Saudi Arabian petchem majors reveal Q1 financial results
Saudi Basic Industries Corp (Sabic) saw a 13.2% drop in Q1 2016 net profit. The major petrochemical producer reported a net profit of SR3.41 billion ($909.4 million) in the first three month of this year. The figure came down from SR3.93 billion in the year-ago period. SABIC pointed to falling average sale prices as the reason behind the lower result. Net earnings were negatively affected by lower energy prices causing the producer to record lower profits for the six previous quarters, according to media sources.
Saudi Arabia’s Rabigh Refining And Petrochemical Co. (PetroRabigh) faced a net loss in Q1 given a gradual restart process at its plants that started in late 2015 and lowered its sales volumes. Additionally, the loss was attributed to falling product prices. Accordingly, the company made a loss of 32.7 million riyals ($8.7 million) in the three months of 2016 compared to a net profit of 205.4 million riyals in the year-ago period. PetroRabigh had shut its petrochemical complex for 50 days in the last quarter of 2015.
Saudi International Petrochemical Company (Sipchem) reported a 37.1% decrease in its net profit during Q1 this year. The company revealed a profit of SR50.7 million ($13.5 million) from January to end March compared to SR80.6 million in the prior-year period. The declining result was attributed to lower sales prices of company products as well as higher production costs.
Meanwhile, Saudi Arabia’s Yanbu National Petrochemical Co (Yansab) achieved higher profits in the first three months of 2016. A subsidiary of SABIC, the company reported a 41% hike in its net profit at SR401.9 million ($107.2 million) for the period. The figure moved up from 285.1 million riyals in the same period of last year. Yansab pointed to falling feedstock costs as a driver behind rising profits despite lower product prices. Media sources reminded that the company had faced lower profits for the previous four quarters in a row.
Advanced Petrochemical posted a 62.9% year-on-year rise in its net profit bringing the quarterly figure to Saudi riyal (SR) 146 million boosted by significantly higher sales volumes. Accordingly, the company’s operating profit rose 43.5% to SR144 million, while the gross profit surged 41.3% to SR157 million.
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