Petchem producers reveal financial results for 2017
Major oil and petrochemical producers posted remarkable gains in their profits for the past year with support from the rise in crude oil prices. ExxonMobil’s and Chevron’s earnings marked the strongest performance since the start of an oil price slide in 2014. ExxonMobil’s earnings increased 151% from $7.8 billion in 2016 to $19.7 billion while Chevron posted a net profit of $9.2 billion. BP’s profits also rose considerably by 139% in 2017 to $6.2 billion for the full year.
In the chemical and petrochemical industry, producers based in the US also reported notable increase in their yearly profit. Occidental Chemical (OxyChem), a wholly owned subsidiary of Occidental Petroleum, announced a net profit of $1.31 billion for the full year while Enterprise Products Partners’ net income climbed on a yearly basis by %12 to $2.85 billion.
In the Middle East, Saudi SABIC’s net profit grew by 4.49% to 18.4 billion riyals ($4.90 billion) in 2017, compared to 17.61 billion riyals ($4.69 billion) for 2016. Saudi Sipchem also recorded a net profit of SAR437 million ($116 million), skyrocketing from SAR43 million ($11 million) in the previous year. Saudi PetroRabigh was another producer who raised its profit immensely in 2017 on a yearly basis to SAR1.42 billion ($379 million), from SAR35 million ($9.3 million) in the previous year.
Kuwait’s EQUATE recorded a 66% increase in its net profit at $1.13 billion on the back of higher MEG prices, improved demand and a strong recovery in its PET business in Europe. Industries Qatar (IQ) also posted a net profit of 3.3 billion riyals ($906 million) for the full year 2017, up 12% from the prior year.
In Europe, meanwhile, Austria-based Borealis recorded a net profit of €1.095 million, slightly down from €1.107 million in 2016. Germany’s chemical giant BASF’s net income for the full year 2017 is, on the other hand, expected to increase by 50% to reach around €6.1 billion from €4.1 billion in 2016.
Across Asia, Malaysia’s Lotte Chemical Titan’s net profit was down by 19.1% on a yearly basis to RM1.06 billion ($273 million) in 2017. Thailand’s Siam Cement Group (SCG) also faced lower profits by 2% at THB55.0 billion ($14.4 billion) but raised its EBITDA by 4% to THB102.1 billion ($3.2 billion) in 2017.
Meanwhile, Japanese and Indian petrochemical companies lastly revealed their financial results for Q3 in January and February while their data for the full year are expected to be completed by March 31, when their fiscal year ends.
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