Two of the chemical plants owned by Saudi International Petrochemical Company (Sipchem) are experiencing reduced production, after a technical glitch at the carbon monoxide plant of its International Gases Company (IGC).
The affected plants Acetic Acid of the International Acetate Company (IAC) and Ethyl Acetate of Sipchem Chemicals Company (SCC) use carbon monoxide as feed stock for some of the products, Sipchem said in a statement to Saudi Stock Exchange, where its shares are listed.
The technical teams are currently fully focused on resolving this issue to restore full operating capacity of carbon monoxide plant, the company said in the statement, adding that the initial estimates indicates this issue may continue until the third week of August.
The company said it will make announcement about the financial impact of reduced production once the issue resolved.
On 27 July, the Jubail-based petrochemicals producer reported a 76.39 per cent drop in its second-quarter net profit as product prices fell and non-recurring expenses climbed.
The company, one of oldest petrochemicals producers in Saudi Arabia, reported a net income of SR26m ($6.93m) for the quarter ending 30 June, which compares with SR110.1m for the similar period in 2015. The gross profit for the second-quarter also declined 43.1 per cent, Sipchem said in a filing to the bourse.