling 7,617.9 million Saudi Riyals, down from 10,253.6 million. This significant drop in revenue led to a gross profit of 2,168.5 million Saudi Riyals, a 55.18% decrease from the previous year's 4,838.7 million.

Operational profit also saw a sharp decline of 64.94%, amounting to 1,419 million Saudi Riyals, compared to 4,047 million in the previous year. Net profit suffered a substantial decrease of 67.32%, with the company reporting 1,175 million Saudi Riyals, down from 3,595.3 million. Total comprehensive income and shareholders' equity also experienced downturns, marking a challenging year for Sipchem.

The primary reasons behind these declines were attributed to a decrease in the selling prices of Sipchem's products and a reduction in sales volumes, exacerbated by the periodic turnaround maintenance activities of International Methanol Company and International Diol Company. Despite a decline in raw material prices and zakat & income tax expenses, the decrease in revenue, coupled with a reduced share of profits from investments in joint ventures and associates, significantly impacted the company's profitability.

Sipchem's financial statements received an unmodified opinion from the external auditors, indicating no significant issues with the financial reporting. However, the company faces challenges in navigating the market conditions that have led to reduced selling prices and sales volumes, impacting its overall financial performance for the year 2023.