What was Sipchem's net loss for H1 2026?

The net loss was SAR 807.2 million.

What caused Sipchem's revenue decline?

The 46.13% revenue decline was due to lower sales volumes from supply chain challenges and unsold inventory accumulation.

Did Sipchem announce any dividend?

The company did not mention any dividend in its statement.

What was the impact of the impairment on results?

The impairment on an associate investment amounted to SAR 328 million, negatively impacting the net loss.

How did Q2 results compare to Q1?

Q2 revenue fell 29.84% to SAR 860.9 million, and the net loss widened to SAR 591.9 million from SAR 215.3 million.

Sipchem Posts SAR 807M Net Loss in H1 2026

Sipchem (2310) reported a net loss of SAR 807.2 million for the first half of 2026, compared to a net profit of SAR 26.1 million in the same period last year, with revenue falling 46.1% to SAR 2.088 billion.

Sahara International Petrochemical Company (Sipchem) (2310) announced its interim financial results for the six months ended June 30, 2026, posting a net loss of SAR 807.2 million, versus a net profit of SAR 26.1 million in the same period a year earlier. Revenue declined 46.13% year-on-year to SAR 2.088 billion.

Key Financial Results

Item	H1 2026	H1 2025	Change
Revenue	SAR 2,088M	SAR 3,876.1M	-46.13%
Net Profit (Loss)	(SAR 807.2M)	SAR 26.1M	N/A
EPS	Not disclosed	Not disclosed	-

Highlights from the Statement

The company attributed the sharp revenue decline to lower sales volumes due to ongoing supply chain challenges leading to unsold inventory accumulation, despite a slight increase in average selling prices. The swing to a net loss resulted from compressed margins pressured by rising feedstock costs (ethylene and propane), an increased share of losses from equity-accounted investees due to plant turnaround activities at an associate, and an impairment on investment in an associate amounting to SAR 328 million.

On a quarter-on-quarter basis, Q2 2026 revenue fell 29.84% to SAR 860.9 million from SAR 1,227.1 million in Q1. The net loss attributable to shareholders widened 174.9% to SAR 591.9 million from SAR 215.3 million, driven by the same factors plus the impairment.

Guidance

The company did not provide any forward guidance.

Impact on the Stock

The weak performance is likely to pressure Sipchem's stock (2310) in upcoming sessions, especially with ongoing supply chain challenges and rising costs. However, the magnitude of the loss may limit a sharp decline if markets had already priced in some negative news.

What This Means for Investors

Sipchem's results reflect ongoing pressures in the petrochemical sector from weak global demand and high input costs. Investors should monitor supply chain developments and feedstock prices closely, as well as any actions the company takes to improve operational efficiency and reduce costs.