Sahara Petrochemicals Co is a publicly listed company listed on the Saudi Tadawul Stock Exchange since July 2004. It works in the materials sector and specializes in raw materials chemicals.
The company invests in industrial projects, mainly in the petrochemical and chemical industries and produces petrochemical and hydrocarbon products. Also, it is engaged in the acquisition of real estate, construction of buildings, and warehouses.
The company’s industrial facilities are located in the city of Jubail. Sahara Petrochemicals Co has many branches: Al WAHA Petrochemicals, Saudi Acrylic Acid Company, Saudi Butanol Company, Sahara Marketing Company, and others.
According to Sahara, as part of its activities, the company seeks to implement high standards of product quality, paying great attention to environmental protection, the safety of its employees and society as a whole. Sahara Petrochemicals Company is involved in many joint ventures with local and international partners.
Sponsorship and support of the Government of Saudi Arabia, the availability of the necessary raw materials, the strategic location of the company near energy sources, raw materials and logistics facilities help the company to conduct successful activities since 2004:
- Produce and sell quality chemical products that meet local and international standards.
- To achieve sustainability that meets the expectations of customers and shareholders through an active, motivated, and productive organization.
Merger of Sahara Petrochemicals Co and Sipchem
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:
- Strengthening company portfolios, diversifying supplies of raw materials and expanding in the value chain.
- Scale up and sustainability in the emerging petrochemical sector.
- Harnessing Sahara’s and Sipchem’s competitive advantages and capabilities to deliver commercial, operational, and functional benefits.
- Creation of a platform with improved financial resources, access to the capital market, as well as experience in the field of products and technologies to use the opportunities of local and international growth.
Sahara Petrochemicals Co financial growth in 2018 and 2019
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.
