Sahara CEO says Q3 boosted by subsidiaries’ strong performance

Sahara Petrochemicals Co. (Sahara) reported strong financial results for the first nine months of 2017, due to the improved performance of subsidiaries, which offset the scheduled maintenance at Al Waha Petrochemicals Co. and Sahara & Maaden Petrochemicals Co. (SAMAPCO), chief executive Saleh Mohammed Bahamdan told Argaam.

Sahara’s 75 percent owned subsidiary, Al Waha Petrochemicals, boosted the plant’s capacity by 10 percent in Q3 2017, which reflected positively on sales volumes.

Last year, Al Waha managed to produce 503,000 tons of polypropylene, exceeding the plant’s design capacity of 450,000 tons.

Also, Saudi Ethylene & Polyethylene Company (SEPC) raised production by 5-10 percent in the third quarter of 2017.

Prices of polyethylene and polypropylene improved during Q3 2017, while acrylic acid prices fell in the global markets.

“We are continuously working on cutting costs and monitoring production rates to record strong sales in non-saturated markets”, he added.

Sahara is still studying the possibility to turn ethylene dichloride (EDC) into a high-yielding product, Bahamdan said, adding that a potential merger with Saudi International Petrochemical Co. could result in robust synergies.