Nama Chemicals swings to profit in H1 2021 on higher product prices, says CEO

Logo of Nama Chemicals

Nama Chemicals Co. turned to profitability in the first half of 2021, as the prices of core product "epoxy" and intermediate product "epichlorohydrin” increased by more than 50% compared to the previous year, Al Arabiya TV channel reported, citing CEO Abdallah Al-Salem. 

He expects the company to maintain product prices in the coming three months.
 

Talking about the decline in the company's finance charges, Al-Salem said this is attributed to lower interest rates in the Kingdom, as well as cooperation with banks after agreement with Saudi Industrial Development Fund (SIDF). 
 

"The company doesn’t have any plans for capital expansions in the coming two years as it currently focuses on the optimal use of its plants and increase of production," the top official said. 
 

The chemical producer swung to a net profit after Zakat and tax of SAR 19.5 million in H1 2021, versus a net loss of SAR 10.7 million in the year-earlier period. Q2 2021 net profit reached SAR 9.6 million, according to data compiled by Argaam.