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Saudi Arabia’s 14 traded petrochemicals companies saw their overall market capitalization increase slightly last year, but newly-released financial results show the impact of the fourth quarter 2014 slide in crude oil prices.
State-owned petrochemicals giant Sabic saw its income decline by 9.3% to SR303.4bn ($80.9bn) for 2014 compared with 2013, including a 29.2%plunge in year-on-year quarterly income to SR4.36bn ($1.16bn) for 4Q14. Sabic CEO Muhammad al-Mady told reporters on 18 January that the fourth quarter decline is mainly attributable to lower average sales prices, which were partially offset by lower costs for certain feedstocks.
‘NOT A SURPRISE’
“The fourth quarter results are not a surprise for us,” Mr Mady says. “We foresaw the effects of the drop in oil prices on our business, but petrochemicals demand is good. Oil prices have deteriorated in a short time, so hopefully they will come back up in a short time as well.”
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