Sipchem’s net profit soars to SAR 1.078 bln in Q1 2022

Sipchem’s net profit soars to SAR 1.078 bln in Q1 2022

19/04/2022 Argaam Exclusive

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Sahara International Petrochemical Co. (Sipchem) reported a net profit after Zakat and tax of SAR 1.078 billion in Q1 2022, a sharp rise from SAR 411.5 million in the prior-year period, due to higher revenue amid an increase in selling prices of all products.



Current Quarter Comparison (M)

Compared With The
Item Q1 2021 Q1 2022 Change‬
Revenues 2,030.98 2,348.11 15.6 %
Gross Income 956.06 1,321.34 38.2 %
Operating Income 733.27 1,149.14 56.7 %
Net Income 411.47 1,078.82 162.2 %
Average Shares 733.33 733.33 -
EPS (Riyals) 0.56 1.47 162.2 %

The revenue growth came despite an increase in feedstock prices of butane, ethanol, ethylene and propane, along with lower sales volumes due to the closure of Al Waha Petrochemical Co.’s plant for scheduled periodic turnaround maintenance.

 

Sipchem also noted a decrease in finance costs and other expenses, in addition to an increase in the company’s profit share from joint venture and associates.

 

When compared to Q4 2021, Sipchem posted an 18.3% decrease in net profit after Zakat and tax from SAR 1.321 billion.

 

Shareholders’ equity, excluding minority interest, grew by 20.2% to SAR 15.668 billion by the end of Q1 2022, compared to SAR 13.032 billion in the year-ago period.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2013 857.39 (19.0 %) 180.54 (46.1 %) 64.45 (57.5 %) 0.18
Q2 2013 912.42 0.9 % 368.77 17.4 % 174.02 27.9 % 0.47
Q3 2013 998.84 9.2 % 345.65 9.8 % 185.19 18.8 % 0.51
Q4 2013 1,302.97 24.7 % 469.59 54.6 % 196.79 24.8 % 0.54
Q1 2014 927.45 8.2 % 233.36 29.3 % 68.66 6.5 % 0.19
Q2 2014 1,177.63 29.1 % 522.46 41.7 % 244.60 40.6 % 0.67
Q3 2014 1,019.33 2.1 % 317.91 (8.0 %) 160.57 (13.3 %) 0.44
Q4 2014 999.99 (23.3 %) 322.92 (31.2 %) 132.40 (32.7 %) 0.36
Q1 2015 802.03 (13.5 %) 234.08 0.3 % 80.62 17.4 % 0.22
Q2 2015 1,006.95 (14.5 %) 287.40 (45.0 %) 110.07 (55.0 %) 0.30
Q3 2015 809.93 (20.5 %) 209.37 (34.1 %) 71.58 (55.4 %) 0.20
Q4 2015 871.77 (12.8 %) 102.15 (68.4 %) 25.98 (80.4 %) 0.07
Q1 2016 923.99 15.2 % 268.86 14.9 % 49.23 (38.9 %) 0.13
Q2 2016 923.62 (8.3 %) 215.25 (25.1 %) 11.37 (89.7 %) 0.03
Q3 2016 717.85 (11.4 %) 128.24 (38.8 %) (49.38) (169.0 %) (0.13)
Q4 2016 949.59 8.9 % 249.11 143.9 % 31.87 22.7 % 0.09
Q1 2017 1,199.01 29.8 % 352.28 31.0 % 91.65 86.2 % 0.25
Q2 2017 918.28 (0.6 %) 281.06 30.6 % 59.79 425.9 % 0.16
Q3 2017 1,063.57 48.2 % 367.04 186.2 % 121.55 346.1 % 0.33
Q4 2017 1,278.63 34.6 % 425.67 70.9 % 164.40 415.9 % 0.45
Q1 2018 1,170.94 (2.3 %) 414.77 17.7 % 151.39 65.2 % 0.41
Q2 2018 1,474.46 60.6 % 545.06 93.9 % 211.37 253.5 % 0.58
Q3 2018 1,337.75 25.8 % 470.38 28.2 % 180.27 48.3 % 0.49
Q4 2018 1,052.66 (17.7 %) 204.57 (51.9 %) 39.92 (75.7 %) 0.11
Q1 2019 1,121.61 (4.2 %) 405.07 (2.3 %) 114.72 (24.2 %) 0.18
Q2 2019 1,409.42 (4.4 %) 488.57 (10.4 %) 210.85 (0.2 %) 0.33
Q3 2019 1,402.02 4.8 % 361.57 (23.1 %) 111.05 (38.4 %) 0.17
Q4 2019 1,506.69 43.1 % 380.04 85.8 % (137.10) (443.4 %) (0.21)
Q1 2020 1,404.09 25.2 % 272.39 (32.8 %) (52.83) (146.0 %) (0.07)
Q2 2020 950.24 (32.6 %) 161.65 (66.9 %) (98.96) (146.9 %) (0.13)
Q3 2020 1,361.94 (2.9 %) 220.28 (39.1 %) 10.01 (91.0 %) 0.01
Q4 2020 1,606.75 6.6 % 518.62 36.5 % 317.64 331.7 % 0.43
Q1 2021 2,030.98 44.6 % 956.06 251.0 % 411.47 878.9 % 0.56
Q2 2021 2,362.65 148.6 % 1,477.57 814.1 % 829.88 938.6 % 1.13
Q3 2021 2,505.60 84.0 % 1,369.30 521.6 % 1,029.51 10180.7 % 1.40
Q4 2021 2,787.47 73.5 % 1,539.43 196.8 % 1,321.00 315.9 % 1.80
Q1 2022 2,348.11 15.6 % 1,321.34 38.2 % 1,078.82 162.2 % 1.47

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2013 29.92 % 40.69 % 13.81 %
Q2 2013 31.32 % 42.52 % 14.80 %
Q3 2013 31.43 % 42.98 % 15.24 %
Q4 2013 33.51 % 42.25 % 15.24 %
Q1 2014 34.22 % 42.01 % 15.08 %
Q2 2014 35.65 % 42.65 % 15.78 %
Q3 2014 34.86 % 41.78 % 15.15 %
Q4 2014 33.86 % 42.36 % 15.61 %
Q1 2015 34.94 % 44.44 % 16.40 %
Q2 2015 30.36 % 40.88 % 13.61 %
Q3 2015 29.12 % 40.95 % 11.94 %
Q4 2015 23.86 % 36.22 % 8.26 %
Q1 2016 24.02 % 36.37 % 7.70 %
Q2 2016 22.54 % 33.34 % 5.09 %
Q3 2016 20.79 % 27.62 % 1.71 %
Q4 2016 24.51 % 33.63 % 1.84 %
Q1 2017 24.93 % 31.95 % 2.26 %
Q2 2017 26.70 % 34.06 % 3.54 %
Q3 2017 30.25 % 38.89 % 7.38 %
Q4 2017 31.98 % 37.10 % 9.81 %
Q1 2018 33.59 % 39.50 % 11.15 %
Q2 2018 35.14 % 40.29 % 13.23 %
Q3 2018 35.27 % 39.61 % 13.93 %
Q4 2018 32.46 % 36.75 % 11.59 %
Q1 2019 32.59 % 36.33 % 11.28 %
Q2 2019 31.87 % 35.20 % 11.22 %
Q3 2019 29.28 % 32.93 % 9.47 %
Q4 2019 30.06 % 31.54 % 6.31 %
Q1 2020 26.26 % 27.08 % 6.15 %
Q2 2020 22.34 % 23.24 % 0.71 %
Q3 2020 19.80 % 21.11 % (1.27 %)
Q4 2020 22.04 % 24.54 % 5.51 %
Q1 2021 31.20 % 32.90 % 12.25 %
Q2 2021 43.09 % 42.55 % 23.49 %
Q3 2021 50.81 % 49.65 % 32.32 %
Q4 2021 55.15 % 56.32 % 39.38 %
Q1 2022 57.05 % 58.67 % 43.20 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2013 366.67 1.40 1.40 14.80
Q2 2013 366.67 1.51 1.51 15.31
Q3 2013 366.67 1.59 1.59 15.23
Q4 2013 366.67 1.69 1.69 15.80
Q1 2014 366.67 1.70 1.70 15.35
Q2 2014 366.67 1.90 1.90 15.45
Q3 2014 366.67 1.83 1.83 15.90
Q4 2014 366.67 1.65 1.76 16.28
Q1 2015 366.67 1.69 1.79 15.85
Q2 2015 366.67 1.32 1.42 15.59
Q3 2015 366.67 1.08 1.18 15.78
Q4 2015 366.67 0.79 0.79 15.85
Q1 2016 366.67 0.70 0.76 14.36
Q2 2016 366.67 0.43 0.49 14.38
Q3 2016 366.67 0.10 0.16 14.25
Q4 2016 366.67 0.12 0.18 14.36
Q1 2017 366.67 0.23 0.23 14.61
Q2 2017 366.67 0.37 0.37 14.77
Q3 2017 366.67 0.83 0.83 15.10
Q4 2017 366.67 1.19 1.19 15.55
Q1 2018 366.67 1.36 1.35 15.97
Q2 2018 366.67 1.77 1.80 16.05
Q3 2018 366.67 1.93 2.00 16.04
Q4 2018 366.67 1.59 1.59 16.14
Q1 2019 641.67 0.85 0.88 15.81
Q2 2019 641.67 0.85 0.86 18.89
Q3 2019 641.67 0.74 0.74 18.44
Q4 2019 641.67 0.47 0.54 18.19
Q1 2020 733.33 0.18 0.48 18.09
Q2 2020 733.33 (0.24) 0.05 17.97
Q3 2020 733.33 (0.38) (0.09) 17.94
Q4 2020 733.33 0.24 0.40 17.71
Q1 2021 733.33 0.87 0.99 17.77
Q2 2021 733.33 2.14 2.36 18.18
Q3 2021 733.33 3.53 3.75 19.56
Q4 2021 733.33 4.90 5.20 19.89
Q1 2022 733.33 5.81 5.89 21.37

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2013 27.25 27.25 2.58
Q2 2013 30.16 30.16 2.97
Q3 2013 31.47 31.47 3.28
Q4 2013 37.59 37.59 4.03
Q1 2014 38.15 38.15 4.23
Q2 2014 33.35 33.35 4.09
Q3 2014 46.97 46.97 5.40
Q4 2014 32.10 30.23 3.26
Q1 2015 33.93 31.99 3.61
Q2 2015 47.97 44.52 4.06
Q3 2015 35.01 31.97 2.39
Q4 2015 35.64 35.64 1.77
Q1 2016 37.63 34.72 1.84
Q2 2016 60.60 53.35 1.82
Q3 2016 More than 100 More than 100 1.86
Q4 2016 More than 100 More than 100 2.63
Q1 2017 More than 100 More than 100 2.43
Q2 2017 77.10 77.10 1.91
Q3 2017 37.93 37.93 2.09
Q4 2017 29.26 29.26 2.24
Q1 2018 31.26 31.44 2.65
Q2 2018 25.34 24.91 2.79
Q3 2018 23.41 22.60 2.82
Q4 2018 25.11 25.09 2.47
Q1 2019 27.06 26.28 2.55
Q2 2019 28.03 27.69 1.10
Q3 2019 27.73 28.00 0.98
Q4 2019 43.97 38.36 0.99
Q1 2020 68.23 25.61 0.68
Q2 2020 NEG More than 100 0.80
Q3 2020 NEG NEG 0.92
Q4 2020 72.22 43.29 0.98
Q1 2021 25.32 22.24 1.24
Q2 2021 14.33 12.99 1.69
Q3 2021 12.41 11.68 2.24
Q4 2021 8.57 8.07 2.11
Q1 2022 9.25 9.11 2.51

Business Segments (Million)

Compared With The
Period Marketing activities Intermediate chemicals Basic chemicals Polymers Corporate and others Petrochemical sector Eliminations
Q1 2013 214.24 - - - - 643.15 -
Q2 2013 176.39 - - - - 736.03 -
Q3 2013 208.84 - - - - 790.00 -
Q4 2013 196.75 - - - - 1,106.22 -
Q1 2014 225.80 - - - - 701.65 -
Q2 2014 143.30 - - - - 1,034.33 -
Q3 2014 128.72 - - - - 890.61 -
Q4 2014 226.62 - - - - 773.37 -
Q1 2015 59.50 - - - - 742.53 -
Q2 2015 99.40 - - - - 907.55 -
Q3 2015 64.73 - - - - 745.20 -
Q4 2015 279.26 - - - - 592.51 -
Q1 2016 - 565.13 341.67 271.08 51.78 - (305.68)
Q2 2016 928.40 603.96 337.22 260.71 - - (1156.44)
Q3 2016 391.59 385.17 276.06 251.18 - - (584.60)
Q4 2016 569.76 416.92 372.05 290.91 1.55 - (701.59)
Q1 2017 899.09 606.65 508.76 318.09 2.55 - (1136.12)
Q2 2017 616.75 513.05 359.97 228.20 74.44 - (874.13)
Q3 2017 599.04 435.32 498.62 285.49 33.22 - (788.11)
Q4 2017 774.81 747.67 494.99 266.44 14.89 - (1020.16)
Q1 2018 731.01 565.18 540.95 296.35 41.82 - (1004.36)
Q2 2018 825.69 693.27 536.49 298.43 40.58 - (920.00)
Q3 2018 781.59 810.39 384.43 407.53 44.84 - (1091.03)
Q4 2018 629.36 746.38 320.81 352.07 17.51 - (1013.48)
Q1 2019 720.42 690.39 414.52 295.77 76.68 - (1076.18)
Q2 2019 791.99 577.35 392.95 590.67 134.60 - (1078.15)
Q3 2019 802.75 360.16 590.10 701.89 (86.24) - (966.65)
Q4 2019 589.67 697.60 442.78 997.51 19.14 - (1240.01)
Q1 2020 1,022.46 591.42 465.32 506.80 12.04 - (1193.95)
Q2 2020 646.72 445.67 370.55 419.67 13.86 - (946.23)
Q3 2020 867.35 588.25 351.95 652.64 18.36 - (1116.61)
Q4 2020 1,122.06 606.62 503.76 755.12 10.16 - (1390.98)
Q1 2021 1,456.57 762.03 648.12 828.79 7.40 - (1671.93)
Q2 2021 1,730.16 1,133.47 753.07 958.38 3.80 - (2216.22)
Q3 2021 1,964.72 1,096.97 841.12 810.62 0.08 - (2207.91)
Q4 2021 2,283.86 1,312.85 903.74 856.89 5.25 - (2575.13)
Q1 2022 1,935.17 1,181.01 873.20 652.58 3.04 - (2296.89)

Analysts Estimates (Million)

Item Q1 2022 (e) Q1 2022 (a) Change‬
Average 997.04 1,078.82 8.20 %

Estimates vs Actual (Million)

Item Q1 2022 (e) Q1 2022 (a) Change
Al Rajhi Capital 1,134.00 1,078.82 (4.9) %
AlJazira Capital 1,027.20 1,078.82 5.0 %
Riyad Capital 1,010.00 1,078.82 6.8 %
SNB Capital 1,175.00 1,078.82 (8.2) %
Hermes 987.00 1,078.82 9.3 %
Bank of America 970.38 1,078.82 11.2 %
OSOOL AND BAKHEET 849.00 1,078.82 27.1 %
U-Capital 823.70 1,078.82 31.0 %

Current
Market Cap (M Riyal) 21,229.90
Enterprise Value (EV) (M) 22,725.44
Shares Outstanding ((M)) 733.33
EPS ( Riyal) (TTM) 1.21
Book Value (BV) ( Riyal) 21.49
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 28.76
P/E (TTM) 23.96
Price/book 1.35
Return on Average Assets (%) (TTM) 3.9
Return on Average Equity (%) (TTM) 5.5

Share Price

Sahara International Petrochemical Co. (SIPCHEM)


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