Saudi Arabia’s petrochemicals producers are expected to post a combined net profit of SAR 6.011 billion in Q2 2017, down 13 percent year-on-year (YoY) on lower utilization rates, shutdown impact, and the volatility in oil prices, Riyad Capital said in its Q2 2017 earnings forecasts for the sector.
Saudi petchems are also forecast to generate aggregate revenues of SAR 50.516 billion in Q2 2017, up by 2 percent YoY.
Saudi Basic Industries Corporation (SABIC) is expected to see a 10 percent YoY decline in net income. Its subsidiary, Yanbu National Petrochemical Co (Yansab), is forecast to report the biggest profit decline of 48 percent YoY to SAR 356 million, as it underwent a 20-day shutdown in its MEG plant.
Saudi International Petrochemical Co. (Sipchem) is estimated to post the highest profit growth 23 percent YoY in Q2 to SAR 32 million, despite a five-day plant shutdown in its key plants coupled with its 21-day shutdown at its VAM plant.
The Saudi Industrial Investment Group (SIIG) is projected to make a 7 percent profit rise YoY in Q2, as Saudi Chevron Phillips Company (SCP) and Jubail Chevron Phillips Company (JCP) are likely to show some growth in Q2.
With large fall in urea prices this quarter, SAFCO is likely to post lower margins on a sequential basis though it’s a good improvement on YoY basis, Riyad Cap said.
|
Profit Estimates (SAR mln) |
||
|
Company |
Q2 forecast |
YoY change |
|
Advanced |
161 |
(13%) |
|
Petrochem |
151 |
(28%) |
|
SIIG |
174 |
7% |
|
Saudi Kayan |
168 |
-- |
|
Yansab |
356 |
(48%) |
|
SABIC |
4,796 |
(10%) |
|
SAFCO |
302 |
-- |
|
Sahara |
81 |
-- |
|
Sipchem |
32 |
23% |
|
Petro Rabigh |
(210) |
-- |
|
Group Total |
6,011 |
(13%) |
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