The National Electrolysis and Petrochemical Company (SNEP) posted a net loss of 56.3 million dirhams (MDH) at the end of June 2024, compared to -21 MDH at the same period a year earlier.
For its part, turnover (CA) amounted to 256.2 MDH in the first half of 2024, compared to 478.3 MDH in the first half of 2023, indicates the company in a press release on its quarterly indicators.
The drop in turnover is mainly due to the unfavorable evolution of PVC sales prices, following an overabundance of supply, explains the same source, noting that at the same time, the Electrolysis activity experienced stable performance during this first half. 2024.
Thus, the decline in turnover combined with a temporary increase in expenses during the start-up phases weighed on the operational and financial performances of the company, with in particular a consolidated net result recorded of -321 MDH. Indeed, 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.
This investment, essential to meet growing market demand, required a stabilization phase followed by a gradual ramp-up of production.
These various stages, carried out in accordance with the rigorous safety requirements inherent to the petrochemical industry, inevitably impacted the availability of products during the first quarter and, consequently, the half-year activity of SNEP, specifies the same source.
Thus, at the end of June 2024, the operating result stood at -49.1 MDH. As for the outlook, SNEP anticipates an improvement in industrial and financial performance indicators from 2025.
The Electrolysis activity benefits from promising prospects thanks to the development of the electric battery industry in Morocco, the press release said, noting that SNEP recently signed a contract with a major player in this ecosystem, thus strengthening its position as national leader. products from electrolysis, which will generate a positive impact on turnover, from the 2025 financial year.
Furthermore, the vinyl activity should experience positive growth, driven by the acceleration of new construction, infrastructure and construction projects in Morocco.
