Revenue increased 2% YoY, ahead of our estimates
Sipchem reported 1Q25 revenue of SAR 1,970mn (2% YoY and 13% QoQ), ahead of U-Capital’s estimate.
Net income increases 8% YoY, ahead of U Capital’s estimate
Net Income for the quarter was SAR 195mn (+8% YoY, +876% QoQ), ahead of U-Capital’s estimate.
Maintaining Accumulate rating
Sipchem reported strong bottom-line results for the quarter. This improvement is primarily attributed to higher revenues driven by increased selling prices of certain products and greater sales volumes, despite elevated feedstock and raw material costs. Additionally, an associate recorded a significant gain as a result of the debt restructuring of the Acrylic Complex, with Sipchem’s share of the impact amounting to SAR 429mn. Looking ahead, a gradual rise in prices and the expansions of the ethylene cracker, EVA, and PDH-PP plants are expected to enhance the positive outlook. Consequently, we maintain an Accumulate rating on the stock.