Sipchem profit surges 87% to $44m on better sales

Increased demand and prices pushed profits higher says CEO

Ahmed al-Ohali CEO of Sipchem.
Ahmed al-Ohali CEO of Sipchem.

Increased sales to the second half of 2011 has led gross profits of Saudi International Petrochemical Company “Sipchem” to jump 87% to US$44m compared to $23.3m by the same period in 2010, according to Ahmed al-Ohali, CEO of Sipchem.

The CEO said in an interview with Al Arabiya TV channel that methanol and butanediol prices have jumped 15% in the second quarter compared to first quarter as some plants were shutdown in addition to the soaring demand from European markets.

Al-Ohali expected demand to stabilise in the third quarter of this year due holiday season, in addition to negotiations for the next year’s contracts which is generally take place in the third quarter of every year.

Al-Ohali said he expected Sipchem's ongoing projects, which include the LDPE project and the ethyl acetate project,  to be completed by mid-2013.

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