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Saudi SABIC Q2 net profit up 14% on lower costs

July 24/2013

MOSCOW (MRC) -- SABIC, the world's biggest petrochemicals group by market value, posted a 13.96% rise in its second quarter net profit, but missed anlaysts' forecasts, according to Arabianindustry.

SABIC, which is 70% state owned, said its net income for the three months to June 30 was 6.04 billion Saudi riyals (USD1.61 billion) compared with 5.3 billion riyals in the same period last year.

Ten analysts surveyed by Reuters forecast SABIC would earn, on average, 6.4 billion riyals for the second-quarter.

SABIC attributed the increase in net income to a decrease in cost of sales and financial charges, despite reduced revenues due to lower sales prices for certain products, according to a statement on the Saudi bourse.

Concerns over slowing global economic growth has weighed down on SABIC's financial performance in recent quarters as demand for its main products such as petrochemicals, metals and fertilisers slows. SABIC's products are used extensively in construction, car manufacturing and other major consumer goods.

As MRC informed previously, SABIC, Saudi petrochemical major, posted fourth quarter net profits of 5.83 billion riyals (USD1.55 bln), an 11.3% increase compared to 2011. Despite the quartely increase, the company said 2012 net income had dropped by 15.5% to 24.72 billion riyals (USD6.59 billion) from 29.24 billion riyals the year before.

Sabic is ranked among  the world's largest petrochemicals manufacturers. It is the largest public company in Saudi Arabia. The comany manufactures chemicals and intermediates, industrial polymers, fertilizers and metals. It is currently the second largest global ethylene glycol producer. Among its products are propylene, paraxylene, styrene, vinyl chloride monomer. Sabic's venture capital arm is looking for opportunities in the U.S., Europe and China to buy stakes in start-up companies that can turn shale gas into petrochemicals. Formed last November, the Netherlands-based business is negotiating 30 to 40 deals and is looking especially at technologies that use different feedstocks.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, vinilhlorid, paraksilol, propylene, styrene, ethylene, Sabic, Saudi Arabia.
Category:General News
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