Sidi Kerir Petrochemicals Company revealed its financial results for the third quarter and the first nine months of 2016. The company’s nine-month revenues went up 10 % while its third-quarter revenues went up 20%.
The company’s revenues for the third quarter and first nine months of 2016 amounted to nearly EGP 2.2 billion and EGP 883.8 million respectively. However, the company’s production cost for the third quarter and first nine months of 2016 witnessed a ‘shocking’ increase of 34% and 64% respectively.
The production cost for the third quarter and first nine months of 2016 amounted to EGP 1.6 billion and EGP 698.6 million respectively. The increase in production cost is attributed to cost of Gasco ethylene propylene mixture, which is considered the company’s main raw material.
The increase in production cost has affected company’s profit margins as its gross profit margin for the third quarter and first nine months of 2016 decreased 1300 basis points and 2100 basis points respectively compared with the same period of the previous year.
The company’s net profits for the third quarter and first nine months of 2016 amounted to about EGP 543 million and EGP 133.5 million respectively. The company’s net profit margin fell about 900 basis points and 1800 basis points respectively compared with the same period of the previous year.
