Higher prices, volumes boost profits at Saudi's Sabic in Q3
Operating profits at Saudi Basic Industries Corporation were up 17% compared to Q3 2017
Global petrochemicals giant Saudi Basic Industries Corporation (Sabic) has reported a double-digit increase in operating profits for Q3 2018 compared to the same period in 2017.
According to a Saudi bourse filing, operating profit between July and September 2018 stood at $2.66bn (SAR9.96bn), a 17% jump on Q3 2017’s $2.27bn (SAR8.5bn) figure.
This was backed up by solid revenues, with the Riyadh-based giant bringing in $1.17bn (SAR43.71bn) in cash during the same period – an 11.5% increase on last year.
Net profit was equally positive, increasing 5.4% to hit $1.6bn (SAR6.1bn) in Q3 2018.
This increase, Sabic said in the same Tadawul filing, was “attributable to higher average selling prices and increased in sales volumes”.
The news comes amid of flurry of activity at Sabic, Saudi’s biggest listed company, over the past year.
Saudi Aramco, the world’s biggest oil producing company, remains in talks with the Public Investment Fund – Saudi’s sovereign wealth fund – to take a 70% stake in Sabic.
In November last year, Aramco signed a memorandum of understanding with Sabic to develop a facility that would convert crude oil to chemicals.
The planned complex is expected to process 400,000 barrels per day of crude oil, which will, in turn, produce approximately 8.2 tonnes (9 million tons) of chemicals and base oils annually.
Earlier this month, China’s Wison Engineering announced it had won a $150m (SAR562.7m) engineering, procurement, and construction (EPC) contract as part of Sabic’s Technology Centre expansion plan in Jubail.