Saudi Petchem Profits Up 8% In 2016, But Sabic Under Pressure

Petchems giant Sabic saw profits fall last year despite a stronger fourth quarter. Seemingly unfazed by President Trump’s protectionism, it is targeting strong growth in the US in 2017, as well as in China.

Saudi Arabia’s 14 exchange-listed petrochemicals firms reported total net profits of SR22.95bn ($6.12bn) for 2016, an increase of 8% from 2015’s SR21.25bn ($5.67bn).

Nevertheless, their combined net profits were still 33% lower than for 2014, when high crude oil prices supported linked petrochemicals prices until their late-year crash (see table 1 & chart).

Likewise, while the sector’s combined market capitalization rose 21% over the course of 2016 it remains below end-2014 levels – by more than a third for some companies (see table 2).


One company, state giant Sabic, dominates the sector: its end-2016 market cap of SR274.5bn ($73.2bn) is almost double the SR141bn of the other 13 firms put together. (CONTINUED - 753 WORDS)


table Saudi Petrochemicals Sector Net Profits Edge Up On 2015 But Still A Third Down On 2014 (Sr Mn*)
chart Saudi Petchem Sector Net Profits (Sr Bn)
table Saudi Petchems Firms Market Cap (Sr Bn, End Period)