In October 2018, Sipchem, an international petrochemical company, and Sahara Petrochemicals signed a USD 2,2 billion merger agreement. The companies announced that their merger could bring profit before interest, taxes, and other payments ranging from 175 million riyals to 225 million riyals per year.
It is anticipated that the transaction will provide a positive change in revenues and costs and add value to shareholders. It is also expected to benefit employees and business partners.
Saleh Bahamdana, CEO of Sahara Petrochemicals Co, said the alliance would create an integrated leader in petrochemicals with an improved competitive position in Saudi Arabia and around the world.
Consistent with the goals of Saudi Vision 2030, the venture aims to create a thriving private sector in Saudi Arabia. The merger is expected to bring many strategic benefits to the combined business, including:
The company’s profit throughout 2018 increased by 13% and amounted to 500,8 million riyals. Sahara Petrochemical links profit growth to Tasnee and Sahara Olefins revenue growth combined with Sahara and Maaden Petrochemicals revenue growth. Operating profit rose 15% to 557,8 million riyals. Earnings per share reached SAR 1.14.
“In 2018, Sahara Petrochemicals Co proved that it is moving in the right direction following strategic plans,” said Saleh bin Mohammed Bahamdan, CEO.
In the first quarter of 2019, the company reported profit growth of 1.78%, amounting to 142,7 million riyals. According to a published report, Sahara Petrochemicals Co attributes the increase in profits to higher ethylene dichloride prices and lower raw material prices.
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