Saudi petchem producers announce financial results for Q2
Saudi Kayan, an affiliate of Saudi Basic Industries Corporation (SABIC), posted a net profit of 91.02 million riyals ($24.27 million) in the second quarter of this year, ending a period of five straight quarterly losses. In addition to lower feedstock costs, the company also cited their higher sales volumes and lower marketing costs from SABIC for their improved results.
Saudi Arabia’s Yanbu National Petrochemical Co (Yansab), another subsidiary of SABIC, saw their net profit triple in the April-June period. The company registered a net profit of 689.3 million riyals ($183.8 million) in the second quarter of this year, up from a net profit of 227.4 million riyals in the same period of 2015. The company’s surging profit was attributed to their increased production and sales volumes after they conducted maintenance shutdowns in the second quarter of last year. In addition, Yansab also benefited from a decrease in certain feedstock prices, even though the average sales price for the majority of their products has weakened.
Saudi Sahara Petrochemicals’ second quarter net profit soared by 746% to reach 96.4 million riyals ($25.7 million) on the back of higher sales prices for some of their products after their results were affected by scheduled shutdowns in the year earlier period.
Petro Rabigh, a joint venture between Saudi Aramco and Japan’s Sumitomo Chemical, also posted a net profit of 103.2 million riyals ($27.5 million) in the second quarter. However, the company’s net profit is suggesting a decrease of 79.6% compared with the same period of 2015.
Rabigh’s weaker financial results for the quater were led by lower petrochemical prices and refinery margins in addition to some unplanned shutdowns at some of their facilities. In May, the company experienced a power cut at its petrochemicals complex, which also had a 124 million riyal ($33.1 million) impact on their second quarter results.
Advanced Petrochemical also registered a 23.5% decline in its second quater net profit of 186 million riyals ($49.6 million) with respect to the same period of last year. Lower polypropylene prices were cited as the main reason behind the company’s weaker profit.
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