Saudi Arabian petchem companies report improved Q4 results
Saudi Basic Industries Corp (SABIC) enjoyed a significant increase of 47.7% in its net profit for the fourth quarter of last year. The company reportedly made a profit of 4.55 billion riyals ($1.21 billion) up from 3.08 billion riyals in the year-earlier period. Meanwhile, SABIC’s operating profit soared 67.2% to 7.29 billion riyals in Q4 while gross profit was up 16.9% to 10.6 billion riyals.
The company attributed the climbing profit to a lower average cost of sales and lower selling, general and administrative expenses thanks to the major’s aggressive cost-cutting in response to low oil prices.
PetroRabigh, a joint venture between Saudi Aramco and Japan’s Sumitomo Chemical, revealed a net Q4 profit at 183 million riyals ($48.8 million) for Q4 compared to a loss of 1.01 billion riyals recorded in Q4 2015. The company pointed to the relatively stable operations and the positive impact on inventory valuation of feedstock price increases as the reason behind the improved figure.
Saudi Arabia’s National Industrialization Co (Tasnee) swung to a Q4 net profit thanks to the improved performance, rising sales and lower costs. The company achieved a net profit of 123.4 million riyals ($32.9 million) in the last three months of 2016 following a net loss of 686.6 million riyals in Q4 2015 owing to improved operating performance, higher sales volumes and falling expenses.
Sipchem (Saudi International Petrochemical Co) saw a massive rise of 101% in the last quarter of 2016. The company’s net profit was at 52.3 million riyals ($13.95 million) in the period, up from 26 million riyals in Q4 2015. Saudi Kayan Petrochemical Co announced a net profit of 103.65 million riyals ($27.65 million) for Q4 2016, after facing a loss of 624.14 million riyals in Q4 2015.
Saudi Arabia’s Yanbu National Petrochemical Co (Yansab), a subsidiary of Saudi Basic Industries Corp (SABIC), achieved a 53.4% jump in Q4 net profit. The company’s Q4 profit stood at 602.85 million riyals ($160.73 million) up from 393.06 million riyals in the same period of 2015.
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