SABIC announces $4.88bn net profits for first three quarters, reflects 24.24% increase

SABIC announces $4.88bn net profits for first three quarters, reflects 24.24% increase
Published: 1 November 2018 - 5 a.m.
By: Martin Menachery

SABIC reported strong financial results for the first three quarters of the year, with net profits reaching $4.88bn as against $3.93bn in the same period in 2017, an increase of 24.24%.

Gross profits reached 11.99bn as against $9.98bn in the same period last year – an increase of 20.06%.

"Our business transformation programme, initiated in 2015, continues to yield results as we drive toward realisation of our 2025 strategy,” Yousef Al-Benyan, SABIC vice chairman and CEO, said.

SABIC is optimistic about the state of the global and Saudi economies, with the outlook for growth in each being strong.

Al-Benyan acclaimed the valuable contributions made by the employees in the company's new phase of growth – especially their efforts to increase the company’s rate of reliability.

"Our dedicated employees are our strongest asset,” Al-Benyan said. “Thanks to their focused efforts, we have improved reliability to the point that we are able to absorb the higher feedstock and product costs we have been experiencing this year.”

Al-Benyan pointed to SABIC’s moving from fourth to third on Forbes’ annual ranking of the world’s largest chemical companies. Also, Moody’s has given SABIC an ‘A’ rating, due to its ‘strong global position’ in petrochemicals and fertilisers and access to competitively priced raw materials.

"We are humbled by these distinctions from Forbes and Moody’s and see them as a major recognition of the progress we are making toward becoming the world’s preferred provider of chemicals by 2025,” Al-Benyan said. He also said SABIC would be establishing a new company to promote the development of small-to-medium-sized enterprises and local content creation in Saudi Arabia – on which more details will be forthcoming.

Operational profits for the first three quarters reached $7.93bn as against $5.98bn for the corresponding period the previous year, an increase of 32.60%.

Sales for the first three quarters reached $34.36bn as compared to $29.18bn for the same period last year, an increase of 17.74%.

Sales for the current quarter reached $11.66bn as compared to $10.31bn for the same quarter last year – an increase of 13% – and $11.54bon in the previous quarter – an increase of 0.99%.

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