We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Sun 27 Jan 2019 02:07 PM

Font Size

- Aa +

Lower prices sees Saudi chemical giant report drop in Q4 profit

Saudi petrochemicals giant SABIC reported a 17% rise in profit for the whole of 2018 on overall higher prices and an increase in sales

Lower prices sees Saudi chemical giant report drop in Q4 profit
Saudi national oil company Aramco is in preliminary talks to buy the government's stake in SABIC, in order to diversify its own portfolio, in a deal which would be worth over $70 billion.

Saudi petrochemicals giant SABIC said on Sunday its net profit in the fourth quarter dropped due to lower sales prices but rose for 2018 as a whole.

SABIC, the largest listed firm in the kingdom, said in a statement that its net profit in the final quarter of last year fell 12.4 percent to 3.24 billion riyals ($864 million) from $987 million in the corresponding period of 2017.

It attributed the fall to lower selling prices of its products and to a drop in the results of its associates and joint ventures.

But SABIC profit for the whole of 2018 rose 17 percent on overall higher prices and an increase in sales, the company said.

SABIC, which is among the top 10 global petrochemicals manufacturers in the world, posted a net profit of 21.54 billion riyals ($5.74 billion) in 2018 compared to $4.91 billion in the previous year.

Oil prices rose gradually for most of 2018 but dropped sharply by 40 percent in the fourth quarter due to oversupply fears before recovering partially.

Total revenues of the company, in which the government holds a 70-percent stake, rose 12.9 percent to $45.1 billion last year compared to $39.9 billion in 2017, according to the statement.

Saudi national oil company Aramco is in preliminary talks to buy the government's stake in SABIC, in order to diversify its own portfolio, in a deal which would be worth over $70 billion.

Arabian Business: why we're going behind a paywall

For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.