By Adedapo Adesanya
Egyptian energy company, Sidi Kerir Petrochemicals Company (Sidpec), has inked a partnership agreement with its Nigerian counterpart, Rungas Group, for the establishment of a liquefied petroleum gas (LPG) cylinder manufacturing plant.
The factory will have an annual production capacity of one million cylinders and will use polyethylene applications from SIDPEC.
According to a statement from SIDPEC, the partners will start preparing marketing and economic feasibility studies, while Rungas Limited will obtain a license to use the required technology.
The statement also said that the plant may distribute its products in the local market in the future if the technical specifications are approved by the relevant Egyptian authorities.
SIDPEC reported a net profit of EGP 1.209 billion (Egyptian Pounds) after tax for the first half of this year, an increase of 158.33 per cent compared to the same period last year. The company’s revenues rose by 69.19 per cent to EGP 6.563 billion during January-June 2023.
Meanwhile, the Board of Directors of SIDPEC agreed to postpone the acquisition of The Egyptian Ethylene and Derivatives Company (ETHYDCO) until a strategic investor completes the study of acquiring a stake in ETHYDCO’s capital. The acquisition was planned as part of SIDPEC’s expansion strategy in the petrochemical sector.
In the first quarter (Q1) of 2023, Sidpec logged net profits valued at EGP 520 million, an annual leap of 107.20 per cent from EGP 251 million.
Basic earnings per share (EPS) hiked by 52.78 per cent to EGP 0.55 in Q1’23 from EGP 0.36 in Q1-22, while sales climbed by 71.40 per cent to EGP 3.61 billion from EGP 2.10 billion.
