Sahara’s Q3 net profits rise to Riyal 173.5m

31 October 2006 11:42  [Source: ICIS news]

DUBAI (ICIS news)--Profitable cash instruments investment has been key to Sahara Petrochemical Company’s rise in net profits to Riyal 173.5m ($46.3m/€36.5m) for the period ending 30 September 2006, a senior company official said on Tuesday.

 

Net profits rose 84% from Riyal 94m (after deduction of Zakat) from the year ago period, the company said.

 

Third quarter net profit, however, fell by 54% to Riyal 22.7m (after deduction of Zakat) compared to the same period last year.

 

Earnings per share rose to Riyal 1.6 compared to Riyal 0.63 in 2005.

 

Sahara attributed the fall in profits during the third quarter to paying National Petrochemical Industry Company (Tasnee) equity as a partner in petrochemical projects with National Petrochemical Company (NPC).

 

The establishment of a Sahara affiliate, the Al Waha Petrochemical Company, was also cited as a reason for the decrease in net profits.

 

In September, Al Waha Petrochemical Co, a joint venture between Sahara (75%) and Basell International (25 %), had signed Shariah compliant financing agreements worth Riyal 1,890m with a group of financing institutions.

 

The financing agreements, considered the biggest Islamic financing of a petrochemical project in Saudi Arabia, included construction of the Riyal 3,830m petrochemical complex as well as the support facilities to produce propylene and polypropylene (PP) in Jubail Industrial city.

 

The project includes a 450,000 tonnes/year PP plant and 460,000 tonnes/year propane dehydrogenation plan. Feedstock of propane would be supplied by Saudi Aramco.

 

The EPC works of the complex are expected to be completed in late 2008 and should commence production by the 1st quarter of 2009.

By: Anuradha Rao
+65 6780 4359

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