Sabic posts SAR 5.63 bn profit for 2019

04 Feb '20

2 min read

Pic: Sabic

Saudi Basic Industries Corp (Sabic), a global leader in chemicals, registered annual profits of SAR 5.63 billion ($1.5 billion) for FY19. Company's revenue in Q4 was SAR 32.81 billion ($8.75 billion) compared to SAR 33.69 billion ($8.98 billion) in Q3. Net loss of SAR 0.72 billion ($0.19 billion) represented a decrease in net income quarter-over-quarter.

"The petrochemical industry was negatively impacted in 2019 by additional new supply in key products coming on-stream coupled with a moderation in global growth compared to 2018. However, our strong focus on cost controls and safe and reliable operations mitigated some of these negative factors in 2019. This is evident by the 5 per cent reduction in our SG&A in 2019 compared to 2018," Yousef Al-Benyan, Sabic vice chairman and CEO, said in a press release.

The company has reported sustainability and innovation as critical success factors and drivers for the growth of Sabic's brand value which increased by 9.3 per cent to $4.33 billion in the last year, according to the independent brand valuation consultancy, Brand Finance.

In order to increase the efficiency and competitiveness of its global operations, Sabic merged its two wholly-owned affiliates, Saudi Petrochemical Company (SADAF) with its wholly-owned affiliate Arabian Petrochemical Company (PETROKEMYA) last year.

"We are in a cyclical industry and the challenges are not new to Sabic. Our strategy is geared towards stable and long-term growth; and enables us to remain resilient to the headwinds," Al-Benyan said.

Fibre2Fashion News Desk (JL)