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Oman Business News

Sabic net profit for Q1 rises 5pc to top $908m

Saudi Arabia-based Sabic, a diversified manufacturing company, has posted a net profit of SR3.41 billion ($908.8 million) in the first quarter of 2019, an increase of 5 per cent compared to SR3.24 billion posted in the previous quarter.

Total sales during the first quarter amounted to SR37.37 billion, a decrease of 7 per cent compared to the same quarter of the previous year, and a decrease of 11 per cent against the previous quarter.

Sabic attributed the change in the 2019 first quarter, compared to the same quarter of 2018, to slowing demand growth coupled with a slow year start and a relatively high level of inventories.

Yousef Al-Benyan, Sabic vice chairman and CEO said that Sabic’s robust performance came despite major challenges facing global markets.

“Sabic has demonstrated strength and resiliency in our financial performance under challenging market conditions. Though lower petrochemical prices negatively impacted Sabic’s first quarter results, we continued to deliver strong operational performance, including the highest quarterly sales volumes over the last four quarters,” he said.

“Sabic remains on the path of transformation which started three years ago. We are progressing work to carve out our Specialties business and remain on track with the transformation of our Agri-Nutrients business. In addition, we are merging the operations of SADAF and Petrokemya. This will bring more efficiencies in operations and boost competitiveness. This transaction is expected to be completed in the second half of 2019,” Al-Benyan noted.

He continued: “Sustainability is a key focus for Sabic. At the end of last year, and in support of the circular economy, we have signed a memorandum of understanding (MoU) on recycled petrochemical feedstock in Europe with Plastic Energy, a UK-based company.

"Since then, we reached another significant milestone in the production of certified circular polymers using a feedstock produced from mixed plastic waste. Sabic is also one of the 27 founding members of “The Alliance to End Plastic Waste”, which is a global initiative between major plastics makers and some consumer goods makers.”
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