April 16 2015

Element

Current quarter

Similar quarter for previous year

% Change Current

Previous quarter

% Change Previous

Net profit (loss)

-49.5

99.9

-

92.2

-

Gross profit (loss)

23.6

57.1

-58.67

176.9

-86.66

Operational profit (loss)

-1.2

17.9

-

137.1

-

Earning or loss per share, Riyals

-0.11

0.23

-

-

-

Element

Explaination

Reasons of increase (decrease) for quarter compared with same quarter last year

is attributed to the decline in the demand and prices of products of companies that entered the Commercial operation phase recently, the companies are: Saudi Acrylic Acid plant (SAAC) and Super Absorbent Polymers Company (SAPCO) and Sahara and Maaden Petrochemical Company (SAMAPCO) which resulted in loses during this quarter. It is attributed also to the decline in the demand and prices of products of Al Waha Petrochemical Company In addition to charging the quarter with the refinancing cost amounting to SR 39.6 Million. In addition to the lower profit from Saudi Ethylene and Polyethylene company because of the decline in the demand and prices of products

Reasons of increase (decrease) for quarter compared with previous quarter

is attributed to the decline in the demand and prices of products of companies that entered the Commercial operation phase recently, the companies are: Saudi Acrylic Acid plant (SAAC) and Super Absorbent Polymers Company (SAPCO) and Sahara and Maaden Petrochemical Company (SAMAPCO) which resulted in loses during this quarter. It is attributed also to the decline in the demand and prices of products of Al Waha Petrochemical Company In addition to charging the quarter with the refinancing cost amounting to SR 39.6 Million. In addition to the lower profit from Saudi Ethylene and Polyethylene company because of the decline in the demand and prices of products

Other notes

In a statement by Eng. Saleh M. Bahamdan (Sahara executive president) that: 2015 will be a year of challenges because of the decline in the oil prices and therefore the prices of products, and it is a double challenge for Sahara Petrochemicals Company because of the commercial startup of three of the companys projects. And as it is known in the petrochemicals industry that the first and second years after starting a plant are the hardest years and the financial return during these years is not usually positive because of the depreciations and not reaching the plant production capacity, Sahara Petrochemicals Company in cooperation with Tasnee National Company, Dow Chemicals & Evonik (our partners in Saudi Acrylates Complex), are doing a study and a plan and an accelerated ways to avoid the complex generating negative results in the near future. Also AlWaha Petrochemicals are doing a planned turnaround in this period which will replace the cooling pipeline network completely to avoid this issue from recurring again. In addition to that, the company is currently undergoing a complete study with a professional firm to restructure the company and its subsidiaries with the intention of cost optimization by using the current human resources available and creating new ways of saving without implementation on the effectiveness and efficiency. In an effort to realize the companys strategic plan in improving the production levels and reducing the cost of plants and to focus on the startup of the projects.

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