Sabic Boosts Transparency Ahead Of Aramco Takeover

Sabic has split out income from operations by the company’s three business groups for the first time. However, the company asserts it will stick to its own transformation plan until the Aramco buy-in later this year.

Saudi state-led petrochemicals and steel giant Sabic has revealed the total revenues of its three business units for the first time, with its core petrochemicals and specialties division seeing revenues fall in the first quarter due to the index linking of petchems prices to crude oil prices.

The company is providing more information about the separate performances of its fertilizers and metals business of late, perhaps paving the way for them to be hived off and sold following the conclusion of the Aramco share purchase ( MEES, 29 March ).

Perhaps as a result of this, Sabic issued a four-page statement announcing its 1Q 2019 earnings rather than the usual few paragraphs to the Saudi Stock Exchange (Tadawul). The company credits a 1Q increase in net income to “strong operational performance and higher share of results from associates and joint ventures.” (CONTINUED - 884 WORDS)

DATA INSIDE THIS ARTICLE

chart Sabic Quarterly Revenues Broken Down By Business Line For The First Time ($Bn)
chart 2018 Saw Sabic Output Hit Record Highs, Driven By Petrochemicals & Agrinutrients (Mn Tons)