Sitara Peroxide Limited (SPL), a chemical manufacturer in Pakistan, has announced that it will extend its plant shutdown by three more weeks. The company produces and sells hydrogen peroxide. SPL shared this news in a notice to the Pakistan Stock Exchange (PSX). The management is hopeful that the situation will improve and production activities can resume after the three-week extension.
Previously, SPL had announced a two-week shutdown due to a lack of raw materials/chemicals. In its quarterly financial statement, SPL mentioned the challenge of the high tariff of Regasified Liquid Natural Gas (RLNG). The company uses RLNG as feedstock for hydrogen peroxide production and its captive power source. Unlike other industries that receive subsidized natural gas, the hydrogen peroxide manufacturing industry is affected by fluctuations in RLNG tariff in the international market. The global demand for RLNG has been high, but there have been supply issues, resulting in higher tariffs for the industry.
During the last quarter, SPL’s net sales were Rs137 million, compared to Rs500 million in the same period last year. The company incurred a net loss after tax of Rs83 million and a loss per share of Rs1.50, whereas in the comparative quarter of the previous financial year, the loss after tax was Rs50 million and the loss per share was Rs0.90.
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