Sitara Peroxide extends plant shutdown for another two weeks

Sitara Peroxide Limited (SPL), Pakistan’s chemical manufacturer, has announced that it is extending its plant shutdown by two weeks.

The company, engaged in the manufacturing and sale of hydrogen peroxide, announced the development in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“In continuation of our letter dated July 7, 2023, with respect to suspension of production for two weeks due to the non-availability of raw materials/chemicals, we would like to inform that the management has decided to extend the suspension of plant operation for another two weeks,” read the notice.

Earlier this month, SPL shared that the management remains hopeful that the current situation will improve, “enabling the company to resume its production activities after two weeks,” it said back then.

The company, while presenting its quarterly financial statement for the quarter ending 31 March 2023, stated that it is facing the challenge of an unprecedented rise in tariff of Regasified Liquid Natural Gas (RLNG).

“The company uses RLNG as feedstock in the manufacturing of Hydrogen Peroxide and its captive power house in also run on RLNG .

“Unlike exporters, fertiliser manufacturers etc which receive natural gas at a subsidised rate, the local Hydrogen Peroxide manufacturing industry is exposed to fluctuations in tariff of RLNG in the international market.

Meanwhile, “global demand of RLNG has been on higher side and global supply has been facing bottlenecks; resulting in higher tariff of RLNG to hydrogen peroxide manufacturing industry,” it said.

During the quarter ended March 31, 2023, SPL’s net sales remained at Rs137 million against net sales of Rs500 million during the corresponding period of financial last year.

SPL incurred a net loss after tax of Rs83 million and a loss per share of Rs1.50 against a loss after tax of Rs50 million and loss per share of Rs0.90 in the comparative quarter of the corresponding financial year.