Sabic Shows Steely Resolve As Saudi Petchem Profits Fall In Flagging Market

Sabic sees benefits from restructuring, plans to isolate steel business. Overall Saudi petchems results hit by lower selling prices and slower global market growth.

Saudi Arabia’s 14 stock-exchange listed petrochemicals firms saw net profits fall in the third quarter of 2016, by 0.1% from 3Q15 and by 2% from 2Q16. Combined net profit for the first three quarters was down 9.7% compared with the same period in 2015, because of lower market prices for most products – many linked to crude oil prices – and slower market growth, particularly in China.

Petrochemicals giant Sabic saw 3Q16 net profits down by 6.8% compared with 3Q15, but 10.1% higher than for 2Q16. While profits for the first three quarters were down 14.9% year-on-year, Sabic’s end-3Q16 market capitalization was 5.5% higher than at end-2015, boosted by an improved share price. (CONTINUED - 627 WORDS)

DATA INSIDE THIS ARTICLE

table Saudi Petrochemicals Sector Net Profits/Losses (Sr Mn)