Several Saudi producers announce financial results for Q4
Tasnee announced a net profit of 123.4 million riyals ($32.90 million) in the fourth quarter of 2016, which was in line with the analysts’ forecast which called for a net profit 118.4 million riyals ($31.57 million) for the quarter. The company, which had a net loss of 686.6 million riyals ($183 million) in the same period of last year due to the low oil prices, attributed the increase in profits to the improvement in operating performance, a rise in sales volumes as well as a drop in administrative and marketing expenses.
Saudi PetroRabigh also announced a net profit of 183 million riyals ($48.80 million) for the fourth quarter of last year when compared to a loss of 1.01 billion riyals ($270 million) in the same period of 2015. The company attributed the better profit to relatively stable operations as well as the positive impact of feedstock price increases on the value of inventories.
Similarly, Saudi SABIC made a net profit of 4.55 billion riyals ($1.21 billion) in the three months to December 31, up 47.7% from a year earlier. The amount of profit for the quarter was also close to the analysts’ expectations which called for a net profit of 4.94 billion riyals ($1.32 billion). The company attributed the rise in the profit to lower cost of sales, lower selling, lower administrative expenses as well as the cuts the company made on costs due to low oil prices.
Saudi Sipchem is another petrochemical producer which announced a net profit for the fourth quarter of 2016. The company reported a net profit of 52.3 million riyals ($13.94 million) in Q4, up 101% from a year earlier. The analysts had expected the company to make a net profit of 57.7 million riyals ($15.38 million) in the fourth quarter of 2016.
Previously, two other Saudi petrochemical producers, Yansab and Kayan, had announced net profits for the same period.
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