Sipchem shares soared 142% last year as profits boomed

Last year was a banner year for Saudi Arabia’s Sahara International Petrochemical Co, better known as Sipchem.

Sipchem, which is one of the leading companies in the Saudi petrochemical sector, saw nearly a 142% leap in its share price.

A record high of SR47.4 (US$12.6) was achieved in late October, which was slightly snapped by omicron-propelled losses in the following month.

Heading into 2022, the petrochemical producer seems to be off to a good start as it gained 7.5% year to date, to reach SR45.2 as of January 17.

It is worth noting that the company recorded its highest ever profit since establishment in the third quarter of 2021, standing at SR1.03bn.

This came amid recovery from pandemic repercussions, which led the firm to swing from losses into profits of SR2.27bn in the first nine months of 2021.

The hike in profits was attributed to higher revenues, boosted by rising prices.

Demand for the company’s products is expected to remain strong in the first three months in 2022, Sipchem CEO Abdullah Al-Saadoon told CNBC Arabia last year.

Amid last year’s transition from doom into boom, dividends jumped more than threefold.

The company paid out SR2.25 per share for the fiscal year 2021, up from just SR0.5 in the prior year. This brings the dividend yield to 4.96% based on a share price of SR45.2.

Headquartered in Khobar, Sipchem was established in 1999 and is a globally renowned petrochemical manufacturer with market presence in over 40 countries.

The company’s market cap crossed SR33bn as of January 17, 2022.

SOURCE: www.arabnews.com