SABIC reports net profit of $5.74bn in 2018

SABIC reports net profit of $5.74bn in 2018
Published: 5 February 2019 - 5 a.m.
By: Martin Menachery

The positive results also reflect an improvement in average selling prices for products in line with the higher oil price environment. The results reflect success of the company’s transformation initiatives, which was designed to make SABIC even more competitive globally.

Announcing the results at a press conference in Riyadh, Yousef Al-Benyan, SABIC vice chairman and CEO, said: "Our continuous commitment on cost control and business excellence delivered by our business transformation programme has ensured that we continue to remain ahead of new changes in the global petrochemical market. This has helped deliver our strong performance during 2018.”

“Our continued growth is underlined still further by progressing our 2025 global growth strategy though a number of strategic alliances, notably with ExxonMobil in the US and with Clariant in Switzerland.”

Despite the fourth quarter seeing higher sales volumes up by two percent on the previous quarter, a decline in petrochemical prices significantly affected profitability in the fourth quarter relative to earnings earlier in the year.

“SABIC is not immune to turbulence and the cyclical nature of our industry, but our long-term growth strategy, global footprint and new business structure hedge well against some current and emerging political and economic trends. Despite this, we are looking to strengthen our presence and leverage strategic partnerships globally, especially in Asia, US, Europe and Africa,” added Al-Benyan.

Al-Benyan noted that despite the end of year challenging pricing environment, SABIC maintains its focus on continued business transformation and operational excellence as it continue to pursue its strategic long-term growth objectives. As such, in the fourth quarter, SABIC established SABIC Agri-Nutrients Investments Company – a standalone company to consolidate SABIC’s diverse agri-nutrients portfolio to create more synergies and efficiency.

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