Petchem producers’ combined profit rises 8% in FY16

Saudi Basic Industries Corporation (SABIC), the kingdom’s largest petrochemicals’ producer, contributed the largest share, of around 78 percent, to the sector total profit.

The Saudi heavyweight reported a 5 percent profit slump YoY to SAR 17.91 billion in FY16, driven by lower selling prices, in addition to asset impairment provisions at its 48 percent-owned subsidiary, Arabian Industrial Fibers Co. (Ibn Rushd).

Three companies have swung to profit in FY16, namely, National Industrialization Co. (Tasnee), Rabigh Refining and Petrochemical Company (Petro Rabigh) and Saudi Kayan Petrochemical Company (Saudi Kayan).

Tasnee generated net earnings of SAR 245.6 million in FY16, due to higher sales volumes, and lower SG&A expenses.

Saudi Kayan reported net profit of SAR 134.7 million, driven by higher sales, lower prices of feedstock and lower marketing fees.

Petro Rabigh’s robust results were attributed to higher sales and production.

Yanbu National Petrochemical Co. (YANSAB) posted a 91 percent profit surge YoY in FY16 to SAR 2.3 billion, on the back of higher sales volumes.

Meanwhile, Saudi International Petrochemical Co. (Sipchem) reported the biggest profit decline of 76 percent YoY in FY16, hurt by lower selling prices and higher cost of production.

National Petrochemical Co. (Petrochem) came second, posting a profit decline of 56 percent YoY. Saudi Arabia Fertilizers Co. (SAFCO) followed with profit declining by 51 percent due to lower prices and higher prices of feedstock.

Net profit of Saudi Industrial Investment Group (SIIG) dropped by 33 percent YoY in FY16 on lower profit share from Petrochem.