SABIC posts Q3 profit growth as oil prices rise

Oct 29, 2018
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Saudi Basic Industries Corp (SABIC), one of the world’s largest petrochemicals company, said it made a net profit growth for the third-quarter as average prices and sales rose.

It reported a net profit of 6.1 billion riyals for the three months ending Sept. 30, up 5.4 per cent from 5.8 billion riyals in the year-earlier period, according to a SABIC bourse filing.

For the first three quarters of the year, it made a net profit of 18.3 billion riyals compared to 37.4 billion riyals in the same period last year.

During the three quarters, SABIC implemented a restructuring strategy, which resulted in a cost impact of 1.1 billion riyals, it added.

“The increase in net income is attributable to higher average selling prices and increase in sales volumes,” said the company, whose strategic stake-holder Public Investment Fund is in talks for selling a controlling stake to state giant Saudi Aramco.

Saudi Energy Minister Khalid Al-Falih said last week he expected the details of the SABIC deal to be finalised within the first half of 2019, Saudi state TV al-Ekhbariya quoted him as saying.