Specim’s profits decreased 63.7% to 426.1 million riyals in 2024

The profits of the International Desert Petrochemical Company (SBCIM) in 2024 decreased by 63.7% to 426.1 million riyals, compared to 1.7 billion riyals in 2023.
According to the company’s statement on Saudi Arabia’s circulation, the company recorded a decrease in net profit during the current year compared to the previous year, and this is mainly due to the following factors:
High costs of the values ​​and raw materials.
– The decrease in revenues as a result of the decline in the prices of selling products and the low amount of sales, as a result of the periodic maintenance work scheduled in some subsidiaries, and it was previously disclosed in “trading”.
– The share of profits from investing in a joint venture and colleague companies decreased due to the low prices of products. In addition to the decline in the profit share in one of the associates as a result of the process of integrating business and the decrease in the value of fame, as the SBCEM share of this decrease is 57 million riyals.
– The decrease in zakat expenses during the year, as a result of the reflection of the zakat allowance of 134 million riyals related to previous years, after the closure of the zakat rises by the Zakat, Tax and Customs Authority.

Stop production operations at Ethyl acetate factory

The Board of Directors of the International Desert Petrochemical Company (SBCIM) decided, yesterday, to stop production operations at the ethyla acetate factory for Sipkim Chemical Company (one of the subsidiaries of Specim) until further notice.
This comes in line with the Specim strategy with the aim of improving profitability and performance efficiency and to ensure liquidity and stability levels and maintain the integrity of the financial structure.
It is expected that the integration of productive operations will contribute to limiting the impact of the suspension of this factory, which will positively reflect on the company’s results in the next stage.
The ethyl acetate plant is located in the industrial city of Jubail and is currently being prepared to start the process of stopping production in the above mentioned factory.
Note that the financial impact will appear with the results of the second quarter of the year 2025 AD. Any fundamental development related to this issue will be announced according to the relevant regulations and instructions.