SABIC suffers 13.2% drop in first-quarter net profit

20/04/2016 04:59 AST

Saudi Basic Industries Corp. (SABIC) made a net profit of SR3.41 billion in Q1, 2016, down from SR3.93 billion in the corresponding period last year. The company reported on Monday a 13.2 percent drop in the first-quarter net profit, extending a profit slump.

SABIC’s Acting Vice Chairman and CEO Yousef Al-Benyan attributed the profit fall to lower average sales prices, at a press conference held at the SABIC headquarters here. He noted that the net loss for the metals segment amounted to SR725 million. He added that the cost of sales dropped during the period.

Al-Benyan said the increase in net income is attributable to lower administrative cost, and higher other incomes in addition to lower losses from the metals segment compared to the previous quarter.

“Innovation is one of the key enablers of SABIC’s 2025 strategy and we will continue investing in it. We are taking advantage of the cutting edge technology in creating new sources of competitive feedstock and energy that will allow the company to continue to build a sustainable business,” Al-Benyan said.

He added: “We try to fully understand and master the many applications our customers require. And we seek to develop and own the best technologies to become more competitive than our peers.”

Throughout 2015, the Home of Innovation initiative facilitated business collaboration between SABIC, participants and other interested parties toward developing solutions that address issues of energy and water use, healthy indoor air, and overall building performance.

SABIC marked another significant milestone in this technology and innovation journey when it entered into a joint venture with SK Global Chemical in October, 2015 for a state-of-the-art research and development.

Regarding the fire that broke out at the United Petrochemical Co. plant in Jubail on Saturday, Al-Benyan said those injured and hospitalized had been discharged, except one who is still undergoing treatment.

SABIC holds a 75 percent stake in United Petrochemical Co.

Arab News