Saudi Petchems Income Curbed By Oil Price Crash, Uncertain 2015 Ahead

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.

SABIC SLIDE

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.”


DON'T HAVE AN ACCOUNT?


NEED TO UPGRADE YOUR CURRENT SUBSCRIPTION?

By upgrading your Print or Digital subscription you will gain access to the MEES Archives Database with past articles and data dating back from 1984.

UPGRADE