SABIC expects product margins to remain under pressure in Q2 2023

Abdulrahman Al-Fageeh, CEO, Saudi Basic Industries Corp.

Saudi Basic Industries Corp. (SABIC) said that high inflation and interest rates will continue to add uncertainty to global demand growth, expecting product margins to remain under pressure in the second quarter of 2023.

“We are closely monitoring the changes and the recovery of the global market demand,” said SABIC’s CEO Abdulrahman Al-Fageeh.

He said that new capacities in Q1 2023 are adding more pressure on global prices, while there is limited relief on variable cost.

“We continue to keep our operating costs under control and maintain our strong balance sheet. Despite current market uncertainties, our determination to deliver on growth, innovation and sustainability remains intact.”

Al-Fageeh stated that Shareek program will play a key role in the next growth phase of SABIC.

The first package of initiatives was launched during the first quarter of 2023, whereby SABIC will contribute to transforming Saudi Arabia into a manufacturing hub for specialized materials through a strategic project to build and manufacture catalysts.”

The Saudi petrochemicals major’s net profit declined to SAR 660 million in Q1 2023, from SAR 6.47 billion a year earlier, Argaam earlier reported.