A first half in decline for the National Electrolysis and Petrochemical Company (SNEP). The industrialist achieved a turnover of 256.2 million DH at the end of last June compared to 478.3 million DH as of June 30, 2023, the activity having been impacted by the unfavorable evolution of PVC sales prices , due to an overabundance of supply.
“The first half of 2024 was marked by the commissioning of new production units, inaugurated in December 2023, making it possible to increase the installed production capacities of PVC resin and Compound PVC”explains SNEP, adding that this investment, essential to meet growing market demand, required a stabilization phase followed by a gradual ramp-up of production. The Electrolysis activity experienced stable performance over the same period.
For the industrialist, this drop in turnover, combined with a temporary increase in costs during the start-up phases, weighed on the operational and financial performance of the company, indicates SNEP in a press release on its results. At the end of last June, the operating result was in negative territory (-49.1 million DH), and the net result stood at -56.3 million. On a consolidated basis, the net result amounted to -32.1 million DH.
However, SNEP remains positive about the outlook. It is therefore counting on an improvement in industrial and financial performance indicators from the year 2025. These positive projections are linked to the development of the electric battery industry in Morocco. The company recently concluded a contract with a major player in this ecosystem, thus strengthening its position as national leader in electrolysis products. This partnership will generate a positive impact on turnover, starting from the 2025 financial year, she explains.
Furthermore, the vinyl activity should experience positive growth, driven by the acceleration of new construction, infrastructure and construction projects in Morocco. SNEP is ideally placed to capitalize on these opportunities in the short and medium term.
E.M.G.
